VALARIS LTD (VAL) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:VAL - BMG9460G1015 - Common Stock
57.38 USD
+0.97 (+1.72%)
We assign a fundamental rating of 4 out of 10 to VAL. VAL was compared to 60 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
In the past year VAL was profitable.
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
Looking at the Return On Assets, with a value of 8.60%, VAL belongs to the top of the industry, outperforming 86.67% of the companies in the same industry.
VAL's Return On Equity of 16.28% is amongst the best of the industry. VAL outperforms 85.00% of its industry peers.
With a decent Return On Invested Capital value of 11.04%, VAL is doing good in the industry, outperforming 80.00% of the companies in the same industry.
Measured over the past 3 years, the Average Return On Invested Capital for VAL is below the industry average of 7.66%.
The 3 year average ROIC (3.38%) for VAL is below the current ROIC(11.04%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 8.6% | ||
| ROE | 16.28% | ||
| 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
VAL has a better Profit Margin (16.51%) than 91.67% of its industry peers.
VAL has a Operating Margin of 22.68%. This is amongst the best in the industry. VAL outperforms 88.33% of its industry peers.
| 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
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.
Compared to 5 years ago, VAL has more shares outstanding
VAL has a better debt/assets ratio than last year.
2.2 Solvency
VAL has a debt to FCF ratio of 4.35. This is a neutral value as VAL would need 4.35 years to pay back of all of its debts.
With a Debt to FCF ratio value of 4.35, VAL perfoms like the industry average, outperforming 53.33% of the companies in the same industry.
VAL has a Debt/Equity ratio of 0.44. This is a healthy value indicating a solid balance between debt and equity.
Looking at the Debt to Equity ratio, with a value of 0.44, VAL is in line with its industry, outperforming 43.33% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.44 | ||
| Debt/FCF | 4.35 | ||
| Altman-Z | N/A |
ROIC/WACC1.27
WACC8.7%
2.3 Liquidity
VAL has a Current 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 Current ratio (1.87) which is comparable to the rest of the 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.
With a decent Quick ratio value of 1.87, VAL is doing good in the industry, outperforming 68.33% of the companies in the same industry.
| 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.
Looking at the last year, VAL shows a small growth in Revenue. The Revenue has grown by 6.81% in the last year.
The Revenue has been growing slightly by 2.85% on average over the past years.
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
The Earnings Per Share is expected to grow by 10.69% on average over the next years. This is quite good.
Based on estimates for the next years, VAL will show a small growth in Revenue. The Revenue will grow by 1.96% on average per year.
EPS Next Y-47.18%
EPS Next 2Y-19.33%
EPS Next 3Y10.69%
EPS Next 5YN/A
Revenue Next Year-2.9%
Revenue Next 2Y-4.82%
Revenue Next 3Y1.96%
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
With a Price/Earnings ratio of 7.11, the valuation of VAL can be described as very cheap.
Based on the Price/Earnings ratio, VAL is valued cheaply inside the industry as 96.67% 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 26.31.
Based on the Price/Forward Earnings ratio of 17.15, the valuation of VAL can be described as rather expensive.
The rest of the industry has a similar Price/Forward Earnings ratio as VAL.
VAL is valuated cheaply when we compare the Price/Forward Earnings ratio to 36.56, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 7.11 | ||
| Fwd PE | 17.15 |
4.2 Price Multiples
VAL's Enterprise Value to EBITDA ratio is in line with the industry average.
The rest of the industry has a similar Price/Free Cash Flow ratio as VAL.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 15.99 | ||
| EV/EBITDA | 6.32 |
4.3 Compensation for Growth
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y-19.33%
EPS Next 3Y10.69%
5. Dividend
5.1 Amount
No dividends for VAL!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
NYSE:VAL (12/1/2025, 11:03:50 AM)
57.38
+0.97 (+1.72%)
Chartmill FA Rating
GICS SectorEnergy
GICS IndustryGroupEnergy
GICS IndustryEnergy Equipment & Services
Earnings (Last)
Earnings (Next)
Inst Owners94.41%
Inst Owner Change2.96%
Ins Owners0.84%
Ins Owner Change-1.15%
Market Cap3.99B
Revenue(TTM)2.42B
Net Income(TTM)399.00M
Analysts69.41
Price Target53.14 (-7.39%)
Short Float %13.98%
Short Ratio7.75
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)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)5.04%
PT rev (3m)4.01%
EPS NQ rev (1m)70.03%
EPS NQ rev (3m)54.48%
EPS NY rev (1m)17.83%
EPS NY rev (3m)16.99%
Revenue NQ rev (1m)3.44%
Revenue NQ rev (3m)3.2%
Revenue NY rev (1m)0.87%
Revenue NY rev (3m)1.76%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 7.11 | ||
| Fwd PE | 17.15 | ||
| P/S | 1.65 | ||
| P/FCF | 15.99 | ||
| P/OCF | 6.67 | ||
| P/B | 1.63 | ||
| P/tB | 1.63 | ||
| EV/EBITDA | 6.32 |
EPS(TTM)8.07
EY14.06%
EPS(NY)3.34
Fwd EY5.83%
FCF(TTM)3.59
FCFY6.25%
OCF(TTM)8.6
OCFY14.99%
SpS34.72
BVpS35.22
TBVpS35.22
PEG (NY)N/A
PEG (5Y)N/A
Graham Number79.97
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 8.6% | ||
| ROE | 16.28% | ||
| 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 | N/A |
F-Score6
WACC8.7%
ROIC/WACC1.27
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-47.18%
EPS Next 2Y-19.33%
EPS Next 3Y10.69%
EPS Next 5YN/A
Revenue 1Y (TTM)6.81%
Revenue growth 3Y24.23%
Revenue growth 5Y2.85%
Sales Q2Q%-7.37%
Revenue Next Year-2.9%
Revenue Next 2Y-4.82%
Revenue Next 3Y1.96%
Revenue Next 5YN/A
EBIT growth 1Y92.42%
EBIT growth 3YN/A
EBIT growth 5YN/A
EBIT Next Year60.08%
EBIT Next 3Y28.38%
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
What is the fundamental rating for VAL stock?
ChartMill assigns a fundamental rating of 4 / 10 to VAL.
What is the valuation status of VALARIS LTD (VAL) stock?
ChartMill assigns a valuation rating of 5 / 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 5 / 10.
Can you provide the financial health for VAL stock?
The financial health rating of VALARIS LTD (VAL) is 4 / 10.