VALARIS LTD (VAL) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:VAL - BMG9460G1015 - Common Stock
59.93 USD
+0.33 (+0.55%)
59.93 USD
0 (0%)
We assign a fundamental rating of 4 out of 10 to VAL. VAL was compared to 60 industry peers in the Energy Equipment & Services industry. VAL has an average financial health and profitability rating. VAL has a decent growth rate and is not valued too expensively.
1. Profitability
1.1 Basic Checks
VAL had positive earnings in the past year.
In the past year VAL had a positive cash flow from operations.
The reported net income has been mixed in the past 5 years: VAL reported negative net income in multiple years.
The reported operating cash flow has been mixed in the past 5 years: VAL reported negative operating cash flow in multiple years.
1.2 Ratios
VAL has a Return On Assets of 8.60%. This is amongst the best in the industry. VAL outperforms 86.67% of its industry peers.
VAL's Return On Equity of 16.30% is amongst the best of the industry. VAL outperforms 85.00% of its industry peers.
With a decent Return On Invested Capital value of 11.04%, VAL is doing good in the industry, outperforming 80.00% of the companies in the same industry.
Measured over the past 3 years, the Average Return On Invested Capital for VAL is below the industry average of 7.48%.
The 3 year average ROIC (3.38%) for VAL is below the current ROIC(11.04%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 8.6% | ||
| ROE | 16.3% | ||
| ROIC | 11.04% |
ROA(3y)11.55%
ROA(5y)-35.11%
ROE(3y)24.63%
ROE(5y)-92.48%
ROIC(3y)3.38%
ROIC(5y)N/A
1.3 Margins
VAL has a better Profit Margin (16.51%) than 91.67% of its industry peers.
VAL has a Operating Margin of 22.68%. This is amongst the best in the industry. VAL outperforms 88.33% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 22.68% | ||
| PM (TTM) | 16.51% | ||
| 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) just above the Cost of Capital (WACC), VAL is creating some value.
Compared to 1 year ago, VAL has less shares outstanding
Compared to 5 years ago, VAL has more shares outstanding
The debt/assets ratio for VAL has been reduced compared to a year ago.
2.2 Solvency
An Altman-Z score of 2.72 indicates that VAL is not a great score, but indicates only limited risk for bankruptcy at the moment.
The Altman-Z score of VAL (2.72) is better than 68.33% of its industry peers.
VAL has a debt to FCF ratio of 4.35. This is a neutral value as VAL would need 4.35 years to pay back of all of its debts.
VAL has a Debt to FCF ratio (4.35) which is comparable to the rest of the industry.
A Debt/Equity ratio of 0.44 indicates that VAL is not too dependend on debt financing.
VAL has a Debt to Equity ratio (0.44) which is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.44 | ||
| Debt/FCF | 4.35 | ||
| Altman-Z | 2.72 |
ROIC/WACC1.25
WACC8.83%
2.3 Liquidity
A Current Ratio of 1.87 indicates that VAL should not have too much problems paying its short term obligations.
VAL has a Current ratio (1.87) which is in line with its industry peers.
A Quick Ratio of 1.87 indicates that VAL should not have too much problems paying its short term obligations.
Looking at the Quick ratio, with a value of 1.87, VAL is in the better half of the industry, outperforming 68.33% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.87 | ||
| Quick Ratio | 1.87 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an impressive 108.53% over the past year.
VAL shows a small growth in Revenue. In the last year, the Revenue has grown by 6.81%.
Measured over the past years, VAL shows a small growth in Revenue. The Revenue has been growing by 2.85% on average per year.
EPS 1Y (TTM)108.53%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%201.14%
Revenue 1Y (TTM)6.81%
Revenue growth 3Y24.23%
Revenue growth 5Y2.85%
Sales Q2Q%-7.37%
3.2 Future
The Earnings Per Share is expected to grow by 11.74% on average over the next years. This is quite good.
The Revenue is expected to grow by 2.06% on average over the next years.
EPS Next Y-26.06%
EPS Next 2Y-17.08%
EPS Next 3Y11.74%
EPS Next 5YN/A
Revenue Next Year-2.61%
Revenue Next 2Y-4.67%
Revenue Next 3Y2.06%
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
VAL is valuated cheaply with a Price/Earnings ratio of 7.43.
Compared to the rest of the industry, the Price/Earnings ratio of VAL indicates a rather cheap valuation: VAL is cheaper than 96.67% of the companies listed in the same industry.
VAL is valuated cheaply when we compare the Price/Earnings ratio to 26.49, which is the current average of the S&P500 Index.
The Price/Forward Earnings ratio is 16.96, which indicates a correct valuation of VAL.
Compared to the rest of the industry, the Price/Forward Earnings ratio of VAL is on the same level as its industry peers.
VAL's Price/Forward Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 23.69.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 7.43 | ||
| Fwd PE | 16.96 |
4.2 Price Multiples
The rest of the industry has a similar Enterprise Value to EBITDA ratio as VAL.
