Valaris Ltd (VAL)

Business overview

Valaris achieves an operating margin of 20.1% and a free cash flow margin of 8.6%, supporting a Financial Quality pillar score of 65. These operational metrics reflect profitable drilling operations. However, gross margin data is unavailable, introducing some uncertainty into cost structure visibility.

Financial health

The company's Balance Sheet pillar carries a score of 55 out of 100, indicating moderate financial strength. Valaris produces cash with an 8.6% free cash flow margin, though its free cash flow yield stands at 3.3%. Comprehensive balance sheet evaluation is somewhat limited as EV/EBITDA data is unavailable.

Gross Margin

Data unavailable

Operating Margin

20.1%

Current Ratio

1.8x

Debt / Equity

0.34

Free Cash Flow (TTM)

$0.2B

Interest Coverage

Data unavailable

Valuation

Valaris trades at a P/E ratio of 16.9 and a P/S ratio of 1.34, yielding a Valuation pillar score of 71. The stock offers a free cash flow yield of 3.3%, while EV/EBITDA data is unavailable. These metrics reflect a reasonable valuation, though a 3.3% FCF yield offers limited cushion against industry cyclicality.

P/E (TTM)

16.9x

Forward P/E

Data unavailable

Price / Sales

1.3x

EV / EBITDA

Data unavailable

FCF Yield

3.3%

Key risks

• Balance Sheet pillar score of 55 reflects potential financial structure vulnerabilities.
• Muted YoY revenue growth of 0.3% highlights top-line expansion challenges.
• RSI of 67 signals the stock is approaching potential near-term overbought conditions.