RDC Fin

With the support of the Offshore Operators Committee (OOC), the Center for Offshore Safety (COS) and
IADC, in conjunction with leaders from oil and gas companies, drilling contractors and other contractor companies, the industry united to create a thoroughly SEMS-compliant environment. A collaborative effort was forged to create a SEMS toolkit to advance E&P activities on the OCS. With the lessons that we have learned from the offshore disasters, we will continue to make a difference in safety, Jack Isbell, safety specialist at Rowan Companies, said. He participated in the SEMS Taskforce Competence Subcommittee and in developing the SEMS Compliance Readiness Worksheet. The SEMS is an effective method for making that difference. Its a more systematic way to work safely and protect the environment, and when you have a lot of very complex systems working, that systematic method is necessary. The implementation process cultivated not only the collaboration of various departments within each company but also among competitors. An expansive task force emerged from a modest meeting of seven people from different companies in February, but without a sponsor. At a second meeting in March, the OOC stepped up to sponsor the group, which then facilitated a number of meetings and the formation of subcommittees addressing different aspects of SEMS implementation. By June, about 150 people from all facets of the industry were participating on the OOC SEMS Taskforce, which went on to create the SEMS Toolkit. The introduction of SEMS regulations to the US OCS is a process that is still unfolding. Implementation of a SEMS program was just one major variable that operators and contractors had to overcome; moreover, the industry is subject to government interpretation and revisions of the regulation, which could call for further cooperation within a highly competitive industry. On top of that, the recently proposed SEMS II, which modifies and adds to the current regulation, will create its own challenges. Among other things, the new proposal calls for: mandatory third-party audits, providing all workers with stop work authority, documenting employee participation in SEMS development, formal approval of all job safety analyses, designation of an individual having ultimate work authority and guidelines to report of unsafe working conditions. The comment period on the proposed rule closes 14 November, and a final rule isnt expected until spring 2012 or later. Implementation Some contractors initially reacted to BOEMREs announcement in October 2010 with a wait-and-see approach. However, some also found that their existing safety and environmental management programs paralleled the new regulations. Having had a SEMS for a number of years and, at the time, being in the process of revising it to meet stricter safety standards, I felt that we were in a good place, Mr Isbell said. Jennifer May, director corporate HSE and management system for Hercules Offshore, expressed a similar sentiment and noted that Hercules has had a safety and environmental management system in place since 2007. We did a gap analysis, and we were very
fortunate to find we didnt have very many gaps, Ms May, who is a member of the SEMS Taskforce Contractor Guidance Subcommittee, said. What it has brought to the surface is the execution piece. On paper, people have great systems, great policies, but its getting those policies into the hands of the rig crews and getting them to embrace it and use it. Thats the struggle. Translating a policy into everyday practice entailed significant time and resources over the past year. Our engineering department has had a team working on SEMS. Our operations department has a compliance team working on SEMS. HR, training, all the departments that make this company operate have had dedicated personnel on the SEMS implementation, Ms May said. While the interpretation of the regulation began to take shape through discussions and drafted policies, contractors and operators continued the implementation process through practice and execution in the form of training sessions. Weve spent a lot of face time with the rig crews, she added. Rowan hosted two SEMS-specific training sessions at Houstons Hotel Derek in October, specifically for rig supervisors, offshore installation managers, engineers and HSE technicians. The management system can be that transfer of experience and understanding that can be done off-site. Are we going to be able to slip and cut drill line at a hotel? Not quite, but we can ensure that they understand how the new rule and its intent will make their rig a safer place, Mr Isbell said. They will be able to take the information and apply that logic and understanding to the individual jobs and to the task of slip and cut drill lines. Rowan also conducted on-site training on rigs, and training courses for new-hires are being revised to take SEMS into account. Mr Isbell pointed to the necessity of supervisors leadership in building support for and compliance with SEMS. As great as a training or class may be, the key to the proper use of the management system will be in our supervisors and their continued support of the SEMS, he said.
A floorman works on Rowans EXL III jackup, which also is drilling for McMoRan in the GOM. SEMS II proposes to provide workers with stop work authority and for companies to develop guidelines for workers to report unsafe working conditions. The comment period for SEMS II ends 14 November. Operators involvement While contractors have a sense of the general requirements that are necessary for compliance, operators requirements can vary. Fortunately, Rowan has encountered some common ground among its customers. (Operators) have been fairly uniform with the requirements and expectations. I think that we have the work of the API, the OOC and IADC to thank for making sure that, of 10 different operators, there are not 10 different sets of expectations, Mr Isbell said. Communication also has been a constant key to success in SEMS implementation. The relationship between the operator, the service contractor and the drilling contractor requires a lot of communication, and SEMS just underscores that and brought it to the surface in the form of a regulation, Mr Walker noted. Although the SEMS Taskforce initiative began with operators, they realized that compliance would require cooperation from their contractors. When the group got together, it was a group of operators, Ms Swindle said, but they realized that this was a bigger challenge that would require the cooperation of the contract companies that they work with and that, they being responsible (to meet the requirements), needed to help provide guidance for the drilling contractors. The SEMS Taskforce brought together leaders from supermajors and other independent operators: Anadarko Petroleum, BHP Billiton, Chevron, Cobalt and ExxonMobil, as
well as from the contractor community, such as Ensco, Hercules, Noble Corp, Rowan and Transocean. Baker Hughes also contributed to the toolkit. Mr Walker, who chaired the Documents and Data Subcommittee, noted the benefit of the joint effort. The more conformity we can bring to the process, the less work and expenses will be associated with the contractor providing information, he said. We worked on safety questionnaires, letters of agreement, and were working on other areas where we can make this a more efficient transfer of information or communication between the operator and drilling contractor. Most of the toolkit is geared to aid drilling contractors. The SEMS toolkit was developed as a cooperative effort with over 50 different companies from all different sectors of the oil and gas industry, Ms Swindle, who helped compose the compliance readiness worksheet, said. A lot of really smart people contributed to that effort. Subcommittees within the taskforce created worksheets, templates and guides ranging from SEMS audit protocol and training matrices to documentation worksheets and agreement letter templates. The extensive toolkit, which also includes PowerPoint presentations and a list of definitions with examples, is available for free on IADCs website at www.iadc.org. The operators involvement in the taskforce has created cohesiveness in the industrywide effort and sets a foundation for continual improvement. It is a continual implementation and audit process that theyre engaged in, Mr Isbell said. They are being very cooperative in saying lets make sure we have all the requirements met, and how can we go above and beyond the minimal requirements and exceed expectations? In conjunction with drilling contractors SEMS training, Cobalt is also implementing a program for anyone employees, contractors or visitors to complete a SEMS orientation conducted by Cobalt rig personnel and HSE advisers. The goal is to make everyone aware of how SEMS is impacting our day-to-day activities on the rig, Mr Walker said
September 12, 2011 Continued strong performance expected for multi-service providers of oilfield services for balance of 2011 and 2012, while offshore drillers see measured, but steady growth Continued strong oil prices, combined with rising exploration and production (E&P) budgets worldwide, are driving robust demand for oilfield services in North American unconventional oil and gas shale plays, as well as in international arenas. In particular, strong demand in Latin America, South America, the Middle East and West Africa is expected to continue through the balance of 2011 and 2012, says a special study from IHS (NYSE: IHS), a global source of information and analysis. The generally strong 2010 financial performance for the six, multi-service providers of oil field services continued in the first half of 2011, largely driven by rising oil prices and unconventional oil and gas drilling in North America, said John Parry, senior analyst at IHS, and author of the IHS Herold Special Study on the Oilfield Services Sector. The moratorium on drilling in the Gulf of Mexico limited, but did not stall, what was otherwise a nice recovery compared with 2009 to 2010. Accordingly, operating margins for the group have exhibited a steady upward trend, which began in 2009. The six companies in the multi-services sector include Baker Hughes, Cameron International, National Oilwell Varco, Halliburton, Schlumberger and Weatherford. The shortage of pressure-pumping capacity for multi-stage fracturing is likely to ease in 2012, which may soften margins for these services, but the companies in this sector continue to be bullish on markets outside of North America, with Latin America, South America
and the Middle East considered particularly robust, added Parry. Other areas of demand are in the North Sea, West Africa and Southeast Asia. In addition, recent mega-mergers and acquisitions in the sector appear to be paying off for companies such as Schlumberger (Smith), Baker Hughes (BJ Services), and Ensco (Pride). These deals, which total about $25 billion, have made them even more competitive, he said. As for the financial performance of offshore drillers, Parry said: This segment continues to feel the effects of the Gulf of Mexico moratorium and the competition from new rigs entering the market, which is related to the major reinvestment cycle that has been underway since 2007. This is reflected in the 10% revenue slide in the first half of 2011 for this group. However, this figure is somewhat improved from the 15% revenue drop in 2010, and there is an encouraging sign in the sequential improvement in operating profit margins for the first half of 2011. This group includes Diamond Offshore, Ensco, Noble Corp., Rowan and Transocean. Despite the slower growth, offshore drillers are optimistic that the hefty reinvestment cycle in high-specification, high-performance rigs currently underway will begin to pay off in 2012 and beyond, fostered by expanded drilling into new deepwater basins. Ensco, Noble Corp. and Rowan, Parry noted, will likely benefit most from these additions. Source: IHS Rowan Companies Inc. (NYSE:RDC) has entered into an agreement to sell its 30-rig domestic land drilling fleet to a subsidiary of Ensign Energy Services Inc. (TSX:ESI) for $510 million cash plus $30 million in working capital. The rig fleet, mainly in Texas and Louisiana, consists of 24-2,000HP, 3-3,000HP and 3-1,500HP rigs. Matt Ralls, Rowan president and CEO, commented, "We expect that our after-tax proceeds, estimated at approximately $370 million, will be redeployed into our offshore drilling business and recently announced deepwater expansion. In addition to two high-specification jack-ups under construction to be delivered later this year, the company is anticipating the delivery of two high-specification drillships in late 2013 and mid 2014 to facilitate its entrance into the ultra-deepwater market. These are in addition to the fleet of 29 jackup drilling rigs the company will continue to own and operate following the divestiture. As for Calgary, Alberta-based Ensign, the company will add the acquired rigs to its existing global fleet of over 300 land rigs. The $17 million per rig appears favorable to Rowan, said Global Hunter Securities in a note to investors June 20. The value of a nearly fully-staffed land rig fleet able to work immediately should warrant a premium, and the deal appears to be on the high side of valuation, Global Hunter analysts said. The deal is expected to close in the third quarter of 2011.
Period Ending:
Trend
12/31/201 0
12/31/2009
12/31/2008
12/31/2007
Liquidity Ratios
Current Ratio Quick Ratio Cash Ratio Inventory Turnover 250% 171% 86% 523% 273% 180% 113% 392% 184% 102% 30% 401% 263% 158% 57% 459%
Profitability Ratios
Gross Margin Operating Margin Pre-Tax Margin Profit Margin Pre-Tax ROE 41% 21% 21% 15% 10% 43% 28% 28% 21% 16% 43% 30% 30% 19% 25% 43% 35% 35% 23% 31%
After Tax ROE
7%
12%
16%
21%
Quarterly Income Statement (values in 000's)
Get Annual Data

