Borr Drilling Limited
Borr Drilling Limited Fundamental Analysis
Borr Drilling Limited (BORR) shows weak financial fundamentals with a PE ratio of 35.18, profit margin of 4.70%, and ROE of 4.41%. The company generates $0.9B in annual revenue with strong year-over-year growth of 30.97%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 41.0/100 based on profitability, valuation, growth, and balance sheet metrics. The D grade reflects weak fundamentals and significant financial concerns.
Fundamental Health Score
We analyze BORR's fundamental strength across five key dimensions:
Efficiency Score
WeakBORR struggles to generate sufficient returns from assets.
Valuation Score
ModerateBORR shows balanced valuation metrics.
Growth Score
ModerateBORR shows steady but slowing expansion.
Financial Health Score
ModerateBORR shows balanced financial health with some risks.
Profitability Score
WeakBORR struggles to sustain strong margins.
Key Financial Metrics
Is BORR Expensive or Cheap?
P/E Ratio
BORR trades at 35.18 times earnings. This suggests a premium valuation.
PEG Ratio
When adjusting for growth, BORR's PEG of -0.96 indicates potential undervaluation.
Price to Book
The market values Borr Drilling Limited at 1.38 times its book value. This may indicate undervaluation.
EV/EBITDA
Enterprise value stands at -0.67 times EBITDA. This is generally considered low.
How Well Does BORR Make Money?
Net Profit Margin
For every $100 in sales, Borr Drilling Limited keeps $4.70 as profit after all expenses.
Operating Margin
Core operations generate 31.56 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $4.41 in profit for every $100 of shareholder equity.
ROA
Borr Drilling Limited generates $1.32 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
Borr Drilling Limited produces operating cash flow of $219.60M, showing steady but balanced cash generation.
Free Cash Flow
Borr Drilling Limited generates strong free cash flow of $110.00M, providing ample flexibility for dividends, buybacks, or growth.
FCF Per Share
Each share generates $0.44 in free cash annually.
FCF Yield
BORR converts 8.72% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
35.18
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
-0.96
vs 25 benchmark
P/B Ratio
Price to book value ratio
1.38
vs 25 benchmark
P/S Ratio
Price to sales ratio
1.43
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
1.76
vs 25 benchmark
Current Ratio
Current assets to current liabilities
2.11
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.04
vs 25 benchmark
ROA
Return on assets percentage
0.01
vs 25 benchmark
ROCE
Return on capital employed
0.10
vs 25 benchmark
How BORR Stacks Against Its Sector Peers
| Metric | BORR Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 35.18 | 21.19 | Worse (Expensive) |
| ROE | 4.41% | 948.00% | Weak |
| Net Margin | 4.70% | -73259.00% (disorted) | Weak |
| Debt/Equity | 1.76 | -0.48 (disorted) | Distorted |
| Current Ratio | 2.11 | 6.31 | Strong Liquidity |
| ROA | 1.32% | -10913945.00% (disorted) | Weak |
BORR outperforms its industry in 1 out of 6 key metrics, but lagging in P/E Ratio.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews Borr Drilling Limited's 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
-35.21%
Industry Style: Cyclical, Value, Commodity
DecliningEPS CAGR
105.91%
Industry Style: Cyclical, Value, Commodity
High GrowthFCF CAGR
118.60%
Industry Style: Cyclical, Value, Commodity
High Growth