BORR DRILLING LTD (BORR) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:BORR - BMG1466R1732 - Common Stock
3.79 USD
+0.26 (+7.37%)
3.79 USD
0 (0%)
BORR gets a fundamental rating of 3 out of 10. The analysis compared the fundamentals against 60 industry peers in the Energy Equipment & Services industry. While BORR is still in line with the averages on profitability rating, there are concerns on its financial health. BORR does not seem to be growing, but still is valued expensively.
1. Profitability
1.1 Basic Checks
In the past year BORR was profitable.
In the past year BORR had a positive cash flow from operations.
The reported net income has been mixed in the past 5 years: BORR reported negative net income in multiple years.
In multiple years BORR reported negative operating cash flow during the last 5 years.
1.2 Ratios
BORR's Return On Assets of 2.05% is on the low side compared to the rest of the industry. BORR is outperformed by 61.67% of its industry peers.
The Return On Equity of BORR (6.34%) is comparable to the rest of the industry.
With a decent Return On Invested Capital value of 9.03%, BORR is doing good in the industry, outperforming 68.33% of the companies in the same industry.
The Average Return On Invested Capital over the past 3 years for BORR is in line with the industry average of 7.66%.
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
The Profit Margin of BORR (7.06%) is better than 68.33% of its industry peers.
BORR has a Operating Margin of 34.72%. This is amongst the best in the industry. BORR outperforms 96.67% 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
BORR has a Return on Invested Capital (ROIC), which is below the Cost of Capital (WACC), which means it is destroying value.
BORR has less shares outstanding than it did 1 year ago.
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
Based on the Altman-Z score of 1.24, we must say that BORR is in the distress zone and has some risk of bankruptcy.
BORR has a worse Altman-Z score (1.24) than 68.33% 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.
The Debt to Equity ratio of BORR (1.70) is worse than 86.67% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.7 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 1.24 |
ROIC/WACC0.87
WACC10.34%
2.3 Liquidity
A Current Ratio of 1.63 indicates that BORR should not have too much problems paying its short term obligations.
BORR has a worse Current ratio (1.63) than 66.67% of its industry peers.
A Quick Ratio of 1.63 indicates that BORR should not have too much problems paying its short term obligations.
BORR has a Quick ratio of 1.63. This is comparable to the rest of the industry: BORR outperforms 58.33% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.63 | ||
| Quick Ratio | 1.63 |
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 been growing slightly by 5.83% in the past 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 very negative growth in Earnings Per Share. In the coming years, the EPS will decrease by -14.66% yearly.
The Revenue is expected to grow by 1.49% on average over the next years.
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
Based on the Price/Earnings ratio of 14.04, the valuation of BORR can be described as correct.
80.00% of the companies in the same industry are more expensive than BORR, based on the Price/Earnings ratio.
The average S&P500 Price/Earnings ratio is at 26.37. BORR is valued slightly cheaper when compared to this.
BORR is valuated quite expensively with a Price/Forward Earnings ratio of 743.14.
BORR's Price/Forward Earnings ratio is a bit more expensive when compared to the industry. BORR is more expensive than 71.67% of the companies in the same industry.
When comparing the Price/Forward Earnings ratio of BORR to the average of the S&P500 Index (36.20), we can say BORR is valued expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 14.04 | ||
| Fwd PE | 743.14 |
4.2 Price Multiples
65.00% of the companies in the same industry are more expensive than BORR, based on the Enterprise Value to EBITDA ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 5.66 |
4.3 Compensation for Growth
A cheap valuation may be justified as BORR's earnings are expected to decrease with -14.66% in the coming years.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y-87.38%
EPS Next 3Y-14.66%
5. Dividend
5.1 Amount
With a yearly dividend of 0.60%, BORR is not a good candidate for dividend investing.
BORR's Dividend Yield is comparable with the industry average which is at 2.95.
With a Dividend Yield of 0.60, BORR pays less dividend than the S&P500 average, which is at 2.32.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.6% |
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-87.38%
EPS Next 3Y-14.66%
3.79
+0.26 (+7.37%)
Chartmill FA Rating
GICS SectorEnergy
GICS IndustryGroupEnergy
GICS IndustryEnergy Equipment & Services
Earnings (Last)
Earnings (Next)
Inst Owners80%
Inst Owner Change-10.14%
Ins Owners6.74%
Ins Owner ChangeN/A
Market Cap1.08B
Revenue(TTM)1.02B
Net Income(TTM)72.30M
Analysts77.14
Price Target3.09 (-18.47%)
Short Float %4.82%
Short Ratio2.81
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.6% |
Yearly Dividend0.31
Dividend Growth(5Y)N/A
DP13%
Div Incr Years0
Div Non Decr Years0
Ex-Date
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)2
Avg EPS beat(4)8.08%
Min EPS beat(4)-19.97%
Max EPS beat(4)33.84%
EPS beat(8)3
Avg EPS beat(8)-13.34%
EPS beat(12)3
Avg EPS beat(12)-52.82%
EPS beat(16)4
Avg EPS beat(16)-62.05%
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)0.1%
Min Revenue beat(4)-4.29%
Max Revenue beat(4)3.89%
Revenue beat(8)5
Avg Revenue beat(8)0.77%
Revenue beat(12)8
Avg Revenue beat(12)1.61%
Revenue beat(16)9
Avg Revenue beat(16)1.05%
PT rev (1m)14.34%
PT rev (3m)-52.75%
EPS NQ rev (1m)-118.14%
EPS NQ rev (3m)-103.21%
EPS NY rev (1m)0%
EPS NY rev (3m)-80.14%
Revenue NQ rev (1m)-3.78%
Revenue NQ rev (3m)-16%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-7.67%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 14.04 | ||
| Fwd PE | 743.14 | ||
| P/S | 1.06 | ||
| P/FCF | N/A | ||
| P/OCF | 5.09 | ||
| P/B | 0.95 | ||
| P/tB | 0.95 | ||
| EV/EBITDA | 5.66 |
EPS(TTM)0.27
EY7.12%
EPS(NY)0.01
Fwd EY0.13%
FCF(TTM)-0.17
FCFYN/A
OCF(TTM)0.75
OCFY19.66%
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 | 1.24 |
F-Score6
WACC10.34%
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)5.83%
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 1Y0.74%
EBIT growth 3YN/A
EBIT growth 5YN/A
EBIT Next Year56.65%
EBIT Next 3Y4.25%
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 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 13%.