SDRL
EnergySeadrill Limited · Oil & Gas Drilling · $3B
What is Seadrill Limited?
Seadrill Limited is a global offshore contract drilling company serving oil and gas operators across shallow and ultra-deepwater environments. Incorporated in 2005 and headquartered in London, the company operates a diverse fleet of modern drilling units worldwide.
Seadrill provides contract drilling services through three segments: Harsh Environment, Floaters, and Jack-up Rigs. The company owns and operates drillships, semi-submersible rigs, and jack-up rigs suited for a range of water depths and environmental conditions. Revenue is generated by contracting these rigs to oil supermajors, national oil companies, and independent producers. Seadrill also offers operational support and management services to third-party drilling operators.
Seadrill was incorporated in 2005 and is headquartered in London, United Kingdom.
- Drillship operations for ultra-deepwater exploration
- Semi-submersible rigs for harsh and benign environments
- Jack-up rigs for shallow-water drilling contracts
- Rig management and operational support services
Is SDRL a Good Stock to Buy?
UQS Score rates SDRL as Below Average overall, reflecting meaningful structural challenges alongside some areas of relative strength.
The Growth pillar stands out as a relative bright spot, suggesting the business is expanding from a recovery base. The Risk and Valuation pillars also carry favorable labels, indicating the stock does not appear excessively priced relative to its fundamentals and that near-term financial risk is not at an extreme level.
The Quality and Moat pillars are both rated Weak — pointing to thin competitive differentiation and below-average business quality metrics that weigh on the overall composite score.
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Past performance does not guarantee future results. UQS Score is based on fundamental data and is not a buy/sell recommendation.
Does SDRL pay dividends?
No — Seadrill Limited does not currently pay a dividend.
Seadrill does not currently pay a dividend. For a company emerging from a significant financial restructuring, retaining capital to reinvest in fleet maintenance, debt reduction, and contract positioning is a common priority. Income-focused investors should factor this into their assessment of SDRL relative to other energy sector holdings.
When does SDRL report earnings?
Seadrill reports earnings on a quarterly cadence, consistent with standard practice for US-listed equities.
Offshore drilling demand has been recovering alongside energy sector activity, which has influenced contract backlog and day-rate trends across the industry. Seadrill's Growth pillar rating reflects this improving backdrop, though Quality metrics remain a watch point quarter to quarter.
For the most recent quarter's results and guidance, visit Seadrill's official investor relations page.
SDRL Price History
+49.1% over 5Y
Monthly close, adjusted for stock splits and dividend reinvestment.
SDRL Long-term Outlook
The fundamental outlook for Seadrill is shaped by a mixed pillar profile. The Good Growth rating suggests the business has near-term expansion potential tied to offshore drilling demand recovery. The Good Risk rating indicates the balance sheet and operational risk profile are not at critical levels. However, the Weak Quality and Moat ratings signal that sustained outperformance may be difficult without structural improvements in profitability and competitive positioning.
Growth drivers
- Recovery in offshore drilling demand from oil supermajors and national oil companies
- Potential day-rate improvement as global rig supply remains constrained
- Expansion of management and operational services to third-party operators
Key risks
- Weak competitive moat leaves Seadrill exposed to contract pricing pressure
- Energy commodity price volatility can rapidly shift operator drilling budgets
- Below-average quality metrics may limit financial resilience during downturns
SDRL vs Peers
Seadrill competes in the global contract drilling market alongside several established players with varying geographic and operational focuses.
Helmerich & Payne focuses primarily on land drilling in North America, giving it a different risk and demand profile compared to Seadrill's offshore-centric fleet.
Patterson-UTI operates across both drilling and completion services, offering broader exposure to the North American onshore market than Seadrill's offshore model.
Transocean is Seadrill's most direct peer, competing for ultra-deepwater and harsh-environment contracts with a large fleet of floaters globally.
Frequently Asked Questions
What does Seadrill do?
Seadrill provides offshore contract drilling services to oil and gas companies worldwide. It operates drillships, semi-submersible rigs, and jack-up rigs across shallow and ultra-deepwater environments. The company serves oil supermajors, national oil companies, and independent producers, and also offers rig management services to third parties.
Does SDRL pay dividends?
Seadrill does not currently pay a dividend. The company is focused on capital allocation priorities consistent with its post-restructuring position, making it less suitable for income-oriented investors at this time.
When does SDRL report earnings?
Seadrill reports on a quarterly cadence typical of US-listed companies. Our data source does not cover specific upcoming earnings dates, so investors should check Seadrill's investor relations page for the latest schedule.
Is SDRL a good stock to buy?
UQS Score rates SDRL as Below Average overall. While the Growth, Risk, and Valuation pillars carry favorable labels, the Weak Quality and Moat ratings highlight real structural concerns. Whether SDRL fits a portfolio depends on individual risk tolerance and investment goals — the full pillar breakdown is available to Pro members.
Is SDRL overvalued?
The UQS Valuation pillar for SDRL is rated Good, suggesting the stock does not appear excessively priced relative to its fundamentals within the current energy sector context. However, valuation alone does not determine investment quality — see the full analysis for context.
How does SDRL compare to its competitors?
Among offshore drillers, Transocean is Seadrill's closest peer competing for similar deepwater contracts. Helmerich & Payne and Patterson-UTI operate primarily in the onshore North American market, making them structurally different businesses. Each competitor carries its own UQS Score profile, viewable on their respective pages.
What is SDRL's market cap bracket?
Seadrill is classified as a mid-cap company. This places it in a segment of the market that can offer growth potential but may also carry higher volatility than large-cap peers in the energy sector.
Who founded Seadrill?
