BORR DRILLING LTD (BORR) Stock Fundamental Analysis
NYSE:BORR - New York Stock Exchange, Inc. - BMG1466R1732 - Common Stock - Currency: USD
BORR gets a fundamental rating of 4 out of 10. The analysis compared the fundamentals against 58 industry peers in the Energy Equipment & Services industry. BORR has a bad profitability rating. Also its financial health evaluation is rather negative. BORR is evaluated to be cheap and growing strongly. This does not happen too often!
1. Profitability
1.1 Basic Checks
BORR had positive earnings in the past year.
BORR had a positive operating cash flow in the past year.
BORR had negative earnings in 4 of the past 5 years.
In the past 5 years BORR reported 4 times negative operating cash flow.
1.2 Ratios
BORR's Return On Assets of 2.55% is in line compared to the rest of the industry. BORR outperforms 44.83% of its industry peers.
The Return On Equity of BORR (8.62%) is comparable to the rest of the industry.
The Return On Invested Capital of BORR (9.52%) is better than 70.69% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.55% | ||
| ROE | 8.62% | ||
| ROIC | 9.52% |
ROA(3y)-5.1%
ROA(5y)-6.88%
ROE(3y)-17.35%
ROE(5y)-21.14%
ROIC(3y)N/A
ROIC(5y)N/A
1.3 Margins
The Profit Margin of BORR (8.80%) is better than 67.24% of its industry peers.
BORR has a better Operating Margin (36.47%) than 98.28% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 36.47% | ||
| PM (TTM) | 8.8% | ||
| GM | N/A |
OM growth 3YN/A
OM growth 5YN/A
PM growth 3YN/A
PM growth 5YN/A
GM growth 3YN/A
GM growth 5YN/A
2. Health
2.1 Basic Checks
BORR has a Return on Invested Capital (ROIC), which is below the Cost of Capital (WACC), which means it is destroying value.
Compared to 1 year ago, BORR has more shares outstanding
Compared to 5 years ago, BORR has more shares outstanding
Compared to 1 year ago, BORR has a worse debt to assets ratio.
2.2 Solvency
BORR has an Altman-Z score of 1.19. This is a bad value and indicates that BORR is not financially healthy and even has some risk of bankruptcy.
BORR has a worse Altman-Z score (1.19) than 72.41% of its industry peers.
BORR has a Debt/Equity ratio of 1.91. This is a high value indicating a heavy dependency on external financing.
BORR has a Debt to Equity ratio of 1.91. This is amonst the worse of the industry: BORR underperforms 89.66% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.91 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 1.19 |
ROIC/WACC0.79
WACC12.09%
2.3 Liquidity
A Current Ratio of 1.41 indicates that BORR should not have too much problems paying its short term obligations.
BORR's Current ratio of 1.41 is on the low side compared to the rest of the industry. BORR is outperformed by 77.59% of its industry peers.
BORR has a Quick Ratio of 1.41. This is a normal value and indicates that BORR is financially healthy and should not expect problems in meeting its short term obligations.
BORR has a Quick ratio (1.41) which is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.41 | ||
| Quick Ratio | 1.41 |
3. Growth
3.1 Past
BORR shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 375.00%, which is quite impressive.
Looking at the last year, BORR shows a very strong growth in Revenue. The Revenue has grown by 38.38%.
BORR shows a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 36.16% yearly.
EPS 1Y (TTM)375%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%N/A
Revenue 1Y (TTM)38.38%
Revenue growth 3Y35.89%
Revenue growth 5Y36.16%
Sales Q2Q%26.16%
3.2 Future
Based on estimates for the next years, BORR will show a very strong growth in Earnings Per Share. The EPS will grow by 112.25% on average per year.
Based on estimates for the next years, BORR will show a quite strong growth in Revenue. The Revenue will grow by 14.64% on average per year.
EPS Next Y450.38%
EPS Next 2Y223.34%
EPS Next 3Y112.26%
EPS Next 5YN/A
Revenue Next Year31.54%
Revenue Next 2Y19.01%
Revenue Next 3Y14.64%
Revenue Next 5YN/A
3.3 Evolution
Although the future Revenue growth is still strong, it is not able to hold up the even more excellent growth rate of the past years.
4. Valuation
4.1 Price/Earnings Ratio
The Price/Earnings ratio is 10.33, which indicates a very decent valuation of BORR.
Based on the Price/Earnings ratio, BORR is valued cheaper than 84.48% of the companies in the same industry.
BORR is valuated cheaply when we compare the Price/Earnings ratio to 28.51, which is the current average of the S&P500 Index.
With a Price/Forward Earnings ratio of 4.08, the valuation of BORR can be described as very cheap.
BORR's Price/Forward Earnings ratio is rather cheap when compared to the industry. BORR is cheaper than 100.00% of the companies in the same industry.
Compared to an average S&P500 Price/Forward Earnings ratio of 93.88, BORR is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 10.33 | ||
| Fwd PE | 4.08 |
4.2 Price Multiples
BORR's Enterprise Value to EBITDA ratio is in line with the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 5.65 |
4.3 Compensation for Growth
The low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
BORR's earnings are expected to grow with 112.25% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.02
PEG (5Y)N/A
EPS Next 2Y223.34%
EPS Next 3Y112.26%
5. Dividend
5.1 Amount
BORR has a Yearly Dividend Yield of 8.08%, which is a nice return.
Compared to an average industry Dividend Yield of 3.32, BORR pays a better dividend. On top of this BORR pays more dividend than 96.55% of the companies listed in the same industry.
