VALARIS LTD (VAL) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:VAL - BMG9460G1015 - Common Stock
52.15 USD
+1.75 (+3.47%)
52.15 USD
0 (0%)
We assign a fundamental rating of 5 out of 10 to VAL. VAL was compared to 62 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.
In multiple years VAL reported negative operating cash flow during the last 5 years.
1.2 Ratios
VAL has a better Return On Assets (8.60%) than 87.10% of its industry peers.
VAL's Return On Equity of 16.30% is amongst the best of the industry. VAL outperforms 87.10% of its industry peers.
The Return On Invested Capital of VAL (11.04%) is better than 82.26% 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 12.99%.
The last Return On Invested Capital (11.04%) for VAL is above the 3 year average (3.38%), which is a sign of increasing profitability.
| 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
The Profit Margin of VAL (16.51%) is better than 93.55% of its industry peers.
With an excellent Operating Margin value of 22.68%, VAL belongs to the best of the industry, outperforming 88.71% of the companies in the same industry.
| 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
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.
Compared to 1 year ago, VAL has an improved debt to assets ratio.
2.2 Solvency
VAL has an Altman-Z score of 2.54. 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 Altman-Z score of 2.54. This is in the better half of the industry: VAL outperforms 66.13% of its industry peers.
The Debt to FCF ratio of VAL is 4.35, which is a neutral value as it means it would take VAL, 4.35 years of fcf income to pay off all of its debts.
The Debt to FCF ratio of VAL (4.35) is comparable to the rest of the industry.
VAL has a Debt/Equity ratio of 0.44. This is a healthy value indicating a solid balance between debt and equity.
VAL's Debt to Equity ratio of 0.44 is in line compared to the rest of the industry. VAL outperforms 46.77% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.44 | ||
| Debt/FCF | 4.35 | ||
| Altman-Z | 2.54 |
ROIC/WACC1.25
WACC8.85%
2.3 Liquidity
A Current Ratio of 1.87 indicates that VAL should not have too much problems paying its short term obligations.
With a Current ratio value of 1.87, VAL perfoms like the industry average, outperforming 48.39% of the companies in the same industry.
VAL has a Quick Ratio of 1.87. 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 better Quick ratio (1.87) than 69.35% of its industry peers.
| 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
Based on estimates for the next years, VAL will show a quite strong growth in Earnings Per Share. The EPS will grow by 11.23% on average per year.
VAL is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 1.86% yearly.
EPS Next Y-26.03%
EPS Next 2Y-16.96%
EPS Next 3Y11.23%
EPS Next 5YN/A
Revenue Next Year-2.65%
Revenue Next 2Y-4.76%
Revenue Next 3Y1.86%
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 6.46.
Based on the Price/Earnings ratio, VAL is valued cheaply inside the industry as 96.77% of the companies are valued more expensively.
The average S&P500 Price/Earnings ratio is at 26.51. VAL is valued rather cheaply when compared to this.
The Price/Forward Earnings ratio is 14.71, which indicates a correct valuation of VAL.
Based on the Price/Forward Earnings ratio, VAL is valued a bit cheaper than the industry average as 69.35% of the companies are valued more expensively.
VAL is valuated rather cheaply when we compare the Price/Forward Earnings ratio to 23.13, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 6.46 | ||
| Fwd PE | 14.71 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, VAL is valued a bit cheaper than 69.35% of the companies in the same industry.
Based on the Price/Free Cash Flow ratio, VAL is valued a bit cheaper than the industry average as 61.29% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 14.53 | ||
| EV/EBITDA | 5.71 |
4.3 Compensation for Growth
VAL has a very decent profitability rating, which may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y-16.96%
EPS Next 3Y11.23%
5. Dividend
5.1 Amount
No dividends for VAL!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0% |
52.15
+1.75 (+3.47%)
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-2.22%
Market Cap3.63B
Revenue(TTM)2.42B
Net Income(TTM)399.00M
Analysts69.41
Price Target52.48 (0.63%)
Short Float %12.11%
Short Ratio6.97
Dividend
| Industry Rank | Sector 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)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)-1.24%
PT rev (3m)2.7%
EPS NQ rev (1m)76.19%
EPS NQ rev (3m)176.12%
EPS NY rev (1m)40.05%
EPS NY rev (3m)56.9%
Revenue NQ rev (1m)1.09%
Revenue NQ rev (3m)4.14%
Revenue NY rev (1m)0.26%
Revenue NY rev (3m)1.85%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 6.46 | ||
| Fwd PE | 14.71 | ||
| P/S | 1.5 | ||
| P/FCF | 14.53 | ||
| P/OCF | 6.06 | ||
| P/B | 1.48 | ||
| P/tB | 1.48 | ||
| EV/EBITDA | 5.71 |
EPS(TTM)8.07
EY15.47%
EPS(NY)3.54
Fwd EY6.8%
FCF(TTM)3.59
FCFY6.88%
OCF(TTM)8.6
OCFY16.5%
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 | 2.54 |
F-Score6
WACC8.85%
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-26.03%
EPS Next 2Y-16.96%
EPS Next 3Y11.23%
EPS Next 5YN/A
Revenue 1Y (TTM)6.81%
Revenue growth 3Y24.23%
Revenue growth 5Y2.85%
Sales Q2Q%-7.37%
Revenue Next Year-2.65%
Revenue Next 2Y-4.76%
Revenue Next 3Y1.86%
Revenue Next 5YN/A
EBIT growth 1Y92.42%
EBIT growth 3YN/A
EBIT growth 5YN/A
EBIT Next Year67.49%
EBIT Next 3Y29.37%
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
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 6 / 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 6 / 10.
What is the financial health of VALARIS LTD (VAL) stock?
The financial health rating of VALARIS LTD (VAL) is 5 / 10.