BORR DRILLING LTD (BORR) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:BORR - BMG1466R1732 - Common Stock
4.01 USD
+0.02 (+0.5%)
4.05 USD
+0.04 (+1%)
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. BORR has a medium profitability rating, but doesn't score so well on its financial health evaluation. BORR is valued expensive and it does not seem to be growing.
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.
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.
BORR has a Return On Invested Capital of 9.03%. This is in the better half of the industry: BORR outperforms 67.74% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for BORR is significantly below the industry average of 13.09%.
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 69.35% 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 96.77% 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
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 1.27, we must say that BORR is in the distress zone and has some risk of bankruptcy.
The Altman-Z score of BORR (1.27) is worse than 67.74% 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 83.87% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.7 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 1.27 |
ROIC/WACC0.88
WACC10.3%
2.3 Liquidity
A Current Ratio of 1.63 indicates that BORR should not have too much problems paying its short term obligations.
With a Current ratio value of 1.63, BORR is not doing good in the industry: 66.13% of the companies in the same industry are doing better.
BORR has a Quick 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 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
BORR shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -18.18%.
The Revenue has been growing slightly by 5.83% in the past year.
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 -13.22% on average over the next years. This is quite bad
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
Based on the Price/Earnings ratio of 14.85, the valuation of BORR can be described as correct.
Based on the Price/Earnings ratio, BORR is valued a bit cheaper than 75.81% of the companies in the same industry.
BORR is valuated rather cheaply when we compare the Price/Earnings ratio to 26.50, which is the current average of the S&P500 Index.
A Price/Forward Earnings ratio of 604.83 indicates a quite expensive valuation of BORR.
70.97% of the companies in the same industry are cheaper than BORR, based on the Price/Forward Earnings ratio.
Compared to an average S&P500 Price/Forward Earnings ratio of 23.93, BORR is valued quite expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 14.85 | ||
| Fwd PE | 604.83 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, BORR is valued a bit cheaper than 61.29% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 5.93 |
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
BORR has a yearly dividend return of 0.51%, which is pretty low.
Compared to an average industry Dividend Yield of 1.32, 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 1.87.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.51% |
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
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%
4.01
+0.02 (+0.5%)
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 Cap1.15B
Revenue(TTM)1.02B
Net Income(TTM)72.30M
Analysts80
Price TargetN/A
Short Float %5.04%
Short Ratio2.57
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)-235.1%
EPS NQ rev (3m)-110.75%
EPS NY rev (1m)-13.65%
EPS NY rev (3m)-82.85%
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 | 14.85 | ||
| Fwd PE | 604.83 | ||
| P/S | 1.12 | ||
| P/FCF | N/A | ||
| P/OCF | 5.38 | ||
| P/B | 1.01 | ||
| P/tB | 1.01 | ||
| EV/EBITDA | 5.93 |
EPS(TTM)0.27
EY6.73%
EPS(NY)0.01
Fwd EY0.17%
FCF(TTM)-0.17
FCFYN/A
OCF(TTM)0.75
OCFY18.58%
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
WACC10.3%
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%.