BORR DRILLING LTD (BORR) Stock Fundamental Analysis
USA - NYSE:BORR - BMG1466R1732 - Common Stock
3.01 USD
-0.07 (-2.27%)
3.01 USD
0 (0%)
We assign a fundamental rating of 3 out of 10 to BORR. BORR was compared to 60 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
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 1.62% is on the low side compared to the rest of the industry. BORR is outperformed by 63.93% of its industry peers.
BORR has a Return On Equity of 5.35%. This is comparable to the rest of the industry: BORR outperforms 45.90% of its industry peers.
BORR's Return On Invested Capital of 9.03% is fine compared to the rest of the industry. BORR outperforms 70.49% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for BORR is in line with the industry average of 7.87%.
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 | 1.62% | ||
| ROE | 5.35% | ||
| 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
BORR has a Profit Margin (5.48%) which is comparable to the rest of the industry.
BORR has a better Operating Margin (34.48%) than 96.72% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 34.48% | ||
| PM (TTM) | 5.48% | ||
| 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
The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so BORR is destroying value.
BORR has less shares outstanding than it did 1 year ago.
Compared to 5 years ago, BORR has more shares outstanding
Compared to 1 year ago, BORR has a worse debt to assets ratio.
2.2 Solvency
Based on the Altman-Z score of 1.16, we must say that BORR is in the distress zone and has some risk of bankruptcy.
BORR's Altman-Z score of 1.16 is on the low side compared to the rest of the industry. BORR is outperformed by 70.49% of its industry peers.
A Debt/Equity ratio of 1.91 is on the high side and indicates that BORR has dependencies on debt financing.
The Debt to Equity ratio of BORR (1.91) is worse than 90.16% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.91 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 1.16 |
ROIC/WACC0.88
WACC10.2%
2.3 Liquidity
A Current Ratio of 1.28 indicates that BORR should not have too much problems paying its short term obligations.
BORR has a worse Current ratio (1.28) than 77.05% of its industry peers.
BORR has a Quick Ratio of 1.28. 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 of 1.28. This is in the lower half of the industry: BORR underperforms 63.93% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.28 | ||
| Quick Ratio | 1.28 |
3. Growth
3.1 Past
BORR shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -27.59%.
The Revenue has been growing slightly by 7.73% in the past year.
Measured over the past years, BORR shows a very strong growth in Revenue. The Revenue has been growing by 24.78% on average per year.
EPS 1Y (TTM)-27.59%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%16.67%
Revenue 1Y (TTM)7.73%
Revenue growth 3Y60.31%
Revenue growth 5Y24.78%
Sales Q2Q%-1.54%
3.2 Future
The Earnings Per Share is expected to decrease by -14.66% 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 1.49% yearly.
EPS Next Y-48.1%
EPS Next 2Y-87.38%
EPS Next 3Y-14.66%
EPS Next 5YN/A
Revenue Next Year-0.1%
Revenue Next 2Y-0.9%
Revenue Next 3Y1.49%
Revenue Next 5YN/A
3.3 Evolution
The Revenue growth rate is decreasing: in the next years the growth will be less than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
With a Price/Earnings ratio of 14.33, BORR is valued correctly.
Based on the Price/Earnings ratio, BORR is valued a bit cheaper than 72.13% of the companies in the same industry.
The average S&P500 Price/Earnings ratio is at 26.89. BORR is valued slightly cheaper when compared to this.
With a Price/Forward Earnings ratio of 590.20, BORR can be considered very expensive at the moment.
73.77% 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 22.99, BORR is valued quite expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 14.33 | ||
| Fwd PE | 590.2 |
4.2 Price Multiples
The rest of the industry has a similar Enterprise Value to EBITDA ratio as BORR.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 5.86 |
4.3 Compensation for Growth
BORR's earnings are expected to decrease with -14.66% in the coming years. This may justify a cheaper valuation.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y-87.38%
EPS Next 3Y-14.66%
5. Dividend
5.1 Amount
BORR has a Yearly Dividend Yield of 1.33%. Purely for dividend investing, there may be better candidates out there.
BORR's Dividend Yield is a higher than the industry average which is at 3.00.
With a Dividend Yield of 1.33, BORR pays less dividend than the S&P500 average, which is at 2.31.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.33% |
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 61.44% of its income as dividend. This is not a sustainable payout ratio.