3rd 9/30/2011 $234,698 2nd 6/30/2011 $65,182 1st 3/31/2011 $364,281 4th 12/31/2010 $1,009,968
Quarter: Quarter Ending:
Trend
Total Revenue Cost of Revenue
$129,767
($26,130)
$241,921
$749,441
Gross Profit Operating Expenses

Sales, General and Admin.
$104,931
$91,312
$122,360
$260,527
$24,051
$8,729
$32,392
$119,352
Non-Recurring Items
$20
$6,100
$0
($5,250)
Other Operating Items
$50,306
$29,595
$49,366
$84,116
Operating Income
$31,962
$44,874
$42,616
$61,927
Add'l income/expense items Earnings Before Interest and Tax
$1,227
($2,804)
$2,146
$11,735
$31,781
$44,084
$42,748
$74,044
Interest Expense
$4,233
$7,449
$5,319
$5,818
Earnings Before Tax

Income Tax
$27,548
$36,635
$37,429
$68,226
($3,876)
($2,491)
$5,357
$20,752
Net Income-Cont. Operations Discontinued Operations
$31,424
$39,126
$32,072
$52,798
$162,385
$426,733
$0
$9,811
Net Income
$193,809
$465,859
$32,072
$57,285
Net Income Applicable to Common Shareholders
$193,809
$465,859
$32,072
$57,285
Rowan Companies Inc. (RDC) - NYSE
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Annual Income Statement (values in 000's)
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12/31/2010 12/31/2009 12/31/2008 12/31/2007
Period Ending:
Trend
Total Revenue
$1,819,207
$1,770,180
$2,212,736
$2,095,021
Cost of Revenue
$1,066,290
$1,000,710
$1,254,610
$1,187,953
Gross Profit Operating Expenses

Sales, General and Admin.
$752,917
$769,470
$958,126
$907,068
$174,610
$102,760
$226,397
$94,905
Non-Recurring Items
$0
$0
($67,789)
($40,506)
Other Operating Items
$186,563
$171,445
$141,395
$118,796
Operating Income
$390,956
$501,013
$658,123
$733,873
Add'l income/expense items Earnings Before Interest and Tax
$12,152
$13,854
($2,834)
$21,149
$403,896
$509,119
$655,289
$755,022
Interest Expense
$24,879
$8,028
$1,198
$15,936
Earnings Before Tax
$379,017
$501,091
$654,091
$739,086
Income Tax
$99,022
$133,587
$226,463
$255,286
Net Income-Cont. Operations
$285,319
$367,504
$427,628
$483,800
Net Income
$279,995
$367,504
$427,628
$483,800
Net Income Applicable to Common Shareholders
$279,995
$367,504
$427,628
$483,800
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12/31/2010 12/31/2009 12/31/2008 12/31/2007
Annual Balance Sheet (values in 000's)
Period Ending:
Trend
Current Assets
Cash and Cash Equivalents $452,744 $639,681 $222,428 $284,458
Net Receivables
$454,826
$381,713
$535,864
$500,977
Inventory
$347,853
$451,659
$551,429
$456,363
Other Current Assets
$69,346
$76,744
$59,466
$61,169
Total Current Assets
$1,324,769
$1,549,797
$1,369,187
$1,302,967
Long Term Assets

Fixed Assets $4,793,437 $3,579,485 $3,147,528 $2,487,811
Goodwill
$0
$0
$32,177
$34,527
Other Assets
$99,251
$81,412
$0
$50,000
Total Assets
$6,217,457
$5,210,694
$4,548,892
$3,875,305
Current Liabilities
Accounts Payable $323,618 $363,952 $397,574 $235,212
Short Term Debt/Current Portion of Long Term Debt
$52,166
$64,922
$64,922
$64,922
Other Current Liabilities
$153,446
$139,398
$282,146
$195,455
Total Current Liabilities
$529,230
$568,272
$744,642
$495,589
Long Term Debt
$1,133,745
$787,490
$355,560
$420,482
Other Liabilities
$251,145
$278,862
$362,026
$197,865
Deferred Liability Charges
$551,027
$465,700
$426,848
$412,931
Total Liabilities
$2,465,147
$2,100,324
$1,889,076
$1,526,867
Stock Holders Equity

