VALARIS LTD (VAL) Fundamental Analysis & Valuation

NYSE:VAL • BMG9460G1015

Current stock price

97.55 USD
+6.01 (+6.57%)
Last:

This VAL fundamental analysis includes valuation metrics, fair value assessment, financial health analysis, profitability trends, growth metrics and dividend sustainability analysis.

7

1. VAL Profitability Analysis

1.1 Basic Checks

  • In the past year VAL was profitable.
  • In the past year VAL had a positive cash flow from operations.
  • VAL had positive earnings in 4 of the past 5 years.
  • VAL had a positive operating cash flow in 4 of the past 5 years.
VAL Yearly Net Income VS EBIT VS OCF VS FCFVAL Yearly Net Income VS EBIT VS OCF VS FCFYearly Net Income VS EBIT VS OCF VS FCF 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 0 1B -1B -2B -3B -4B

1.2 Ratios

  • VAL has a better Return On Assets (18.53%) than 98.33% of its industry peers.
  • VAL's Return On Equity of 30.99% is amongst the best of the industry. VAL outperforms 96.67% of its industry peers.
  • VAL has a Return On Invested Capital of 8.49%. This is in the better half of the industry: VAL outperforms 73.33% of its industry peers.
  • VAL had an Average Return On Invested Capital over the past 3 years of 5.68%. This is significantly below the industry average of 13.36%.
  • The 3 year average ROIC (5.68%) for VAL is below the current ROIC(8.49%), indicating increased profibility in the last year.
Industry RankSector Rank
ROA 18.53%
ROE 30.99%
ROIC 8.49%
ROA(3y)15.67%
ROA(5y)-23.86%
ROE(3y)30.4%
ROE(5y)-64.09%
ROIC(3y)5.68%
ROIC(5y)N/A
VAL Yearly ROA, ROE, ROICVAL Yearly ROA, ROE, ROICYearly ROA, ROE, ROIC 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 0 -100 -200 -300 -400

1.3 Margins

  • With an excellent Profit Margin value of 41.49%, VAL belongs to the best of the industry, outperforming 100.00% of the companies in the same industry.
  • VAL's Profit Margin has improved in the last couple of years.
  • VAL has a Operating Margin of 20.93%. This is amongst the best in the industry. VAL outperforms 85.00% of its industry peers.
  • VAL's Operating Margin has improved in the last couple of years.
Industry RankSector Rank
OM 20.93%
PM (TTM) 41.49%
GM N/A
OM growth 3Y92.26%
OM growth 5YN/A
PM growth 3Y55.59%
PM growth 5YN/A
GM growth 3YN/A
GM growth 5YN/A
VAL Yearly Profit, Operating, Gross MarginsVAL Yearly Profit, Operating, Gross MarginsYearly Profit, Operating, Gross Margins 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 0 -100 -200 -300

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4

2. VAL Health Analysis

2.1 Basic Checks

  • The Return on Invested Capital (ROIC) is just above the Cost of Capital (WACC), so VAL is still creating some value.
  • VAL has less shares outstanding than it did 1 year ago.
  • Compared to 5 years ago, VAL has more shares outstanding
  • The debt/assets ratio for VAL has been reduced compared to a year ago.
VAL Yearly Shares OutstandingVAL Yearly Shares OutstandingYearly Shares Outstanding 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 20M 40M 60M
VAL Yearly Total Debt VS Total AssetsVAL Yearly Total Debt VS Total AssetsYearly Total Debt VS Total Assets 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 5B 10B 15B

2.2 Solvency

  • VAL has a debt to FCF ratio of 5.36. This is a neutral value as VAL would need 5.36 years to pay back of all of its debts.
  • VAL's Debt to FCF ratio of 5.36 is in line compared to the rest of the industry. VAL outperforms 50.00% of its industry peers.
  • VAL has a Debt/Equity ratio of 0.34. This is a healthy value indicating a solid balance between debt and equity.
  • Looking at the Debt to Equity ratio, with a value of 0.34, VAL is in the better half of the industry, outperforming 61.67% of the companies in the same industry.
Industry RankSector Rank
Debt/Equity 0.34
Debt/FCF 5.36
Altman-Z N/A
ROIC/WACC1.04
WACC8.19%
VAL Yearly LT Debt VS Equity VS FCFVAL Yearly LT Debt VS Equity VS FCFYearly LT Debt VS Equity VS FCF 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 0 2B 4B 6B 8B

2.3 Liquidity

  • VAL has a Current Ratio of 1.77. 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 Current ratio of 1.77. This is comparable to the rest of the industry: VAL outperforms 46.67% of its industry peers.
  • A Quick Ratio of 1.77 indicates that VAL should not have too much problems paying its short term obligations.
  • VAL's Quick ratio of 1.77 is fine compared to the rest of the industry. VAL outperforms 71.67% of its industry peers.
Industry RankSector Rank
Current Ratio 1.77
Quick Ratio 1.77
VAL Yearly Current Assets VS Current LiabilitesVAL Yearly Current Assets VS Current LiabilitesYearly Current Assets VS Current Liabilites 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 1B 2B 3B

