Valaris (VAL) AI Stock Analysis

• Market Cap: $3.31B
• Dividend Yield: N/A
• Average Volume (3M): 1.57M
• Price to Earnings (P/E): 10.9
• Beta (1Y): 1.16
• Revenue Growth: 30.82%
• EPS Growth: -62.91%
• Country: US
• Employees: 4,130
• Sector: Energy
• Sector Strength: 72
• Industry: Oil & Gas Equipment & Services
• EPS (TTM): -0.53
• Shares Outstanding: 71,069,040
• 10 Day Avg. Volume: 1,695,083
• 30 Day Avg. Volume: 1,574,092
• PEG Ratio: -0.15
• Price to Book (P/B): 1.42
• Price to Sales (P/S): 0.00
• P/FCF Ratio: -31.99
• Enterprise Value/Market Cap: 3.07
• Enterprise Value/Revenue: 1.11
• Enterprise Value/Gross Profit: 16.92
• Enterprise Value/Ebitda: 4.79
• 1Y Price Target: $42.00
• Price Target Upside: -9.70% Downside
• Rating Consensus: Hold
• Number of Analyst Covering: 5

• Rating: 76 Outperform
• Price Target: $53.00 ▲(13.95%Upside)

Valaris' overall score reflects its strong financial performance and positive earnings call sentiment, which are the most significant factors. Technical analysis and valuation provide a stable foundation, but potential market challenges and overbought signals warrant vigilance.

Valaris Business Overview & Revenue Model

Company Description

Valaris Limited (VAL) is a leading offshore drilling service provider in the energy sector, primarily catering to the oil and natural gas industry. The company operates a versatile and technologically advanced fleet of mobile offshore drilling units, including drillships, semi-submersible rigs, and jackup rigs. Valaris serves a global client base, offering a range of drilling solutions designed to meet the challenging demands of offshore exploration and production activities.

How the Company Makes Money

Valaris generates revenue primarily through the leasing of its offshore drilling rigs to oil and gas companies. These contracts can vary in duration and terms, often depending on the complexity of the drilling operation and the specific needs of the client. The company also earns money by providing integrated services that support drilling operations, including drilling management and engineering services. Valaris's earnings are influenced by factors such as global energy demand, oil and gas prices, and technological advancements in drilling practices. Strategic partnerships with major energy corporations and long-term contracts provide stability and predictability to its revenue streams.

Valaris Financial Statement Overview

Summary

Valaris has demonstrated a strong financial recovery with significant improvements in margins, revenue growth, and profitability. The company has a positive net profit margin, robust EBIT and EBITDA margins, and stable financial leverage, indicating a strong financial turnaround.

Income Statement

Valaris has shown a strong recovery with a significant improvement in its margins and revenue growth trajectory over the recent periods. The Gross Profit Margin has notably increased to 42.58% TTM, and the Net Profit Margin has turned positive at 12.61% TTM from a negative base in the past. Revenue growth is also robust at 5.48% TTM, indicating solid market demand. The EBIT and EBITDA margins have improved to 18.97% and 25.91% TTM respectively, reflecting better operational efficiencies. Overall, the income statement reflects a strong financial turnaround and growing profitability.

Balance Sheet

The balance sheet of Valaris shows a stable financial position with a manageable Debt-to-Equity Ratio of 0.49 TTM, indicating moderate leverage. The Return on Equity has improved significantly to 14.01% TTM, showcasing efficient use of equity capital. The Equity Ratio stands at 50.42% TTM, reflecting a solid equity base relative to total assets. Although the debt level has increased, the company has maintained equity growth, supporting financial stability.

Cash Flow

Valaris has demonstrated improvement in its cash flow management, with a positive Free Cash Flow of $81.54 million TTM, which is a notable turnaround from previous deficits. The Operating Cash Flow to Net Income Ratio is 1.56 TTM, indicating strong cash generation relative to net income. However, the Free Cash Flow Growth Rate is not applicable due to previous negative values, but the positive shift is a favorable sign of improving cash flow health.