VAL's Price/Free Cash Flow is on the same level as the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 16.7 | ||
| EV/EBITDA | 6.68 |
4.3 Compensation for Growth
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y-17.08%
EPS Next 3Y11.74%
5. Dividend
5.1 Amount
No dividends for VAL!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
59.93
+0.33 (+0.55%)
Chartmill FA Rating
GICS SectorEnergy
GICS IndustryGroupEnergy
GICS IndustryEnergy Equipment & Services
Earnings (Last)
Earnings (Next)
Inst Owners98.54%
Inst Owner Change2.97%
Ins Owners0.86%
Ins Owner Change-1.15%
Market Cap4.17B
Revenue(TTM)2.42B
Net Income(TTM)399.00M
Analysts69.41
Price Target53.14 (-11.33%)
Short Float %14.27%
Short Ratio8.21
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
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)76.29%
Min EPS beat(2)26.48%
Max EPS beat(2)126.1%
EPS beat(4)4
Avg EPS beat(4)72.48%
Min EPS beat(4)26.48%
Max EPS beat(4)126.1%
EPS beat(8)7
Avg EPS beat(8)181.76%
EPS beat(12)9
Avg EPS beat(12)141.25%
EPS beat(16)13
Avg EPS beat(16)241.51%
Revenue beat(2)2
Avg Revenue beat(2)4.4%
Min Revenue beat(2)4.29%
Max Revenue beat(2)4.5%
Revenue beat(4)4
Avg Revenue beat(4)3.58%
Min Revenue beat(4)0.12%
Max Revenue beat(4)5.43%
Revenue beat(8)7
Avg Revenue beat(8)3.21%
Revenue beat(12)10
Avg Revenue beat(12)2.29%
Revenue beat(16)13
Avg Revenue beat(16)2.78%
PT rev (1m)4.2%
PT rev (3m)3.99%
EPS NQ rev (1m)115.9%
EPS NQ rev (3m)174.97%
EPS NY rev (1m)39.99%
EPS NY rev (3m)63.78%
Revenue NQ rev (1m)1.23%
Revenue NQ rev (3m)3.4%
Revenue NY rev (1m)0.3%
Revenue NY rev (3m)2.07%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 7.43 | ||
| Fwd PE | 16.96 | ||
| P/S | 1.73 | ||
| P/FCF | 16.7 | ||
| P/OCF | 6.97 | ||
| P/B | 1.7 | ||
| P/tB | 1.7 | ||
| EV/EBITDA | 6.68 |
EPS(TTM)8.07
EY13.47%
EPS(NY)3.53
Fwd EY5.9%
FCF(TTM)3.59
FCFY5.99%
OCF(TTM)8.6
OCFY14.36%
SpS34.72
BVpS35.18
TBVpS35.18
PEG (NY)N/A
PEG (5Y)N/A
Graham Number79.92
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 8.6% | ||
| ROE | 16.3% | ||
| ROCE | 13.98% | ||
| ROIC | 11.04% | ||
| ROICexc | 13.29% | ||
| ROICexgc | 13.29% | ||
| OM | 22.68% | ||
| PM (TTM) | 16.51% | ||
| GM | N/A | ||
| FCFM | 10.34% |
ROA(3y)11.55%
ROA(5y)-35.11%
ROE(3y)24.63%
ROE(5y)-92.48%
ROIC(3y)3.38%
ROIC(5y)N/A
ROICexc(3y)3.96%
ROICexc(5y)N/A
ROICexgc(3y)3.96%
ROICexgc(5y)N/A
ROCE(3y)4.28%
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 Turnover0.52
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.44 | ||
| Debt/FCF | 4.35 | ||
| Debt/EBITDA | 1.58 | ||
| Cap/Depr | 249.93% | ||
| Cap/Sales | 14.44% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 87.06% | ||
| Profit Quality | 62.58% | ||
| Current Ratio | 1.87 | ||
| Quick Ratio | 1.87 | ||
| Altman-Z | 2.72 |
F-Score6
WACC8.83%
ROIC/WACC1.25
Cap/Depr(3y)429.41%
Cap/Depr(5y)266.33%
Cap/Sales(3y)23.73%
Cap/Sales(5y)16.51%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)108.53%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%201.14%
EPS Next Y-26.06%
EPS Next 2Y-17.08%
EPS Next 3Y11.74%
EPS Next 5YN/A
Revenue 1Y (TTM)6.81%
Revenue growth 3Y24.23%
Revenue growth 5Y2.85%
Sales Q2Q%-7.37%
Revenue Next Year-2.61%
Revenue Next 2Y-4.67%
Revenue Next 3Y2.06%
Revenue Next 5YN/A
EBIT growth 1Y92.42%
EBIT growth 3YN/A
EBIT growth 5YN/A
EBIT Next Year66.72%
EBIT Next 3Y29.4%
EBIT Next 5YN/A
FCF growth 1Y551.96%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y84.01%
OCF growth 3YN/A
OCF growth 5YN/A
VALARIS LTD / VAL FAQ
What is the fundamental rating for VAL stock?
ChartMill assigns a fundamental rating of 4 / 10 to VAL.
What is the valuation status of VALARIS LTD (VAL) stock?
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 5 / 10.
Can you provide the financial health for VAL stock?
The financial health rating of VALARIS LTD (VAL) is 4 / 10.