VALARIS LTD (VAL) Stock Fundamental Analysis
NYSE:VAL - New York Stock Exchange, Inc. - BMG9460G1015 - Common Stock - Currency: USD
Taking everything into account, VAL scores 4 out of 10 in our fundamental rating. VAL was compared to 61 industry peers in the Energy Equipment & Services industry. VAL has only an average score on both its financial health and profitability. VAL is not valued too expensively and it also shows a decent 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.
In multiple years VAL reported negative net income over the last 5 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
The Return On Assets of VAL (7.07%) is better than 70.49% of its industry peers.
VAL has a Return On Equity of 14.05%. This is in the better half of the industry: VAL outperforms 77.05% of its industry peers.
VAL's Return On Invested Capital of 10.37% 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 8.05%.
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
With an excellent Profit Margin value of 12.61%, VAL belongs to the best of the industry, outperforming 83.61% of the companies in the same industry.
VAL has a Operating Margin of 19.71%. This is amongst the best in the industry. VAL outperforms 81.97% of its industry peers.
| 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
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.
The number of shares outstanding for VAL has been increased compared to 5 years ago.
VAL has a better debt/assets ratio than last year.
2.2 Solvency
An Altman-Z score of 2.37 indicates that VAL is not a great score, but indicates only limited risk for bankruptcy at the moment.
Looking at the Altman-Z score, with a value of 2.37, VAL is in the better half of the industry, outperforming 72.13% of the companies in the same industry.
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.
With a Debt to FCF ratio value of 13.38, VAL perfoms like the industry average, outperforming 44.26% of the companies in the same industry.
VAL has a Debt/Equity ratio of 0.49. This is a healthy value indicating a solid balance between debt and equity.
VAL has a Debt to Equity ratio of 0.49. This is comparable to the rest of the industry: VAL outperforms 45.90% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.49 | ||
| Debt/FCF | 13.38 | ||
| Altman-Z | 2.37 |
ROIC/WACC1.18
WACC8.76%
2.3 Liquidity
A Current Ratio of 1.67 indicates that VAL should not have too much problems paying its short term obligations.
Looking at the Current ratio, with a value of 1.67, VAL is doing worse than 62.30% of the companies in the same industry.
VAL has a Quick Ratio of 1.67. 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 1.67, VAL is in the better half of the industry, outperforming 63.93% of the companies in the same industry.
| 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 99.37% over the past year.
Looking at the last year, VAL shows a very strong growth in Revenue. The Revenue has grown by 32.42%.
The Revenue has been growing slightly by 2.85% on average over the past years.
EPS 1Y (TTM)99.37%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%-20.69%
Revenue 1Y (TTM)32.42%
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 12.49% on average per year.
VAL is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 2.02% yearly.
EPS Next Y-49.17%
EPS Next 2Y-8.42%
EPS Next 3Y12.49%
EPS Next 5YN/A
Revenue Next Year-6.43%
Revenue Next 2Y-2.97%
Revenue Next 3Y2.02%
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
The Price/Earnings ratio is 7.23, which indicates a rather cheap valuation of VAL.
Compared to the rest of the industry, the Price/Earnings ratio of VAL indicates a rather cheap valuation: VAL is cheaper than 93.44% of the companies listed in the same industry.
VAL is valuated cheaply when we compare the Price/Earnings ratio to 27.24, which is the current average of the S&P500 Index.
Based on the Price/Forward Earnings ratio of 10.57, the valuation of VAL can be described as reasonable.
VAL's Price/Forward Earnings ratio is a bit cheaper when compared to the industry. VAL is cheaper than 72.13% of the companies in the same industry.
The average S&P500 Price/Forward Earnings ratio is at 36.42. VAL is valued rather cheaply when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 7.23 | ||
| Fwd PE | 10.57 |
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.
VAL's Price/Free Cash Flow ratio is a bit more expensive when compared to the industry. VAL is more expensive than 62.30% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 39.99 | ||
| EV/EBITDA | 6.3 |
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 |
45.58
+0.3 (+0.66%)
Chartmill FA Rating
GICS SectorEnergy
GICS IndustryGroupEnergy
GICS IndustryEnergy Equipment & Services
Earnings (Last)
Earnings (Next)
Inst Owners97.59%
Inst Owner Change-1.84%
Ins Owners0.87%
Ins Owner Change5.53%
Market Cap3.24B
Analysts72.22
Price Target51.83 (13.71%)
Short Float %14.28%
Short Ratio6.23
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)0.72%
PT rev (3m)-2.44%
EPS NQ rev (1m)-2.03%
EPS NQ rev (3m)5.73%
EPS NY rev (1m)-3.17%
EPS NY rev (3m)-32.36%
Revenue NQ rev (1m)-0.07%
Revenue NQ rev (3m)0.93%
Revenue NY rev (1m)0.09%
Revenue NY rev (3m)-0.13%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 7.23 | ||
| Fwd PE | 10.57 | ||
| P/S | 1.32 | ||
| P/FCF | 39.99 | ||
| P/OCF | 6.68 | ||
| P/B | 1.47 | ||
| P/tB | 1.47 | ||
| EV/EBITDA | 6.3 |
EPS(TTM)6.3
EY13.82%
EPS(NY)4.31
Fwd EY9.46%
FCF(TTM)1.14
FCFY2.5%
OCF(TTM)6.82
OCFY14.97%
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 | 2.37 |
F-Score6
WACC8.76%
ROIC/WACC1.18
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-49.17%
EPS Next 2Y-8.42%
EPS Next 3Y12.49%
EPS Next 5YN/A
Revenue 1Y (TTM)32.42%
Revenue growth 3Y24.23%
Revenue growth 5Y2.85%
Sales Q2Q%0.84%
Revenue Next Year-6.43%
Revenue Next 2Y-2.97%
Revenue Next 3Y2.02%
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