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Upturn AI SWOT - About
Valaris Ltd (VAL)
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Upturn Advisory Summary
03/27/2025: VAL (1-star) is currently NOT-A-BUY. Pass it for now.
Upturn Star Rating
Not Recommended Performance
These Stocks/ETFs, based on Upturn Advisory, consistently fall short of market performance, signaling caution before investing.
AI Based Fundamental Rating
Below Average Performance
These Stocks/ETFs, based on Upturn Advisory, often underperform the market, warranting careful consideration before investing.
Analysis of Past Performance
Type Stock | Historic Profit -17.93% | Avg. Invested days 35 | Today’s Advisory PASS |
Upturn Star Rating | Upturn Advisory Performance  2.0 | Stock Returns Performance  1.0 |
| Profits based on simulation | Last Close 03/27/2025 |
Key Highlights
Company Size Mid-Cap Stock | Market Capitalization 2.89B USD | Price to earnings Ratio 7.94 | 1Y Target Price 51.91 |
Price to earnings Ratio 7.94 | 1Y Target Price 51.91 | ||
Volume (30-day avg) 2251041 | Beta 1.17 | 52 Weeks Range 31.15 - 84.20 | Updated Date 04/2/2025 |
52 Weeks Range 31.15 - 84.20 | Updated Date 04/2/2025 | ||
Dividends yield (FY) - | Basic EPS (TTM) 5.12 |
Analyzing Revenue: Products, Geography and Growth
Revenue by Products
Product revenue - Year on Year
Revenue by Geography
Geography revenue - Year on Year
Earnings Date
Report Date - | When - | Estimate - | Actual - |
Profitability
Profit Margin 15.81% | Operating Margin (TTM) 18.63% |
Management Effectiveness
Return on Assets (TTM) 5.23% | Return on Equity (TTM) 17.44% |
Valuation
Trailing PE 7.94 | Forward PE 5.43 | Enterprise Value 3686152631 | Price to Sales(TTM) 1.22 |
Enterprise Value 3686152631 | Price to Sales(TTM) 1.22 | ||
Enterprise Value to Revenue 1.56 | Enterprise Value to EBITDA 6.39 | Shares Outstanding 71032304 | Shares Floating 58257140 |
Shares Outstanding 71032304 | Shares Floating 58257140 | ||
Percent Insiders 11.24 | Percent Institutions 96.75 |
Analyst Ratings
Rating 3.83 | Target Price 62.18 | Buy 1 | Strong Buy 5 |
Buy 1 | Strong Buy 5 | ||
Hold 5 | Sell 1 | Strong Sell - | |
Strong Sell - |
Upturn AI SWOT
Valaris Ltd
Company Overview
History and Background
Valaris Ltd. was formed through the merger of Ensco and Rowan Companies in 2019. Ensco had a long history in offshore drilling, dating back to the 1970s. Rowan also had a significant history, specializing in harsh environment and ultra-deepwater drilling. Valaris filed for bankruptcy in 2020 and emerged in 2021.
Core Business Areas
- Offshore Drilling Services: Valaris provides offshore contract drilling services to the oil and gas industry, specializing in deepwater and harsh environment drilling.
Leadership and Structure
The company has a Board of Directors and a management team led by the CEO. Organizational structure is typical of offshore drilling companies, with divisions focusing on operations, engineering, and commercial activities.
Top Products and Market Share
Key Offerings
- Drillships: Valaris operates a fleet of drillships for ultra-deepwater drilling. Market share varies but can be estimated around 10-15% of the global drillship market. Competitors include Transocean, Noble Corporation, and Seadrill.
- Semi-Submersibles: Valaris provides semi-submersible rigs for harsh environment and deepwater drilling. Market share can be estimated around 10-15% of the global semi-submersible market. Competitors include Transocean, Noble Corporation, and Seadrill.
- Jackups: Valaris offers jackup rigs for shallow water drilling. Market share varies depending on the region, but estimate can be between 5-10% of the global jackup market. Competitors include Borr Drilling, Shelf Drilling, and ADNOC Drilling.
Market Dynamics
Industry Overview
The offshore drilling industry is highly cyclical, heavily influenced by oil prices and exploration and production (E&P) spending. Demand for offshore drilling has been volatile in recent years.
Positioning
Valaris is positioned as a major player in the offshore drilling market, particularly in deepwater and harsh environment drilling. They leverage their fleet size and technical expertise.
Total Addressable Market (TAM)
The TAM for the offshore drilling market is estimated to be $50-70 billion annually. Valaris captures a portion through their operations in key regions.
Upturn SWOT Analysis
Strengths
- Modern fleet of rigs
- Global presence
- Technical expertise in deepwater and harsh environments
- Strong backlog of contracts
Weaknesses
- High debt levels (though reduced post-bankruptcy)
- Sensitivity to oil price volatility
- Dependence on E&P spending
- Competitive industry
Opportunities
- Increased demand for offshore drilling due to rising oil prices
- Technological advancements in drilling techniques
- Expansion into new geographic markets
- Consolidation in the offshore drilling industry
Threats
- Declining oil prices
- Geopolitical instability
- Environmental regulations
- Competition from alternative energy sources
Competitors and Market Share
Key Competitors
- RIG
- NE
- SDRL
Competitive Landscape
Valaris has a competitive advantage due to its modern fleet and global presence. However, they face competition from other major players with similar capabilities.
Major Acquisitions
Growth Trajectory and Initiatives
Historical Growth: Historical growth was affected by the bankruptcy. Current growth is focused on rebuilding the backlog and improving operational efficiency.
Future Projections: Analyst projections vary depending on oil price forecasts and industry conditions. Expect moderate growth as the offshore drilling market recovers.
Recent Initiatives: Recent strategic initiatives undertaken by Valaris Ltd. include debt restructuring, cost reduction measures, and fleet optimization.
Summary
Valaris is a major player in the offshore drilling market, but its financial performance remains sensitive to oil price volatility and E&P spending. The company has undergone restructuring to reduce debt and improve operational efficiency. A key risk is industry cyclically. Future growth relies on continued recovery in the offshore drilling market and successful execution of its strategic initiatives. Valaris is facing very stiff competition from other major players.
Similar Companies
- RIG
- NE
- SDRL
Sources and Disclaimers
Data Sources:
- Company Filings
- Industry Reports
- Analyst Estimates
Disclaimers:
This analysis is based on publicly available information and is not financial advice. Market conditions and company performance are subject to change.
AI Summarization is directionally correct and might not be accurate.
Summarized information shown could be a few years old and not current.
Fundamental Rating based on AI could be based on old data.
AI-generated summaries may have inaccuracies (hallucinations). Please verify the information before taking action.
About Valaris Ltd
Exchange NYSE | Headquaters - | ||
IPO Launch date 1992-03-17 | President, CEO & Director Mr. Anton Dibowitz CPA | ||
Sector Energy | Industry Oil & Gas Equipment & Services | Full time employees 4130 | Website https://www.valaris.com |
Full time employees 4130 | Website https://www.valaris.com | ||
Valaris Limited, together with its subsidiaries, provides offshore contract drilling services in Brazil, the United Kingdom, U.S. Gulf of Mexico, Australia, Angola, and internationally. It operates in four segments: Floaters, Jackups, ARO, and Other. The company owns an offshore drilling rig fleet, which includes drillships, dynamically positioned semisubmersible rigs, a moored semisubmersible rig, and jackup rigs. It also offers management services on rigs owned by third parties. The company serves international, government-owned, and independent oil and gas. Valaris Limited was founded in 1975 and is based in Hamilton, Bermuda.
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