VALARIS LTD (VAL) Stock Fundamental Analysis
NYSE:VAL - BMG9460G1015 - Common Stock
49.67 USD
+0.55 (+1.12%)
49.65 USD
-0.02 (-0.04%)
We assign a fundamental rating of 4 out of 10 to VAL. VAL was compared to 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.
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 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.
VAL's Return On Invested Capital of 11.17% is amongst the best of the industry. VAL outperforms 80.33% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for VAL is below the industry average of 8.01%.
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 better Profit Margin (11.18%) than 81.97% 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
With a Return on Invested Capital (ROIC) just above the Cost of Capital (WACC), VAL 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 2.52 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 2.52, VAL is doing good in the industry, outperforming 70.49% 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 of 4.66. This is comparable to the rest of the industry: VAL outperforms 49.18% of its industry peers.
A Debt/Equity ratio of 0.47 indicates that VAL is not too dependend on debt financing.
Looking at the Debt to Equity ratio, with a value of 0.47, VAL is in line with its industry, outperforming 47.54% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.47 | ||
| Debt/FCF | 4.66 | ||
| Altman-Z | 2.52 |
ROIC/WACC1.22
WACC9.12%
2.3 Liquidity
VAL has a Current 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.
The Current ratio of VAL (1.81) is comparable to the rest of the industry.
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.
Looking at the Quick ratio, with a value of 1.81, VAL is in the better half of the industry, outperforming 70.49% of the companies in the same industry.
| 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 8.59% on average per year.
The Revenue is expected to grow by 1.60% on average over the next years.
EPS Next Y-54.85%
EPS Next 2Y-13.9%
EPS Next 3Y8.59%
EPS Next 5YN/A
Revenue Next Year-4.58%
Revenue Next 2Y-3.4%
Revenue Next 3Y1.6%
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 7.88.
Compared to the rest of the industry, the Price/Earnings ratio of VAL indicates a rather cheap valuation: VAL is cheaper than 96.72% of the companies listed in the same industry.
VAL's Price/Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 27.08.
Based on the Price/Forward Earnings ratio of 13.04, the valuation of VAL can be described as correct.
Based on the Price/Forward Earnings ratio, VAL is valued a bit cheaper than 68.85% of the companies in the same industry.
When comparing the Price/Forward Earnings ratio of VAL to the average of the S&P500 Index (22.72), we can say VAL is valued slightly cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 7.88 | ||
| Fwd PE | 13.04 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of VAL is on the same level as its industry peers.
The rest of the industry has a similar Price/Free Cash Flow ratio as VAL.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 15.21 | ||
| EV/EBITDA | 6.1 |
4.3 Compensation for Growth
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y-13.9%
EPS Next 3Y8.59%
5. Dividend
5.1 Amount
No dividends for VAL!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
49.67
+0.55 (+1.12%)
Chartmill FA Rating
GICS SectorEnergy
GICS IndustryGroupEnergy
GICS IndustryEnergy Equipment & Services
Earnings (Last)
Earnings (Next)
Inst Owners96.55%
Inst Owner Change-3.32%
Ins Owners0.89%
Ins Owner Change5.53%
Market Cap3.54B
Analysts72.22
Price Target51.09 (2.86%)
Short Float %15.17%
Short Ratio6.46
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)-1.43%
PT rev (3m)-1.08%
EPS NQ rev (1m)-0.19%
EPS NQ rev (3m)16.04%
EPS NY rev (1m)-11.18%
EPS NY rev (3m)-8.05%
Revenue NQ rev (1m)2.27%
Revenue NQ rev (3m)1.25%
Revenue NY rev (1m)1.98%
Revenue NY rev (3m)2.16%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 7.88 | ||
| Fwd PE | 13.04 | ||
| P/S | 1.44 | ||
| P/FCF | 15.21 | ||
| P/OCF | 5.96 | ||
| P/B | 1.52 | ||
| P/tB | 1.52 | ||
| EV/EBITDA | 6.1 |
EPS(TTM)6.3
EY12.68%
EPS(NY)3.81
Fwd EY7.67%
FCF(TTM)3.26
FCFY6.57%
OCF(TTM)8.33
OCFY16.78%
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 | 2.52 |
F-Score6
WACC9.12%
ROIC/WACC1.22
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-54.85%
EPS Next 2Y-13.9%
EPS Next 3Y8.59%
EPS Next 5YN/A
Revenue 1Y (TTM)18.78%
Revenue growth 3Y24.23%
Revenue growth 5Y2.85%
Sales Q2Q%0.84%
Revenue Next Year-4.58%
Revenue Next 2Y-3.4%
Revenue Next 3Y1.6%
Revenue Next 5YN/A
EBIT growth 1Y199.83%
EBIT growth 3YN/A
EBIT growth 5YN/A
EBIT Next Year53.05%
EBIT Next 3Y28.66%
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