BORR DRILLING LTD (BORR) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:BORR - BMG1466R1732 - Common Stock
4.05 USD
+0.08 (+2.02%)
4.07 USD
+0.02 (+0.49%)
BORR gets a fundamental rating of 3 out of 10. The analysis compared the fundamentals against 62 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
In the past year BORR was profitable.
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's Return On Assets of 2.05% is on the low side compared to the rest of the industry. BORR is outperformed by 61.29% of its industry peers.
BORR has a Return On Equity (6.34%) which is in line with its industry peers.
With a decent Return On Invested Capital value of 9.03%, BORR is doing good in the industry, outperforming 67.74% of the companies in the same industry.
The Average Return On Invested Capital over the past 3 years for BORR is significantly below the industry average of 13.08%.
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
The Profit Margin of BORR (7.06%) is better than 69.35% of its industry peers.
BORR has a better Operating Margin (34.72%) than 96.77% 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.
Compared to 1 year ago, BORR has less shares outstanding
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
Based on the Altman-Z score of 1.27, we must say that BORR is in the distress zone and 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.
BORR has a Debt to Equity ratio of 1.70. This is amonst the worse of the industry: BORR underperforms 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
WACC10.34%
2.3 Liquidity
A Current Ratio of 1.63 indicates that BORR should not have too much problems paying its short term obligations.
BORR has a worse Current ratio (1.63) than 66.13% 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 (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
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%.
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
The Earnings Per Share is expected to decrease by -3.15% on average over the next years.
Based on estimates for the next years, BORR will show a small growth in Revenue. The Revenue will grow by 5.07% on average per year.
EPS Next Y-56.46%
EPS Next 2Y-41.51%
EPS Next 3Y-3.15%
EPS Next 5YN/A
Revenue Next Year0.89%
Revenue Next 2Y1.33%
Revenue Next 3Y5.07%
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
With a Price/Earnings ratio of 15.00, BORR is valued correctly.
77.42% 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 valuation a bit cheaper than the S&P500 average which is at 26.84.
BORR is expected to report negative earnings next year, which makes the Forward Price/Earnings Ratio negative.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 15 | ||
| Fwd PE | N/A |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, BORR is valued a bit cheaper than the industry average as 62.90% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 5.91 |
4.3 Compensation for Growth
BORR's earnings are expected to decrease with -3.15% in the coming years. This may justify a cheaper valuation.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y-41.51%
EPS Next 3Y-3.15%
5. Dividend
5.1 Amount
With a yearly dividend of 0.50%, BORR is not a good candidate for dividend investing.
BORR's Dividend Yield is comparable with the industry average which is at 1.30.
With a Dividend Yield of 0.50, BORR pays less dividend than the S&P500 average, which is at 2.00.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.5% |
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-41.51%
EPS Next 3Y-3.15%
4.05
+0.08 (+2.02%)
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 Cap1.16B
Revenue(TTM)1.02B
Net Income(TTM)72.30M
Analysts80
Price Target3.95 (-2.47%)
Short Float %5.04%
Short Ratio2.57
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.5% |
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)3
Avg EPS beat(4)15.31%
Min EPS beat(4)-14.38%
Max EPS beat(4)33.84%
EPS beat(8)3
Avg EPS beat(8)-11.6%
EPS beat(12)4
Avg EPS beat(12)-57.08%
EPS beat(16)4
Avg EPS beat(16)-67.83%
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)0.96%
Min Revenue beat(4)-4.29%
Max Revenue beat(4)4.22%
Revenue beat(8)5
Avg Revenue beat(8)1.61%
Revenue beat(12)8
Avg Revenue beat(12)1.92%
Revenue beat(16)9
Avg Revenue beat(16)0.12%
PT rev (1m)27.72%
PT rev (3m)-39.66%
EPS NQ rev (1m)-293.83%
EPS NQ rev (3m)-112.64%
EPS NY rev (1m)-16.11%
EPS NY rev (3m)-83.34%
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 | 15 | ||
| Fwd PE | N/A | ||
| P/S | 1.13 | ||
| P/FCF | N/A | ||
| P/OCF | 5.44 | ||
| P/B | 1.02 | ||
| P/tB | 1.02 | ||
| EV/EBITDA | 5.91 |
EPS(TTM)0.27
EY6.67%
EPS(NY)0
Fwd EYN/A
FCF(TTM)-0.17
FCFYN/A
OCF(TTM)0.75
OCFY18.4%
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
WACC10.34%
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-56.46%
EPS Next 2Y-41.51%
EPS Next 3Y-3.15%
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 2Y1.33%
Revenue Next 3Y5.07%
Revenue Next 5YN/A
EBIT growth 1Y0.74%
EBIT growth 3YN/A
EBIT growth 5YN/A
EBIT Next Year28.7%
EBIT Next 3Y11.63%
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 -56.46% 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%.