VALARIS LTD (VAL)
BMG9460G1015 - Common Stock
We assign a fundamental rating of 4 out of 10 to VAL. VAL was compared to 58 industry peers in the Energy Equipment & Services industry. There are concerns on the financial health of VAL while its profitability can be described as average. VAL is not valued too expensively and it also shows a decent growth rate.
1. Profitability
1.1 Basic Checks
VAL had positive earnings in the past year.
In the past year VAL had a positive cash flow from operations.
The reported net income has been mixed in the past 5 years: VAL reported negative net income in multiple years.
The reported operating cash flow has been mixed in the past 5 years: VAL reported negative operating cash flow in multiple years.
1.2 Ratios
Looking at the Return On Assets, with a value of 24.81%, VAL belongs to the top of the industry, outperforming 96.55% of the companies in the same industry.
VAL has a Return On Equity of 50.83%. This is amongst the best in the industry. VAL outperforms 96.55% of its industry peers.
VAL has a Return On Invested Capital of 6.32%. This is comparable to the rest of the industry: VAL outperforms 50.00% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 24.81% | ||
| ROE | 50.83% | ||
| ROIC | 6.32% |
ROA(3y)-48.76%
ROA(5y)-37.03%
ROE(3y)-122.7%
ROE(5y)-96.24%
ROIC(3y)N/A
ROIC(5y)N/A
1.3 Margins
Looking at the Profit Margin, with a value of 47.52%, VAL belongs to the top of the industry, outperforming 100.00% of the companies in the same industry.
With a decent Operating Margin value of 12.59%, VAL is doing good in the industry, outperforming 63.79% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 12.59% | ||
| PM (TTM) | 47.52% | ||
| 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), VAL is destroying value.
Compared to 1 year ago, VAL has less shares outstanding
VAL has more shares outstanding than it did 5 years ago.
Compared to 1 year ago, VAL has a worse debt to assets ratio.
2.2 Solvency
An Altman-Z score of 2.05 indicates that VAL is not a great score, but indicates only limited risk for bankruptcy at the moment.
VAL has a Altman-Z score of 2.05. This is in the better half of the industry: VAL outperforms 60.34% of its industry peers.
VAL has a Debt/Equity ratio of 0.51. This is a neutral value indicating VAL is somewhat dependend on debt financing.
VAL's Debt to Equity ratio of 0.51 is on the low side compared to the rest of the industry. VAL is outperformed by 60.34% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.51 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 2.05 |
ROIC/WACC0.79
WACC7.99%
2.3 Liquidity
VAL has a Current Ratio of 1.61. This is a normal value and indicates that VAL is financially healthy and should not expect problems in meeting its short term obligations.
VAL has a worse Current ratio (1.61) than 62.07% of its industry peers.
A Quick Ratio of 1.61 indicates that VAL should not have too much problems paying its short term obligations.
VAL has a Quick ratio of 1.61. This is in the better half of the industry: VAL outperforms 60.34% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.61 | ||
| Quick Ratio | 1.61 |
3. Growth
3.1 Past
VAL shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 402.60%, which is quite impressive.
The Revenue has grown by 30.45% in the past year. This is a very strong growth!
Measured over the past years, VAL shows a small growth in Revenue. The Revenue has been growing by 0.91% on average per year.
EPS 1Y (TTM)402.6%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%417.65%
Revenue 1Y (TTM)30.45%
Revenue growth 3Y7.73%
Revenue growth 5Y0.91%
Sales Q2Q%41.31%
3.2 Future
Based on estimates for the next years, VAL will show a very strong growth in Earnings Per Share. The EPS will grow by 109.85% on average per year.
The Revenue is expected to grow by 15.81% on average over the next years. This is quite good.
EPS Next Y329.32%
EPS Next 2Y129.99%
EPS Next 3Y109.85%
EPS Next 5YN/A
Revenue Next Year31.96%
Revenue Next 2Y15.65%
Revenue Next 3Y15.81%
Revenue Next 5YN/A
3.3 Evolution
The Revenue growth rate is accelerating: in the next years the growth will be better than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
Based on the Price/Earnings ratio of 10.57, the valuation of VAL can be described as reasonable.
Based on the Price/Earnings ratio, VAL is valued a bit cheaper than 77.59% of the companies in the same industry.
VAL is valuated cheaply when we compare the Price/Earnings ratio to 27.35, which is the current average of the S&P500 Index.
The Price/Forward Earnings ratio is 7.74, which indicates a rather cheap valuation of VAL.
Compared to the rest of the industry, the Price/Forward Earnings ratio of VAL indicates a rather cheap valuation: VAL is cheaper than 94.83% of the companies listed in the same industry.
VAL is valuated cheaply when we compare the Price/Forward Earnings ratio to 23.86, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 10.57 | ||
| Fwd PE | 7.74 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, VAL is valued a bit more expensive than the industry average as 68.97% of the companies are valued more cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 9.04 |
4.3 Compensation for Growth
The low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
A more expensive valuation may be justified as VAL's earnings are expected to grow with 109.85% in the coming years.
