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Relative valuation derived from Energy sector median benchmarks. Model weights: EV/EBITDA (40%), P/B (35%), P/S (25%). Multiples adjusted for extreme outliers and non-recurring volatility.
Auditing capital efficiency...
Quality Profile Audit
Score: 50GRADE C+
Composite assessment of profitability, capital efficiency, and financial strength. Top-tier entities demonstrate sustainable cash flow generation.
Return on Equity
Profit generated per dollar of shareholder equity
4.2%
Sector: 6.7%
Dividend Analysis audit
HIGH YIELD
8.97%
Trailing Yield
$8.97
Per $100 Invested
High yield — monitor payout sustainability closely.
Est. Payout Ratio
380%HIGH
Analyst Projections
Analyst Consensus
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Based on our 6-factor quantitative model, Noble Corp plc (NE) receives a "Hold" rating with a composite score of 50.8/100, ranked #158 out of 4446 stocks. Key factor scores: Quality 50/100, Value 60/100, Momentum 73/100. This is quantitative analysis only — not investment advice.
Noble Corp plc (NE) Stock Analysis — April 2026 Rating, Price, and Forecast
Company Overview — What Does Noble Corp plc Do?
N/A Noble Corp plc (NE) is classified as a mid-cap stock in the Energy sector, specifically within the Petroleum And Natural Gas industry. The company is led by CEO Robert W. Eifler and employs approximately 1,800 people. With a market capitalization of $7.7B, NE is one of the notable companies in the Energy sector.
Noble Corp plc (NE) Stock Rating — Hold (April 2026)
As of April 2026, Noble Corp plc receives a Hold rating with a composite score of 50.8/100 and 3 out of 5 stars from the Blank Capital Research quantitative model.NE ranks #158 out of 4,446 stocks in our coverage universe. Within the Energy sector, Noble Corp plc ranks #27 of 128 stocks, placing it in the top quartile of its Energy peers. The rating is generated by a multi-factor model that weighs quality (30%), momentum (25%), value (15%), investment (10%), stability (10%), and short interest (10%).
NE Stock Price and 52-Week Range
Noble Corp plc (NE) currently trades at $48.93. The stock lost $0.69 (1.4%) in the most recent trading session. The 52-week high for NE is $48.41, which means the stock is currently trading 1.1% from its annual peak. The 52-week low is $17.40, putting the stock 181.2% above its annual trough. Recent trading volume was 1.0M shares, reflecting moderate market activity.
Is NE Overvalued or Undervalued? — Valuation Analysis
Noble Corp plc (NE) carries a value factor score of 60/100 in the Blank Capital model, indicating fair valuation relative to historical norms. The trailing price-to-earnings ratio is 42.31x, compared to the Energy sector average of 19.63x — a premium of 116%. The price-to-book ratio stands at 1.78x, versus the sector average of 1.64x. The price-to-sales ratio is 2.44x, compared to 0.47x for the average Energy stock. On an enterprise value basis, NE trades at 16.57x EV/EBITDA, versus 3.50x for the sector.
Overall, NE's valuation appears roughly in line with sector benchmarks, suggesting the market is pricing the stock fairly given its current fundamentals and growth trajectory. Neither deep value nor significantly overpriced, the stock occupies a middle ground on valuation.
Noble Corp plc Profitability — ROE, Margins, and Quality Score
Noble Corp plc (NE) earns a quality factor score of 50/100, indicating solid business quality with consistent operational execution. The return on equity (ROE) is 4.2%, compared to the Energy sector average of 6.7%, which is below typical expectations for high-quality companies. Return on assets (ROA) comes in at 2.5% versus the sector average of 3.7%.
On a margin basis, Noble Corp plc reports gross margins of 36.0%, compared to 52.7% for the sector. The operating margin is 14.5% (sector: 10.7%). Net profit margin stands at 5.6%, versus 6.4% for the average Energy stock. Revenue growth is running at 15.2% on a trailing basis, compared to -1.2% for the sector. The overall profitability profile is adequate, though there may be room for margin expansion.
NE Debt, Balance Sheet, and Financial Health
Noble Corp plc has a debt-to-equity ratio of 66.0%, compared to the Energy sector average of 55.0%. Leverage is within a manageable range for the industry, though investors should monitor debt trends over time. The current ratio is 1.67x, suggesting adequate working capital coverage. Total debt on the balance sheet is $1.98B. Cash and equivalents stand at $478M.
NE has a beta of 1.43, meaning it is more volatile than the broader market — a $10,000 investment in NE would be expected to move 42.6% more than the S&P 500 on any given day. The stability factor score for Noble Corp plc is 53/100, reflecting average volatility within the normal range for its sector.
