BORR DRILLING LTD (BORR) Stock Fundamental Analysis
USA - NYSE:BORR - BMG1466R1732 - Common Stock
3.21 USD
+0.18 (+5.94%)
3.22 USD
+0.01 (+0.31%)
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. There are concerns on the financial health of BORR while its profitability can be described as average. BORR is valied quite expensively at the moment, while it does show a decent growth rate.
1. Profitability
1.1 Basic Checks
BORR had positive earnings in the past year.
BORR had a positive operating cash flow in the past year.
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
BORR has a Return On Assets of 1.62%. This is in the lower half of the industry: BORR underperforms 63.33% of its industry peers.
The Return On Equity of BORR (5.35%) 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.
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 7.82%.
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 | 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
BORR's Profit Margin of 5.48% is in line compared to the rest of the industry. BORR outperforms 51.67% of its industry peers.
With an excellent Operating Margin value of 34.48%, BORR belongs to the best of the industry, outperforming 96.67% of the companies in the same industry.
| 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
The debt/assets ratio for BORR is higher compared to a year ago.
2.2 Solvency
BORR has an Altman-Z score of 1.17. 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 (1.17) than 65.00% 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.
With a Debt to Equity ratio value of 1.91, BORR is not doing good in the industry: 90.00% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.91 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 1.17 |
ROIC/WACC0.87
WACC10.36%
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 78.33% 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's Quick ratio of 1.28 is on the low side compared to the rest of the industry. BORR is outperformed by 63.33% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.28 | ||
| Quick Ratio | 1.28 |
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%.
BORR shows a strong growth in Revenue. In the last year, the Revenue has grown by 30.97%.
BORR shows a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 24.78% yearly.
EPS 1Y (TTM)-18.18%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%150%
Revenue 1Y (TTM)30.97%
Revenue growth 3Y60.31%
Revenue growth 5Y24.78%
Sales Q2Q%14.69%
3.2 Future
The Earnings Per Share is expected to decrease by -14.66% on average over the next years. This is quite bad
Based on estimates for the next years, BORR will show a small growth in Revenue. The Revenue will grow by 1.49% on average per year.
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
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
With a Price/Earnings ratio of 11.89, the valuation of BORR can be described as very reasonable.
Based on the Price/Earnings ratio, BORR is valued cheaply inside the industry as 86.67% of the companies are valued more expensively.
The average S&P500 Price/Earnings ratio is at 25.67. BORR is valued rather cheaply when compared to this.
BORR is valuated quite expensively with a Price/Forward Earnings ratio of 629.41.
73.33% of the companies in the same industry are cheaper than BORR, based on the Price/Forward Earnings ratio.
Compared to an average S&P500 Price/Forward Earnings ratio of 31.86, BORR is valued quite expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 11.89 | ||
| Fwd PE | 629.41 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of BORR is on the same level as its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 5.87 |
4.3 Compensation for Growth
BORR's earnings are expected to decrease with -14.66% in the coming years. This may justify a cheaper valuation.
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 1.32%. Purely for dividend investing, there may be better candidates out there.
Compared to an average industry Dividend Yield of 2.99, BORR pays a bit more dividend than its industry peers.
With a Dividend Yield of 1.32, BORR pays less dividend than the S&P500 average, which is at 2.40.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.32% |
5.2 History
BORR is new to the dividend game and has less than 3 years of track record.
Dividend Growth(5Y)N/A
Div Incr Years0
Div Non Decr Years0
5.3 Sustainability
BORR pays out 61.44% of its income as dividend. This is not a sustainable payout ratio.
DP61.44%
EPS Next 2Y-87.38%
EPS Next 3Y-14.66%
3.21
+0.18 (+5.94%)
Chartmill FA Rating
GICS SectorEnergy
GICS IndustryGroupEnergy
GICS IndustryEnergy Equipment & Services
Earnings (Last)
Earnings (Next)
Inst Owners80%
Inst Owner Change0.28%
Ins Owners6.74%
Ins Owner ChangeN/A
Market Cap918.77M
Revenue(TTM)1.01B
Net Income(TTM)54.20M
Analysts77.14
Price Target2.7 (-15.89%)
Short Float %5.28%
Short Ratio3.23
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.32% |
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)0%
EPS NQ rev (3m)-62.11%
EPS NY rev (1m)-80.14%
EPS NY rev (3m)-80.14%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-10.45%
Revenue NY rev (1m)0.4%
Revenue NY rev (3m)-7.67%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 11.89 | ||
| Fwd PE | 629.41 | ||
| P/S | 0.93 | ||
| P/FCF | N/A | ||
| P/OCF | 4.85 | ||
| P/B | 0.91 | ||
| P/tB | 0.91 | ||
| EV/EBITDA | 5.87 |
EPS(TTM)0.27
EY8.41%
EPS(NY)0.01
Fwd EY0.16%
FCF(TTM)-0.79
FCFYN/A
OCF(TTM)0.66
OCFY20.6%
SpS3.46
BVpS3.54
TBVpS3.54
PEG (NY)N/A
PEG (5Y)N/A
Graham Number4.64
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
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-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 | 1.17 |
F-Score5
WACC10.36%
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)30.97%
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 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
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 61.44%.