BORR DRILLING LTD (BORR) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:BORR - BMG1466R1732 - Common Stock
4.26 USD
+0.13 (+3.15%)
4.2 USD
-0.06 (-1.41%)
BORR gets a fundamental rating of 3 out of 10. The analysis compared the fundamentals against 62 industry peers in the Energy Equipment & Services industry. There are concerns on the financial health of BORR while its profitability can be described as average. BORR has a expensive valuation and it also scores bad on growth.
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
BORR has a Return On Assets of 2.05%. This is comparable to the rest of the industry: BORR outperforms 41.94% of its industry peers.
With a Return On Equity value of 6.34%, BORR perfoms like the industry average, outperforming 56.45% of the companies in the same industry.
BORR's Return On Invested Capital of 9.03% is fine compared to the rest of the industry. BORR outperforms 70.97% of its industry peers.
BORR had an Average Return On Invested Capital over the past 3 years of 5.99%. This is significantly below the industry average of 12.79%.
The last Return On Invested Capital (9.03%) for BORR is above the 3 year average (5.99%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.05% | ||
| ROE | 6.34% | ||
| 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
Looking at the Profit Margin, with a value of 7.06%, BORR is in the better half of the industry, outperforming 72.58% of the companies in the same industry.
The Operating Margin of BORR (34.72%) is better than 98.39% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 34.72% | ||
| PM (TTM) | 7.06% | ||
| 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
The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so BORR is destroying value.
The number of shares outstanding for BORR has been reduced compared to 1 year ago.
The number of shares outstanding for BORR has been increased compared to 5 years ago.
The debt/assets ratio for BORR is higher compared to a year ago.
2.2 Solvency
BORR has an Altman-Z score of 1.28. 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 (1.28) than 67.74% of its industry peers.
A Debt/Equity ratio of 1.70 is on the high side and indicates that BORR has dependencies on debt financing.
BORR has a worse Debt to Equity ratio (1.70) than 82.26% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.7 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 1.28 |
ROIC/WACC0.89
WACC10.18%
2.3 Liquidity
BORR has a Current Ratio of 1.63. 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 1.63. This is in the lower half of the industry: BORR underperforms 66.13% of its industry peers.
BORR has a Quick Ratio of 1.63. This is a normal value and indicates that BORR is financially healthy and should not expect problems in meeting its short term obligations.
BORR's Quick ratio of 1.63 is in line compared to the rest of the industry. BORR outperforms 59.68% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.63 | ||
| Quick Ratio | 1.63 |
3. Growth
3.1 Past
The earnings per share for BORR have decreased strongly by -18.18% in the last year.
Looking at the last year, BORR shows a small growth in Revenue. The Revenue has grown by 5.83% in the last year.
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)5.83%
Revenue growth 3Y60.31%
Revenue growth 5Y24.78%
Sales Q2Q%14.69%
3.2 Future
BORR is expected to show a decrease in Earnings Per Share. In the coming years, the EPS will decrease by -3.15% yearly.
The Revenue is expected to grow by 5.07% on average over the next years.
EPS Next Y-56.46%
EPS Next 2Y-41.51%
EPS Next 3Y-3.15%
EPS Next 5YN/A
Revenue Next Year0.89%
Revenue Next 2Y1.33%
Revenue Next 3Y5.07%
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
Based on the Price/Earnings ratio of 15.78, the valuation of BORR can be described as correct.
Based on the Price/Earnings ratio, BORR is valued a bit cheaper than the industry average as 79.03% of the companies are valued more expensively.
BORR is valuated rather cheaply when we compare the Price/Earnings ratio to 26.92, which is the current average of the S&P500 Index.
The Forward Price/Earnings Ratio is negative for BORR. No positive earnings are expected for the next year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 15.78 | ||
| Fwd PE | N/A |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, BORR is valued a bit cheaper than 67.74% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 6 |
4.3 Compensation for Growth
A cheap valuation may be justified as BORR's earnings are expected to decrease with -3.15% in the coming years.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y-41.51%
EPS Next 3Y-3.15%
5. Dividend
5.1 Amount
BORR has a yearly dividend return of 0.50%, which is pretty low.
BORR's Dividend Yield is comparable with the industry average which is at 1.29.
Compared to an average S&P500 Dividend Yield of 1.94, BORR's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.5% |
5.2 History
BORR does not have a reliable dividend history as it only pays dividend since a couple or years.
Dividend Growth(5Y)N/A
Div Incr Years0
Div Non Decr Years0
5.3 Sustainability
BORR pays out 13.00% of its income as dividend. This is a sustainable payout ratio.