Noble Corp plc Revenue and Earnings History — Quarterly Trend
In TTM 2026, Noble Corp plc reported revenue of $3.32B and earnings per share (EPS) of $1.36. Net income for the quarter was $191M. Gross margin was 36.0%. Operating income came in at $488M.
In FY 2025, Noble Corp plc reported revenue of $3.29B and earnings per share (EPS) of $1.36. Net income for the quarter was $217M. Revenue grew 7.4% year-over-year compared to FY 2024. Operating income came in at $416M.
In Q3 2025, Noble Corp plc reported revenue of $798M and earnings per share (EPS) of $-0.13. Net income for the quarter was $-21M. Revenue grew -0.3% year-over-year compared to Q3 2024. Operating income came in at $50M.
In Q2 2025, Noble Corp plc reported revenue of $849M and earnings per share (EPS) of $0.27. Net income for the quarter was $43M. Revenue grew 22.5% year-over-year compared to Q2 2024. Operating income came in at $135M.
Over the past 8 quarters, Noble Corp plc has demonstrated a growth trajectory, with revenue expanding from $693M to $3.32B. Investors analyzing NE stock should weigh these quarterly trends alongside the valuation and quality metrics discussed above.
NE Dividend Yield and Income Analysis
Noble Corp plc (NE) currently pays a dividend yield of 9.0%. At this yield, a $10,000 investment in NE stock would generate approximately $$897.00 in annual dividend income. This compares to the Energy sector average dividend yield of 1.9%, meaning NE offers above-average income for its sector. The net margin of 5.6% provides reasonable coverage for the dividend, though investors should monitor payout sustainability.
NE Momentum and Technical Analysis Profile
Noble Corp plc (NE) has a momentum factor score of 73/100, indicating strong price momentum with the stock outperforming the majority of the market over recent periods. Stocks with high momentum scores have historically tended to continue their outperformance in the near term. The investment factor score is 27/100, which measures capital allocation efficiency and asset growth patterns. The short interest score of 7/100 signals elevated short interest, which can indicate bearish sentiment among institutional investors.
NE vs Competitors — Energy Sector Ranking and Peer Comparison
Comparing NE against the S&P 500 benchmark is also instructive for understanding relative performance. Investors can view the full NE vs S&P 500 (SPY) comparison to assess how Noble Corp plc stacks up against the broader market across all factor dimensions.
NE Next Earnings Date
No upcoming earnings date has been announced for Noble Corp plc (NE) at this time. Check the earnings calendar for the latest scheduling updates across all stocks in our coverage universe.
Should You Buy NE? — Investment Thesis Summary
Noble Corp plc presents a balanced picture with arguments on both sides. The value score of 60/100 suggests attractive pricing relative to fundamentals. Price momentum is positive at 73/100, suggesting the trend favors buyers.
In summary, Noble Corp plc (NE) earns a Hold rating with a composite score of 50.8/100 as of April 2026. The rating is derived from the Blank Capital Research methodology, which combines six factor dimensions into a single quantitative ranking. Investors should consider these quantitative signals alongside their own fundamental research, risk tolerance, and investment time horizon before making buy or sell decisions on NE stock.
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Institutional Research Dossier
Noble Corp plc (NE) Deep Dive Analysis
Published on March 24, 2026
Action RatingHold
Sections
Executive Summary
We maintain a Hold rating on Noble Corp plc (NE). While the company has demonstrated strong revenue growth and improving operating margins, its valuation appears stretched relative to its peers and historical performance. The current P/E ratio of 34.4x significantly exceeds the sector average of 19.5x, suggesting that much of the company's future growth is already priced into the stock.
Noble Corp's recent financial performance, including a net loss in Q3 FY2025, introduces uncertainty regarding its ability to sustain profitability. Although the company's strategic positioning in the offshore drilling market and its improved operational efficiency are positive factors, the high valuation and inherent volatility of the energy sector warrant a cautious approach. Therefore, we believe a Hold rating is appropriate until there is more clarity on the company's long-term earnings potential and valuation.
Business Strategy & Overview
Noble Corp plc operates as an offshore drilling contractor, providing services to the oil and gas industry. The company owns and operates a fleet of mobile offshore drilling units (MODUs), including drillships and semi-submersibles, which are used to drill exploratory and developmental wells in offshore environments. Noble's business model revolves around securing contracts with oil and gas companies to provide drilling services, with revenue generated based on day rates and utilization rates of its drilling rigs.
The company's strategic positioning is focused on deepwater and ultra-deepwater drilling, which requires specialized equipment and expertise. This focus allows Noble to target higher-margin projects and differentiate itself from competitors operating in shallower waters. Noble's success is heavily reliant on the demand for offshore drilling services, which is influenced by oil and gas prices, exploration and production budgets of oil companies, and regulatory factors.
