(VAL) Valaris - NYSE
Sector: Energy | Industry: Oil & Gas Drilling | Exchange: NYSE (USA) | Market Cap: 6.217m USD | Total Return: 84.9% in 12m
Avg Turnover: 77.3M
EPS Trend: 46.0%
Qual. Beats: 0
Rev. Trend: 85.6%
Qual. Beats: 5
Warnings
Earnings expected to drop: P/E 6.3 → Forward 29.1
Below Avwap Earnings
Tailwinds
No distinct edge detected
Valaris Limited (NYSE: VAL) is a Bermuda-based offshore contract drilling company operating a global fleet of drillships, semisubmersible rigs, and jackups. The firm provides drilling services to national, international, and independent energy companies across major offshore basins, including the North Sea, the Gulf of Mexico, and Brazil.
The company’s business model relies on day-rate contracts for its offshore assets, categorized into Floaters and Jackups segments. Offshore drilling is a highly capital-intensive sector where profitability is closely tied to global crude oil prices and the resulting exploration and production budgets of major energy firms.
Valaris also operates ARO Drilling, a joint venture in Saudi Arabia, and provides management services for third-party rigs to diversify its revenue streams. For a deeper look at the companys valuation metrics and historical performance, consider reviewing the detailed data on ValueRay. The companys fleet is designed to operate in various water depths, ranging from shallow-water jackup environments to ultra-deepwater locations requiring dynamically positioned vessels.
- Rising dayrates for ultra-deepwater drillships drive higher revenue and margin expansion
- Global offshore rig utilization rates dictate long-term contract pricing power
- Capital expenditure cycles of major oil producers influence backlog growth potential
- Operational downtime or safety incidents impact fleet availability and earnings stability
- Strategic joint venture performance in Saudi Arabia affects equity investment income
| Net Income: 1.00b TTM > 0 and > 6% of Revenue |
| FCF/TA: 0.02 > 0.02 and ΔFCF/TA 0.32 > 1.0 |
| NWC/Revenue: 16.84% < 20% (prev 18.84%; Δ -2.00% < -1%) |
| CFO/TA 0.09 > 3% & CFO 457.7m > Net Income 1.00b |
| Net Debt (638.0m) to EBITDA (646.8m): 0.99 < 3 |
| Current Ratio: 1.48 > 1.5 & < 3 |
| Outstanding Shares: last quarter (69.2m) vs 12m ago -2.54% < -2% |
| Gross Margin: 24.50% > 18% (prev 29.58%; Δ -5.08% > 0.5%) |
| Asset Turnover: 45.41% > 50% (prev 56.04%; Δ -10.63% > 0%) |
| Interest Coverage Ratio: 4.97 > 6 (EBIT TTM 490.9m / Interest Expense TTM 98.8m) |
| A: 0.07 (Total Current Assets 1.15b - Total Current Liabilities 777.7m) / Total Assets 5.36b |
| B: 0.44 (Retained Earnings 2.37b / Total Assets 5.36b) |
| C: 0.10 (EBIT TTM 490.9m / Avg Total Assets 4.88b) |
| D: 1.44 (Book Value of Equity 3.16b / Total Liabilities 2.20b) |
| Altman-Z'' = 4.08 = AA |
| DSRI: 0.91 (Receivables 455.0m/557.7m, Revenue 2.21b/2.46b) |
| GMI: 1.21 (GM 29.58% / 24.50%) |
| AQI: 1.34 (AQ_t 0.38 / AQ_t-1 0.29) |
| SGI: 0.90 (Revenue 2.21b / 2.46b) |
| TATA: 0.10 (NI 1.00b - CFO 457.7m) / TA 5.36b) |
| Beneish M = -2.78 (Cap -4..+1) = A |
As of June 17, 2026, the stock is trading at USD 86.67 with a total of 912,111 shares traded.
Over the past week, the price has changed by -5.16%,
over one month by -17.79%,
over three months by -5.32% and
over the past year by +84.88%.
Valaris has received a consensus analysts rating of 3.73. Therefore, it is recommended to hold VAL.
