BORR DRILLING LTD (BORR.OL)

BMG1466R1732 - Common Stock

57.95  -0.7 (-1.19%)

Fundamental Rating

3

We assign a fundamental rating of 3 out of 10 to BORR. BORR was compared to 40 industry peers in the Energy Equipment & Services industry. BORR has a bad profitability rating. Also its financial health evaluation is rather negative. BORR is not overvalued while it is showing excellent growth. This is an interesting combination.



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2

1. Profitability

1.1 Basic Checks

In the past year BORR was profitable.
BORR had a negative operating cash flow in the past year.
In the past 5 years BORR reported 4 times negative net income.
In the past 5 years BORR reported 4 times negative operating cash flow.

1.2 Ratios

With a Return On Assets value of 0.75%, BORR is not doing good in the industry: 66.67% of the companies in the same industry are doing better.
BORR's Return On Equity of 2.35% is on the low side compared to the rest of the industry. BORR is outperformed by 64.10% of its industry peers.
BORR's Return On Invested Capital of 7.07% is in line compared to the rest of the industry. BORR outperforms 48.72% of its industry peers.
Industry RankSector Rank
ROA 0.75%
ROE 2.35%
ROIC 7.07%
ROA(3y)-5.1%
ROA(5y)-6.88%
ROE(3y)-17.35%
ROE(5y)-21.14%
ROIC(3y)N/A
ROIC(5y)N/A

1.3 Margins

BORR has a Profit Margin (2.99%) which is comparable to the rest of the industry.
The Operating Margin of BORR (32.37%) is better than 92.31% of its industry peers.
Industry RankSector Rank
OM 32.37%
PM (TTM) 2.99%
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

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1

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.
The number of shares outstanding for BORR has been increased compared to 1 year ago.
BORR has more shares outstanding than it did 5 years ago.
BORR has a worse debt/assets ratio than last year.

2.2 Solvency

Based on the Altman-Z score of 1.21, we must say that BORR is in the distress zone and has some risk of bankruptcy.
BORR's Altman-Z score of 1.21 is in line compared to the rest of the industry. BORR outperforms 46.15% of its industry peers.
BORR has a Debt/Equity ratio of 1.65. This is a high value indicating a heavy dependency on external financing.
Looking at the Debt to Equity ratio, with a value of 1.65, BORR is doing worse than 82.05% of the companies in the same industry.
Industry RankSector Rank
Debt/Equity 1.65
Debt/FCF N/A
Altman-Z 1.21
ROIC/WACC0.73
WACC9.71%

2.3 Liquidity

A Current Ratio of 1.14 indicates that BORR should not have too much problems paying its short term obligations.
BORR has a worse Current ratio (1.14) than 66.67% of its industry peers.
BORR has a Quick Ratio of 1.14. This is a normal value and indicates that BORR is financially healthy and should not expect problems in meeting its short term obligations.
The Quick ratio of BORR (1.14) is comparable to the rest of the industry.
Industry RankSector Rank
Current Ratio 1.14
Quick Ratio 1.14

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7

3. Growth

3.1 Past

BORR shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 104.37%, which is quite impressive.
The Revenue has grown by 73.86% in the past year. This is a very strong growth!
BORR shows a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 36.16% yearly.
EPS 1Y (TTM)104.37%
EPS 3YN/A
EPS 5YN/A
EPS growth Q2Q222.22%
Revenue 1Y (TTM)73.86%
Revenue growth 3Y35.89%
Revenue growth 5Y36.16%
Revenue growth Q2Q48.45%

3.2 Future

Based on estimates for the next years, BORR will show a very strong growth in Earnings Per Share. The EPS will grow by 154.97% on average per year.
The Revenue is expected to grow by 16.07% on average over the next years. This is quite good.
EPS Next Y925.47%
EPS Next 2Y278.45%
EPS Next 3Y154.97%
EPS Next 5YN/A
Revenue Next Year26.84%
Revenue Next 2Y21.13%
Revenue Next 3Y16.07%
Revenue Next 5YN/A

3.3 Evolution

The estimated forward Revenue growth is still strong, although it is decreasing when compared to the stronger growth in the past years.