Noble has been actively managing its fleet through strategic acquisitions and disposals to optimize its asset base and enhance its operational efficiency. The company's ability to secure long-term contracts and maintain high utilization rates is crucial for its financial performance. Furthermore, Noble's focus on safety and environmental stewardship is essential for maintaining its reputation and securing future contracts.
The offshore drilling industry is highly competitive, with several major players vying for contracts. Noble competes with companies such as Transocean, Valaris, and Diamond Offshore Drilling. The competitive landscape is characterized by intense price competition, technological advancements, and the need for operational excellence. Noble's ability to differentiate itself through superior service quality, advanced technology, and a strong safety record is critical for its long-term success.
Execution Benchmarks audit
Revenue Growth
YOY expansion rate
15.2%
Sector: -1.2%
-1397% VS SCTR
Economic Moat Analysis
Noble Corp's economic moat is likely Narrow. The offshore drilling industry is characterized by high capital intensity and cyclical demand, making it difficult for companies to establish a wide and sustainable competitive advantage. While Noble possesses certain advantages, such as its focus on deepwater drilling and its operational expertise, these are not insurmountable barriers to entry for competitors.
One potential source of a narrow moat is intangible assets, specifically the company's reputation for safety and reliability. In the offshore drilling industry, a strong safety record is crucial for securing contracts and maintaining relationships with oil and gas companies. Noble's commitment to safety and environmental stewardship could provide a slight competitive edge, but this advantage can be eroded by incidents or accidents.
Switching costs for oil and gas companies are relatively low, as they can easily switch between different drilling contractors based on price and availability. While long-term contracts can provide some stability, these contracts are often subject to renegotiation or cancellation, reducing the stickiness of customer relationships. Therefore, switching costs do not represent a significant source of competitive advantage for Noble.
Efficient scale is not a major factor in the offshore drilling industry, as the market is large enough to accommodate multiple players. While there are economies of scale associated with operating a larger fleet of drilling rigs, these economies are not significant enough to create a dominant market position for any single company. Therefore, efficient scale does not contribute significantly to Noble's economic moat.
Cost advantages can be achieved through operational efficiency and effective fleet management. Noble's efforts to optimize its asset base and improve its operational performance could lead to lower operating costs, providing a slight competitive advantage. However, these cost advantages are not sustainable in the long run, as competitors can adopt similar strategies to improve their own efficiency.
Financial Health & Profitability
Noble Corp's financial health presents a mixed picture. The company has demonstrated strong revenue growth, with revenue increasing from $2.59 billion in FY2023 to $3.29 billion in FY2025. This represents a significant improvement in top-line performance, driven by increased demand for offshore drilling services and higher day rates. However, net income has been volatile, with a net loss of $21.09 million reported in Q3 FY2025, contrasting with a net income of $448.35 million in FY2024.
The company's gross margin of 36.0% is lower than the sector average of 55.1%, indicating that Noble's cost of revenue is relatively high compared to its peers. However, its operating margin of 14.5% is higher than the sector average of 10.6%, suggesting that Noble is effectively managing its operating expenses. The recent decline in operating margin to 6.3% in Q3 FY2025 is concerning and warrants further investigation.
Noble's balance sheet is characterized by a moderate level of leverage. The company has total debt of $1.98 billion and total cash of $477.95 million, resulting in a debt-to-equity ratio of 66.00, which is slightly higher than the sector average of 55.00. The current ratio of 1.67 indicates that Noble has sufficient current assets to cover its current liabilities, providing some financial flexibility.
Free cash flow generation has been inconsistent. While the company generated positive free cash flow of $141.49 million in the trailing twelve months, it reported negative free cash flow of $1.71 billion in FY2024. This volatility in free cash flow raises concerns about the company's ability to consistently generate cash and fund its growth initiatives. The absence of free cash flow data for recent quarters further complicates the assessment of the company's cash flow performance.
Overall, Noble's financial health is adequate but requires close monitoring. The company's strong revenue growth and improving operating margins are positive factors, but its volatile net income, relatively high leverage, and inconsistent free cash flow generation warrant caution. The recent net loss in Q3 FY2025 highlights the inherent risks and uncertainties associated with the offshore drilling industry.
Valuation Assessment
Noble Corp's valuation appears stretched relative to its peers and historical performance. The company's P/E ratio of 34.4x is significantly higher than the sector average of 19.5x, suggesting that the stock is overvalued. This high P/E ratio implies that investors are expecting strong future earnings growth, which may not materialize given the cyclical nature of the offshore drilling industry.
