BORR DRILLING LTD (BORR) Stock Fundamental Analysis
USA - NYSE:BORR - BMG1466R1732 - Common Stock
3.24 USD
+0.02 (+0.62%)
3.24 USD
0 (0%)
We assign a fundamental rating of 3 out of 10 to BORR. BORR was compared to 60 industry peers in the Energy Equipment & Services industry. BORR has a medium profitability rating, but doesn't score so well on its financial health evaluation. BORR is valied quite expensively at the moment, while it does show a decent growth rate.
1. Profitability
1.1 Basic Checks
BORR had positive earnings in the past year.
In the past year BORR had a positive cash flow from operations.
In multiple years BORR reported negative net income over the last 5 years.
The reported operating cash flow has been mixed in the past 5 years: BORR reported negative operating cash flow in multiple years.
1.2 Ratios
The Return On Assets of BORR (1.62%) is worse than 66.67% of its industry peers.
BORR has a Return On Equity (5.35%) which is in line with its industry peers.
BORR has a Return On Invested Capital of 9.03%. This is in the better half of the industry: BORR outperforms 68.33% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for BORR is in line with the industry average of 7.82%.
The 3 year average ROIC (5.99%) for BORR is below the current ROIC(9.03%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 1.62% | ||
| ROE | 5.35% | ||
| ROIC | 9.03% |
ROA(3y)-2.21%
ROA(5y)-4.51%
ROE(3y)-7.37%
ROE(5y)-14.65%
ROIC(3y)5.99%
ROIC(5y)N/A
1.3 Margins
BORR has a Profit Margin (5.48%) which is comparable to the rest of the industry.
Looking at the Operating Margin, with a value of 34.48%, BORR belongs to the top of the industry, outperforming 96.67% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 34.48% | ||
| PM (TTM) | 5.48% | ||
| 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 less shares outstanding
BORR has more shares outstanding than it did 5 years ago.
Compared to 1 year ago, BORR has a worse debt to assets ratio.
2.2 Solvency
BORR has an Altman-Z score of 1.18. This is a bad value and indicates that BORR is not financially healthy and even has some risk of bankruptcy.
The Altman-Z score of BORR (1.18) is worse than 70.00% of its industry peers.
A Debt/Equity ratio of 1.91 is on the high side and indicates that BORR has dependencies on debt financing.
With a Debt to Equity ratio value of 1.91, BORR is not doing good in the industry: 88.33% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.91 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 1.18 |
ROIC/WACC0.87
WACC10.36%
2.3 Liquidity
BORR has a Current Ratio of 1.28. 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 Current ratio of 1.28. This is amonst the worse of the industry: BORR underperforms 80.00% of its industry peers.
A Quick Ratio of 1.28 indicates that BORR should not have too much problems paying its short term obligations.
BORR has a worse Quick ratio (1.28) than 63.33% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.28 | ||
| Quick Ratio | 1.28 |
3. Growth
3.1 Past
BORR shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -18.18%.
The Revenue has grown by 30.97% in the past year. This is a very strong growth!
The Revenue has been growing by 24.78% on average over the past years. This is a very strong growth!
EPS 1Y (TTM)-18.18%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%150%
Revenue 1Y (TTM)30.97%
Revenue growth 3Y60.31%
Revenue growth 5Y24.78%
Sales Q2Q%14.69%
3.2 Future
Based on estimates for the next years, BORR will show a very negative growth in Earnings Per Share. The EPS will decrease by -14.66% on average per year.
Based on estimates for the next years, BORR will show a small growth in Revenue. The Revenue will grow by 1.49% on average per year.
EPS Next Y-48.1%
EPS Next 2Y-87.38%
EPS Next 3Y-14.66%
EPS Next 5YN/A
Revenue Next Year-0.1%
Revenue Next 2Y-0.9%
Revenue Next 3Y1.49%
Revenue Next 5YN/A
3.3 Evolution
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.
4. Valuation
4.1 Price/Earnings Ratio
A Price/Earnings ratio of 12.00 indicates a correct valuation of BORR.
83.33% of the companies in the same industry are more expensive than BORR, based on the Price/Earnings ratio.
BORR's Price/Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 25.89.
BORR is valuated quite expensively with a Price/Forward Earnings ratio of 635.29.
73.33% of the companies in the same industry are cheaper than BORR, based on the Price/Forward Earnings ratio.
When comparing the Price/Forward Earnings ratio of BORR to the average of the S&P500 Index (34.59), we can say BORR is valued expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 12 | ||
| Fwd PE | 635.29 |
4.2 Price Multiples
The rest of the industry has a similar Enterprise Value to EBITDA ratio as BORR.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 6 |
4.3 Compensation for Growth
BORR's earnings are expected to decrease with -14.66% in the coming years. This may justify a cheaper valuation.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y-87.38%
EPS Next 3Y-14.66%
5. Dividend
5.1 Amount
BORR has a Yearly Dividend Yield of 1.23%. Purely for dividend investing, there may be better candidates out there.
BORR's Dividend Yield is a higher than the industry average which is at 2.97.
With a Dividend Yield of 1.23, BORR pays less dividend than the S&P500 average, which is at 2.44.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.23% |
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
BORR pays out 61.44% of its income as dividend. This is not a sustainable payout ratio.