Common Stocks $15,794 $14,237 $14,141 $13,911
Capital Surplus
$1,433,999
$1,078,337
$1,063,202
$1,012,214
Retained Earnings
$2,449,521
$2,169,526
$1,802,022
$1,419,417
Treasury Stock
Other Equity
($1,509) ($145,495)
($1,409) ($150,321)
($2,533) ($217,016)
($979) ($96,125)
Total Equity
$3,752,310
$3,110,370
$2,659,816
$2,348,438
Quarterly Balance Sheet (values in 000's)

Quarter: Quarter Ending: Trend 3rd 9/30/2011 2nd 6/30/2011 1st 3/31/2011
Get Annual Data

12/31/2010
Current Assets
Net Receivables
$325,164
$257,637
$418,875
$454,826
Inventory
$0
$0
$395,964
$347,853
$88,367
$417,081
$46,988
$69,346
$1,306,091
$1,386,045
$1,066,321
$1,324,769
Long Term Assets

Fixed Assets $5,347,858 $5,162,334 $5,092,220 $4,793,437
Other Assets
$104,580
$96,660
$99,452
$99,251
Total Assets
$6,758,529
$6,645,039
$6,257,993
$6,217,457
Current Liabilities
$45,023
$52,149
$52,149
$52,166
$80,443
$68,567
$212,668
$153,446
$482,020
$397,431
$523,870
$529,230
Long Term Debt
$1,102,935
$1,107,983
$1,121,585
$1,133,745
Other Liabilities
$291,849
$273,221
$264,229
$251,145
$483,202
$587,729
$551,119
$551,027
Total Liabilities
$2,360,006
$2,366,364
$2,460,803
$2,465,147
Common Stocks
$15,944
$15,940
$15,885
$15,794
Capital Surplus
$1,470,850
$1,465,419
$1,447,018
$1,433,999
Retained Earnings
$3,141,261
$2,947,452
$2,481,593
$2,449,521
Treasury Stock
Other Equity
($84,037)
($4,641)
($1,811)
($1,509)
($145,495)
($145,495)
($145,495)
($145,495)
Total Equity
$4,398,523
$4,278,675
$3,797,190
$3,752,310
Annual Balance Sheet (values in 000's)
Get Quarterly Data

12/31/2010 12/31/2009 12/31/2008 12/31/2007
Period Ending:
Trend
Current Assets
Net Receivables
$454,826
$381,713
$535,864
$500,977
Inventory
$347,853
$451,659
$551,429
$456,363
$69,346
$76,744
$59,466
$61,169
$1,324,769
$1,549,797
$1,369,187
$1,302,967
Long Term Assets

Fixed Assets $4,793,437 $3,579,485 $3,147,528 $2,487,811
Goodwill
$0
$0
$32,177
$34,527
Other Assets
$99,251
$81,412
$0
$50,000
Total Assets
$6,217,457
$5,210,694
$4,548,892
$3,875,305
Current Liabilities
$52,166
$64,922
$64,922
$64,922
$153,446
$139,398
$282,146
$195,455
$529,230
$568,272
$744,642
$495,589
Long Term Debt
$1,133,745
$787,490
$355,560
$420,482
Other Liabilities
$251,145
$278,862
$362,026
$197,865
$551,027
$465,700
$426,848
$412,931
Total Liabilities
$2,465,147
$2,100,324
$1,889,076
$1,526,867

Common Stocks $15,794 $14,237 $14,141 $13,911
Capital Surplus
$1,433,999
$1,078,337
$1,063,202
$1,012,214
Retained Earnings
$2,449,521
$2,169,526
$1,802,022
$1,419,417
Treasury Stock
Other Equity
($1,509) ($145,495)
($1,409) ($150,321)
($2,533) ($217,016)
($979) ($96,125)
Total Equity
$3,752,310
$3,110,370
$2,659,816
$2,348,438
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12/31/2009 12/31/2008 12/31/2007
Annual Statements of Cash Flow (values in 000's)
Period Ending:
Trend
12/31/2010
Net Income
$279,995
$367,504
$427,628
$483,800
Cash Flows-Operating Activities

Depreciation $186,563 $171,445 $141,395 $118,796
Net Income Adjustments
$76,660
($2,414)
$10,434
$43,541
Changes in Operating Activities

Accounts Receivable ($34,268) $147,340 ($6,777) ($59,032)
Inventory
$65,177
$92,357
($92,772)
($111,268)
Other Operating Activities
($3,729)
($16,791)
($15,245)
$12,885
Liabilities
($62,236)
($215,347)
$229,806
($56,179)
Net Cash Flow-Operating
$508,162
$544,094
$694,469
$432,543
Cash Flows-Investing Activities

Capital Expenditures ($490,560) ($566,383) ($829,156) ($462,640)
Other Investing Activities
($29,679)
$8,592
$147,658
$151,883
Net Cash Flows-Investing
($520,239)
($557,791)
($681,498)
($310,757)
Cash Flows-Financing Activities Dividends Paid

$0 $0 ($44,989) ($44,368)
Sale and Purchase of Stock
$7,959
$1,471
$32,227
$12,266
Net Borrowings
($198,496)
$426,807
($64,922)
($64,922)
Other Financing Activities
$0
$0
$2,683
$1,655
Net Cash Flows-Financing
($190,125)
$430,950
($75,001)
($95,369)
Net Cash Flow
($202,202)
$417,253
($62,030)
$26,417
Quarterly Statements of Cash Flow (values in 000's)

Quarter: Quarter Ending: Trend 3rd 9/30/2011 $193,809 2nd 6/30/2011 $465,859 1st 3/31/2011 $32,072
Get Annual Data

12/31/2010 $57,285
Net Income
Cash Flows-Operating Activities

Depreciation $50,306 $50,564 $49,366 $47,260
Net Income Adjustments
($337,454)
($587,655)
($15,988)
$33,535
Changes in Operating Activities

Accounts Receivable ($51,532) ($26,082) $36,044 ($10,443)
Inventory
$0
($56,357)
($48,111)
$37,841
Other Operating Activities
$23,458
($18,363)
$27,963
$14,163
Liabilities
$103,523
$204,063
$32,524
$48,240
Net Cash Flow-Operating
($17,890)
$32,029
$113,870
$227,881
Cash Flows-Investing Activities

Capital Expenditures ($224,130) ($569,838) ($361,140) ($173,999)
Other Investing Activities
$517,418
$1,060,734
$3,129
($14,951)
Net Cash Flows-Investing
$293,288
$490,896
($358,011)
($188,950)
Cash Flows-Financing Activities

Sale and Purchase of Stock ($82,300) $8,702 $7,781 $3,284
Net Borrowings
($12,329)
($13,754)
($12,329)
($497,952)
Net Cash Flows-Financing
($94,165)
($1,252)
($3,684)
($494,214)
Net Cash Flow
$181,233
$521,673
($247,825)
($455,283)