Seadrill was founded by Norwegian shipping magnate John Fredriksen and was incorporated in 2005. The company grew rapidly through acquisitions to become one of the world's largest offshore drilling contractors before undergoing financial restructuring.
Is SDRL a long-term quality investment?
As a long-term quality indicator, SDRL's Below Average UQS Score reflects concerns — particularly the Weak Quality and Moat ratings — that may limit its appeal for quality-focused, long-horizon investors. The offshore drilling sector is cyclical, and structural moat is a key factor in long-term resilience.
What is the main competitive advantage of Seadrill?
Seadrill's fleet spans multiple rig types and water depths, giving it operational breadth across harsh and benign environments. However, the UQS Moat pillar is rated Weak, indicating that durable competitive differentiation relative to peers is limited in the current market environment.
What sector does SDRL belong to?
Seadrill operates in the Energy sector, specifically within offshore contract drilling services. The company's performance is closely tied to oil and gas exploration activity, which in turn is influenced by commodity prices and operator capital budgets.
Is SDRL a growth stock or value stock?
Based on its UQS profile, SDRL shows characteristics of both — the Growth pillar is rated Good, reflecting near-term expansion potential, while the Valuation pillar is also rated Good, suggesting it is not trading at a significant premium. It does not fit neatly into either category given the Weak Quality and Moat ratings.
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Pro Analysis
SDRL — Score History
| Date | UQS | Quality | Moat | Growth | Risk | Value | Change |
|---|---|---|---|---|---|---|---|
| May 16, 2026 | 36.4 | 5.9 | 20.0 | 53.2 | 59.5 | 68.8 | +0.9 |
| May 10, 2026 | 35.5 | 5.5 | 20.0 | 52.2 | 37.2 | 87.6 | +0.1 |
| May 8, 2026 | 35.4 | 5.5 | 20.0 | 52.2 | 37.2 | 86.5 | -1.2 |
| May 3, 2026 | 36.6 | 6.0 | 20.0 | 52.2 | 60.4 | 70.9 | -0.1 |
| Apr 26, 2026 | 36.7 | 6.0 | 20.0 | 52.2 | 60.4 | 71.7 | -0.1 |
| Apr 22, 2026 | 36.8 | 6.0 | 20.0 | 52.2 | 60.4 | 72.4 | -2.2 |
| Apr 19, 2026 | 39.0 | 7.1 | 20.0 | 61.4 | 60.4 | 72.4 | +0.7 |
| Apr 18, 2026 | 38.3 | 7.1 | 20.0 | 60.2 | 60.4 | 69.9 | -2.2 |
| Apr 14, 2026 | 40.5 | 7.1 | 20.0 | 60.2 | 60.4 | 84.4 | -7.6 |
| Apr 13, 2026 | 48.1 | 7.1 | 50.0 | 60.2 | 60.4 | 84.9 | +7.5 |
SDRL — Pillar Breakdown
Quality
— 5.9/100 (25%)Seadrill Limited currently shows below-average quality metrics, suggesting challenges with profitability.
How effectively capital is deployed to generate returns.
Profitability relative to shareholders' equity.
Ability to convert revenue into operating profit.
Bottom-line profit as a share of revenue.
Asset productivity — how much gross profit each dollar of assets generates.
Free cash flow relative to market value.
Growth
— 53.1/100 (20%)Seadrill Limited shows steady but unspectacular growth, typical for mature companies.
Revenue trajectory over the last twelve months.
Compound annual revenue growth rate over 3 years.
Year-over-year earnings per share growth.
Analyst consensus for future revenue growth.
Analyst consensus for future earnings growth.
Risk
— 59.5/100 (15%)Seadrill Limited maintains a reasonable risk profile with manageable debt levels.
Debt levels relative to earnings capacity.
Total debt relative to shareholder equity.
Short-term liquidity — ability to pay near-term obligations.
Earnings capacity relative to interest payments.
Valuation
— 70.1/100 (15%)Seadrill Limited trades at a reasonable valuation with decent earnings yield and FCF multiples.
Inverse of forward P/E — higher yield means cheaper stock.
P/E relative to earnings growth — lower is more attractive.
Enterprise value multiple relative to sector median.
Moat
— 20/100 (25%)Seadrill Limited operates in a highly competitive environment with limited sustainable advantages. The Moat pillar evaluates competitive advantages across five dimensions: Switching Costs, Network Effects, Cost Advantage, Intangible Assets, and Scale & Ecosystem. Sign in to customize moat ratings for SDRL.
Score Composition
Financial Data
More Stock Analysis
How is the SDRL UQS Score Calculated?
The UQS (Unified Quality Score) for Seadrill Limited is calculated using a proprietary 6-pillar framework with 29 financial metrics. Each pillar evaluates a different dimension on a 0–100 scale, then combines into a single weighted score. Scoring thresholds are calibrated per sector. Momentum is an optional Pro toggle — without it, you get the 5-pillar / 25-metric core shown below.
Quality (25%) measures profitability and capital efficiency — ROIC, ROE, margins, GP/Assets, and FCF Yield.
Moat (25%) assesses Seadrill Limited's competitive advantages across switching costs, network effects, cost advantages, intangible assets, and ecosystem scale.
Growth (20%) tracks revenue trajectory and earnings momentum, combining historical results with analyst forward estimates.
Risk (15%) is inversely scored — lower leverage and strong balance sheet health result in higher scores.
Valuation (15%) measures whether Seadrill Limited is fairly priced using earnings yield, price-to-FCF, PEG ratio, and EV/EBITDA relative to sector peers.
Six investor-inspired presets are available, each with different pillar weights: Balanced, Buffett, Munger, Lynch, Cathie Wood, and Graham. The public score shown here uses the Balanced preset. Learn more in our FAQ.