VALARIS LTD (VAL) Stock Fundamental Analysis
NYSE:VAL - New York Stock Exchange, Inc. - BMG9460G1015 - Common Stock - Currency: USD
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 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
VAL had positive earnings in the past year.
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.
In multiple years VAL reported negative operating cash flow during the last 5 years.
1.2 Ratios
With a decent Return On Assets value of 7.07%, VAL is doing good in the industry, outperforming 67.74% of the companies in the same industry.
VAL has a Return On Equity of 14.05%. This is in the better half of the industry: VAL outperforms 72.58% of its industry peers.
VAL has a better Return On Invested Capital (10.37%) than 79.03% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for VAL is below the industry average of 8.23%.
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
VAL has a better Profit Margin (12.61%) than 80.65% of its industry peers.
VAL's Operating Margin of 19.71% is amongst the best of the industry. VAL outperforms 82.26% 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.
The number of shares outstanding for VAL has been reduced compared to 1 year ago.
Compared to 5 years ago, VAL has more shares outstanding
Compared to 1 year ago, VAL has an improved debt to assets ratio.
2.2 Solvency
An Altman-Z score of 2.18 indicates that VAL is not a great score, but indicates only limited risk for bankruptcy at the moment.
VAL's Altman-Z score of 2.18 is fine compared to the rest of the industry. VAL outperforms 72.58% of its industry peers.
VAL has a debt to FCF ratio of 13.38. This is a negative value and a sign of low solvency as VAL would need 13.38 years to pay back of all of its debts.
VAL has a Debt to FCF ratio (13.38) which is comparable to the rest of the 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 45.16% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.49 | ||
| Debt/FCF | 13.38 | ||
| Altman-Z | 2.18 |
ROIC/WACC1.12
WACC9.23%
2.3 Liquidity
VAL has a Current 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.
With a Current ratio value of 1.67, VAL is not doing good in the industry: 61.29% of the companies in the same industry are doing better.
A Quick Ratio of 1.67 indicates that VAL should not have too much problems paying its short term obligations.
The Quick ratio of VAL (1.67) is better than 64.52% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.67 | ||
| Quick Ratio | 1.67 |
3. Growth
3.1 Past
VAL shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 414.00%, which is quite impressive.
The Revenue has grown by 30.82% in the past year. This is a very strong growth!
The Revenue has been growing slightly by 2.85% on average over the past years.
EPS 1Y (TTM)414%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%-254.05%
Revenue 1Y (TTM)30.82%
Revenue growth 3Y24.23%
Revenue growth 5Y2.85%
Sales Q2Q%18.23%
3.2 Future
The Earnings Per Share is expected to grow by 21.06% on average over the next years. This is a very strong growth
The Revenue is expected to grow by 2.83% on average over the next years.
EPS Next Y-24.86%
EPS Next 2Y3.83%
EPS Next 3Y21.06%
EPS Next 5YN/A
Revenue Next Year-6.31%
Revenue Next 2Y0.06%
Revenue Next 3Y2.83%
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 stable.
4. Valuation
4.1 Price/Earnings Ratio
Based on the Price/Earnings ratio of 7.14, the valuation of VAL can be described as very cheap.
Compared to the rest of the industry, the Price/Earnings ratio of VAL indicates a rather cheap valuation: VAL is cheaper than 93.55% of the companies listed in the same industry.
The average S&P500 Price/Earnings ratio is at 28.10. VAL is valued rather cheaply when compared to this.
A Price/Forward Earnings ratio of 6.63 indicates a rather cheap valuation of VAL.
Based on the Price/Forward Earnings ratio, VAL is valued cheaper than 87.10% of the companies in the same industry.
When comparing the Price/Forward Earnings ratio of VAL to the average of the S&P500 Index (20.74), we can say VAL is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 7.14 | ||
| Fwd PE | 6.63 |
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.
Based on the Price/Free Cash Flow ratio, VAL is valued a bit more expensive than the industry average as 62.90% of the companies are valued more cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 32.2 | ||
| EV/EBITDA | 5.16 |
4.3 Compensation for Growth
A more expensive valuation may be justified as VAL's earnings are expected to grow with 21.06% in the coming years.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y3.83%
EPS Next 3Y21.06%
5. Dividend
5.1 Amount
No dividends for VAL!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
36.71
+1.23 (+3.47%)
Chartmill FA Rating
GICS SectorEnergy
GICS IndustryGroupEnergy
GICS IndustryEnergy Equipment & Services
Earnings (Last)
Earnings (Next)
Inst Owners96.44%
Inst Owner Change0.56%
Ins Owners0.59%
Ins Owner Change3.81%
Market Cap2.61B
Analysts74.44
Price Target53.13 (44.73%)
Short Float %21.48%
Short Ratio6.03
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)N/A
Avg EPS beat(2)N/A
Min EPS beat(2)N/A
Max EPS beat(2)N/A
EPS beat(4)N/A
Avg EPS beat(4)N/A
Min EPS beat(4)N/A
Max EPS beat(4)N/A
EPS beat(8)N/A
Avg EPS beat(8)N/A
EPS beat(12)N/A
Avg EPS beat(12)N/A
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)-2.48%
PT rev (3m)-13.7%
EPS NQ rev (1m)1.98%
EPS NQ rev (3m)1.15%
EPS NY rev (1m)3.65%
EPS NY rev (3m)-18.57%
Revenue NQ rev (1m)-0.15%
Revenue NQ rev (3m)0.72%
Revenue NY rev (1m)-0.04%
Revenue NY rev (3m)-7.51%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 7.14 | ||
| Fwd PE | 6.63 | ||
| P/S | 1.06 | ||
| P/FCF | 32.2 | ||
| P/OCF | 5.38 | ||
| P/B | 1.18 | ||
| P/tB | 1.18 | ||
| EV/EBITDA | 5.16 |
EPS(TTM)5.14
EY14%
EPS(NY)5.54
Fwd EY15.09%
FCF(TTM)1.14
FCFY3.11%
OCF(TTM)6.83
OCFY18.6%
SpS34.6
BVpS31.07
TBVpS31.07
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 | 2.18 |
F-Score6
WACC9.23%
ROIC/WACC1.12
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)414%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%-254.05%
EPS Next Y-24.86%
EPS Next 2Y3.83%
EPS Next 3Y21.06%
EPS Next 5YN/A
Revenue 1Y (TTM)30.82%
Revenue growth 3Y24.23%
Revenue growth 5Y2.85%
Sales Q2Q%18.23%
Revenue Next Year-6.31%
Revenue Next 2Y0.06%
Revenue Next 3Y2.83%
Revenue Next 5YN/A
EBIT growth 1Y682.88%
EBIT growth 3YN/A
EBIT growth 5YN/A
EBIT Next Year46.21%
EBIT Next 3Y31.88%
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