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5

3. VAL Growth Analysis

3.1 Past

  • VAL shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 220.04%, which is quite impressive.
  • VAL shows a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 91.84% yearly.
  • The Revenue has been growing slightly by 0.27% in the past year.
  • The Revenue has been growing by 10.67% on average over the past years. This is quite good.
EPS 1Y (TTM)220.04%
EPS 3Y91.84%
EPS 5YN/A
EPS Q2Q%445.74%
Revenue 1Y (TTM)0.27%
Revenue growth 3Y13.92%
Revenue growth 5Y10.67%
Sales Q2Q%-8.04%

3.2 Future

  • The Earnings Per Share is expected to decrease by -34.75% on average over the next years. This is quite bad
  • VAL is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 3.35% yearly.
EPS Next Y-80.08%
EPS Next 2Y-34.75%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue Next Year-7.62%
Revenue Next 2Y3.35%
Revenue Next 3YN/A
Revenue Next 5YN/A

3.3 Evolution

  • The EPS growth rate is decreasing: in the next years the growth will be less than in the last years.
  • The Revenue growth rate is decreasing: in the next years the growth will be less than in the last years.
VAL Yearly Revenue VS EstimatesVAL Yearly Revenue VS EstimatesYearly Revenue VS Estimates 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 1B 2B 3B 4B
VAL Yearly EPS VS EstimatesVAL Yearly EPS VS EstimatesYearly EPS VS Estimates 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 0 10 -10 -20

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4

4. VAL Valuation Analysis

4.1 Price/Earnings Ratio

  • Based on the Price/Earnings ratio of 5.93, the valuation of VAL can be described as very cheap.
  • 100.00% of the companies in the same industry are more expensive than VAL, based on the Price/Earnings ratio.
  • The average S&P500 Price/Earnings ratio is at 25.96. VAL is valued rather cheaply when compared to this.
  • With a Price/Forward Earnings ratio of 29.77, VAL can be considered very expensive at the moment.
  • Compared to the rest of the industry, the Price/Forward Earnings ratio of VAL is on the same level as its industry peers.
  • VAL is valuated rather expensively when we compare the Price/Forward Earnings ratio to 24.04, which is the current average of the S&P500 Index.
Industry RankSector Rank
PE 5.93
Fwd PE 29.77
VAL Price Earnings VS Forward Price EarningsVAL Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 20 40 60 80

4.2 Price Multiples

  • Based on the Enterprise Value to EBITDA ratio, VAL is valued a bit more expensive than 63.33% of the companies in the same industry.
  • The rest of the industry has a similar Price/Free Cash Flow ratio as VAL.
Industry RankSector Rank
P/FCF 33.32
EV/EBITDA 10.63
VAL Per share dataVAL EPS, Sales, OCF, FCF, BookValue per sharePer Share Data Per Share 10 20 30 40

4.3 Compensation for Growth

  • VAL has a very decent profitability rating, which may justify a higher PE ratio.
  • A cheap valuation may be justified as VAL's earnings are expected to decrease with -34.75% in the coming years.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y-34.75%
EPS Next 3YN/A

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Price/EarningsPrice/FCFFCF per shareEV/EBITDAPEG RATIOShow best valued peers

0

5. VAL Dividend Analysis

5.1 Amount

  • VAL does not give a dividend.
Industry RankSector Rank
Dividend Yield 0%

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VAL Fundamentals: All Metrics, Ratios and Statistics

VALARIS LTD

NYSE:VAL (3/17/2026, 3:49:03 PM)

97.55

+6.01 (+6.57%)