R e v e n u e / E P S S u m m a r y *
2011 (Fiscal Year) 2010 (Fiscal Year) 2009 (Fiscal Year)
Fiscal Quarter
March Revenue EPS Dividends June Revenue EPS Dividends September Revenue EPS Dividends December (FYE) Revenue EPS Dividends $1,009(m) 0.44 (12/31/2010) N/A $399,791(t) 0.54 (12/31/2009) N/A $234,698(t) 1.54 (9/30/2011) N/A $238,559(t) 0.56 (9/30/2010) N/A $393,421(t) 0.69 (9/30/2009) N/A $65,182(t) 3.66 (6/30/2011) N/A $138,275(t) 0.8 (6/30/2010) N/A $482,160(t) 0.85 (6/30/2009) N/A $364,281(t) 0.25 (3/31/2011) N/A $432,405(t) 0.56 (3/31/2010) N/A $494,808(t) 1.16 (3/31/2009) N/A
Totals Revenue EPS Dividends $664,161(t) 5.45 N/A $1,819(m) 2.36 N/A $1,770(m) 3.24 N/A
Rowan Companies, Inc. (RDC) Revenue & Earnings Per Share (EPS)
Read more: http://www.nasdaq.com/symbol/rdc/revenue-eps#ixzz1mRfG7baG
RowanCompanies2cInc. (RDC) - NYSE
Fiscal Quarter
2008 (Fiscal Year)
2007 (Fiscal Year)
2006 (Fiscal Year)
March Revenue EPS Dividends June Revenue EPS Dividends September Revenue EPS Dividends December (FYE) Revenue EPS Dividends $613,047(t) 0.83 (12/31/2008) 0.1 $623,562(t) 1.23 (12/31/2007) 0.1 $410,947(t) 0.56 (12/31/2006) 0.1 $527,058(t) 1 (9/30/2008) 0.1 $502,201(t) 1.16 (9/30/2007) 0.1 $417,114(t) 0.78 (9/30/2006) 0.1 $587,142(t) 1.06 (6/30/2008) 0.1 $507,004(t) 1.15 (6/30/2007) 0.1 $382,886(t) 0.98 (6/30/2006) 0.1 $485,489(t) 0.88 (3/31/2008) 0.1 $462,254(t) 0.77 (3/31/2007) 0.1 $299,787(t) 0.53 (3/31/2006) 0.1
Totals Revenue EPS Dividends $2,212(m) 3.77 0.4 $2,095(m) 4.31 0.4 $1,510(m) 2.85 0.4
Next 3 Years Previous 3 Years

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Earnings Per Share Summary
Earnings Per Share represents the portion of a company's profit allocated to each outstanding share of common stock. The net income (reported or estimated) for a period divided by the total number of shares outstanding (TSO) during that period. Data Provider: Data is provided by Zacks Investment Research
Read more: http://www.nasdaq.com/symbol/rdc/eps-forecast#ixzz1mRhLAM3b

Change in Consensus # of Estimates Changed
Estimate Momentum measures change in analyst sentiment over time and may be an indicator of future price movements. The Change in Consensus chart shows the current, 1 week ago, and 1 month ago consensus earnings per share (EPS*) forecasts. For the fiscal quarter endingDec 2011 , the consensus EPS* forecast hasdecreased over the past week from 0.33 to 0.32 (-3.03%) anddecreased over the past month from 0.35 to 0.32 (-8.57%).Of the10analysts making quarterly forecasts,1raised and 1lowered their forecast. For the fiscal year ending Dec 2011, the consensus EPS* forecast hasremained the same over the past week at 1.19 anddecreased over the past month from 1.19 to 1.19 (-2.46%).Of the 8 analysts making yearly forecasts,none raised and8 lowered their forecast.
Read more: http://www.nasdaq.com/symbol/rdc/estimatemomentum#ixzz1mRhnU9Rt
Martin Zweig Guru Analysis for RDC

Assessments & Analysis Based on February 13, 2012 close price: $37.96 for the Growth Investor based on the criteria of Martin Zweig. Return to RDC Guru Analysis
RDC Report Card

P/E RATIO: REVENUE GROWTH IN RELATION TO EPS GROWTH: SALES GROWTH RATE: CURRENT QUARTER EARNINGS: QUARTERLY EARNINGS ONE YEAR AGO: POSITIVE EARNINGS GROWTH RATE FOR CURRENT QUARTER: EARNINGS GROWTH RATE FOR THE PAST SEVERAL QUARTERS: EPS GROWTH FOR CURRENT QUARTER MUST BE GREATER THAN PRIOR 3 QUARTERS: EPS GROWTH FOR CURRENT QUARTER MUST BE GREATER THAN THE HISTORICAL GROWTH RATE: EARNINGS PERSISTENCE: LONG-TERM EPS GROWTH: TOTAL DEBT/EQUITY RATIO: INSIDER TRANSACTIONS: Like the Martin Zweig strategy? Get more ideas that pass this analysis [PASS] [PASS] [FAIL] [PASS] [PASS] [FAIL] [FAIL] [FAIL] [FAIL] [FAIL] [FAIL] [PASS]
All Star Guru Scorecard

Source Peter Lynch Benjamin Graham Validea Motley Fool Go Chart 0% 57% 0% 25% %
David Dreman Martin Zweig Kenneth Fisher James P. O'Shaughnessy
43% 46% 50% 40%
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Detailed Analysis
Guru Score: 46%
P/E RATIO: [PASS] The P/E of a company must be greater than 5 to eliminate weak companies, but not more than 3 times the current Market P/E because the situation is much too risky, and never greater than 43. RDC's P/E is 30.19, , while the current market PE is 17.00. Therefore, it passes the first test. REVENUE GROWTH IN RELATION TO EPS GROWTH: [PASS] Revenue Growth must not be substantially less than earnings growth. For earnings to continue to grow over time they must be supported by a comparable or better sales growth rate and not just by cost cutting or other non-sales measures. RDC's revenue growth is 3.94%, while it's earnings growth rate is -4.51%, Based on the average of the 3, 4 and 5 year historical EPS growth rates. Therefore, RDC passes this criterion. SALES GROWTH RATE: [FAIL] Another important issue regarding sales growth is that the rate of quarterly sales growth is rising. To evaluate this, the change from this quarter last year to the present quarter (1.62%) must be examined, and then compared to the previous quarter last year compared to the previous quarter (62.60%) of the current year. Sales growth for the prior must be greater than the latter. For RDC this criterion has not been met and fails this test.
The earnings numbers of a company should be examined from various different angles. Three of these angles are stability in the trend of earnings, earnings persistence, and earnings acceleration. To evaluate stability, the stock has to pass the following four criteria. CURRENT QUARTER EARNINGS: [PASS] The first of these criteria is that the current EPS be positive. RDC's EPS ($0.25) pass this test. QUARTERLY EARNINGS ONE YEAR AGO: [PASS] The EPS for the quarter one year ago must be positive. RDC's EPS for this quarter last year ($0.51) pass this test. POSITIVE EARNINGS GROWTH RATE FOR CURRENT QUARTER: [FAIL] The growth rate of the current quarter's earnings compared to the same quarter a year ago must also be positive. RDC's growth rate of -50.98% fails this test. EARNINGS GROWTH RATE FOR THE PAST SEVERAL QUARTERS: [FAIL] Compare the earnings growth rate of the past four quarters with long-term EPS growth rate. Earnings growth in the past 4 quarters should be at least half of the long-term EPS growth rate. A stock should not be considered if it posted several quarters of skimpy earnings. RDC had 4 quarters of skimpy growth in the last 2 years. This strategy looks at the rate which earnings grow and evaluates this rate of growth from different angles. The 4 tests immediately following are detailed below. EPS GROWTH FOR CURRENT QUARTER MUST BE GREATER THAN PRIOR 3 QUARTERS: [FAIL] If the growth rate of the prior three quarter's earnings, -50.73%, (versus the same three quarters a year earlier) is greater than the growth rate of the current quarter earnings, -50.98%, (versus the same quarter one year ago) then the stock fails, with one exception: if the growth rate in earnings between the current quarter and the same quarter one year ago is greater than 30%, then the stock would pass. The growth rate over this period for RDC is -51.0%, and it would therefore fail this test.
EPS GROWTH FOR CURRENT QUARTER MUST BE GREATER THAN THE HISTORICAL GROWTH RATE: [FAIL] The EPS growth rate for the current quarter, -50.98% must be greater than or equal to the historical growth which is -4.51%. Since this is not the case RDC would therefore fail this test. EARNINGS PERSISTENCE: [FAIL] Companies must show persistent yearly earnings growth. To fulfill this requirement a company's earnings must increase each year for a five year period. RDC, whose annual EPS growth before extraordinary items for the previous 5 years (from the earliest to the most recent fiscal year) were $2.84, $4.31, $3.77, $3.24, and $2.36, fails this test. LONG-TERM EPS GROWTH: [FAIL] The final important criterion in this approach is that Earnings Growth be at least 15% per year. RDC's long-term growth rate of -4.51%, Based on the average of the 3, 4 and 5 year historical EPS growth rates, fails the minimum required. TOTAL DEBT/EQUITY RATIO: [PASS] A final criterion is that a company must not have a high level of debt. A high level of total debt, due to high interest expenses, can have a very negative effect on earnings if business moderately turns down. If a company does have a high level, an investor may want to avoid this stock altogether. RDC's Debt/Equity (26.10%) is not considered high relative to its industry (42.68%) and passes this test.
Read more: http://www.nasdaq.com/symbol/rdc/guruanalysis/graham#ixzz1mRiLNyB8
Kenneth Fisher Guru Analysis for RDC

