BORR DRILLING LTD (BORR)
BMG1466R1732 - Common Stock
Overall BORR gets a fundamental rating of 3 out of 10. We evaluated BORR against 65 industry peers in the Energy Equipment & Services industry. BORR may be in some trouble as it scores bad on both profitability and health. BORR is not priced too expensively while it is growing strongly. Keep and eye on this one!
1. Profitability
1.1 Basic Checks
BORR had positive earnings in the past year.
In the past year BORR has reported a negative cash flow from operations.
BORR had negative earnings in 4 of the past 5 years.
In the past 5 years BORR reported 4 times negative operating cash flow.
1.2 Ratios
BORR's Return On Assets of 0.75% is on the low side compared to the rest of the industry. BORR is outperformed by 61.54% of its industry peers.
Looking at the Return On Equity, with a value of 2.35%, BORR is in line with its industry, outperforming 43.08% of the companies in the same industry.
BORR has a Return On Invested Capital (7.26%) which is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 0.75% | ||
| ROE | 2.35% | ||
| ROIC | 7.26% |
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 of 2.99%. This is comparable to the rest of the industry: BORR outperforms 49.23% of its industry peers.
With an excellent Operating Margin value of 32.37%, BORR belongs to the best of the industry, outperforming 98.46% of the companies in the same industry.
| Industry Rank | Sector 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
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.
The debt/assets ratio for BORR is higher compared to a year ago.
2.2 Solvency
Based on the Altman-Z score of 1.24, we must say that BORR is in the distress zone and has some risk of bankruptcy.
With a Altman-Z score value of 1.24, BORR is not doing good in the industry: 64.62% of the companies in the same industry are doing better.
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 84.62% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.65 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 1.24 |
ROIC/WACC0.74
WACC9.81%
2.3 Liquidity
BORR has a Current 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 Current ratio of BORR (1.14) is worse than 87.69% 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.
BORR's Quick ratio of 1.14 is on the low side compared to the rest of the industry. BORR is outperformed by 75.38% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.14 | ||
| Quick Ratio | 1.14 |
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.
Looking at the last year, BORR shows a very strong growth in Revenue. The Revenue has grown by 73.86%.
Measured over the past years, BORR shows a very strong growth in Revenue. The Revenue has been growing by 36.16% on average per year.
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
BORR is expected to show a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 154.97% yearly.
BORR is expected to show quite a strong growth in Revenue. In the coming years, the Revenue will grow by 16.07% yearly.
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.
4. Valuation
4.1 Price/Earnings Ratio
Based on the Price/Earnings ratio of 69.88, the valuation of BORR can be described as expensive.
Compared to the rest of the industry, the Price/Earnings ratio of BORR indicates a slightly more expensive valuation: BORR is more expensive than 66.15% of the companies listed in the same industry.
Compared to an average S&P500 Price/Earnings ratio of 25.25, BORR is valued quite expensively.
A Price/Forward Earnings ratio of 6.81 indicates a rather cheap valuation of BORR.
92.31% of the companies in the same industry are more expensive than BORR, based on the Price/Forward Earnings ratio.
The average S&P500 Price/Forward Earnings ratio is at 21.67. BORR is valued rather cheaply when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 69.88 | ||
| Fwd PE | 6.81 |
4.2 Price Multiples
BORR's Enterprise Value to EBITDA is on the same level as the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 8.32 |
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.
BORR's earnings are expected to grow with 154.97% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.08
PEG (5Y)N/A
EPS Next 2Y278.45%
EPS Next 3Y154.97%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 2.72%, BORR has a reasonable but not impressive dividend return.
In the last 3 months the price of BORR has falen by -23.00%. A price decline artificially increases the dividend yield. It may be a sign investors do not expect the dividend to last.
Compared to an average industry Dividend Yield of 3.28, BORR pays a better dividend. On top of this BORR pays more dividend than 84.62% of the companies listed in the same industry.
BORR's Dividend Yield is comparable with the S&P500 average which is at 2.45.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.72% |
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
DPN/A
EPS Next 2Y278.45%
EPS Next 3Y154.97%
BORR DRILLING LTD
NYSE:BORR (4/24/2024, 6:00:00 PM)
After market: 5.59 0 (0%)5.59
-0.18 (-3.12%)
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 Cap1.41B
Analysts
Price Target
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.72% |
Dividend Growth(5Y)
DP
Div Incr Years
Div Non Decr Years
Ex-Date
Surprises & Revisions
EPS beat(2)
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EPS beat(16)
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PT rev (1m)
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EPS NQ rev (1m)
EPS NQ rev (3m)
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EPS NY rev (3m)
Revenue NQ rev (1m)
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Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 69.88 | ||
| Fwd PE | 6.81 | ||
| 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)0.08
PEG (5Y)N/A
Profitability
| Industry Rank | Sector 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 Rank | Sector 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
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FCF growth 3Y
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OCF growth 3Y
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