BORR DRILLING LTD (BORR) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:BORR - BMG1466R1732 - Common Stock
3.16 USD
+0.07 (+2.27%)
3.16 USD
0 (0%)
Taking everything into account, BORR scores 3 out of 10 in our fundamental rating. BORR was compared to 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 is valued expensive and it does not seem to be growing.
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.
In multiple years BORR reported negative operating cash flow during the last 5 years.
1.2 Ratios
Looking at the Return On Assets, with a value of 2.05%, BORR is doing worse than 61.67% of the companies in the same industry.
BORR's Return On Equity of 6.34% is in line compared to the rest of the industry. BORR outperforms 51.67% of 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 7.66%.
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 | 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 68.33% of the companies in the same industry.
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
With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), BORR is destroying value.
The number of shares outstanding for BORR has been reduced compared to 1 year ago.
Compared to 5 years ago, BORR has more shares outstanding
BORR has a worse debt/assets ratio than last year.
2.2 Solvency
BORR has an Altman-Z score of 1.21. This is a bad value and indicates that BORR is not financially healthy and even has some risk of bankruptcy.
BORR's Altman-Z score of 1.21 is on the low side compared to the rest of the industry. BORR is outperformed by 68.33% of its industry peers.
BORR has a Debt/Equity ratio of 1.70. This is a high value indicating a heavy dependency on external financing.
With a Debt to Equity ratio value of 1.70, BORR is not doing good in the industry: 86.67% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.7 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 1.21 |
ROIC/WACC0.88
WACC10.3%
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 66.67% 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
The earnings per share for BORR have decreased strongly by -18.18% in the last year.
BORR shows a small growth in Revenue. In the last year, the Revenue has grown by 5.83%.
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)-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
A Price/Earnings ratio of 11.70 indicates a reasonable valuation of BORR.
86.67% 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 25.47.
With a Price/Forward Earnings ratio of 619.61, BORR can be considered very expensive at the moment.
Based on the Price/Forward Earnings ratio, BORR is valued a bit more expensive than 73.33% of the companies in the same industry.
BORR's Price/Forward Earnings ratio indicates a rather expensive valuation when compared to the S&P500 average which is at 34.42.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 11.7 | ||
| Fwd PE | 619.61 |
4.2 Price Multiples
BORR's Enterprise Value to EBITDA ratio is a bit cheaper when compared to the industry. BORR is cheaper than 71.67% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 5.41 |
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
BORR has a Yearly Dividend Yield of 1.29%. 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 3.03.
Compared to an average S&P500 Dividend Yield of 2.41, BORR's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.29% |
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%
3.16
+0.07 (+2.27%)
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 Cap904.46M
Revenue(TTM)1.02B
Net Income(TTM)72.30M
Analysts77.14
Price Target3.09 (-2.22%)
Short Float %4.57%
Short Ratio2.64
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.29% |
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 | 11.7 | ||
| Fwd PE | 619.61 | ||
| P/S | 0.88 | ||
| P/FCF | N/A | ||
| P/OCF | 4.25 | ||
| P/B | 0.79 | ||
| P/tB | 0.79 | ||
| EV/EBITDA | 5.41 |
EPS(TTM)0.27
EY8.54%
EPS(NY)0.01
Fwd EY0.16%
FCF(TTM)-0.17
FCFYN/A
OCF(TTM)0.74
OCFY23.55%
SpS3.58
BVpS3.98
TBVpS3.98
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 | 1.21 |
F-Score6
WACC10.3%
ROIC/WACC0.88
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 3 / 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 3 / 10 and the dividend payout ratio is 13%.