Assessments & Analysis Based on February 13, 2012 close price: $37.96
for the Price/Sales Investor based on the criteria of Kenneth Fisher. Return to RDC Guru Analysis
RDC Report Card

PRICE/SALES RATIO: TOTAL DEBT/EQUITY RATIO: PRICE/RESEARCH RATIO: PRICE/SALES RATIO: LONG-TERM EPS GROWTH RATE: FREE CASH PER SHARE: THREE YEAR AVERAGE NET PROFIT MARGIN: Like the Kenneth Fisher strategy? Get more ideas that pass this analysis [FAIL] [PASS] [PASS] [FAIL] [FAIL] [PASS] [PASS]

Source Peter Lynch Benjamin Graham Validea Motley Fool David Dreman Martin Zweig Kenneth Fisher James P. O'Shaughnessy Go Chart 0% 57% 0% 25% 43% 46% 50% 40% %
Detailed Analysis
Guru Score: 50%

PRICE/SALES RATIO: [FAIL] The prospective company should have a low Price/Sales ratio. Non-cyclical stocks with Price/Sales ratios > 3 should never be purchased, however they can be held depending on the investor's risk aversion. RDC's P/S ratio of 4.22 Based on trailing 12 month sales, is above 3, which is considered very unfavorable by this methodology. Based on this ratio, the stock is quite risky, however if risk does not bother you much, consider holding the stock until the P/S ratio approaches 6. TOTAL DEBT/EQUITY RATIO: [PASS] Less debt equals less risk according to this methodology. RDC's Debt/Equity of 26.10% is acceptable, thus passing the test. PRICE/RESEARCH RATIO: [PASS] This methodology considers companies in the Technology and Medical sectors to be attractive if they have low Price/Research ratios. RDC is neither a Technology nor Medical company. Therefore the Price/Research ratio is not available and, hence, not much emphasis should be placed on this particular variable. PRELIMINARY GRADE: No Interest in RDC At this Point Is RDC a "Super Stock"? NO Price/Sales Ratio: [FAIL] The Price/Sales ratio is the most important variable according to this methodology. The prospective company should have a low Price/Sales ratio. RDC's Price/Sales ratio of 4.22 does not pass this criterion. LONG-TERM EPS GROWTH RATE: [FAIL] This methodology looks for companies that have an inflation adjusted EPS growth rate greater than 15%. RDC's inflation adjusted EPS growth rate of -6.83% does not pass this test.
FREE CASH PER SHARE: [PASS] This methodology looks for companies that have a positive free cash per share. Companies should have enough free cash available to sustain three years of losses. This is based on the premise that companies without cash will soon be out of business. RDC's free cash per share of 0.15 passes this criterion. THREE YEAR AVERAGE NET PROFIT MARGIN: [PASS] This methodology looks for companies that have an average net profit margin of 5% or greater over a three year period. RDC's three year net profit margin, which averages 18.49%, passes this criterion.
The names of individual investment advisors (i.e., the 'gurus') appearing ON THIS WEBSITE are for identification purposes ONLY. The names are used to identify the methodology as derived from the gurus published sources. The names of the individual gurus are not intended to suggest or imply any affiliation with or endorsement of, or even any agreement with the information displayed on this website personally by such gurus, or any knowledge or approval by such persons of the content on this website. All trademarks, service marks and trade names appearing on this website are the property of their respective owners, and are likewise used for identification purposes only. The NASDAQ Stock Market, Inc. ("NASDAQ"), its affiliates, third party information providers, or any of these entities officers, employees, directors, or agents have not: (1) passed on the merit of the information provided on this website or on any of these securities; or (2) endorsed or sponsored any of these securities. ADVICE FROM A SECURITIES PROFESSIONAL IS STRONGLY ADVISED. The information contained on this website is provided for informational purposes only. See Full Disclaimer Below See Full Disclaimer
Read more: http://www.nasdaq.com/symbol/rdc/guruanalysis/fisher#ixzz1mRick5IU
David Dreman Guru Analysis for RDC

Assessments & Analysis Based on February 13, 2012 close price: $37.96 for the Contrarian Investor based on the criteria of David Dreman. Return to RDC Guru Analysis
RDC Report Card

MARKET CAP: EARNINGS TREND: EPS GROWTH RATE IN THE IMMEDIATE PAST AND FUTURE: P/E RATIO: PRICE/CASH FLOW (P/CF) RATIO: PRICE/BOOK (P/B) VALUE: PRICE/DIVIDEND (P/D) RATIO: CURRENT RATIO: [FAIL] [FAIL] [FAIL] [FAIL] [FAIL] [FAIL] [FAIL] [PASS]
PAYOUT RATIO: RETURN ON EQUITY: PRE-TAX PROFIT MARGINS: YIELD: LOOK AT THE TOTAL DEBT/EQUITY: Like the David Dreman strategy? Get more ideas that pass this analysis
[PASS] [FAIL] [PASS] [FAIL] [PASS]

Detailed Analysis
Guru Score: 43%
MARKET CAP: [FAIL] Medium to large-sized companies (the largest 1500 companies) should be chosen, because they are more in the protected eye. Furthermore, the investor is exposed to less risk of "accounting gimmickry", and companies of this size have more staying power. RDC has a market cap of $4,744 million, therefore failing the test.
EARNINGS TREND: [FAIL] A company should show a rising trend in the reported earnings for the most recent quarters. RDC's EPS for the latest quarter is not greater than the prior quarter, (from earliest to most recent quarter) 0.35, 0.25. Hence the stock fails this test, but the investor should evaluate this company qualitatively to see if it qual ifies under this methodology's "exception rule". EPS GROWTH RATE IN THE IMMEDIATE PAST AND FUTURE: [FAIL] This methodology likes to see companies with an EPS growth rate higher than the S&P in the immediate past and a likelihood that this trend will continue in the near future. RDC's EPS growth rate over the past 6 months (19.04%) has beaten that of the S&P (-3.71%), but RDC's estimated EPS growth for the current year is (-47.46%) while that of the S&P is (0.55%), therefore failing this test. This methodology would utilize four separate criteria to determine if RDC is a contrarian stock. In order to eliminate weak companies we have stipulated that the stock should pass at least two of the following four major criteria in order to receive "Some Interest". P/E RATIO: [FAIL] The P/E of a company should be in the bottom 20% of the overall market. RDC's P/E of 30.19, , is higher than the bottom 20% criterion (below 8.99), and therefore fails this test. PRICE/CASH FLOW (P/CF) RATIO: [FAIL] The P/CF of a company should be in the bottom 20% of the overall market. RDC's P/CF of 14.10 does not meet the bottom 20% criterion (below 4.82), and therefore fails this test.
PRICE/BOOK (P/B) VALUE: [FAIL] The P/B value of a company should be in the bottom 20% of the overall market. RDC's P/B is currently 1.08, which does not meet the bottom 20% criterion (below 0.70), and it therefore fails this test. PRICE/DIVIDEND (P/D) RATIO: [FAIL]
The P/D ratio for a company should be in the bottom 20% of the overall market (that is the yield should be in the top 20%). RDC's P/D is not available, and hence an opinion cannot be rendered at this time. This methodology maintains that investors should look for as many healthy financial ratios as possible to ascertain the financial strength of the company. These criteria are detailed below. CURRENT RATIO: [PASS] A prospective company must have a strong Current Ratio (greater than or equal to the average of it's industry [1.92] or greater than 2). This is one ident ifier of financially strong companies, according to this methodology. RDC's current ratio of 2.71 passes the test. PAYOUT RATIO: [PASS] A good indicator that a company has the ability to raise its dividend is a low payout ratio. The payout ratio for RDC is 0.00%, while its historical payout ratio has been 7.75%. Therefore, it passes the payout criterion. RETURN ON EQUITY: [FAIL] The company should have a high ROE, as this helps to ensure that there are no structural flaws in the company. This methodology feels that the ROE should be greater than the top one third of ROE from among the top 1500 largest cap stocks, which is 18.06%, and would consider anything over 27% to be staggering. The ROE for RDC of 3.96% is not high enough to pass this criterion. PRE-TAX PROFIT MARGINS: [PASS] This methodology looks for pre-tax profit margins of at least 8%, and considers anything over 22% to be phenomenal. RDC's pre-tax profit margin is 15.97%, thus passing this criterion. YIELD: [FAIL] The company in question should have a yield that is high and that can be maintained or increased. RDC's current yield is not available (or one is not paid) at the present time, while the market yield is 2.71%. Hence, this criterion cannot be evaluated.
LOOK AT THE TOTAL DEBT/EQUITY: [PASS] The company must have a low Debt/Equity ratio, which indicates a strong balance sheet. The Debt/Equity ratio should not be greater than 20% or should be less than the average Debt/Equity for its industry of 42.68%. RDC's Total Debt/Equity of 26.10% is considered acceptable. Read more: http://www.nasdaq.com/symbol/rdc/guruanalysis/dreman#ixzz1mRirlmcp
Motley Fool Guru Analysis for RDC

