A Business at a Glance
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Valaris Ltd
VAL
$5.6B
Mkt Cap
$79.53
+0.48%
Valaris Ltd (VAL) has a current P/E ratio of 5.7, compared to its historical median P/E of 7.0. The stock is currently considered Fair based on its historical valuation range.
Valaris Ltd (VAL) has a 5-year average return on invested capital (ROIC) of 4.6%. This is below average and may indicate limited pricing power.
Valaris Ltd (VAL) has a market capitalization of $5.5B. It is classified as a mid-cap stock.
Valaris Ltd (VAL) does not currently pay a regular dividend. However, the company returns capital to shareholders through share buybacks, with a buyback yield of 1.81%.
Based on historical P/E analysis, Valaris Ltd (VAL) appears fair. The current P/E of 5.7 is 18% below its historical median of 7.0. The estimated fair value CAGR (P/E method) is 37.6%.
Valaris Ltd (VAL) operates in the Drilling Oil & Gas Wells industry, within the Energy sector.
Valaris Ltd (VAL) reported annual revenue of $2.4 billion in its most recent fiscal year, based on SEC EDGAR filings.
Valaris Limited is a leading global offshore contract drilling company operating one of the world's largest fleets of offshore drilling rigs across six continents, including the Gulf of America, South America, the North Sea, the Mediterranean, the Middle East, Africa, and Asia Pacific. The company owns 46 rigs comprising 13 drillships, two semisubmersible rigs, and 31 jackup rigs, plus a 50% equity interest in ARO, a joint venture with Saudi Aramco that owns nine additional rigs. Valaris provides drilling services on a day-rate contract basis, where customers pay a daily rate for the provision of a drilling rig and crew, with customers bearing substantially all costs of well construction and supporting operations as well as the economic risk of well success; the company also receives lump-sum fees for mobilization, demobilization, and capital upgrades. The business operates through four segments: Floaters (drillships and semisubmersibles), Jackups, and other operations, with customers including leading international and government-owned oil and gas companies as well as independent operators. Valaris differentiates itself through its high-specification fleet—particularly its concentration of 12 seventh-generation drillships featuring dual derricks with high hook load capacity, high-capacity thrusters, and dual blowout preventers—which customers prefer for longer-term, multi-well development programs due to the operational efficiencies these technical specifications provide. The company maintains a disciplined fleet management approach, retiring or divesting rigs when their expected economic benefit no longer justifies associated costs, and actively manages costs for rigs between contracts through warm-stacking and other measures.
【Deepwater demand accelerating】 Management expects the long-term fundamentals for offshore drilling to remain constructive, with customers increasingly prioritizing deepwater projects to meet future energy demand, supported by the expectation that most projects under consideration are economically viable well below current commodity prices. The company anticipates meaningful growth in deepwater project sanctioning over the next few years across greenfield, brownfield, and exploration opportunities, with approximately 70% of expected deepwater spending tied to programs with breakeven prices below $50 per barrel. Valaris expects seventh-generation drillships to lead the recovery in utilization, exiting 2026 with utilization levels around 90%, and continues to track more than 30 longer-term floater opportunities with planned start dates in 2026 and 2027. The company remains focused on three strategic priorities: delivering outstanding operational performance, executing its commercial strategy to secure attractive long-term contracts, and prudently managing costs and fleet composition in response to evolving market conditions.
No forward guidance provided.