DP13%
EPS Next 2Y-41.51%
EPS Next 3Y-3.15%
4.26
+0.13 (+3.15%)
Chartmill FA Rating
GICS SectorEnergy
GICS IndustryGroupEnergy
GICS IndustryEnergy Equipment & Services
Earnings (Last)
Earnings (Next)
Inst Owners60.34%
Inst Owner Change0%
Ins Owners8.49%
Ins Owner ChangeN/A
Market Cap1.22B
Revenue(TTM)1.02B
Net Income(TTM)72.30M
Analysts80
Price Target3.95 (-7.28%)
Short Float %4.94%
Short Ratio2.47
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.5% |
Yearly Dividend0.31
Dividend Growth(5Y)N/A
DP13%
Div Incr Years0
Div Non Decr Years0
Ex-DateN/A
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)33.34%
Min EPS beat(2)32.83%
Max EPS beat(2)33.84%
EPS beat(4)3
Avg EPS beat(4)15.31%
Min EPS beat(4)-14.38%
Max EPS beat(4)33.84%
EPS beat(8)3
Avg EPS beat(8)-11.6%
EPS beat(12)4
Avg EPS beat(12)-57.08%
EPS beat(16)4
Avg EPS beat(16)-67.83%
Revenue beat(2)2
Avg Revenue beat(2)1.96%
Min Revenue beat(2)0.03%
Max Revenue beat(2)3.89%
Revenue beat(4)3
Avg Revenue beat(4)0.96%
Min Revenue beat(4)-4.29%
Max Revenue beat(4)4.22%
Revenue beat(8)5
Avg Revenue beat(8)1.61%
Revenue beat(12)8
Avg Revenue beat(12)1.92%
Revenue beat(16)9
Avg Revenue beat(16)0.12%
PT rev (1m)27.72%
PT rev (3m)46.04%
EPS NQ rev (1m)-293.83%
EPS NQ rev (3m)-171.46%
EPS NY rev (1m)-2.84%
EPS NY rev (3m)-83.34%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-3.78%
Revenue NY rev (1m)0%
Revenue NY rev (3m)1.39%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 15.78 | ||
| Fwd PE | N/A | ||
| P/S | 1.19 | ||
| P/FCF | N/A | ||
| P/OCF | 5.72 | ||
| P/B | 1.07 | ||
| P/tB | 1.07 | ||
| EV/EBITDA | 6 |
EPS(TTM)0.27
EY6.34%
EPS(NY)0
Fwd EYN/A
FCF(TTM)-0.17
FCFYN/A
OCF(TTM)0.75
OCFY17.49%
SpS3.58
BVpS3.99
TBVpS3.99
PEG (NY)N/A
PEG (5Y)N/A
Graham Number4.92
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.05% | ||
| ROE | 6.34% | ||
| ROCE | 11.43% | ||
| ROIC | 9.03% | ||
| ROICexc | 9.74% | ||
| ROICexgc | 9.74% | ||
| OM | 34.72% | ||
| PM (TTM) | 7.06% | ||
| 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-Score6
Asset Turnover0.29
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.7 | ||
| Debt/FCF | N/A | ||
| Debt/EBITDA | 3.86 | ||
| Cap/Depr | 179.78% | ||
| Cap/Sales | 25.6% | ||
| Interest Coverage | 1.84 | ||
| Cash Conversion | 42.46% | ||
| Profit Quality | N/A | ||
| Current Ratio | 1.63 | ||
| Quick Ratio | 1.63 | ||
| Altman-Z | 1.28 |
F-Score6
WACC10.18%
ROIC/WACC0.89
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-56.46%
EPS Next 2Y-41.51%
EPS Next 3Y-3.15%
EPS Next 5YN/A
Revenue 1Y (TTM)5.83%
Revenue growth 3Y60.31%
Revenue growth 5Y24.78%
Sales Q2Q%14.69%
Revenue Next Year0.89%
Revenue Next 2Y1.33%
Revenue Next 3Y5.07%
Revenue Next 5YN/A
EBIT growth 1Y0.74%
EBIT growth 3YN/A
EBIT growth 5YN/A
EBIT Next Year28.7%
EBIT Next 3Y11.63%
EBIT Next 5YN/A
FCF growth 1Y-317.8%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y100.57%
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 for 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 PE and PB ratios for BORR stock?
The Price/Earnings (PE) ratio for BORR DRILLING LTD (BORR) is 15.78 and the Price/Book (PB) ratio is 1.07.
What is the financial health of BORR DRILLING LTD (BORR) stock?
The financial health rating of BORR DRILLING LTD (BORR) is 2 / 10.