VALARIS LTD (VAL) Stock Fundamental Analysis
USA - NYSE:VAL - BMG9460G1015 - Common Stock
48.3891 USD
+0.06 (+0.12%)
VAL gets a fundamental rating of 4 out of 10. The analysis compared the fundamentals against 61 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.
In multiple years VAL reported negative operating cash flow during the last 5 years.
1.2 Ratios
VAL has a better Return On Assets (6.12%) than 70.49% of its industry peers.
VAL has a better Return On Equity (11.83%) than 68.85% of its industry peers.
With an excellent Return On Invested Capital value of 11.17%, VAL belongs to the best of the industry, outperforming 81.97% of the companies in the same industry.
VAL had an Average Return On Invested Capital over the past 3 years of 3.38%. This is below the industry average of 7.95%.
The 3 year average ROIC (3.38%) for VAL is below the current ROIC(11.17%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 6.12% | ||
| ROE | 11.83% | ||
| ROIC | 11.17% |
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 Profit Margin of 11.18%. This is amongst the best in the industry. VAL outperforms 83.61% of its industry peers.
VAL has a Operating Margin of 21.95%. This is amongst the best in the industry. VAL outperforms 86.89% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 21.95% | ||
| PM (TTM) | 11.18% | ||
| 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.
VAL has less shares outstanding than it did 1 year ago.
The number of shares outstanding for VAL has been increased compared to 5 years ago.
Compared to 1 year ago, VAL has an improved debt to assets ratio.
2.2 Solvency
An Altman-Z score of 2.50 indicates that VAL is not a great score, but indicates only limited risk for bankruptcy at the moment.
With a decent Altman-Z score value of 2.50, VAL is doing good in the industry, outperforming 67.21% of the companies in the same industry.
VAL has a debt to FCF ratio of 4.66. This is a neutral value as VAL would need 4.66 years to pay back of all of its debts.
VAL has a Debt to FCF ratio (4.66) which is in line with its industry peers.
VAL has a Debt/Equity ratio of 0.47. This is a healthy value indicating a solid balance between debt and equity.
With a Debt to Equity ratio value of 0.47, VAL perfoms like the industry average, outperforming 47.54% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.47 | ||
| Debt/FCF | 4.66 | ||
| Altman-Z | 2.5 |
ROIC/WACC1.3
WACC8.59%
2.3 Liquidity
A Current Ratio of 1.81 indicates that VAL should not have too much problems paying its short term obligations.
VAL has a Current ratio (1.81) which is in line with its industry peers.
VAL has a Quick Ratio of 1.81. 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 Quick ratio of 1.81. This is in the better half of the industry: VAL outperforms 70.49% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.81 | ||
| Quick Ratio | 1.81 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an impressive 99.37% over the past year.
Looking at the last year, VAL shows a quite strong growth in Revenue. The Revenue has grown by 18.78% in the last year.
VAL shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 2.85% yearly.
EPS 1Y (TTM)99.37%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%-20.69%
Revenue 1Y (TTM)18.78%
Revenue growth 3Y24.23%
Revenue growth 5Y2.85%
Sales Q2Q%0.84%
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 8.91% on average per year.
VAL is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 1.68% yearly.
EPS Next Y-52.85%
EPS Next 2Y-16.07%
EPS Next 3Y8.91%
EPS Next 5YN/A
Revenue Next Year-3.87%
Revenue Next 2Y-4.05%
Revenue Next 3Y1.68%
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
VAL is valuated cheaply with a Price/Earnings ratio of 7.68.
Based on the Price/Earnings ratio, VAL is valued cheaper than 96.72% of the companies in the same industry.
Compared to an average S&P500 Price/Earnings ratio of 27.42, VAL is valued rather cheaply.
The Price/Forward Earnings ratio is 13.36, which indicates a correct valuation of VAL.
VAL's Price/Forward Earnings ratio is a bit cheaper when compared to the industry. VAL is cheaper than 62.30% of the companies in the same industry.
The average S&P500 Price/Forward Earnings ratio is at 22.94. VAL is valued slightly cheaper when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 7.68 | ||
| Fwd PE | 13.36 |
4.2 Price Multiples
VAL's Enterprise Value to EBITDA ratio is in line with the industry average.