Assessments & Analysis Based on February 13, 2012 close price: $37.96 for the Small Cap Growth Investor based on the criteria of Motley Fool. Return to RDC Guru Analysis
RDC Report Card

PROFIT MARGIN: RELATIVE STRENGTH: COMPARE SALES AND EPS GROWTH TO THE SAME PERIOD LAST YEAR: INSIDER HOLDINGS: CASH FLOW FROM OPERATIONS: PROFIT MARGIN CONSISTENCY: R&D AS A PERCENTAGE OF SALES: CASH AND CASH EQUIVALENTS: INVENTORY TO SALES: ACCOUNTS RECEIVABLE TO SALES: LONG TERM DEBT/EQUITY RATIO: "THE FOOL RATIO" (P/E TO GROWTH): AVERAGE SHARES OUTSTANDING: SALES: DAILY DOLLAR VOLUME: PRICE: INCOME TAX PERCENTAGE: [PASS] [FAIL] [FAIL] [FAIL] [PASS] [FAIL] [NEUTRAL] [FAIL] [PASS] [PASS] [FAIL] [FAIL] [PASS] [FAIL] [FAIL] [FAIL] [PASS]
Like the Motley Fool strategy? Get more ideas that pass this analysis

Detailed Analysis
Guru Score: 25%
PROFIT MARGIN: [PASS] This methodology seeks companies with a minimum trailing 12 month after tax profit margin of 7%. The companies that pass this criterion have strong positions within their respective industries and offer greater shareholder returns. A true test of the quality of a company is that they can sustain this margin. RDC's profit margin of 14.24% passes this test. RELATIVE STRENGTH: [FAIL] The investor must look at the relative strength of the company in question. Companies
whose relative strength is 90 or above (that is, the company outperforms 90% or more of the market for the past year), are considered attractive. Companies whose price has been rising much quicker than the market tend to keep rising. RDC, with a relative strength of 60, fails this test. COMPARE SALES AND EPS GROWTH TO THE SAME PERIOD LAST YEAR: [FAIL] Companies must demonstrate both revenue and net income growth of at least 25% as compared to the prior year. These growth rates give you the dynamic companies that you are looking for. These rates for RDC (-50.98% for EPS, and -1.62% for Sales) are not good enough to pass. INSIDER HOLDINGS: [FAIL] RDC's insiders should own at least 10% (they own 0.29%) of the company's outstanding shares. This does not satisfy the minimum requirement, and companies that do not pass this criteria are less attractive. CASH FLOW FROM OPERATIONS: [PASS] A positive cash flow is typically used for internal expansion, acquisitions, dividend payments, etc. A company that generates rather than consumes cash is in much better shape to fund such activities on their own, rather than needing to borrow funds to do so. RDC's free cash flow of $0.15 per share passes this test. PROFIT MARGIN CONSISTENCY: [FAIL] The profit margin in the past must be consistently increasing. The profit margin of RDC has been inconsistent in the past three years (Current year: 15.39%, Last year: 20.76%, Two years ago: 19.33%), which is unacceptable. This inconsistency will carryover directly to the company's bottom line, or earnings per share. R&D AS A PERCENTAGE OF SALES: [NEUTRAL] This criterion is not critically important for companies that are not high-tech or medical stocks because they are not as R&D dependant as companies within those sectors. Not much emphasis should be placed on this test in RDC's case. CASH AND CASH EQUIVALENTS: [FAIL]
Unfortunately, the data is unavailable for RDC. Hence, an opinion cannot be rendered. INVENTORY TO SALES: [PASS] This methodology strongly believes that companies, especially small ones, should have tight control over inventory. It's a warning sign if a company's inventory relative to sales increases significantly when compared to the previous year. Up to a 30% increase is allowed, but no more. Inventory to Sales for RDC was 25.51% last year, while for this year it is 19.12%. Since the inventory to sales is decreasing by -6.39% the stock passes this criterion. ACCOUNT RECEIVABLE TO SALES: [PASS] This methodology wants to make sure that a company's accounts receivable do not get significantly out of line with sales. It's a warning sign if a company's accounts receivable relative to sales increases significantly when compared to the previous year. Up to a 30% increase is allowed, but no more. Accounts Receivable to Sales for RDC was 19.41% last year, while for this year it is 22.97%. Although the AR to sales is rising, it is below the max 30% that is allowed. The investor can still consider the stock if all other criteria appear very attractive. LONG TERM DEBT/EQUITY RATIO: [FAIL] RDC's trailing twelve-month Debt/Equity ratio (25.08%) is too high, according to this methodology. You can find other more superior companies that do not have to borrow money in order to grow. "THE FOOL RATIO" (P/E TO GROWTH): [FAIL] The "Fool Ratio" is an extremely important aspect of this analysis. Unfortunately, RDC's "Fool Ratio" is not available due to a lack of one or more important figures. Hence, an opinion cannot be given at this time. The following criteria for RDC are less important which means you would place less emphasis on them when making your investment decision using this strategy: AVERAGE SHARES OUTSTANDING: [PASS] RDC has not been significantly increasing the number of shares outstanding within recent years which is a good sign. RDC currently has 126.0 million shares outstanding. This means the company is not taking any measures, with regards to the number of shares, that
will dilute or devalue the stock. SALES: [FAIL] Companies with sales less than $500 million should be chosen. It is among these smallcap stocks that investors can find "an uncut gem", ones that institutions won't be able to buy yet. RDC's sales of $1,123.0 million based on trailing 12 month sales, are too high and would therefore fail the test. It is companies with $500 million or less in sales that are most likely to double or triple in size in the next few years. DAILY DOLLAR VOLUME: [FAIL] RDC does not meet the Daily Dollar Volume (DDV of $0.0 million) test. It is required that this number be greater than $1 million and less than $25 million because these are the stocks that are liquid but remain relatively undiscovered by institutions. RDC is too illiquid to be considered attractive at this time. PRICE: [FAIL] This is a very insignificant criterion for this methodology. But basically, low prices are chosen because "small numbers multiply more rapidly than large ones" and the potential for big returns expands. RDC's price is not currently available. Therefore the current price cannot be evaluated at this time. INCOME TAX PERCENTAGE: [PASS] RDC's income tax paid expressed as a percentage of pretax income this year was (26.13%) and last year (26.66%) are greater than 20% which is an acceptable level. If the tax rate is below 20% this could mean that the earnings that were reported were unrealistically inflated due to the lower level of income tax paid. This is a concern.
Read more: http://www.nasdaq.com/symbol/rdc/guru-analysis/fool#ixzz1mRj4o0Vj
James P. O'Shaughnessy Guru Analysis for RDC
Assessments & Analysis Based on February 13, 2012 close price: $37.96 for the Growth/Value Investor based on the criteria of James P. O'Shaughnessy. Return to RDC Guru Analysis
RDC Report Card

