Valaris Limited Warrants
Valaris Limited Warrants Fundamental Analysis
Valaris Limited Warrants (VAL-WT) shows strong financial fundamentals with a PE ratio of 6.68, profit margin of 41.49%, and ROE of 38.71%. The company generates $33.0B in annual revenue with strong year-over-year growth of 32.42%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 84.8/100 based on profitability, valuation, growth, and balance sheet metrics. The B+ grade reflects solid fundamentals with room for improvement in valuation or growth.
Fundamental Health Score
We analyze VAL-WT's fundamental strength across five key dimensions:
Efficiency Score
ExcellentVAL-WT demonstrates superior asset utilization.
Valuation Score
ExcellentVAL-WT trades at attractive valuation levels.
Growth Score
ModerateVAL-WT shows steady but slowing expansion.
Financial Health Score
ExcellentVAL-WT maintains a strong and stable balance sheet.
Profitability Score
ExcellentVAL-WT achieves industry-leading margins.
Key Financial Metrics
Is VAL-WT Expensive or Cheap?
P/E Ratio
VAL-WT trades at 6.68 times earnings. This suggests potential undervaluation.
PEG Ratio
When adjusting for growth, VAL-WT's PEG of 0.04 indicates potential undervaluation.
Price to Book
The market values Valaris Limited Warrants at 2.07 times its book value. This may indicate undervaluation.
EV/EBITDA
Enterprise value stands at 8.71 times EBITDA. This is generally considered low.
How Well Does VAL-WT Make Money?
Net Profit Margin
For every $100 in sales, Valaris Limited Warrants keeps $41.49 as profit after all expenses.
Operating Margin
Core operations generate 19.95 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $38.71 in profit for every $100 of shareholder equity.
ROA
Valaris Limited Warrants generates $18.53 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
Valaris Limited Warrants produces operating cash flow of $7.61B, showing steady but balanced cash generation.
Free Cash Flow
Valaris Limited Warrants produces free cash flow of $2.82B, offering steady but limited capital for shareholder returns and expansion.
FCF Per Share
Each share generates $2.92 in free cash annually.
FCF Yield
VAL-WT converts 3.05% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
6.68
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
0.04
vs 25 benchmark
P/B Ratio
Price to book value ratio
2.07
vs 25 benchmark
P/S Ratio
Price to sales ratio
2.78
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
0.34
vs 25 benchmark
Current Ratio
Current assets to current liabilities
1.77
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.39
vs 25 benchmark
ROA
Return on assets percentage
0.19
vs 25 benchmark
ROCE
Return on capital employed
0.10
vs 25 benchmark
How VAL-WT Stacks Against Its Sector Peers
| Metric | VAL-WT Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 6.68 | 20.19 | Better (Cheaper) |
| ROE | 38.71% | 1019.00% | Weak |
| Net Margin | 41.49% | -44017.00% (disorted) | Strong |
| Debt/Equity | 0.34 | -0.65 (disorted) | Distorted |
| Current Ratio | 1.77 | 4.60 | Neutral |
| ROA | 18.53% | -11655350.00% (disorted) | Strong |
VAL-WT outperforms its industry in 3 out of 6 key metrics, particularly excelling in Net Margin, but lagging in ROE.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews Valaris Limited Warrants's 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
176.74%
Industry Style: Cyclical, Value, Commodity
High GrowthEPS CAGR
567.23%
Industry Style: Cyclical, Value, Commodity
High GrowthFCF CAGR
408.68%
Industry Style: Cyclical, Value, Commodity
High Growth