📊 SDRL Key Takeaways
Is Seadrill Ltd (SDRL) a Good Investment?
Seadrill faces critical operational cash flow challenges despite 32% revenue growth, burning $22M in cash from operations with interest coverage of 0.4x indicating severe debt servicing stress. The disconnect between positive operating income and negative operating cash flow, combined with persistent net losses and unsustainable cash burn, suggests the company cannot sustain current operations without balance sheet deterioration.
Seadrill Ltd Key Strengths (SDRL)
- Strong revenue growth of 32% YoY indicates market demand recovery in oil & gas drilling sector
- Moderate leverage with Debt/Equity ratio of 0.22x provides some financial flexibility
- Adequate short-term liquidity with 1.94x current ratio and $304M cash position
SDRL Stock Risks: Seadrill Ltd Investment Risks
- Critical operating cash flow negative at -$22M despite positive operating income; indicates severe working capital or operational efficiency issues
- Interest coverage ratio of 0.4x is dangerously low, meaning operating income cannot cover debt service obligations
- Persistent unprofitability with -$7M net income and -2.0% net margin despite revenue growth signals structural profitability problems
- Negative free cash flow of -$22M is unsustainable and will erode cash reserves if not reversed
- Thin 6.7% operating margin leaves no buffer for sector downturns or operational challenges
Key Metrics to Watch
- Operating cash flow trend and working capital dynamics (accounts receivable collection, payables management)
- Interest coverage ratio improvement towards 1.5x+ minimum threshold
- Net margin progression toward breakeven and profitability
- Cash burn rate and runway until potential liquidity constraint
Seadrill Ltd (SDRL) Financial Metrics & Key Ratios
💡 AI Analyst Insight
Seadrill Ltd presents a mixed fundamental picture. Review the detailed metrics above to form your own investment thesis.
SDRL Profit Margin, ROE & Profitability Analysis
SDRL vs Energy Sector: How Seadrill Ltd Compares
How Seadrill Ltd compares to Energy sector averages
Sector benchmarks are approximate industry averages. Actual sector performance may vary.
Is Seadrill Ltd Stock Overvalued? SDRL Valuation Analysis 2026
Based on fundamental analysis, Seadrill Ltd has mixed fundamental signals relative to the Energy sector in 2026.
Note: This is a fundamental analysis based on SEC filings. For P/E ratio, price targets, and market-based valuation, consult financial data providers. This is not investment advice.
Seadrill Ltd Balance Sheet: SDRL Debt, Cash & Liquidity
SDRL Revenue & Earnings Growth: 5-Year Financial Trend
5-Year Trend Summary: Seadrill Ltd's revenue has remained relatively flat over the 5-year period, with a 0% decline. The most recent EPS of $36.92 reflects profitable operations.
SDRL Revenue Growth, EPS Growth & YoY Performance
SDRL Quarterly Earnings & Performance
| Quarter | Revenue | Net Income | EPS |
|---|---|---|---|
| Q1 2026 | $248.0M | -$7.0M | $-0.11 |
| Q3 2025 | $263.0M | -$11.0M | $-0.17 |
| Q2 2025 | $267.0M | -$14.0M | $-0.68 |
| Q1 2025 | $248.0M | N/A | $-0.23 |
Data sourced from SEC EDGAR 10-Q quarterly filings. Figures may represent quarterly or cumulative values.
Seadrill Ltd Dividends, Buybacks & Capital Allocation
SDRL SEC Filings: Latest 10-K & 10-Q Analysis
Access official SEC EDGAR filings for Seadrill Ltd (CIK: 0001737706)
📋 Recent SEC Filings
❓ Frequently Asked Questions about SDRL
What is the AI rating for SDRL?
Seadrill Ltd (SDRL) has an AI grade of C with 78% confidence, based on fundamental analysis of SEC EDGAR filings.
What are SDRL's key strengths?
Claude: Strong revenue growth of 32% YoY indicates market demand recovery in oil & gas drilling sector. Moderate leverage with Debt/Equity ratio of 0.22x provides some financial flexibility.
What are the risks of investing in SDRL?
Claude: Critical operating cash flow negative at -$22M despite positive operating income; indicates severe working capital or operational efficiency issues. Interest coverage ratio of 0.4x is dangerously low, meaning operating income cannot cover debt service obligations.
What is SDRL's revenue and growth?
Seadrill Ltd reported revenue of $358.0M.
Does SDRL pay dividends?
Seadrill Ltd does not currently pay dividends.
Where can I find SDRL SEC filings?
Official SEC filings for Seadrill Ltd (CIK: 0001737706) including 10-K, 10-Q, and 8-K reports are available on SEC EDGAR.
What is SDRL's EPS?
Seadrill Ltd has a diluted EPS of $-0.11.
How is the AI analysis conducted?
Two independent AI systems — Claude (Anthropic) and ChatGPT (OpenAI) — analyze SEC EDGAR filings including 10-K annual reports and 10-Q quarterly reports. Each AI evaluates financial health, profitability ratios, balance sheet strength, and growth metrics. The combined grade reflects both perspectives for balanced insights.
What is SDRL's fundamental grade?
Based on our AI fundamental analysis in May 2026, Seadrill Ltd has a C grade with 78% confidence. Review the strengths and risks sections above for full context. This is not investment advice.
Is SDRL stock overvalued or undervalued?
Valuation metrics for SDRL: ROE of -0.2% (sector avg: 14%), net margin of -2.0% (sector avg: 12%). Compare these metrics with sector averages to assess valuation.
What is SDRL's AI grade for 2026?
Our dual AI analysis gives Seadrill Ltd a combined C grade for 2026. Revenue is data pending, with profitability at or below sector average. Always conduct your own research.
What is SDRL's free cash flow?
Seadrill Ltd's operating cash flow is $-22.0M, with capital expenditures of N/A. FCF margin is -6.1%.
How does SDRL compare to other Energy stocks?
Vs Energy sector averages: Net margin -2.0% (avg: 12%), ROE -0.2% (avg: 14%), current ratio 1.94 (avg: 1.3).