Valaris Ltd (VAL) stock analysis

P/E below its 5-year median

Valaris's P/E of 6.0 is below its own 5-year median of 7.5.

P/E below the industry

Valaris's P/E of 6.0 is below the Oil and Gas Field Services median of 18.9.

EV/EBITDA above its 5-year median

Valaris's EV/EBITDA of 25.5 is above its 5-year median of 24.3.

P/B above the industry

Valaris's price-to-book of 1.74 is above the Oil and Gas Field Services median of 1.29.

Trading below fair value

The share price of $80.69 is below our fair value estimate of $115.83.

Margin of safety over 20%

The price is 30.3% below fair value, more than the 20% cushion we look for.

Revenue growing 10%+ a year

Revenue grew 13.9% a year over the last three fiscal years.

EPS growing 10%+ a year

Diluted EPS grew 81.2% a year over the last three fiscal years.

Earnings acceleration

Needs positive net income now, a year ago and five years ago.

Growing slower than the industry

Revenue grew -13.2% over the last twelve months; the Oil and Gas Field Services median is 4.6%.

Guidance issued

The latest outlook (FY 2026 Total operating revenues, Feb 19, 2026) was issued for the first time, so it neither adds nor takes away points.

Gross margin slipping

Gross margin was 24.8% over the last twelve months, against 31.5% a year earlier.

Return on equity over 15%

Return on equity was 33.9% over the last twelve months and averaged 30.4% over five years.

Return on capital under 10%

Return on invested capital was 7.2%, below the 10% that usually covers the cost of capital.

Return on equity above the industry

Valaris's return on equity of 33.9% is above the Oil and Gas Field Services median of 1.2%.

Earnings over 5 years

Needs positive net income five years ago and in the latest year.

Net margin above its 5-year average

Net margin was 44.0% over the last twelve months, against a 5-year average of 29.2%.

Net margin above the industry

Valaris's net margin of 44.0% is above the Oil and Gas Field Services median of 0.9%.

Low debt

Debt is 33.8% of shareholders' equity, under the 40% we consider low.

Debt rising against equity

Debt to equity rose from 0.0% five years ago to 33.8%.

Debt covered by cash flow

Operating cash flow over the last twelve months equals 33.0% of total debt.

Interest coverage

Interest expense is not reported separately.

Short-term assets cover short-term debts

Current assets are 1.55 times current liabilities.

Bankruptcy risk in the grey zone

The Altman Z-score is 2.76; above 3 is the safe zone and below 1.8 the distress zone.

No dividend

Valaris has not paid a dividend in the last twelve months.

Yield against Treasuries

No dividend.

Yield against the market

No dividend.

Dividend stability

No dividend.

Earnings cover

No dividend.

Cash-flow cover

No dividend.