Generated solely from the company's own reports listed below — not from third-party data. Hallucination risk is low. · Sources: 10-K, Q2 FY2025 Earnings Call, Q1 FY2025 Earnings Call
| Metric | TTM | FY2025 | FY2024 | FY2023 | FY2022 | FY2020 |
|---|---|---|---|---|---|---|
| Revenue | 2.2B | 2.4B | 2.4B | 1.8B | 1.6B | - |
| Net Income | 1.0B | 983M | 373M | 865M | 177M | -4.9B |
| EPS | $14.45 | $13.86 | $5.12 | $11.51 | $2.33 | $-73.26 |
| Free Cash Flow | 121M | 203M | -100M | -429M | -80M | -346M |
| ROIC | 23.5% | 14.3% | 12.8% | 35.3% | 10.2% | -49.5% |
| Gross Margin | - | 31.2% | 25.5% | 13.5% | 13.7% | - |
| Debt/Equity | 0.34 | 0.37 | 0.52 | 0.58 | 0.44 | 1.49 |
| Dividends/Share | $0.00 | - | - | - | - | $0.00 |
| Operating Income | 354M | 477M | 352M | 54M | 37M | -4.3B |
| Operating Margin | 16.0% | 20.1% | 14.9% | 3.0% | 2.3% | - |
| ROE | 31.8% | 36.3% | 17.7% | 52.8% | 14.9% | -71.0% |
| Shares Outstanding | 69M | 71M | 73M | 75M | 76M | 66M |
| Metric | |||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Income Statement | |||||||||||||
| Revenue | 4.3B | 4.6B | 4.1B | 2.8B | 1.8B | 1.7B | 2.1B | N/A | 1.6B | 1.8B | 2.4B | 2.4B | 2.2B |
| Gross Margin | 55.0% | 54.5% | 54.0% | 5.8% | 0.6% | 0.5% | 12.0% | N/A | 13.7% | 13.5% | 25.5% | 31.2% | N/A |
| R&D | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A |
| SG&A | 147M | 132M | 118M | 101M | 158M | 103M | 189M | 215M | 81M | 99M | 116M | 97M | 98M |
| EBIT | 1.7B | -2.4B | -1.2B | 929M | -132M | -236M | -670M | -4.3B | 37M | 54M | 352M | 477M | 354M |
| Op. Margin | 40.1% | -52.6% | -30.6% | 33.5% | -7.2% | -13.8% | -32.6% | N/A | 2.3% | 3.0% | 14.9% | 20.1% | 16.0% |
| Net Income | 1.4B | -3.9B | -1.6B | 890M | -304M | -640M | -198M | -4.9B | 177M | 865M | 373M | 983M | 1.0B |
| Net Margin | 32.8% | -85.5% | -39.2% | 32.1% | -16.5% | -37.5% | -9.6% | N/A | 11.0% | 48.5% | 15.8% | 41.5% | 45.4% |
| Non-Recurring | 0 | 4.2B | 2.7B | 0 | 183M | 40M | 106M | 3.7B | 176M | 29M | -200K | 146M | 146M |
| Returns on Capital | |||||||||||||
| ROIC | 8.8% | -27.7% | -12.9% | 7.5% | -2.3% | -4.8% | -1.4% | -49.5% | 10.2% | 35.3% | 12.8% | 14.3% | 23.5% |
| ROE | 11.1% | -47.5% | -24.5% | 12.1% | -3.6% | -7.6% | -2.3% | -71.0% | 14.9% | 52.8% | 17.7% | 36.3% | 31.8% |
| ROA | 7.3% | -24.3% | -11.7% | 6.4% | -2.1% | -4.5% | -1.3% | -32.6% | 6.5% | 24.1% | 8.5% | 20.2% | 18.7% |
| Cash Flow | |||||||||||||
| Op. Cash Flow | 1.8B | 2.1B | 1.7B | 1.1B | 259M | -56M | -277M | -252M | 127M | 268M | 355M | 546M | 465M |
| Free Cash Flow | 48M | 491M | 78M | 755M | -277M | -482M | -504M | -346M | -80M | -429M | -100M | 203M | 121M |
| Owner Earnings | 1.3B | 1.5B | 1.1B | -1.0B | -2.2B | -565M | -924M | -814M | -48M | -15M | 206M | 375M | -216M |
| CapEx | 1.8B | 1.6B | 1.6B | 322M | 537M | 427M | 227M | 94M | 207M | 696M | 455M | 344M | 344M |
| Maint. CapEx | 496M | 538M | 573M | 2.1B | 2.5B | 479M | 610M | 541M | 157M | 255M | 122M | 146M | 656M |
| Growth CapEx | 1.3B | 1.0B | 1.0B | 0 | 0 | 0 | 0 | 0 | 50M | 441M | 333M | 197M | 0 |
| D&A | 496M | 538M | 573M | 2.1B | 2.5B | 479M | 610M | 541M | 157M | 255M | 122M | 146M | 656M |
| CapEx/OCF | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | 163.0% | 260.2% | 128.1% | 62.9% | 74.0% |
