VALARIS LTD (VAL) Stock Fundamental Analysis
NYSE:VAL - New York Stock Exchange, Inc. - BMG9460G1015 - Common Stock - Currency: USD
VAL gets a fundamental rating of 4 out of 10. The analysis compared the fundamentals against 63 industry peers in the Energy Equipment & Services industry. VAL has only an average score on both its financial health and profitability. VAL has a correct valuation and a medium growth rate.
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.
In multiple years VAL reported negative net income over the last 5 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
With a decent Return On Assets value of 7.07%, VAL is doing good in the industry, outperforming 66.67% of the companies in the same industry.
VAL has a better Return On Equity (14.05%) than 73.02% of its industry peers.
The Return On Invested Capital of VAL (10.37%) is better than 79.37% of its industry peers.
VAL had an Average Return On Invested Capital over the past 3 years of 3.38%. This is significantly below the industry average of 8.65%.
The last Return On Invested Capital (10.37%) for VAL is above the 3 year average (3.38%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 7.07% | ||
| ROE | 14.05% | ||
| ROIC | 10.37% |
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 (12.61%) than 82.54% of its industry peers.
The Operating Margin of VAL (19.71%) is better than 82.54% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 19.71% | ||
| PM (TTM) | 12.61% | ||
| 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 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.
VAL has more shares outstanding than it did 5 years ago.
VAL has a better debt/assets ratio than last year.
2.2 Solvency
An Altman-Z score of 2.25 indicates that VAL is not a great score, but indicates only limited risk for bankruptcy at the moment.
VAL's Altman-Z score of 2.25 is fine compared to the rest of the industry. VAL outperforms 71.43% of its industry peers.
VAL has a debt to FCF ratio of 13.38. This is a negative value and a sign of low solvency as VAL would need 13.38 years to pay back of all of its debts.
The Debt to FCF ratio of VAL (13.38) is comparable to the rest of the industry.
VAL has a Debt/Equity ratio of 0.49. This is a healthy value indicating a solid balance between debt and equity.
VAL's Debt to Equity ratio of 0.49 is in line compared to the rest of the industry. VAL outperforms 44.44% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.49 | ||
| Debt/FCF | 13.38 | ||
| Altman-Z | 2.25 |
ROIC/WACC1.11
WACC9.38%
2.3 Liquidity
VAL has a Current Ratio of 1.67. This is a normal value and indicates that VAL is financially healthy and should not expect problems in meeting its short term obligations.
The Current ratio of VAL (1.67) is worse than 63.49% of its industry peers.
A Quick Ratio of 1.67 indicates that VAL should not have too much problems paying its short term obligations.
VAL's Quick ratio of 1.67 is fine compared to the rest of the industry. VAL outperforms 69.84% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.67 | ||
| Quick Ratio | 1.67 |
3. Growth
3.1 Past
VAL shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 808.11%, which is quite impressive.
VAL shows a strong growth in Revenue. In the last year, the Revenue has grown by 30.82%.
VAL shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 2.85% yearly.
EPS 1Y (TTM)808.11%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%451.43%
Revenue 1Y (TTM)30.82%
Revenue growth 3Y24.23%
Revenue growth 5Y2.85%
Sales Q2Q%18.23%
3.2 Future
VAL is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 14.08% yearly.
Based on estimates for the next years, VAL will show a small growth in Revenue. The Revenue will grow by 2.19% on average per year.
EPS Next Y-50.9%
EPS Next 2Y-7.37%
EPS Next 3Y14.08%
EPS Next 5YN/A
Revenue Next Year-6.6%
Revenue Next 2Y-3.14%
Revenue Next 3Y2.19%
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
Based on the Price/Earnings ratio of 5.68, the valuation of VAL can be described as very cheap.
Based on the Price/Earnings ratio, VAL is valued cheaply inside the industry as 98.41% of the companies are valued more expensively.
VAL's Price/Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 26.19.
With a Price/Forward Earnings ratio of 8.66, the valuation of VAL can be described as very reasonable.
VAL's Price/Forward Earnings ratio is a bit cheaper when compared to the industry. VAL is cheaper than 74.60% of the companies in the same industry.
Compared to an average S&P500 Price/Forward Earnings ratio of 22.13, VAL is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 5.68 | ||
| Fwd PE | 8.66 |
4.2 Price Multiples
The rest of the industry has a similar Enterprise Value to EBITDA ratio as VAL.
