BORR DRILLING LTD (BORR) Stock Fundamental Analysis
USA - NYSE:BORR - BMG1466R1732 - Common Stock
2.76 USD
+0.18 (+6.98%)
2.81 USD
+0.05 (+1.81%)
Taking everything into account, BORR scores 3 out of 10 in our fundamental rating. BORR was compared to 61 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 is not valued too expensively and it also shows a decent growth rate.
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.
In multiple years BORR reported negative net income over the last 5 years.
In multiple years BORR reported negative operating cash flow during the last 5 years.
1.2 Ratios
The Return On Assets of BORR (1.62%) is worse than 63.93% of its industry peers.
BORR has a Return On Equity (5.35%) which is comparable to the rest of the industry.
The Return On Invested Capital of BORR (9.03%) is better than 70.49% of its industry peers.
BORR had an Average Return On Invested Capital over the past 3 years of 5.99%. This is in line with the industry average of 7.95%.
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 | 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
Looking at the Profit Margin, with a value of 5.48%, BORR is in line with its industry, outperforming 49.18% of the companies in the same industry.
BORR has a better Operating Margin (34.48%) than 96.72% of its industry peers.
| 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
With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), BORR is destroying value.
Compared to 1 year ago, BORR has less 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 1.15. This is a bad value and indicates that BORR is not financially healthy and even has some risk of bankruptcy.
BORR has a Altman-Z score of 1.15. This is in the lower half of the industry: BORR underperforms 73.77% 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.
The Debt to Equity ratio of BORR (1.91) is worse than 90.16% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.91 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 1.15 |
ROIC/WACC0.9
WACC10.06%
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's Current ratio of 1.28 is on the low side compared to the rest of the industry. BORR is outperformed by 75.41% of its industry peers.
BORR has a Quick 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 worse Quick ratio (1.28) than 63.93% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.28 | ||
| Quick Ratio | 1.28 |
3. Growth
3.1 Past
The earnings per share for BORR have decreased strongly by -27.59% in the last year.
BORR shows a small growth in Revenue. In the last year, the Revenue has grown by 7.73%.
Measured over the past years, BORR shows a very strong growth in Revenue. The Revenue has been growing by 24.78% on average per year.
EPS 1Y (TTM)-27.59%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%16.67%
Revenue 1Y (TTM)7.73%
Revenue growth 3Y60.31%
Revenue growth 5Y24.78%
Sales Q2Q%-1.54%
3.2 Future
The Earnings Per Share is expected to grow by 54.62% on average over the next years. This is a very strong growth
The Revenue is expected to grow by 2.07% on average over the next years.
EPS Next Y161.37%
EPS Next 2Y54.62%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue Next Year-0.49%
Revenue Next 2Y-0.64%
Revenue Next 3Y2.07%
Revenue Next 5YN/A
3.3 Evolution
The Revenue growth rate is decreasing: in the next years the growth will be less than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
Based on the Price/Earnings ratio of 13.14, 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 70.49% of the companies are valued more expensively.
BORR's Price/Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 27.69.
The Price/Forward Earnings ratio is 3.61, which indicates a rather cheap valuation of BORR.
Based on the Price/Forward Earnings ratio, BORR is valued cheaper than 100.00% of the companies in the same industry.
The average S&P500 Price/Forward Earnings ratio is at 23.18. BORR is valued rather cheaply when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 13.14 | ||
| Fwd PE | 3.61 |
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 | 5.71 |
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.
A more expensive valuation may be justified as BORR's earnings are expected to grow with 54.62% in the coming years.
PEG (NY)0.08
PEG (5Y)N/A
EPS Next 2Y54.62%
EPS Next 3YN/A
5. Dividend
5.1 Amount
BORR has a Yearly Dividend Yield of 1.55%.
BORR's Dividend Yield is a higher than the industry average which is at 3.21.
BORR's Dividend Yield is slightly below the S&P500 average, which is at 2.34.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.55% |
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
61.44% of the earnings are spent on dividend by BORR. This is not a sustainable payout ratio.
DP61.44%
EPS Next 2Y54.62%
EPS Next 3YN/A
2.76
+0.18 (+6.98%)
Chartmill FA Rating
GICS SectorEnergy
GICS IndustryGroupEnergy
GICS IndustryEnergy Equipment & Services
Earnings (Last)
Earnings (Next)
Inst Owners80%
Inst Owner Change0.27%
Ins Owners6.74%
Ins Owner ChangeN/A
Market Cap789.97M
Analysts77.14
Price Target2.7 (-2.17%)
Short Float %7.51%
Short Ratio3.64
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.55% |
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)-58.68%
PT rev (3m)-58.68%
EPS NQ rev (1m)-62.11%
EPS NQ rev (3m)-62.11%
EPS NY rev (1m)0%
EPS NY rev (3m)0%
Revenue NQ rev (1m)-10.45%
Revenue NQ rev (3m)-10.45%
Revenue NY rev (1m)-8.04%
Revenue NY rev (3m)-8.04%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 13.14 | ||
| Fwd PE | 3.61 | ||
| P/S | 0.8 | ||
| P/FCF | N/A | ||
| P/OCF | 4.17 | ||
| P/B | 0.78 | ||
| P/tB | 0.78 | ||
| EV/EBITDA | 5.71 |
EPS(TTM)0.21
EY7.61%
EPS(NY)0.77
Fwd EY27.72%
FCF(TTM)-0.79
FCFYN/A
OCF(TTM)0.66
OCFY23.96%
SpS3.46
BVpS3.54
TBVpS3.54
PEG (NY)0.08
PEG (5Y)N/A
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
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-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 | 1.15 |
F-Score5
WACC10.06%
ROIC/WACC0.9
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)-27.59%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%16.67%
EPS Next Y161.37%
EPS Next 2Y54.62%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue 1Y (TTM)7.73%
Revenue growth 3Y60.31%
Revenue growth 5Y24.78%
Sales Q2Q%-1.54%
Revenue Next Year-0.49%
Revenue Next 2Y-0.64%
Revenue Next 3Y2.07%
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