BORR DRILLING LTD (BORR) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:BORR - BMG1466R1732 - Common Stock
3.96 USD
-0.05 (-1.25%)
3.98 USD
+0.02 (+0.51%)
Overall BORR gets a fundamental rating of 3 out of 10. We evaluated BORR 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 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.
The reported net income has been mixed in the past 5 years: BORR reported negative net income in multiple 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
Looking at the Return On Assets, with a value of 2.05%, BORR is doing worse than 61.29% of the companies in the same industry.
BORR has a Return On Equity (6.34%) which is in line with its industry peers.
BORR has a better Return On Invested Capital (9.03%) than 67.74% 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 13.09%.
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
BORR's Profit Margin of 7.06% is fine compared to the rest of the industry. BORR outperforms 69.35% of its industry peers.
With an excellent Operating Margin value of 34.72%, BORR belongs to the best of the industry, outperforming 96.77% of the companies in the same industry.
| 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.
Compared to 1 year ago, BORR has less shares outstanding
BORR has more shares outstanding than it did 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 1.27. 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 1.27. This is in the lower half of the industry: BORR underperforms 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.
The Debt to Equity ratio of BORR (1.70) is worse than 83.87% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.7 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 1.27 |
ROIC/WACC0.87
WACC10.32%
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.
The Current ratio of BORR (1.63) is worse than 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 has a Quick ratio (1.63) which is in line with 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 -13.22% yearly.
Based on estimates for the next years, BORR will show a small growth in Revenue. The Revenue will grow by 1.91% on average per year.
EPS Next Y-55.18%
EPS Next 2Y-85.61%
EPS Next 3Y-13.22%
EPS Next 5YN/A
Revenue Next Year0.89%
Revenue Next 2Y0.2%
Revenue Next 3Y1.91%
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
BORR is valuated correctly with a Price/Earnings ratio of 14.67.
75.81% of the companies in the same industry are more expensive than BORR, based on the Price/Earnings ratio.
BORR is valuated rather cheaply when we compare the Price/Earnings ratio to 26.59, which is the current average of the S&P500 Index.
A Price/Forward Earnings ratio of 597.29 indicates a quite expensive valuation of BORR.
BORR's Price/Forward Earnings ratio is a bit more expensive when compared to the industry. BORR is more expensive than 70.97% of the companies in the same industry.
BORR is valuated expensively when we compare the Price/Forward Earnings ratio to 24.03, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 14.67 | ||
| Fwd PE | 597.29 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of BORR indicates a somewhat cheap valuation: BORR is cheaper than 62.90% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 5.9 |
4.3 Compensation for Growth
A cheap valuation may be justified as BORR's earnings are expected to decrease with -13.22% in the coming years.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y-85.61%
EPS Next 3Y-13.22%
5. Dividend
5.1 Amount
BORR has a yearly dividend return of 0.51%, which is pretty low.
Compared to an average industry Dividend Yield of 1.32, BORR has a dividend in line with its industry peers.
Compared to an average S&P500 Dividend Yield of 1.87, BORR's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.51% |
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-85.61%
EPS Next 3Y-13.22%
3.96
-0.05 (-1.25%)
Chartmill FA Rating
GICS SectorEnergy
GICS IndustryGroupEnergy
GICS IndustryEnergy Equipment & Services
Earnings (Last)
Earnings (Next)
Inst Owners80%
Inst Owner Change-10.1%
Ins Owners6.74%
Ins Owner ChangeN/A
Market Cap1.13B
Revenue(TTM)1.02B
Net Income(TTM)72.30M
Analysts80
Price TargetN/A
Short Float %5.04%
Short Ratio2.57
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.51% |
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)27.92%
PT rev (3m)-47.14%
EPS NQ rev (1m)-235.1%
EPS NQ rev (3m)-110.75%
EPS NY rev (1m)-13.65%
EPS NY rev (3m)-82.85%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-16%
Revenue NY rev (1m)0.99%
Revenue NY rev (3m)-6.76%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 14.67 | ||
| Fwd PE | 597.29 | ||
| P/S | 1.1 | ||
| P/FCF | N/A | ||
| P/OCF | 5.31 | ||
| P/B | 0.99 | ||
| P/tB | 0.99 | ||
| EV/EBITDA | 5.9 |
EPS(TTM)0.27
EY6.82%
EPS(NY)0.01
Fwd EY0.17%
FCF(TTM)-0.17
FCFYN/A
OCF(TTM)0.75
OCFY18.82%
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 | 1.27 |
F-Score6
WACC10.32%
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-55.18%
EPS Next 2Y-85.61%
EPS Next 3Y-13.22%
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 2Y0.2%
Revenue Next 3Y1.91%
Revenue Next 5YN/A
EBIT growth 1Y0.74%
EBIT growth 3YN/A
EBIT growth 5YN/A
EBIT Next Year28.7%
EBIT Next 3Y7.63%
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 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 -55.18% 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%.