BORR DRILLING LTD (BORR) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:BORR - BMG1466R1732 - Common Stock
3.94 USD
-0.34 (-7.94%)
3.9 USD
-0.04 (-1.02%)
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. BORR has a medium profitability rating, but doesn't score so well on its financial health evaluation. BORR does not seem to be growing, but still is valued expensively.
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.
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
The Return On Assets of BORR (2.05%) is worse than 61.67% of its industry peers.
The Return On Equity of BORR (6.34%) is comparable to the rest of the industry.
Looking at the Return On Invested Capital, with a value of 9.03%, BORR is in the better half of 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 7.48%.
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
With a decent Profit Margin value of 7.06%, BORR is doing good in 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
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.
The number of shares outstanding for BORR has been increased compared to 5 years ago.
Compared to 1 year ago, BORR has a worse debt to assets ratio.
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 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.
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 | 1.27 |
ROIC/WACC0.88
WACC10.31%
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 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.
Looking at the Quick ratio, with a value of 1.63, BORR is in line with its industry, outperforming 58.33% of the companies in the same industry.
| 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
Based on estimates for the next years, BORR will show a very negative growth in Earnings Per Share. The EPS will decrease by -13.22% on average per year.
BORR is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 1.91% yearly.
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
The Price/Earnings ratio is 14.59, which indicates a correct valuation of BORR.
BORR's Price/Earnings ratio is a bit cheaper when compared to the industry. BORR is cheaper than 80.00% of the companies in the same industry.
When comparing the Price/Earnings ratio of BORR to the average of the S&P500 Index (26.54), we can say BORR is valued slightly cheaper.
With a Price/Forward Earnings ratio of 594.27, BORR can be considered very expensive at the moment.
Compared to the rest of the industry, the Price/Forward Earnings ratio of BORR indicates a slightly more expensive valuation: BORR is more expensive than 71.67% of the companies listed in the same industry.
When comparing the Price/Forward Earnings ratio of BORR to the average of the S&P500 Index (23.78), we can say BORR is valued expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 14.59 | ||
| Fwd PE | 594.27 |
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 70.00% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 5.89 |
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
With a yearly dividend of 0.51%, BORR is not a good candidate for dividend investing.
Compared to an average industry Dividend Yield of 1.33, BORR has a dividend in line with its industry peers.
With a Dividend Yield of 0.51, BORR pays less dividend than the S&P500 average, which is at 1.96.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.51% |
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
13.00% of the earnings are spent on dividend by BORR. This is a low number and sustainable payout ratio.
DP13%
EPS Next 2Y-85.61%
EPS Next 3Y-13.22%
3.94
-0.34 (-7.94%)
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 Cap1.13B
Revenue(TTM)1.02B
Net Income(TTM)72.30M
Analysts80
Price Target3.46 (-12.18%)
Short Float %4.82%
Short Ratio2.81
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)-118.14%
EPS NQ rev (3m)-103.21%
EPS NY rev (1m)-13.65%
EPS NY rev (3m)-82.85%
Revenue NQ rev (1m)-3.78%
Revenue NQ rev (3m)-16%
Revenue NY rev (1m)0.99%
Revenue NY rev (3m)-6.76%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 14.59 | ||
| Fwd PE | 594.27 | ||
| P/S | 1.1 | ||
| P/FCF | N/A | ||
| P/OCF | 5.29 | ||
| P/B | 0.99 | ||
| P/tB | 0.99 | ||
| EV/EBITDA | 5.89 |
EPS(TTM)0.27
EY6.85%
EPS(NY)0.01
Fwd EY0.17%
FCF(TTM)-0.17
FCFYN/A
OCF(TTM)0.75
OCFY18.91%
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
WACC10.31%
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-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%.