MARKET CAP: [PASS] EARNINGS PER SHARE PERSISTENCE: [FAIL] PRICE/SALES RATIO: [FAIL] RELATIVE STRENGTH: [FAIL] Like the James P. O'Shaughnessy strategy? Get more ideas that pass this analysis

Detailed Analysis
Guru Score: 40%

MARKET CAP: [PASS] The first requirement of the Cornerstone Growth Strategy is that the company has a market capitalization of at least $150 million. This will screen out the companies that are too illiquid for most investors, but still include a small growth company. RDC, with a market cap of $4,744 million, passes this criterion. EARNINGS PER SHARE PERSISTENCE: [FAIL] The Cornerstone Growth methodology looks for companies that show persistent earnings growth without regard to magnitude. To fulfill this requirement, a company's earnings must increase each year for a five year period. RDC, whose annual EPS before extraordinary items for the last 5 years (from earliest to the most recent fiscal year) were $2.84, $4.31, $3.77, $3.24 and $2.36, fails this test. PRICE/SALES RATIO: [FAIL] The Price/Sales ratio should be below 1.5. This value criterion, coupled with the growth criterion, identify growth stocks that are still cheap to buy. Unfortunately, RDC's Price/Sales ratio of 4.22, based on trailing 12 month sales, fails this criterion. RELATIVE STRENGTH: [FAIL] The final criterion for the Cornerstone Growth Strategy requires that the Relative Strength of the company be among the top 50 of the stocks screened using the previous criterion. This gives you the opportunity to buy the growth stocks you are searching for just as the market is embracing them. RDC has a relative strength of 60. Therefore, it would fail not only the three previous required criterion but also the overall methodology.
Read more: http://www.nasdaq.com/symbol/rdc/guruanalysis/oshaughnessy#ixzz1mRjGv0Op
Validea Momentum Guru Analysis for RDC
Analysis Based on February 13, 2012 close price: $37.96 for the Validea Momentum Strategy based on the criteria of Validea Momentum. Return to RDC Guru Analysis
RDC Report Card

THIS QUARTER VS. SAME QUARTER LAST YEAR: ANNUAL EARNINGS GROWTH: EARNINGS CONSISTENCY: LONG-TERM EPS GROWTH RATE RELATIVE TO GROWTH IN THE LATEST 2 QUARTERS: CURRENT PRICE LEVEL: 4 MONTH S&P RELATIVE STRENGTH LINE: PRICE PERFORMANCE COMPARED TO ALL OTHER STOCKS: CONFIRM AT LEAST ONE OTHER LEADING STOCK IN THE INDUSTRY: LOOK FOR LEADING INDUSTRIES: DECREASING LONG-TERM DEBT/EQUITY: RETURN ON EQUITY: SHARES OUTSTANDING: INSIDER OWNERSHIP: INSTITUTIONAL OWNERSHIP: Like the Validea strategy? Get more ideas that pass this analysis [FAIL] [FAIL] [FAIL] [FAIL] [FAIL] [PASS] [FAIL] [PASS] [PASS] [FAIL] [NEUTRAL] [FAIL] [PASS]

Detailed Analysis
Guru Score: 0%
QUARTERLY EPS CHANGE (THIS QUARTER VS. SAME QUARTER LAST YEAR): [FAIL] The EPS growth for this quarter relative to the same quarter a year earlier for RDC (50.98%) is below the minimum 18% that this methodology likes to see for a "good" growth company. RDC fails the first requirement. ANNUAL EARNINGS GROWTH: [FAIL] This methodology looks for annual earnings growth above 18%, but prefers higher than 25%. RDC's annual earnings growth rate over the past five years of 3.60% fails this test. EARNINGS CONSISTENCY: [FAIL] According to this methodology, each year's EPS numbers should be better than the previous year's. One dip is allowed, but the following year's earnings should be a new high. RDC, whose annual EPS before extraordinary items for the last 5 years (from earliest to the most recent fiscal year) were 2.84, 4.31, 3.77, 3.24, 2.36, fails this criterion, as more than 1 dip is unacceptable to the methodology. LONG-TERM EPS GROWTH RATE RELATIVE TO GROWTH IN THE LATEST 2 QUARTERS: [FAIL] This methodology looks unfavorably at any company whose earnings growth in the latest 2 quarters has been less than half of the long-term earnings growth rate. RDC fails this criterion, as earnings growth in the 2 most recent quarters (-52.05% for Q6 to Q2 and -51.0% for Q5 to Q1) have slowed substantially to a point less than its long-term growth rate of 3.6%. CURRENT PRICE LEVEL: [FAIL]
Investors should keep an eye open for stocks that are trading within 15% of their 52-week highs, as it is likely to continue in its upward trend. RDC's pricing data is not available, hence an opinion cannot be rendered at the current time. 4 MONTH S&P RELATIVE STRENGTH LINE: [PASS] This methodology likes to see confirmation from this indicator when buying as a sign of a company's recently strong momentum. It shows a company's weekly performance in comparison to the overall market, as measured by the S&P 500. Look for a general upward trend in weekly relative strength, as the best stocks usually act better than the overall market. RDC's relative strength trend has been increasing over the last 4 months. This type of price action is favorable. PRICE PERFORMANCE COMPARED TO ALL OTHER STOCKS: [FAIL] A company's weighted relative strength, which is the stock's price performance compared with the overall market over the past year, should be no less than 80, although above 90 is preferred. As long as all the other numbers are in check, these companies should continue to perform well over the next 3 months. RDC's relative strength of 60 is too low to pass the test. CONFIRM AT LEAST ONE OTHER LEADING STOCK IN THE INDUSTRY: [PASS] Make sure that a company's industry is attractive by confirming that at least one other company in the industry has a relative strength above 80. There is confirmation in RDC's industry (Oil Well Services & Equipment), as there are 22 companies that have a relative strength at or above 80. LOOK FOR LEADING INDUSTRIES: DECREASING LONG-TERM DEBT/EQUITY: [PASS] Companies who have consistently cut debt over the last 3 years, or who have a Debt/Equity ratio less than 2, are looked at favorably. RDC, which has a Debt/Equity ratio of 0.25%, passes this test. RETURN ON EQUITY: [FAIL]
Preferred companies must have a ROE of at least 17%. RDC's ROE of 4.0% is below the minimum 17% that this methodology likes to see, and therefore fails the criterion. SHARES OUTSTANDING: [NEUTRAL] Shares outstanding should be less than 30 million, as fewer shares mean bigger price jumps when demand surges. However, there is no penalty for a large number of shares outstanding as long as all the other parameters are met. Although RDC exceeds the preferred level with shares outstanding of 126 million, the stock still passes the test. INSIDER OWNERSHIP: [FAIL] Companies with the best prospects have strong insider ownership, which we define as 15% or more. When there is strong insider ownership, management is more likely to act in the best interest of the company, as their interests are right in line with that of the shareholders. Insiders own 0.29% of RDC's stock. Management's representation is not large enough and fails this test. INSTITUTIONAL OWNERSHIP: [PASS] Some institutional ownership is preferred, but there is no indication that a large number of institutions is too many. Institutions own 80.43% of RDC's stock. Because there is some institutional ownership present, RDC passes this test.
Read more: http://www.nasdaq.com/symbol/rdc/guru-analysis/valideamomentum#ixzz1mRjPvydp
Benjamin Graham Guru Analysis for RDC