PEG (NY)0.03
PEG (5Y)N/A
EPS Next 2Y129.99%
EPS Next 3Y109.85%
5. Dividend
5.1 Amount
VAL does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
VALARIS LTD
NYSE:VAL (12/30/2024, 10:14:43 AM)
40.92
-0.12 (-0.29%)
Chartmill FA Rating
GICS SectorEnergy
GICS IndustryGroupEnergy
GICS IndustryEnergy Equipment & Services
Earnings (Last)
Earnings (Next)
Inst Owners101.61%
Inst Owner Change-3.14%
Ins Owners0.59%
Ins Owner Change11.37%
Market Cap2.91B
Analysts81.18
Price Target65.93 (61.12%)
Short Float %13.62%
Short Ratio5.57
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
Dividend Growth(5Y)N/A
DPN/A
Div Incr Years0
Div Non Decr Years0
Ex-DateN/A
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)84.41%
Min EPS beat(2)-16.03%
Max EPS beat(2)184.85%
EPS beat(4)3
Avg EPS beat(4)291.05%
Min EPS beat(4)-16.03%
Max EPS beat(4)589.07%
EPS beat(8)5
Avg EPS beat(8)175.63%
EPS beat(12)9
Avg EPS beat(12)297.86%
EPS beat(16)N/A
Avg EPS beat(16)N/A
Revenue beat(2)2
Avg Revenue beat(2)3.99%
Min Revenue beat(2)3.49%
Max Revenue beat(2)4.49%
Revenue beat(4)3
Avg Revenue beat(4)2.84%
Min Revenue beat(4)-0.94%
Max Revenue beat(4)4.49%
Revenue beat(8)6
Avg Revenue beat(8)1.65%
Revenue beat(12)9
Avg Revenue beat(12)2.52%
Revenue beat(16)11
Avg Revenue beat(16)-1.15%
PT rev (1m)-8.32%
PT rev (3m)-27.37%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-33.18%
EPS NY rev (1m)-0.52%
EPS NY rev (3m)-3.72%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-7.16%
Revenue NY rev (1m)-0.04%
Revenue NY rev (3m)-0.04%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 10.57 | ||
| Fwd PE | 7.74 | ||
| P/S | 1.29 | ||
| P/FCF | N/A | ||
| P/OCF | 8.89 | ||
| P/B | 1.38 | ||
| P/tB | 1.38 | ||
| EV/EBITDA | 9.04 |
EPS(TTM)3.87
EY9.46%
EPS(NY)5.29
Fwd EY12.93%
FCF(TTM)-6.73
FCFYN/A
OCF(TTM)4.6
OCFY11.25%
SpS31.81
BVpS29.74
TBVpS29.74
PEG (NY)0.03
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 24.81% | ||
| ROE | 50.83% | ||
| ROCE | 7.82% | ||
| ROIC | 6.32% | ||
| ROICexc | 7.06% | ||
| ROICexgc | 7.06% | ||
| OM | 12.59% | ||
| PM (TTM) | 47.52% | ||
| GM | N/A | ||
| FCFM | N/A |
ROA(3y)-48.76%
ROA(5y)-37.03%
ROE(3y)-122.7%
ROE(5y)-96.24%
ROIC(3y)N/A
ROIC(5y)N/A
ROICexc(3y)N/A
ROICexc(5y)N/A
ROICexgc(3y)N/A
ROICexgc(5y)N/A
ROCE(3y)N/A
ROCE(5y)N/A
ROICexcg growth 3YN/A
ROICexcg 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-Score7
Asset Turnover0.52
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.51 | ||
| Debt/FCF | N/A | ||
| Debt/EBITDA | 2.7 | ||
| Cap/Depr | 696.98% | ||
| Cap/Sales | 35.65% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 81.77% | ||
| Profit Quality | N/A | ||
| Current Ratio | 1.61 | ||
| Quick Ratio | 1.61 | ||
| Altman-Z | 2.05 |
F-Score7
WACC7.99%
ROIC/WACC0.79
Cap/Depr(3y)313.87%
Cap/Depr(5y)199.24%
Cap/Sales(3y)18.9%
Cap/Sales(5y)14.87%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)402.6%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%417.65%
EPS Next Y329.32%
EPS Next 2Y129.99%
EPS Next 3Y109.85%
EPS Next 5YN/A
Revenue 1Y (TTM)30.45%
Revenue growth 3Y7.73%
Revenue growth 5Y0.91%
Sales Q2Q%41.31%
Revenue Next Year31.96%
Revenue Next 2Y15.65%
Revenue Next 3Y15.81%
Revenue Next 5YN/A
EBIT growth 1Y566.98%
EBIT growth 3YN/A
EBIT growth 5YN/A
EBIT Next Year1042.15%
EBIT Next 3Y176.78%
EBIT Next 5YN/A
FCF growth 1Y-123.99%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y1057.6%
OCF growth 3YN/A
OCF growth 5YN/A