Recent News
Aug 28, 2025 — Valaris announced CEO Anton Dibowitz will present at the Barclays 39th Annual Energy‑Power Conference on Sept 2, 2025, with investor materials and a webcast available. Sep 4, 2025 — A regulatory filing showed Eschler Asset Management expanded its stake in Valaris. Sep 17, 2025 — Analysts updated expectations ahead of the next quarter, with at least one firm trimming Q3 EPS estimates while maintaining a hold stance.
Technical Analysis
Directional indicators show bullish momentum. DI+ equals 28.09 and displays an increasing trend, while DI‑ sits at 15.31 and trends downward; that combination signals a bullish directional bias supportive of near-term upside relative to the current valuation and introduction outlook.
ADX registers 25.13, indicating a trend with measurable strength; that level validates momentum readings without implying extreme overextension, reinforcing the constructive short-term price bias tied to the earnings-driven fundamental setup.
MACD stands at 1.56 with the MACD line rising above the signal line (signal = 0.87) and the MACD trend increasing; the cross and rising MACD represent bullish momentum that complements the directional indicator alignment and supports further near-term advance toward resistance levels.
MRO reads 10.8 and moves higher; because MRO sits positive, price currently trades above the WMDST target framework and faces a greater probability of mean reversion, implying limited immediate upside before a consolidation phase that would interact with valuation pressures.
RSI at 56.27 and increasing suggests moderate buying pressure rather than an overbought state; the oscillator supports the continuation of the current rally while leaving room for further gains before technical exhaustion.
Price trades above the 12‑day EMA ($54.36), 20‑day average ($52.71), 50‑day average ($51.19) and 200‑day average ($44.02), with the 12‑day EMA trending upward; that alignment places the price in a bullish configuration, reinforcing the introductory constructive bias while increasing sensitivity to short-term pullbacks toward the 50‑day average or the SuperTrend lower band at $51.90.
Bollinger bands show the close ($56.12) near the upper 1x standard deviation band ($57.32) but below the 2x band ($61.92); proximity to the upper band aligns with the MRO signal that favors a consolidation window rather than an immediate, sustained breakout above the 52‑week high ($58.39).
Fundamental Analysis
Profitability and cash flow provide the core fundamental support for the valuation stance. EBIT equals $170,500,000, EBITDA equals $206,000,000, and EBIT margin measures 27.72%, up 17.92% year‑over‑year but down 3.68% quarter‑over‑quarter. The EBIT margin sits above the industry peer mean of -14.42% and above the industry peer median of -2.449%, reflecting materially stronger operating profitability compared with typical peers while remaining below the industry peer high of 35.338%.
Reported EPS came in at $2.65 against an estimate of $0.91, producing an EPS surprise of approximately 191.21%; that large beat supports the current multiple expansion and explains part of the momentum cited earlier, while cash flow metrics provide corroboration—operating cash flow equals $120,000,000 and free cash flow equals $52,800,000, yielding a free cash flow yield of 1.62%, slightly above the industry peer mean of 1.54%.
Balance sheet and leverage metrics show mixed dynamics. Total debt equals $1,169,800,000 with net debt of $580,900,000; debt to EBITDA registers 5.68x, indicating elevated leverage relative to typical investment‑grade thresholds, while interest coverage at 6.88x supports the company’s ability to service interest expense. Debt to assets sits at 25.98%, marginally below the industry peer mean of 28.33%.
Revenue and growth: total revenue equals $615,200,000 while reported revenue growth reads -0.89% year‑over‑year. QoQ revenue change shows larger negative movement at -114.27% (quarteral figure as provided), and earnings growth metrics present sequential volatility (earnings growth QoQ at -152.79%, earnings growth YoY at -184.12%), highlighting episodic swings in profitability despite the current positive EBIT margin and cash generation.
Market multiples show mixed signals for valuation: trailing P/E equals 27.39 and forward P/E equals 30.46; price‑to‑book stands at 1.40, above the industry peer mean of 0.664 and above the industry peer median of 0.6395. WMDST values the stock as over‑valued based on the combination of elevated leverage relative to free cash conversions, current multiples, and the probability of short‑term mean reversion indicated by MRO and Bollinger proximity.