Breakdown
TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement		Total Revenue
4.06B	2.36B	1.78B	1.60B	1.23B	1.43B
	Gross Profit
2.19B	479.60M	139.50M	128.10M	-66.00M	-584.00M
	EBIT
1.50B	352.30M	53.50M	307.10M	-902.00M	-4.33B
	EBITDA
-1.74B	577.10M	254.20M	361.40M	-4.18B	-4.26B
	Net Income Common Stockholders
-1.47B	373.40M	865.40M	176.50M	-4.49B	-4.86B
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
97.20M	368.20M	620.50M	724.10M	608.70M	325.80M
	Total Assets
16.93B	4.42B	4.32B	2.86B	2.61B	12.87B
	Total Debt
6.10B	1.17B	1.16B	551.80M	545.30M	15.70M
	Net Debt
6.00B	799.40M	534.90M	-172.30M	-63.40M	-310.10M
	Total Liabilities
7.62B	2.18B	2.33B	1.56B	1.55B	8.50B
	Stockholders Equity
9.31B	2.24B	1.99B	1.30B	1.06B	4.37B
Cash Flow		Free Cash Flow
67.50M	-99.70M	-428.60M	-79.50M	-124.90M	-345.50M
	Operating Cash Flow
1.69B	355.40M	267.50M	127.50M	-66.00M	-251.70M
	Investing Cash Flow
-2.04B	-452.30M	-665.80M	-16.70M	-3.70M	-42.00M
	Financing Cash Flow
-191.80M	-158.30M	285.50M	-6.40M	388.70M	522.20M

Valaris Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 46.51
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Negative
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For VAL, the sentiment is Positive. The current price of 46.51 is above the 20-day moving average (MA) of 40.07, above the 50-day MA of 36.27, and above the 200-day MA of 44.52, indicating a bullish trend. The MACD of 2.38 indicates Negative momentum. The RSI at 74.44 is Negative, neither overbought nor oversold. The STOCH value of 95.73 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for VAL.

Valaris Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
TDW	77 Outperform	$2.39B	14.44	16.24%	―	19.34%	31.76%
VAL	76 Outperform	$3.31B	10.93	14.66%	―	30.82%	-62.91%
SDRL	76 Outperform	$1.81B	5.46	12.75%	―	-15.60%	32.51%
HP	69 Neutral	$1.82B	8.34	7.57%	5.47%	12.23%	-37.06%
RIG	65 Neutral	$2.93B	―	-6.65%	―	24.47%	-55.45%
Sector *	58 Neutral	$7.56B	3.50	-4.45%	10.15%	0.79%	-49.51%
PTEN	53 Neutral	$2.52B	―	-24.93%	4.90%	5.82%	-481.39%

Valaris Corporate Events

Valaris Holds 2025 Annual Shareholder Meeting in Bermuda

Valaris Limited held its 2025 Annual General Meeting of Shareholders in Bermuda on June 12, 2025, with 82.41% of shares present and voting. Key decisions included the election of directors, approval of executive compensation, and the appointment of KPMG LLP as the independent registered public accounting firm, reflecting strong shareholder engagement and support for the company’s governance and financial oversight strategies.

The most recent analyst rating on (VAL) stock is a Sell with a $40.00 price target. To see the full list of analyst forecasts on Valaris stock, see the VAL Stock Forecast page.

Valaris Increases Contract Backlog to $4.2 Billion

Valaris Limited, a company in the offshore drilling industry, reported an increase in its contract backlog to approximately $4.2 billion as of April 30, 2025, up from $3.6 billion in February 2025. The company secured new contracts and extensions, including a two-year contract for drillship VALARIS DS-10 offshore West Africa and a five-year extension for jackups leased to ARO Drilling in Saudi Arabia. Additionally, Valaris sold three semisubmersibles for recycling, generating $10 million in sales proceeds.