Is SDRL a high-quality business?

AlphaMadera's AlphaQuality grade scores Seadrill Limited on six pillars — profitability, capital efficiency, balance-sheet strength, growth durability, cash generation, and shareholder yield. The composite letter grade reflects how SDRL compares to a Buffett-style quality bar.

What is Seadrill Limited's AlphaQuality grade?

AlphaQuality assigns a letter grade (A through F) to SDRL based on a six-pillar quantitative model. The live page shows the composite grade plus each pillar's individual score with the underlying metrics.

What makes SDRL a quality stock?

AlphaQuality looks at return on capital, free-cash-flow margins, debt-to-equity, revenue stability, dividend and buyback policy, and operating-margin trend. Stocks scoring well across all six pillars earn higher grades — the methodology favors compounders over cyclicals.

SDRL - Seadrill Limited

Price: -- -- | CONSENSUS: Hold DETAILS | PRICE TARGET: $47.00 DETAILS

AlphaQuality

Quantitative six-pillar business-quality grade

Oil & Gas E&P

AlphaQuality — archetype-weighted quantitative grade

D 38.6 / 100 composite

Composite Grade

Composite of six pillars weighted for oil & gas e&p businesses. Purely quantitative — no stock price or analyst input.

Profitability

Weight: 15%

D+ 42.6

5yr Avg ROIC 1.6% 18/100
Operating Margin Trend +6.62 pp/yr 100/100

Capital Efficiency

Weight: 10%

A+ 100.0

5yr Avg ROE 27.9% 100/100
5yr Share-Count CAGR -11.2% 100/100

Growth Quality

Weight: 5%

C- 50.4

5yr Revenue CAGR 12.2% 85/100
5yr EPS CAGR -70.5% 0/100
Revenue-Growth Years (5) 3/5 60/100

Cash Generation

Weight: 25%

F 6.4

5yr FCF Margin -7.4% 0/100
5yr FCF/NI Conversion 0.14x 14/100

Balance Sheet

Weight: 25%

C 52.4

Net Debt / EBITDA 1.10x 83/100
Interest Coverage (EBIT/Int) 0.16x 2/100
Altman Z-Score 2.49 57/100

Stability

Weight: 20%

F 25.0

EPS Volatility (σ/μ) 1.41 0/100
Piotroski F-Score 3 33/100
Negative-Revenue Years (5) 2/5 60/100

1 of 1 gurus held; 1 trimmed.

Holders: 1
Avg Δ position: -19.1%
New buys: 0
Full exits: 0

Cooperman decreased -19%

How this is calculated

AlphaQuality grades six pillars from 0-100 and weights each by archetype:

Profitability (15%) — 5yr Avg ROIC, Operating Margin Trend
Capital Efficiency (10%) — 5yr Avg ROE, 5yr Share-Count CAGR
Growth Quality (5%) — 5yr Revenue CAGR, 5yr EPS CAGR, Revenue-Growth Years (5)
Cash Generation (25%) — 5yr FCF Margin, 5yr FCF/NI Conversion
Balance Sheet (25%) — Net Debt / EBITDA, Interest Coverage (EBIT/Int), Altman Z-Score
Stability (20%) — EPS Volatility (σ/μ), Piotroski F-Score, Negative-Revenue Years (5)

We deliberately ignore stock price, analyst targets, and consensus ratings so the grade is suitable for backtesting forward returns. A minimum of 5 fiscal years of audited statements is required; distressed and highly leveraged infrastructure businesses are declared ungradable rather than forced into a numeric score.