Chartmill FA Rating
GICS SectorEnergy
GICS IndustryGroupEnergy
GICS IndustryEnergy Equipment & Services
Earnings (Last)02-19
Earnings (Next)04-28
Inst Owners89.2%
Inst Owner Change-9.98%
Ins Owners0.86%
Ins Owner Change-0.08%
Market Cap6.75B
Revenue(TTM)2.37B
Net Income(TTM)982.80M
Analysts54.44
Price Target67.96 (-30.33%)
Short Float %11.66%
Short Ratio4.16
Dividend
Industry RankSector Rank
Dividend Yield 0%
Yearly DividendN/A
Dividend Growth(5Y)N/A
DPN/A
Div Incr Years0
Div Non Decr Years0
Ex-DateN/A
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)822.71%
Min EPS beat(2)126.1%
Max EPS beat(2)1519.31%
EPS beat(4)4
Avg EPS beat(4)431.96%
Min EPS beat(4)26.48%
Max EPS beat(4)1519.31%
EPS beat(8)7
Avg EPS beat(8)320.89%
EPS beat(12)10
Avg EPS beat(12)269.84%
EPS beat(16)13
Avg EPS beat(16)325.67%
Revenue beat(2)2
Avg Revenue beat(2)6.17%
Min Revenue beat(2)4.29%
Max Revenue beat(2)8.06%
Revenue beat(4)4
Avg Revenue beat(4)5.57%
Min Revenue beat(4)4.29%
Max Revenue beat(4)8.06%
Revenue beat(8)8
Avg Revenue beat(8)4.34%
Revenue beat(12)10
Avg Revenue beat(12)2.91%
Revenue beat(16)14
Avg Revenue beat(16)3.44%
PT rev (1m)26.42%
PT rev (3m)27.88%
EPS NQ rev (1m)22.27%
EPS NQ rev (3m)-277.08%
EPS NY rev (1m)-5.16%
EPS NY rev (3m)-7.27%
Revenue NQ rev (1m)0.69%
Revenue NQ rev (3m)-0.03%
Revenue NY rev (1m)0.61%
Revenue NY rev (3m)-0.19%
Valuation
Industry RankSector Rank
PE 5.93
Fwd PE 29.77
P/S 2.85
P/FCF 33.32
P/OCF 12.36
P/B 2.13
P/tB 2.13
EV/EBITDA 10.63
EPS(TTM)16.45
EY16.86%
EPS(NY)3.28
Fwd EY3.36%
FCF(TTM)2.93
FCFY3%
OCF(TTM)7.89
OCFY8.09%
SpS34.22
BVpS45.81
TBVpS45.81
PEG (NY)N/A
PEG (5Y)N/A
Graham Number130.22
Profitability
Industry RankSector Rank
ROA 18.53%
ROE 30.99%
ROCE 10.75%
ROIC 8.49%
ROICexc 9.76%
ROICexgc 9.76%
OM 20.93%
PM (TTM) 41.49%
GM N/A
FCFM 8.56%
ROA(3y)15.67%
ROA(5y)-23.86%
ROE(3y)30.4%
ROE(5y)-64.09%
ROIC(3y)5.68%
ROIC(5y)N/A
ROICexc(3y)6.45%
ROICexc(5y)N/A
ROICexgc(3y)6.45%
ROICexgc(5y)N/A
ROCE(3y)7.2%
ROCE(5y)N/A
ROICexgc growth 3Y62.26%
ROICexgc growth 5YN/A
ROICexc growth 3Y62.26%
ROICexc growth 5YN/A
OM growth 3Y92.26%
OM growth 5YN/A
PM growth 3Y55.59%
PM growth 5YN/A
GM growth 3YN/A
GM growth 5YN/A
F-Score7
Asset Turnover0.45
Health
Industry RankSector Rank
Debt/Equity 0.34
Debt/FCF 5.36
Debt/EBITDA 1.69
Cap/Depr 234.79%
Cap/Sales 14.5%
Interest Coverage 250
Cash Conversion 85.05%
Profit Quality 20.62%
Current Ratio 1.77
Quick Ratio 1.77
Altman-Z N/A
F-Score7
WACC8.19%
ROIC/WACC1.04
Cap/Depr(3y)432.02%
Cap/Depr(5y)309.82%
Cap/Sales(3y)24.26%
Cap/Sales(5y)18.09%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)220.04%
EPS 3Y91.84%
EPS 5YN/A
EPS Q2Q%445.74%
EPS Next Y-80.08%
EPS Next 2Y-34.75%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue 1Y (TTM)0.27%
Revenue growth 3Y13.92%
Revenue growth 5Y10.67%
Sales Q2Q%-8.04%
Revenue Next Year-7.62%
Revenue Next 2Y3.35%
Revenue Next 3YN/A
Revenue Next 5YN/A
EBIT growth 1Y36.5%
EBIT growth 3Y119.02%
EBIT growth 5YN/A
EBIT Next Year7.2%
EBIT Next 3YN/A
EBIT Next 5YN/A
FCF growth 1Y303.31%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y53.69%
OCF growth 3Y62.41%
OCF growth 5YN/A

VALARIS LTD / VAL Fundamental Analysis FAQ

Can you provide the ChartMill fundamental rating for VALARIS LTD?

ChartMill assigns a fundamental rating of 5 / 10 to VAL.


Can you provide the valuation status for VALARIS LTD?

ChartMill assigns a valuation rating of 4 / 10 to VALARIS LTD (VAL). This can be considered as Fairly Valued.


How profitable is VALARIS LTD (VAL) stock?

VALARIS LTD (VAL) has a profitability rating of 7 / 10.


What is the financial health of VALARIS LTD (VAL) stock?

The financial health rating of VALARIS LTD (VAL) is 4 / 10.