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 62 industry peers in the Energy Equipment & Services industry. Both the profitability and the financial health of VAL get a neutral evaluation. Nothing too spectacular is happening here. VAL has a correct valuation and a medium growth rate.
1. Profitability
1.1 Basic Checks
VAL had positive earnings in the past year.
VAL had a positive operating cash flow in the past year.
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's Return On Assets of 7.07% is fine compared to the rest of the industry. VAL outperforms 66.13% of its industry peers.
VAL has a Return On Equity of 14.05%. This is in the better half of the industry: VAL outperforms 74.19% of its industry peers.
With a decent Return On Invested Capital value of 10.37%, VAL is doing good in the industry, outperforming 79.03% of the companies in the same industry.
Measured over the past 3 years, the Average Return On Invested Capital for VAL is significantly below the industry average of 8.42%.
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
The Profit Margin of VAL (12.61%) is better than 83.87% of its industry peers.
Looking at the Operating Margin, with a value of 19.71%, VAL belongs to the top of the industry, outperforming 82.26% of the companies in the same industry.
| 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
VAL has a Return on Invested Capital (ROIC), which is just above the Cost of Capital (WACC), which means it 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
VAL has an Altman-Z score of 2.46. This is not the best score and indicates that VAL is in the grey zone with still only limited risk for bankruptcy at the moment.
VAL has a better Altman-Z score (2.46) than 70.97% of its industry peers.
The Debt to FCF ratio of VAL is 13.38, which is on the high side as it means it would take VAL, 13.38 years of fcf income to pay off all of its debts.
Looking at the Debt to FCF ratio, with a value of 13.38, VAL is in line with its industry, outperforming 43.55% of the companies in the same industry.
A Debt/Equity ratio of 0.49 indicates that VAL is not too dependend on debt financing.
VAL has a Debt to Equity ratio (0.49) which is in line with its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.49 | ||
| Debt/FCF | 13.38 | ||
| Altman-Z | 2.46 |
ROIC/WACC1.11
WACC9.36%
2.3 Liquidity
A Current Ratio of 1.67 indicates that VAL should not have too much problems paying its short term obligations.
VAL has a worse Current ratio (1.67) than 61.29% 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 67.74% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.67 | ||
| Quick Ratio | 1.67 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an impressive 808.11% over the past year.
The Revenue has grown by 30.82% in the past year. This is a very strong growth!
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)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
The Earnings Per Share is expected to grow by 12.49% on average over the next years. This is quite good.
The Revenue is expected to grow by 1.59% on average over the next years.
EPS Next Y-49.17%
EPS Next 2Y-8.42%
EPS Next 3Y12.49%
EPS Next 5YN/A
Revenue Next Year-6.64%
Revenue Next 2Y-3.27%
Revenue Next 3Y1.59%
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 7.21, the valuation of VAL can be described as very cheap.
Based on the Price/Earnings ratio, VAL is valued cheaper than 95.16% of the companies in the same industry.
When comparing the Price/Earnings ratio of VAL to the average of the S&P500 Index (27.52), we can say VAL is valued rather cheaply.
Based on the Price/Forward Earnings ratio of 11.24, the valuation of VAL can be described as reasonable.
Based on the Price/Forward Earnings ratio, VAL is valued a bit cheaper than the industry average as 66.13% of the companies are valued more expensively.
The average S&P500 Price/Forward Earnings ratio is at 35.58. VAL is valued rather cheaply when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 7.21 | ||
| Fwd PE | 11.24 |
4.2 Price Multiples
VAL's Enterprise Value to EBITDA ratio is a bit more expensive when compared to the industry. VAL is more expensive than 61.29% of the companies in the same industry.
Based on the Price/Free Cash Flow ratio, VAL is valued a bit more expensive than 62.90% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 42.51 | ||
| EV/EBITDA | 6.83 |
4.3 Compensation for Growth
A more expensive valuation may be justified as VAL's earnings are expected to grow with 12.49% in the coming years.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y-8.42%
EPS Next 3Y12.49%
5. Dividend
5.1 Amount
No dividends for VAL!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
48.45
-1.45 (-2.91%)
Chartmill FA Rating
GICS SectorEnergy
GICS IndustryGroupEnergy
GICS IndustryEnergy Equipment & Services
Earnings (Last)
Earnings (Next)
Inst Owners97.59%
Inst Owner Change-0.01%
Ins Owners0.87%
Ins Owner Change5.53%
Market Cap3.44B
Analysts75.56
Price Target51.46 (6.21%)
Short Float %16.44%
Short Ratio6.2
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)0.54%
PT rev (3m)-7.04%
EPS NQ rev (1m)0.49%
EPS NQ rev (3m)7.92%
EPS NY rev (1m)3.53%
EPS NY rev (3m)-29.88%
Revenue NQ rev (1m)-0.01%
Revenue NQ rev (3m)0.91%
Revenue NY rev (1m)-0.13%
Revenue NY rev (3m)-0.36%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 7.21 | ||
| Fwd PE | 11.24 | ||
| P/S | 1.4 | ||
| P/FCF | 42.51 | ||
| P/OCF | 7.1 | ||
| P/B | 1.56 | ||
| P/tB | 1.56 | ||
| EV/EBITDA | 6.83 |
EPS(TTM)6.72
EY13.87%
EPS(NY)4.31
Fwd EY8.9%
FCF(TTM)1.14
FCFY2.35%
OCF(TTM)6.82
OCFY14.09%
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 | 2.46 |
F-Score6
WACC9.36%
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-49.17%
EPS Next 2Y-8.42%
EPS Next 3Y12.49%
EPS Next 5YN/A
Revenue 1Y (TTM)30.82%
Revenue growth 3Y24.23%
Revenue growth 5Y2.85%
Sales Q2Q%18.23%
Revenue Next Year-6.64%
Revenue Next 2Y-3.27%
Revenue Next 3Y1.59%
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