McDermott International (MDR)

TheGarcipian (99.55) Submitted: 4/06/07 3:23 AM : Start Price: $24.08 MDR Score: 118.59

"Sales jumped 27% in 2006, and analysts expect this business to grow even faster this year." New projects launched in the Caspian Sea, expansions in Qatar, and on-going projects in Australia, India, and China. An $8 BILLION backlog ain't nuttin' to sneeze at either. Other Likes: the PEG ratio is only 0.76. DISLIKES: P/E is 16 (trailing) and 12 (forward), which is not great but decent (I'd like them lower), but the biggest problem I see is their higher-than-normal Debt/Equity ratio (0.7 currently), which is higher than their competitors. Still MDR is spread out throughout the world that the civil war in Iraq (and the forthcoming Iran-Iraq encore conflict) will not have an overly negative effect on their business. If the financials looked better to me, I'd post this as an Outperform for the next 2-4 years, but I'm just not as sure about this one as I am about Diamond Offshore.
SOURCEs: Yahoo Finance; SmartMoney, April 2007, pp. 77-78.

Report this Post Replies: 0 | Reply