| Capital Allocation | |||||||||||||
| Dividends Paid | 526M | 703M | 141M | 12M | 14M | 18M | 4.5M | 0 | 0 | 0 | 0 | 0 | 0 |
| Dividend Yield | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A |
| Share Buybacks | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 199M | 126M | 100M | 100M |
| Buyback Yield | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | 3.8% | 4.2% | 2.8% | 1.8% |
| Stock-Based Comp | 50M | 45M | 40M | 40M | 34M | 30M | 37M | 21M | 17M | 27M | 28M | 25M | 26M |
| Debt Repayment | 48M | 60M | 1.1B | 864M | 537M | 771M | 928M | 9.7M | 0 | 572M | 0 | 0 | 0 |
| Balance Sheet | |||||||||||||
| Net Debt | 4.6B | 4.5B | 4.6B | 2.7B | 3.9B | 4.4B | 6.0B | 6.2B | -379M | 535M | 799M | 560M | 508M |
| Cash & Equiv. | 166M | 665M | 121M | 1.2B | 445M | 275M | 97M | 326M | 724M | 621M | 368M | 599M | 578M |
| Long-Term Debt | 4.7B | 5.9B | 5.9B | 4.9B | 4.8B | 5.0B | 5.9B | 0 | 542M | 1.1B | 1.1B | 1.1B | 1.1B |
| Debt/Equity | 0.37 | 0.72 | 0.90 | 0.64 | 0.54 | 0.62 | 0.66 | 1.49 | 0.44 | 0.58 | 0.52 | 0.37 | 0.34 |
| Interest Coverage | 10.9 | -14.9 | -5.7 | 4.1 | -0.6 | -0.8 | -1.6 | -14.9 | 0.8 | 1.5 | 4.2 | 4.8 | 236.0 |
| Equity | 12.8B | 8.2B | 6.5B | 8.3B | 8.7B | 8.1B | 9.3B | 4.4B | 1.3B | 2.0B | 2.2B | 3.2B | 3.2B |
| Total Assets | 19.5B | 16.0B | 13.6B | 14.4B | 14.6B | 14.0B | 16.9B | 12.9B | 2.9B | 4.3B | 4.4B | 5.3B | 5.4B |
| Total Liabilities | 6.7B | 7.8B | 7.1B | 6.1B | 5.9B | 5.9B | 7.6B | 8.5B | 1.6B | 2.3B | 2.2B | 2.1B | 2.2B |
| Intangibles | N/A | N/A | N/A | 300K | 16M | 2.5M | 12M | 2.4M | N/A | N/A | N/A | N/A | N/A |
| Retained Earnings | 7.3B | 2.7B | 985M | 1.9B | 1.5B | 874M | 672M | -4.2B | 160M | 1.0B | 1.4B | 2.4B | 2.4B |
| Working Capital | 488M | 1.8B | 1.5B | 2.4B | 854M | 781M | 234M | 746M | 842M | 528M | 399M | 534M | 427M |
| Current Assets | 1.5B | 2.9B | 2.3B | 3.3B | 1.6B | 1.3B | 1.1B | 1.2B | 1.3B | 1.3B | 1.1B | 1.2B | 1.2B |
| Current Liabilities | 1.0B | 1.1B | 776M | 854M | 759M | 529M | 831M | 427M | 504M | 744M | 680M | 692M | 778M |
| Per Share Data | |||||||||||||
| EPS | 6.07 | -16.88 | -6.88 | 18.78 | -21.96 | -35.40 | -3.42 | -73.26 | 2.33 | 11.51 | 5.12 | 13.86 | 14.45 |
| Owner EPS | 5.41 | 6.38 | 4.68 | -21.84 | -161.48 | -31.24 | -15.96 | -12.28 | -0.63 | -0.20 | 2.82 | 5.28 | -3.12 |
| Book Value | 54.75 | 35.53 | 28.10 | 174.06 | 631.40 | 447.77 | 160.82 | 66.00 | 17.03 | 26.44 | 30.69 | 44.70 | 45.62 |
| Cash Flow/Share | 7.75 | 8.90 | 7.32 | 22.73 | 18.76 | -3.08 | -4.78 | -3.80 | 1.68 | 3.56 | 4.87 | 7.70 | 23.95 |
| Dividends/Share | 2.25 | 3.00 | 0.60 | 0.24 | 1.00 | 0.96 | 0.08 | 0.00 | N/A | N/A | N/A | N/A | 0.00 |
| Shares Out. | 233.6M | 231.2M | 231.8M | 47.4M | 13.8M | 18.1M | 57.9M | 66.3M | 75.8M | 75.2M | 72.9M | 70.9M | 69.3M |
| Valuation | |||||||||||||
| P/E Ratio | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | 27.8 | 6.0 | 8.0 | 3.6 | 5.5 |
| P/FCF | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | 17.3 | 45.5 |
| EV/EBIT | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | 107.5 | 94.5 | 9.5 | 7.1 | 17.0 |
| Price/Book | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | 3.8 | 2.6 | 1.3 | 1.1 | 1.7 |