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5

4. Valuation

4.1 Price/Earnings Ratio

The Price/Earnings ratio is 65.85, which means the current valuation is very expensive for BORR.
71.79% of the companies in the same industry are cheaper than BORR, based on the Price/Earnings ratio.
Compared to an average S&P500 Price/Earnings ratio of 28.06, BORR is valued quite expensively.
A Price/Forward Earnings ratio of 6.41 indicates a rather cheap valuation of BORR.
Based on the Price/Forward Earnings ratio, BORR is valued cheaper than 87.18% of the companies in the same industry.
When comparing the Price/Forward Earnings ratio of BORR to the average of the S&P500 Index (20.72), we can say BORR is valued rather cheaply.
Industry RankSector Rank
PE 65.85
Fwd PE 6.41

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 RankSector Rank
P/FCF N/A
EV/EBITDA 8.04

4.3 Compensation for Growth

BORR's 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 BORR's earnings are expected to grow with 154.97% in the coming years.
PEG (NY)0.07
PEG (5Y)N/A
EPS Next 2Y278.45%
EPS Next 3Y154.97%

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0

5. Dividend

5.1 Amount

BORR does not give a dividend.
Industry RankSector Rank
Dividend Yield N/A

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BORR DRILLING LTD

OSL:BORR (5/3/2024, 11:01:28 AM)

57.95

-0.7 (-1.19%)

Chartmill FA Rating
GICS SectorEnergy
GICS IndustryGroupEnergy
GICS IndustryEnergy Equipment & Services
Earnings (Last)
Earnings (Next)
Inst Owners
Inst Owner Change
Ins Owners
Ins Owner Change
Market Cap14.64B
Analysts
Price Target
Dividend
Industry RankSector Rank
Dividend Yield N/A
Dividend Growth(5Y)
DP
Div Incr Years
Div Non Decr Years
Ex-Date
Surprises & Revisions
EPS beat(2)
Avg EPS beat(2)
Min EPS beat(2)
Max EPS beat(2)
EPS beat(4)
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Min EPS beat(4)
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EPS beat(8)
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EPS beat(12)
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EPS beat(16)
Avg EPS beat(16)
Revenue beat(2)
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Min Revenue beat(2)
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Revenue beat(4)
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Revenue beat(8)
Avg Revenue beat(8)
Revenue beat(12)
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Revenue beat(16)
Avg Revenue beat(16)
PT rev (1m)
PT rev (3m)
EPS NQ rev (1m)
EPS NQ rev (3m)
EPS NY rev (1m)
EPS NY rev (3m)
Revenue NQ rev (1m)
Revenue NQ rev (3m)
Revenue NY rev (1m)
Revenue NY rev (3m)
Valuation
Industry RankSector Rank
PE 65.85
Fwd PE 6.41
P/S
P/FCF
P/OCF
P/B
P/tB
EV/EBITDA
EPS(TTM)
EY
EPS(NY)
Fwd EY
FCF(TTM)
FCFY
OCF(TTM)
OCFY
SpS
BVpS
TBVpS
PEG (NY)0.07
PEG (5Y)N/A
Profitability
Industry RankSector Rank
ROA 0.75%
ROE 2.35%
ROCE
ROIC
ROICexc
ROICexgc
OM 32.37%
PM (TTM) 2.99%
GM N/A
FCFM
ROA(3y)
ROA(5y)
ROE(3y)
ROE(5y)
ROIC(3y)
ROIC(5y)
ROICexc(3y)
ROICexc(5y)
ROICexgc(3y)
ROICexgc(5y)
ROCE(3y)
ROCE(5y)
ROICexcg growth 3Y
ROICexcg growth 5Y
ROICexc growth 3Y
ROICexc growth 5Y
OM growth 3Y
OM growth 5Y
PM growth 3Y
PM growth 5Y
GM growth 3Y
GM growth 5Y
F-Score
Asset Turnover0.25
Health
Industry RankSector Rank
Debt/Equity 1.65
Debt/FCF
Debt/EBITDA
Cap/Depr
Cap/Sales
Interest Coverage
Cash Conversion
Profit Quality
Current Ratio 1.14
Quick Ratio 1.14
Altman-Z
F-Score
WACC
ROIC/WACC
Cap/Depr(3y)
Cap/Depr(5y)
Cap/Sales(3y)
Cap/Sales(5y)
Profit Quality(3y)
Profit Quality(5y)
Growth
EPS 1Y (TTM)104.37%
EPS 3YN/A
EPS 5Y
EPS growth Q2Q
EPS Next Y925.47%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)73.86%
Revenue growth 3Y35.89%
Revenue growth 5Y
Revenue growth Q2Q
Revenue Next Year
Revenue Next 2Y
Revenue Next 3Y
Revenue Next 5Y
EBIT growth 1Y
EBIT growth 3Y
EBIT growth 5Y
EBIT Next Year
EBIT Next 3Y
EBIT Next 5Y
FCF growth 1Y
FCF growth 3Y
FCF growth 5Y
OCF growth 1Y
OCF growth 3Y
OCF growth 5Y