DP61.44%
EPS Next 2Y-87.38%
EPS Next 3Y-14.66%
3.01
-0.07 (-2.27%)
Chartmill FA Rating
GICS SectorEnergy
GICS IndustryGroupEnergy
GICS IndustryEnergy Equipment & Services
Earnings (Last)
Earnings (Next)
Inst Owners80%
Inst Owner Change0.3%
Ins Owners6.74%
Ins Owner ChangeN/A
Market Cap861.52M
Revenue(TTM)989.00M
Net Income(TTM)54.20M
Analysts77.14
Price Target2.7 (-10.3%)
Short Float %5.62%
Short Ratio3.44
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.33% |
Yearly Dividend0.31
Dividend Growth(5Y)N/A
DP61.44%
Div Incr Years0
Div Non Decr Years0
Ex-Date
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)9.23%
Min EPS beat(2)-14.38%
Max EPS beat(2)32.83%
EPS beat(4)1
Avg EPS beat(4)-15.17%
Min EPS beat(4)-59.15%
Max EPS beat(4)32.83%
EPS beat(8)2
Avg EPS beat(8)-30.07%
EPS beat(12)2
Avg EPS beat(12)-62.16%
EPS beat(16)4
Avg EPS beat(16)-61.78%
Revenue beat(2)1
Avg Revenue beat(2)-2.13%
Min Revenue beat(2)-4.29%
Max Revenue beat(2)0.03%
Revenue beat(4)2
Avg Revenue beat(4)-1.7%
Min Revenue beat(4)-4.29%
Max Revenue beat(4)0.76%
Revenue beat(8)4
Avg Revenue beat(8)0.28%
Revenue beat(12)8
Avg Revenue beat(12)1.43%
Revenue beat(16)9
Avg Revenue beat(16)1.89%
PT rev (1m)-58.68%
PT rev (3m)-58.68%
EPS NQ rev (1m)-62.11%
EPS NQ rev (3m)-62.11%
EPS NY rev (1m)-80.14%
EPS NY rev (3m)-80.14%
Revenue NQ rev (1m)-10.45%
Revenue NQ rev (3m)-10.45%
Revenue NY rev (1m)-7.67%
Revenue NY rev (3m)-7.67%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 14.33 | ||
| Fwd PE | 590.2 | ||
| P/S | 0.87 | ||
| P/FCF | N/A | ||
| P/OCF | 4.55 | ||
| P/B | 0.85 | ||
| P/tB | 0.85 | ||
| EV/EBITDA | 5.86 |
EPS(TTM)0.21
EY6.98%
EPS(NY)0.01
Fwd EY0.17%
FCF(TTM)-0.79
FCFYN/A
OCF(TTM)0.66
OCFY21.97%
SpS3.46
BVpS3.54
TBVpS3.54
PEG (NY)N/A
PEG (5Y)N/A
Graham Number4.09
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 1.62% | ||
| ROE | 5.35% | ||
| ROCE | 11.43% | ||
| ROIC | 9.03% | ||
| ROICexc | 9.31% | ||
| ROICexgc | 9.31% | ||
| OM | 34.48% | ||
| PM (TTM) | 5.48% | ||
| 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-Score5
Asset Turnover0.3
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.91 | ||
| Debt/FCF | N/A | ||
| Debt/EBITDA | 4.02 | ||
| Cap/Depr | 296.79% | ||
| Cap/Sales | 42.04% | ||
| Interest Coverage | 1.77 | ||
| Cash Conversion | 39.35% | ||
| Profit Quality | N/A | ||
| Current Ratio | 1.28 | ||
| Quick Ratio | 1.28 | ||
| Altman-Z | 1.16 |
F-Score5
WACC10.2%
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)-27.59%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%16.67%
EPS Next Y-48.1%
EPS Next 2Y-87.38%
EPS Next 3Y-14.66%
EPS Next 5YN/A
Revenue 1Y (TTM)7.73%
Revenue growth 3Y60.31%
Revenue growth 5Y24.78%
Sales Q2Q%-1.54%
Revenue Next Year-0.1%
Revenue Next 2Y-0.9%
Revenue Next 3Y1.49%
Revenue Next 5YN/A
EBIT growth 1Y2.31%
EBIT growth 3YN/A
EBIT growth 5YN/A
EBIT Next Year56.65%
EBIT Next 3Y4.25%
EBIT Next 5YN/A
FCF growth 1Y-552.74%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y136.92%
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 6 / 10 to BORR DRILLING LTD (BORR). This can be considered as Fairly Valued.
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 -48.1% 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 61.44%.