Assessments & Analysis Based on February 13, 2012 close price: $37.96 for the Value Investor based on the criteria of Benjamin Graham. Return to RDC Guru Analysis
RDC Report Card
SECTOR: SALES: CURRENT RATIO: LONG-TERM DEBT IN RELATION TO NET CURRENT ASSETS: LONG-TERM EPS GROWTH: P/E RATIO: PRICE/BOOK RATIO: Like the Benjamin Graham strategy? Get more ideas that pass this analysis
[PASS] [PASS] [PASS] [FAIL] [PASS] [FAIL] [FAIL]

Detailed Analysis
Guru Score: 57%
SECTOR: [PASS] RDC is neither a technology nor financial Company, and therefore this methodology is
applicable. SALES: [PASS] The investor must select companies of "adequate size". This includes companies with annual sales greater than $340 million. RDC's sales of $1,123.0 million, based on trailing 12 month sales, pass this test. CURRENT RATIO: [PASS] The current ratio must be greater than or equal to 2. Companies that meet this criterion are typically financially secure and defensive. RDC's current ratio of 2.71 passes the test. LONG-TERM DEBT IN RELATION TO NET CURRENT ASSETS: [FAIL] For industrial companies, long-term debt must not exceed net current assets (current assets minus current liabilities). Companies that do not meet this criterion lack the financial stability that this methodology likes to see. The long-term debt for RDC is $1,102.9 million, while the net current assets are $824.1 million. RDC fails this test. LONG-TERM EPS GROWTH: [PASS] Companies must increase their EPS by at least 30% over a ten-year period and EPS must not have been negative for any year within the last 5 years. Companies with this type of growth tend to be financially secure and have proven themselves over time. RDC's EPS growth over that period of 298.7% passes the EPS growth test. P/E RATIO: [FAIL] The Price/Earnings (P/E) ratio, based on the greater of the current PE or the PE using average earnings over the last 3 fiscal years, must be "moderate", which this methodology states is not greater than 15. Stocks with moderate P/Es are more defensive by nature. RDC's P/E of 30.19 (using the current PE) fails this test. PRICE/BOOK RATIO: [FAIL] The Price/Book ratio must also be reasonable. That is, the Price/Book multiplied by P/E cannot be greater than 22. RDC's Price/Book ratio is 1.08, while the P/E is 0. RDC fails the Price/Book test
Read more: http://www.nasdaq.com/symbol/rdc/guruanalysis/graham#ixzz1mRjYm7GG
Company Information
Address: City: State: Zip Code: 2800 POST OAK BLVD. SUITE 5450 HOUSTON TX 77056-6127 713-621-7800
Telephone: 713-621-7800
Description of Business
(As filed with the SEC)
Primary SIC Code: 1381
Rowan Companies, Inc. ("Rowan" or the "Company") is a major provider of international and domestic contract drilling services. Rowan also owns and operates a manufacturing division that produces equipment for the drilling, mining and timber industries. Organized in 1947 as a Delaware corporation under the name Rowan Drilling Company, Inc., Rowan is a successor to a contract drilling business conducted since 1923. Information with respect to Rowan's revenues, operating income, assets, and other financial information relating to the Company's business segments and geographic areas of operation is presented in Note 11 of "Notes to Consolidated Financial Statements" in Item 8 of this Form 10-K. ... More ...
Per Share Overview

Date 09/2011 06/2011 03/2011 12/2010 09/2010 06/2010 03/2010 12/2009 12-mos Rolling EPS 1.20 1.42 2.05 2.36 2.46 2.59 2.64 3.24 Dividend NA NA NA NA NA NA NA NA P/E Ratio 25.16 27.33 21.55 14.79 12.34 8.47 11.03 6.99
Key Financial Ratios and Statistics

Profitability 2010
FYE: 12/31
Leverage 2010
Net Inc/Comm Equity Net Inc/Total Assets Net Inc/Inv Cap Pretax Inc/Net Sales Net Inc/Net Sales Cash Flow/Net Sales SG&A/NetSales Asset Utilization Net Receivables Turnover Inventory Turnover Inventory Day Sales Net Sales/Work Cap Net Sales/PP&E
0.19 0.05 0.05 0.21 0.15 0.28 0.10 4.35 2.67 0.01 2.29 0.38
Total Liab/Total Assets Total Liab/Inv Cap Total Liab/Comm Equity Interest Coverage Ratio Curr Debt/Equity LTD/Equity Total Debt/Equity Liquidity Quick Ratio Current Ratio Net Rec/Curr Assets Inv/Curr Assets
0.40 0.44 1.70 16.23 0.01 0.30 0.32 1.85 2.50 0.34 0.26
Income Statement (Millions)

9/30/2011 6/30/2011 3/31/2011 12/31/2010 Total Revenues(Net Sales) Cost of Goods Sold Selling & Admin Exps Operating Income Interest Exp Pretax Income Other Income Net Income Bef Extraordinary ... Net Income 234.70 129.77 24.05 31.96 4.23 27.55 1.23 NA 193.81 65.18 -26.13 8.73 44.87 7.45 36.64 -2.80 NA 465.86 364.28 241.92 32.39 42.62 5.32 37.43 2.15 NA 32.07 1,009.97 749.44 119.35 61.93 5.82 68.23 11.74 NA 57.29
Balance Sheet (Millions)

Assets Cash & Short Term Investments Receivables - Total Inventories - Total Total Current Assets Net Property, Plant & Equipment Total Assets Liabilities Accounts Payable Debt in Current Liabilities Total Current Liabilities Long-Term Debt Total Liabilities Stockholder's Equity 356.55 45.02 482.02 1,102.94 2,360.01 276.72 52.15 397.43 1,107.98 2,366.36 259.05 52.15 523.87 1,121.59 2,460.80 323.62 52.17 529.23 1,133.75 2,465.15 9/30/2011 6/30/2011 3/31/2011 12/31/2010 892.56 325.16 NA 1,306.09 5,347.86 6,758.53 711.33 257.64 NA 1,386.05 5,162.33 6,645.04 204.49 418.88 395.96 1,066.32 5,092.22 6,257.99 452.74 454.83 347.85 1,324.77 4,793.44 6,217.46
Minority Interest Preferred Stock Common Stock Retained Earnings Treasury Stock Total Stockholders' Equity Total Liabilities and Stockholders' Equity
NA 0.00 15.94 3,141.26 -84.04 4,398.52 6,758.53
NA 0.00 15.94 2,947.45 -4.64 4,278.68 6,645.04
NA 0.00 15.89 2,481.59 -1.81 3,797.19 6,257.99
NA 0.00 15.79 2,449.52 -1.51 3,752.31 6,217.46
Cash Flow Summary (Millions)

Categories Net Cash Provided by Operating Activities Net Cash Provided by Investing Activities Net Cash Provided by Financing Activities 9/30/2011 6/30/2011 3/31/2011 12/31/2010 -17.89 293.29 -94.17 32.03 490.90 -1.25 113.87 -358.01 -3.68 227.88 -188.95 -494.21
Annual Summary Data (Millions)

Year 12/2006 12/2007 12/2008 12/2009 12/2010 Growth Rates Sales 1,510.73 2,095.02 2,212.74 1,770.18 1,819.21 4.75 Net Income 318.25 483.80 427.63 367.50 280.00 -3.15 EPS 2.84 4.31 3.77 3.24 2.36 -4.52
Stock Ownership
Type Institutional Date(Q,M) 12/31/11 No. Owners 359 Shares Held (000s) 103,267 % Own 82.63
Report Date : 2/13/2012

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