The company's EV/EBITDA ratio of 4.5x is also higher than the sector average of 3.5x, further supporting the conclusion that the stock is overvalued. The EV/EBITDA ratio takes into account the company's debt and cash, providing a more comprehensive valuation metric than the P/E ratio. The higher EV/EBITDA ratio suggests that investors are paying a premium for Noble's earnings relative to its peers.
Noble's ROE of 4.2% is lower than the sector average of 6.9%, indicating that the company is not generating as much profit from its equity as its peers. This lower ROE could be due to a variety of factors, including lower margins, higher leverage, or less efficient asset utilization. The lower ROE further supports the conclusion that the stock is overvalued.
Given the company's high valuation multiples and relatively low ROE, the stock appears to be expensive. While Noble has demonstrated strong revenue growth and improving operating margins, these positive factors may not be sufficient to justify the current valuation. Investors should exercise caution and consider the risks associated with investing in an overvalued stock.
A discounted cash flow (DCF) analysis would be beneficial to determine a fair value for the stock. However, without detailed projections of future cash flows, it is difficult to conduct a reliable DCF analysis. Based on the available data, it appears that the stock is trading at a premium to its intrinsic value.
Risk & Uncertainty
Noble Corp faces several specific risks and uncertainties that could negatively impact its business and financial performance. One of the most significant risks is the cyclical nature of the offshore drilling industry. Demand for offshore drilling services is highly correlated with oil and gas prices, which are subject to significant volatility. A decline in oil and gas prices could lead to reduced exploration and production budgets, resulting in lower demand for Noble's drilling rigs and lower day rates.
Another risk is the intense competition in the offshore drilling industry. Noble competes with several major players, including Transocean, Valaris, and Diamond Offshore Drilling. The competitive landscape is characterized by intense price competition, technological advancements, and the need for operational excellence. Increased competition could lead to lower day rates and reduced profitability for Noble.
Regulatory risks also pose a threat to Noble's business. The offshore drilling industry is subject to stringent regulations related to safety, environmental protection, and operational standards. Changes in regulations could increase compliance costs and restrict Noble's operations. Furthermore, political instability and geopolitical risks in certain regions where Noble operates could disrupt its business and impact its financial performance.
The company's relatively high level of debt also poses a risk. Noble has total debt of $1.98 billion, which could strain its financial resources and limit its ability to invest in growth opportunities. A significant increase in interest rates could increase the company's debt service costs and further reduce its profitability.
Bulls Say / Bears Say
The Bull Case
BULL VIEWNoble's strategic focus on deepwater and ultra-deepwater drilling positions it to capitalize on the growing demand for these specialized services, leading to higher day rates and increased profitability.
BULL VIEWThe company's strong revenue growth and improving operating margins demonstrate its ability to effectively manage its operations and generate value for shareholders, justifying a premium valuation.
BULL VIEWNoble's commitment to safety and environmental stewardship enhances its reputation and strengthens its relationships with oil and gas companies, securing long-term contracts and ensuring future revenue streams.
The Bear Case
BEAR VIEWNoble's high P/E ratio and EV/EBITDA multiple suggest that the stock is overvalued, making it vulnerable to a correction if earnings growth does not meet expectations.
BEAR VIEWThe cyclical nature of the offshore drilling industry and the volatility of oil and gas prices pose significant risks to Noble's financial performance, potentially leading to lower day rates and reduced profitability.
BEAR VIEWNoble's relatively high level of debt and inconsistent free cash flow generation raise concerns about its financial flexibility and ability to fund its growth initiatives, limiting its long-term potential.
About the Author
Marques Blank
Founder & Chief Investment Officer, Blank Capital
Marques brings 15 years of institutional finance and investing experience, having overseen financial planning for a $1.6B defense business unit. He developed the proprietary 6-factor quantitative model used to score NE and 4,400+ other equities.
Noble Corp plc exhibits a 229% valuation premium relative to institutional benchmarks. This represents a potential valuation overextension based on current multiples.
Return on Assets
Efficiency of asset utilization
2.5%
Sector: 3.7%
Gross Margin
Pricing power and cost efficiency
36.0%
Sector: 52.7%
Operating Margin
Core business profitability
14.5%
Sector: 10.7%
Net Margin
Bottom-line profitability
5.6%
Sector: 6.4%
Factor Methodology
The Quality factor evaluates the persistence and magnitude of cash flows. Companies with scores >70 exhibit superior competitive moats and financial resilience through economic cycles.
Sector Avg Yield1.89%
Yield Delta+375%
Income Projection audit
A $10,000 investment would generate approximately $897 annually in dividends at the current trailing rate.