| Price/Sales | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | 2.4 | 2.9 | 2.0 | 1.4 | 2.5 |
| FCF Yield | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | -1.6% | -8.2% | -3.3% | 5.8% | 2.2% |
| Market Cap | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | 4.9B | 5.2B | 3.0B | 3.5B | 5.5B |
| Avg. Price | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | 51.50 | 68.00 | 63.37 | 45.77 | 79.53 |
| Year-End Price | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | 64.74 | 69.38 | 41.04 | 49.51 | 79.53 |
Valaris Ltd passes 4 of 9 quality checks, suggesting mixed fundamentals.
Valaris Ltd trades at 5.7x trailing earnings, compared to its 15-year median P/E of 7.0x, suggesting it is currently Fair relative to its historical range. On a free-cash-flow basis, the stock trades at 27.2x vs a median of 17.3x. The company's 5-year average ROIC is 4.6% with a gross margin of 21.0%. Total shareholder yield (buybacks) is 1.8%. At current prices, the estimated annualized return to fair value is +85.9%.
Valaris Ltd (VAL) has a net profit margin of 41.5%. This is a strong margin indicating high profitability.
Valaris Ltd (VAL) generated $203 million in free cash flow in its most recent fiscal year. Positive free cash flow supports dividends, buybacks, and debt reduction.
Valaris Ltd (VAL) has a debt-to-equity ratio of 0.37. This indicates a conservatively financed balance sheet.
Valaris Ltd (VAL) reported earnings per share (EPS) of $13.86 in its most recent fiscal year.
Valaris Ltd (VAL) has a return on equity (ROE) of 36.3%. This indicates the company generates strong returns for shareholders.
Valaris Ltd (VAL) has a 5-year average gross margin of 21.0%. This lower margin is typical of capital-intensive or commodity businesses.
The Ledger Terminal provides 15 years of financial data for Valaris Ltd (VAL), sourced directly from SEC EDGAR filings. This includes income statements, balance sheets, cash flow statements, and key financial ratios.
Valaris Ltd (VAL) has a book value per share of $44.70, based on its most recent annual SEC filing.
Based on recent SEC filings and earnings disclosures, Management expects the long-term fundamentals for offshore drilling to remain constructive, with customers increasingly prioritizing deepwater projects to meet future energy demand, supported by the expectation that most projects under consideration are economically viable well below current commodity prices. The company anticipates meaningful growth in deepwater project sanctioning over the next few years across greenfield, brownfield, and exploration opportunities, with approximately 70% of expected deepwater spending tied to programs with breakeven prices below $50 per barrel. Valaris expects seventh-generation drillships to lead the recovery in utilization, exiting 2026 with utilization levels around 90%, and continues to track more than 30 longer-term floater opportunities with planned start dates in 2026 and 2027. The company remains focused on three strategic priorities: delivering outstanding operational performance, executing its commercial strategy to secure attractive long-term contracts, and prudently managing costs and fleet composition in response to evolving market conditions.
No recent press releases.