VAL's Price/Free Cash Flow ratio is in line with the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 14.82 | ||
| EV/EBITDA | 5.96 |
4.3 Compensation for Growth
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y-16.07%
EPS Next 3Y8.91%
5. Dividend
5.1 Amount
No dividends for VAL!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
NYSE:VAL (10/20/2025, 1:15:00 PM)
48.3891
+0.06 (+0.12%)
Chartmill FA Rating
GICS SectorEnergy
GICS IndustryGroupEnergy
GICS IndustryEnergy Equipment & Services
Earnings (Last)
Earnings (Next)
Inst Owners94.41%
Inst Owner Change0.04%
Ins Owners0.84%
Ins Owner Change-1.15%
Market Cap3.45B
Analysts70.59
Price Target50.59 (4.55%)
Short Float %16.1%
Short Ratio8.09
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)41.22%
Min EPS beat(2)26.48%
Max EPS beat(2)55.95%
EPS beat(4)3
Avg EPS beat(4)36.94%
Min EPS beat(4)-16.03%
Max EPS beat(4)81.37%
EPS beat(8)7
Avg EPS beat(8)167.7%
EPS beat(12)9
Avg EPS beat(12)144.56%
EPS beat(16)13
Avg EPS beat(16)234.33%
Revenue beat(2)2
Avg Revenue beat(2)4.97%
Min Revenue beat(2)4.5%
Max Revenue beat(2)5.43%
Revenue beat(4)4
Avg Revenue beat(4)3.39%
Min Revenue beat(4)0.12%
Max Revenue beat(4)5.43%
Revenue beat(8)6
Avg Revenue beat(8)2.14%
Revenue beat(12)10
Avg Revenue beat(12)1.99%
Revenue beat(16)13
Avg Revenue beat(16)2.52%
PT rev (1m)-1%
PT rev (3m)-2.4%
EPS NQ rev (1m)-0.37%
EPS NQ rev (3m)-4.78%
EPS NY rev (1m)4.43%
EPS NY rev (3m)-7.24%
Revenue NQ rev (1m)-0.14%
Revenue NQ rev (3m)2.44%
Revenue NY rev (1m)0.57%
Revenue NY rev (3m)2.97%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 7.68 | ||
| Fwd PE | 13.36 | ||
| P/S | 1.4 | ||
| P/FCF | 14.82 | ||
| P/OCF | 5.81 | ||
| P/B | 1.48 | ||
| P/tB | 1.48 | ||
| EV/EBITDA | 5.96 |
EPS(TTM)6.3
EY13.02%
EPS(NY)3.62
Fwd EY7.48%
FCF(TTM)3.26
FCFY6.75%
OCF(TTM)8.33
OCFY17.22%
SpS34.59
BVpS32.72
TBVpS32.72
PEG (NY)N/A
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 6.12% | ||
| ROE | 11.83% | ||
| ROCE | 14.13% | ||
| ROIC | 11.17% | ||
| ROICexc | 12.86% | ||
| ROICexgc | 12.86% | ||
| OM | 21.95% | ||
| PM (TTM) | 11.18% | ||
| GM | N/A | ||
| FCFM | 9.44% |
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 Turnover0.55
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.47 | ||
| Debt/FCF | 4.66 | ||
| Debt/EBITDA | 1.61 | ||
| Cap/Depr | 269% | ||
| Cap/Sales | 14.65% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 87.95% | ||
| Profit Quality | 84.39% | ||
| Current Ratio | 1.81 | ||
| Quick Ratio | 1.81 | ||
| Altman-Z | 2.5 |
F-Score6
WACC8.59%
ROIC/WACC1.3
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)99.37%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%-20.69%
EPS Next Y-52.85%
EPS Next 2Y-16.07%
EPS Next 3Y8.91%
EPS Next 5YN/A
Revenue 1Y (TTM)18.78%
Revenue growth 3Y24.23%
Revenue growth 5Y2.85%
Sales Q2Q%0.84%
Revenue Next Year-3.87%
Revenue Next 2Y-4.05%
Revenue Next 3Y1.68%
Revenue Next 5YN/A
EBIT growth 1Y199.83%
EBIT growth 3YN/A
EBIT growth 5YN/A
EBIT Next Year60.08%
EBIT Next 3Y28.38%
EBIT Next 5YN/A
FCF growth 1Y79.54%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y62.96%
OCF growth 3YN/A
OCF growth 5YN/A