Based on the Price/Free Cash Flow ratio, VAL is valued a bit more expensive than 60.32% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 33.51 | ||
| EV/EBITDA | 5.59 |
4.3 Compensation for Growth
VAL's earnings are expected to grow with 14.08% in the coming years. This may justify a more expensive valuation.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y-7.37%
EPS Next 3Y14.08%
5. Dividend
5.1 Amount
VAL does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
NYSE:VAL (5/30/2025, 11:25:05 AM)
38.19
-1 (-2.55%)
Chartmill FA Rating
GICS SectorEnergy
GICS IndustryGroupEnergy
GICS IndustryEnergy Equipment & Services
Earnings (Last)
Earnings (Next)
Inst Owners96.44%
Inst Owner Change1.14%
Ins Owners0.59%
Ins Owner Change4.09%
Market Cap2.71B
Analysts74.44
Price Target51.65 (35.24%)
Short Float %20.93%
Short Ratio6.12
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)68.66%
Min EPS beat(2)55.95%
Max EPS beat(2)81.37%
EPS beat(4)3
Avg EPS beat(4)76.53%
Min EPS beat(4)-16.03%
Max EPS beat(4)184.85%
EPS beat(8)6
Avg EPS beat(8)162.01%
EPS beat(12)9
Avg EPS beat(12)291.58%
EPS beat(16)N/A
Avg EPS beat(16)N/A
Revenue beat(2)2
Avg Revenue beat(2)2.77%
Min Revenue beat(2)0.12%
Max Revenue beat(2)5.43%
Revenue beat(4)4
Avg Revenue beat(4)3.38%
Min Revenue beat(4)0.12%
Max Revenue beat(4)5.43%
Revenue beat(8)6
Avg Revenue beat(8)1.73%
Revenue beat(12)10
Avg Revenue beat(12)2.6%
Revenue beat(16)13
Avg Revenue beat(16)2.33%
PT rev (1m)-6.7%
PT rev (3m)-13.81%
EPS NQ rev (1m)8.22%
EPS NQ rev (3m)6.14%
EPS NY rev (1m)-34.66%
EPS NY rev (3m)-42.93%
Revenue NQ rev (1m)1.07%
Revenue NQ rev (3m)-0.45%
Revenue NY rev (1m)-0.31%
Revenue NY rev (3m)-4.02%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 5.68 | ||
| Fwd PE | 8.66 | ||
| P/S | 1.1 | ||
| P/FCF | 33.51 | ||
| P/OCF | 5.6 | ||
| P/B | 1.23 | ||
| P/tB | 1.23 | ||
| EV/EBITDA | 5.59 |
EPS(TTM)6.72
EY17.6%
EPS(NY)4.41
Fwd EY11.55%
FCF(TTM)1.14
FCFY2.98%
OCF(TTM)6.82
OCFY17.87%
SpS34.59
BVpS31.05
TBVpS31.05
PEG (NY)N/A
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 7.07% | ||
| ROE | 14.05% | ||
| ROCE | 13.13% | ||
| ROIC | 10.37% | ||
| ROICexc | 11.78% | ||
| ROICexgc | 11.78% | ||
| OM | 19.71% | ||
| PM (TTM) | 12.61% | ||
| GM | N/A | ||
| FCFM | 3.29% |
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
ROICexcg growth 3YN/A
ROICexcg 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 Turnover0.56
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.49 | ||
| Debt/FCF | 13.38 | ||
| Debt/EBITDA | 1.77 | ||
| Cap/Depr | 314.64% | ||
| Cap/Sales | 16.43% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 79.12% | ||
| Profit Quality | 26.13% | ||
| Current Ratio | 1.67 | ||
| Quick Ratio | 1.67 | ||
| Altman-Z | 2.25 |
F-Score6
WACC9.38%
ROIC/WACC1.11
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)808.11%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%451.43%
EPS Next Y-50.9%
EPS Next 2Y-7.37%
EPS Next 3Y14.08%
EPS Next 5YN/A
Revenue 1Y (TTM)30.82%
Revenue growth 3Y24.23%
Revenue growth 5Y2.85%
Sales Q2Q%18.23%
Revenue Next Year-6.6%
Revenue Next 2Y-3.14%
Revenue Next 3Y2.19%
Revenue Next 5YN/A
EBIT growth 1Y682.88%
EBIT growth 3YN/A
EBIT growth 5YN/A
EBIT Next Year48.74%
EBIT Next 3Y29.18%
EBIT Next 5YN/A
FCF growth 1Y50.28%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y74.02%
OCF growth 3YN/A
OCF growth 5YN/A