Compared to an average S&P500 Dividend Yield of 2.27, BORR pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 8.08% |
5.2 History
BORR is new to the dividend game and has less than 3 years of track record.
Dividend Growth(5Y)N/A
Div Incr Years0
Div Non Decr Years0
5.3 Sustainability
DPN/A
EPS Next 2Y223.34%
EPS Next 3Y112.26%
BORR DRILLING LTD
NYSE:BORR (1/30/2025, 8:07:46 PM)
After market: 3.5398 +0.13 (+3.81%)3.41
+0.01 (+0.29%)
Chartmill FA Rating
GICS SectorEnergy
GICS IndustryGroupEnergy
GICS IndustryEnergy Equipment & Services
Earnings (Last)
Earnings (Next)
Inst Owners80%
Inst Owner Change0.07%
Ins Owners6.74%
Ins Owner ChangeN/A
Market Cap900.51M
Analysts84.29
Price Target6.54 (91.79%)
Short Float %10.41%
Short Ratio5.47
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 8.08% |
Yearly DividendN/A
Dividend Growth(5Y)N/A
DPN/A
Div Incr Years0
Div Non Decr Years0
Ex-DateN/A
Surprises & Revisions
EPS beat(2)0
Avg EPS beat(2)-45.96%
Min EPS beat(2)-59.15%
Max EPS beat(2)-32.77%
EPS beat(4)1
Avg EPS beat(4)-34.76%
Min EPS beat(4)-64.35%
Max EPS beat(4)17.22%
EPS beat(8)1
Avg EPS beat(8)-83.27%
EPS beat(12)2
Avg EPS beat(12)-85.43%
EPS beat(16)5
Avg EPS beat(16)-57.92%
Revenue beat(2)1
Avg Revenue beat(2)2.04%
Min Revenue beat(2)-3.32%
Max Revenue beat(2)7.4%
Revenue beat(4)2
Avg Revenue beat(4)1.45%
Min Revenue beat(4)-3.32%
Max Revenue beat(4)7.4%
Revenue beat(8)5
Avg Revenue beat(8)2.37%
Revenue beat(12)6
Avg Revenue beat(12)1.36%
Revenue beat(16)7
Avg Revenue beat(16)-4.27%
PT rev (1m)2.69%
PT rev (3m)-25.77%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-28.99%
EPS NY rev (1m)0%
EPS NY rev (3m)-23.37%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)0.88%
Revenue NY rev (1m)-0.97%
Revenue NY rev (3m)-0.88%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 10.33 | ||
| Fwd PE | 4.08 | ||
| P/S | 0.93 | ||
| P/FCF | N/A | ||
| P/OCF | 450.26 | ||
| P/B | 0.91 | ||
| P/tB | 0.91 | ||
| EV/EBITDA | 5.65 |
EPS(TTM)0.33
EY9.68%
EPS(NY)0.84
Fwd EY24.53%
FCF(TTM)-0.96
FCFYN/A
OCF(TTM)0.01
OCFY0.22%
SpS3.67
BVpS3.74
TBVpS3.74
PEG (NY)0.02
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.55% | ||
| ROE | 8.62% | ||
| ROCE | 12.05% | ||
| ROIC | 9.52% | ||
| ROICexc | 10.16% | ||
| ROICexgc | 10.16% | ||
| OM | 36.47% | ||
| PM (TTM) | 8.8% | ||
| GM | N/A | ||
| FCFM | N/A |
ROA(3y)-5.1%
ROA(5y)-6.88%
ROE(3y)-17.35%
ROE(5y)-21.14%
ROIC(3y)N/A
ROIC(5y)N/A
ROICexc(3y)N/A
ROICexc(5y)N/A
ROICexgc(3y)N/A
ROICexgc(5y)N/A
ROCE(3y)N/A
ROCE(5y)N/A
ROICexcg growth 3YN/A
ROICexcg growth 5YN/A
ROICexc growth 3YN/A
ROICexc growth 5YN/A
OM growth 3YN/A
OM growth 5YN/A
PM growth 3YN/A
PM growth 5YN/A
GM growth 3YN/A
GM growth 5YN/A
F-Score6
Asset Turnover0.29
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.91 | ||
| Debt/FCF | N/A | ||
| Debt/EBITDA | 3.94 | ||
| Cap/Depr | 201.9% | ||
| Cap/Sales | 26.34% | ||
| Interest Coverage | 1.74 | ||
| Cash Conversion | 0.42% | ||
| Profit Quality | N/A | ||
| Current Ratio | 1.41 | ||
| Quick Ratio | 1.41 | ||
| Altman-Z | 1.19 |
F-Score6
WACC12.09%
ROIC/WACC0.79
Cap/Depr(3y)61.47%
Cap/Depr(5y)97.68%
Cap/Sales(3y)13.75%
Cap/Sales(5y)27.28%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)375%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%N/A
EPS Next Y450.38%
EPS Next 2Y223.34%
EPS Next 3Y112.26%
EPS Next 5YN/A
Revenue 1Y (TTM)38.38%
Revenue growth 3Y35.89%
Revenue growth 5Y36.16%
Sales Q2Q%26.16%
Revenue Next Year31.54%
Revenue Next 2Y19.01%
Revenue Next 3Y14.64%
Revenue Next 5YN/A
EBIT growth 1Y80.89%
EBIT growth 3YN/A
EBIT growth 5YN/A
EBIT Next Year98.91%
EBIT Next 3Y30.67%
EBIT Next 5YN/A
FCF growth 1Y-185.88%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y105.09%
OCF growth 3YN/A
OCF growth 5YN/A