- StrongBuy: 4
- Buy: 1
- Hold: 5
- Sell: 1
- StrongSell: 0
| Analysts Target Price | 69.8 | -19.4% |
P/E Trailing = 6.3449
P/E Forward = 29.0698
P/S = 2.8086
P/B = 1.9668
Revenue TTM = 2.21b USD
EBIT TTM = 490.9m USD
EBITDA TTM = 646.8m USD
Long Term Debt = 1.09b USD (from longTermDebt, last quarter)
Short Term Debt = 37.6m USD (from shortTermDebt, last quarter)
Debt = 1.22b USD (from shortLongTermDebtTotal, last quarter) + Leases 67.8m
Net Debt = 638.0m USD (calculated: Debt 1.22b - CCE 584.4m)
Enterprise Value = 6.86b USD (6.22b + Debt 1.22b - CCE 584.4m)
Interest Coverage Ratio = 4.97 (Ebit TTM 490.9m / Interest Expense TTM 98.8m)
EV/FCF = 58.75x (Enterprise Value 6.86b / FCF TTM 116.7m)
FCF Yield = 1.70% (FCF TTM 116.7m / Enterprise Value 6.86b)
FCF Margin = 5.27% (FCF TTM 116.7m / Revenue TTM 2.21b)
Net Margin = 45.37% (Net Income TTM 1.00b / Revenue TTM 2.21b)
Gross Margin = 24.50% ((Revenue TTM 2.21b - Cost of Revenue TTM 1.67b) / Revenue TTM)
Gross Margin QoQ = 10.59% (prev 15.52%)
Tobins Q-Ratio = 1.28 (Enterprise Value 6.86b / Total Assets 5.36b)
Interest Expense / Debt = 8.08% (Interest Expense 98.8m / Debt 1.22b)
Taxrate = 21.0% (US federal default 21%)
NOPAT = 387.8m (EBIT 490.9m * (1 - 21.00%))
Current Ratio = 1.48 (Total Current Assets 1.15b / Total Current Liabilities 777.7m)
Debt / Equity = 0.39 (Debt 1.22b / totalStockholderEquity, last quarter 3.16b)
Debt / EBITDA = 0.99 (Net Debt 638.0m / EBITDA 646.8m)
Debt / FCF = 5.47 (Net Debt 638.0m / FCF TTM 116.7m)
Total Stockholder Equity = 2.78b (last 4 quarters mean from totalStockholderEquity)
RoA = 20.60% (Net Income 1.00b / Total Assets 5.36b)
RoE = 36.16% (Net Income TTM 1.00b / Total Stockholder Equity 2.78b)
RoCE = 12.70% (EBIT 490.9m / Capital Employed (Equity 2.78b + L.T.Debt 1.09b))
RoIC = 8.59% (NOPAT 387.8m / Invested Capital 4.51b)
WACC = 9.46% (E(6.22b)/V(7.44b) * Re(10.07%) + D(1.22b)/V(7.44b) * Rd(8.08%) * (1-Tc(0.21)))
Discount Rate = 10.07% (= CAPM, Blume Beta Adj.)
Shares (quarterly) Correlation: -85.40 | Cagr: -2.88%
[DCF] Terminal Value 74.45% ; FCFF base≈102.6m ; Y1≈117.6m ; Y5≈173.1m
[DCF] Fair Price = 22.23 (EV 2.18b - Net Debt 638.0m = Equity 1.54b / Shares 69.3m; r=9.46% [WACC]; 5y FCF grow 15.0% → 2.50% )
EPS Correlation: 46.00 | EPS CAGR: 62.89% | SUE: -0.04 | # QB: 0
Revenue Correlation: 85.64 | Revenue CAGR: 14.43% | SUE: 2.49 | # QB: 5
EPS current Quarter (2026-06-30): EPS=0.34 | Chg30d=+30.39% | Revisions=+14% | Analysts=4
EPS next Quarter (2026-09-30): EPS=1.31 | Chg30d=-2.31% | Revisions=-14% | Analysts=4
EPS current Year (2026-12-31): EPS=3.50 | Chg30d=+5.22% | Revisions=+14% | GrowthEPS=-75.0% | GrowthRev=-9.0%
EPS next Year (2027-12-31): EPS=7.27 | Chg30d=+4.11% | Revisions=+50% | GrowthEPS=+107.7% | GrowthRev=+14.7%
[Analyst] Revisions Ratio: +50%