DP61.44%
EPS Next 2Y-87.38%
EPS Next 3Y-14.66%
3.24
+0.02 (+0.62%)
Chartmill FA Rating
GICS SectorEnergy
GICS IndustryGroupEnergy
GICS IndustryEnergy Equipment & Services
Earnings (Last)
Earnings (Next)
Inst Owners80%
Inst Owner Change-10.17%
Ins Owners6.74%
Ins Owner ChangeN/A
Market Cap927.35M
Revenue(TTM)1.01B
Net Income(TTM)54.20M
Analysts77.14
Price Target2.7 (-16.67%)
Short Float %5.28%
Short Ratio3.23
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.23% |
Yearly Dividend0.31
Dividend Growth(5Y)N/A
DP61.44%
Div Incr Years0
Div Non Decr Years0
Ex-Date
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)9.23%
Min EPS beat(2)-14.38%
Max EPS beat(2)32.83%
EPS beat(4)1
Avg EPS beat(4)-15.17%
Min EPS beat(4)-59.15%
Max EPS beat(4)32.83%
EPS beat(8)2
Avg EPS beat(8)-30.07%
EPS beat(12)2
Avg EPS beat(12)-62.16%
EPS beat(16)4
Avg EPS beat(16)-61.78%
Revenue beat(2)1
Avg Revenue beat(2)-2.13%
Min Revenue beat(2)-4.29%
Max Revenue beat(2)0.03%
Revenue beat(4)2
Avg Revenue beat(4)-1.7%
Min Revenue beat(4)-4.29%
Max Revenue beat(4)0.76%
Revenue beat(8)4
Avg Revenue beat(8)0.28%
Revenue beat(12)8
Avg Revenue beat(12)1.43%
Revenue beat(16)9
Avg Revenue beat(16)1.89%
PT rev (1m)0%
PT rev (3m)-58.68%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-62.11%
EPS NY rev (1m)-80.14%
EPS NY rev (3m)-80.14%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-10.45%
Revenue NY rev (1m)0.4%
Revenue NY rev (3m)-7.67%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 12 | ||
| Fwd PE | 635.29 | ||
| P/S | 0.94 | ||
| P/FCF | N/A | ||
| P/OCF | 4.9 | ||
| P/B | 0.92 | ||
| P/tB | 0.92 | ||
| EV/EBITDA | 6 |
EPS(TTM)0.27
EY8.33%
EPS(NY)0.01
Fwd EY0.16%
FCF(TTM)-0.79
FCFYN/A
OCF(TTM)0.66
OCFY20.41%
SpS3.46
BVpS3.54
TBVpS3.54
PEG (NY)N/A
PEG (5Y)N/A
Graham Number4.64
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 1.62% | ||
| ROE | 5.35% | ||
| ROCE | 11.43% | ||
| ROIC | 9.03% | ||
| ROICexc | 9.31% | ||
| ROICexgc | 9.31% | ||
| OM | 34.48% | ||
| PM (TTM) | 5.48% | ||
| GM | N/A | ||
| FCFM | N/A |
ROA(3y)-2.21%
ROA(5y)-4.51%
ROE(3y)-7.37%
ROE(5y)-14.65%
ROIC(3y)5.99%
ROIC(5y)N/A
ROICexc(3y)6.17%
ROICexc(5y)N/A
ROICexgc(3y)6.17%
ROICexgc(5y)N/A
ROCE(3y)7.58%
ROCE(5y)N/A
ROICexgc growth 3YN/A
ROICexgc 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-Score5
Asset Turnover0.3
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.91 | ||
| Debt/FCF | N/A | ||
| Debt/EBITDA | 4.02 | ||
| Cap/Depr | 296.79% | ||
| Cap/Sales | 42.04% | ||
| Interest Coverage | 1.77 | ||
| Cash Conversion | 39.35% | ||
| Profit Quality | N/A | ||
| Current Ratio | 1.28 | ||
| Quick Ratio | 1.28 | ||
| Altman-Z | 1.18 |
F-Score5
WACC10.36%
ROIC/WACC0.87
Cap/Depr(3y)160.22%
Cap/Depr(5y)106.48%
Cap/Sales(3y)24.68%
Cap/Sales(5y)19.11%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)-18.18%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%150%
EPS Next Y-48.1%
EPS Next 2Y-87.38%
EPS Next 3Y-14.66%
EPS Next 5YN/A
Revenue 1Y (TTM)30.97%
Revenue growth 3Y60.31%
Revenue growth 5Y24.78%
Sales Q2Q%14.69%
Revenue Next Year-0.1%
Revenue Next 2Y-0.9%
Revenue Next 3Y1.49%
Revenue Next 5YN/A
EBIT growth 1Y2.31%
EBIT growth 3YN/A
EBIT growth 5YN/A
EBIT Next Year56.65%
EBIT Next 3Y4.25%
EBIT Next 5YN/A
FCF growth 1Y-552.74%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y136.92%
OCF growth 3YN/A
OCF growth 5YN/A
BORR DRILLING LTD / BORR FAQ
What is the fundamental rating for BORR stock?
ChartMill assigns a fundamental rating of 3 / 10 to BORR.
What is the valuation status of BORR DRILLING LTD (BORR) stock?
ChartMill assigns a valuation rating of 2 / 10 to BORR DRILLING LTD (BORR). This can be considered as Overvalued.
What is the profitability of BORR stock?
BORR DRILLING LTD (BORR) has a profitability rating of 4 / 10.
Can you provide the expected EPS growth for BORR stock?
The Earnings per Share (EPS) of BORR DRILLING LTD (BORR) is expected to decline by -48.1% in the next year.
Is the dividend of BORR DRILLING LTD sustainable?
The dividend rating of BORR DRILLING LTD (BORR) is 2 / 10 and the dividend payout ratio is 61.44%.