MOST-RECENT QUARTERLY REPORT
| REPORT PERIOD ENDING: | 2025-06-30 |
| REPORT DATE: | 2025-10-29 |
| NEXT REPORT DATE: | 2026-01-28 |
| CASH FLOW | Begin Period Cash Flow | $ 453.7 M |
| Operating Cash Flow | $ 120.0 M | |
| Capital Expenditures | $ -67.20 M | |
| Change In Working Capital | $ -21.00 M | |
| Dividends Paid | — | |
| Cash Flow Delta | $ 62.5 M | |
| End Period Cash Flow | $ 516.2 M | |
| INCOME STATEMENT | REVENUE | |
| Total Revenue | $ 615.2 M | |
| Forward Revenue | $ 125.1 M | |
| COSTS | ||
| Cost Of Revenue | $ 431.2 M | |
| Depreciation | $ 35.5 M | |
| Depreciation and Amortization | $ 35.5 M | |
| Research and Development | — | |
| Total Operating Expenses | $ 450.0 M | |
| PROFITABILITY | ||
| Gross Profit | $ 184.0 M | |
| EBITDA | $ 206.0 M | |
| EBIT | $ 170.5 M | |
| Operating Income | $ 165.2 M | |
| Interest Income | $ 15.1 M | |
| Interest Expense | $ 24.8 M | |
| Net Interest Income | $ -9.70 M | |
| Income Before Tax | $ 145.7 M | |
| Tax Provision | $ 31.5 M | |
| Tax Rate | 15.2 % | |
| Net Income | $ 115.1 M | |
| Net Income From Continuing Operations | $ 114.2 M | |
| EARNINGS | ||
| EPS Estimate | $ 0.91 | |
| EPS Actual | $ 2.65 | |
| EPS Difference | $ 1.74 | |
| EPS Surprise | 191.209 % | |
| Forward EPS | $ 1.32 | |
| BALANCE SHEET | ASSETS | |
| Total Assets | $ 4.5 B | |
| Intangible Assets | — | |
| Net Tangible Assets | $ 2.3 B | |
| Total Current Assets | $ 1.2 B | |
| Cash and Short-Term Investments | $ 503.4 M | |
| Cash | $ 503.4 M | |
| Net Receivables | $ 489.2 M | |
| Inventory | — | |
| Long-Term Investments | $ 155.4 M | |
| LIABILITIES | ||
| Accounts Payable | $ 332.3 M | |
| Short-Term Debt | — | |
| Total Current Liabilities | $ 678.7 M | |
| Net Debt | $ 580.9 M | |
| Total Debt | $ 1.2 B | |
| Total Liabilities | $ 2.2 B | |
| EQUITY | ||
| Total Equity | $ 2.3 B | |
| Retained Earnings | $ 1.5 B | |
| VALUATION & PER-SHARE METRICS | EQUITY & PER-SHARE METRICS | |
| Book Value Per-Share | $ 32.77 | |
| Shares Outstanding | 71.069 M | |
| Revenue Per-Share | $ 8.65 | |
| VALUATION | Market Capitalization | $ 3.3 B |
| Enterprise Value | $ 3.9 B | |
| Enterprise Multiple | 19.075 | |
| Enterprise Multiple QoQ | 19.361 % | |
| Enterprise Multiple YoY | -34.333 % | |
| Enterprise Multiple IPRWA | high: 49.772 median: 20.816 mean: 19.158 VAL: 19.075 low: -10.907 |
|
| EV/R | 6.387 | |
| CAPITAL STRUCTURE | ||
| Asset To Equity | 1.933 | |
| Asset To Liability | 2.075 | |
| Debt To Capital | 0.334 | |
| Debt To Assets | 0.26 | |
| Debt To Assets QoQ | -1.992 % | |
| Debt To Assets YoY | 3812.199 % | |
| Debt To Assets IPRWA | high: 0.612 mean: 0.283 VAL: 0.26 median: 0.258 low: 0.152 |
|
| Debt To Equity | 0.502 | |
| Debt To Equity QoQ | -4.689 % | |
| Debt To Equity YoY | 3630.461 % | |
| Debt To Equity IPRWA | high: 2.026 mean: 0.559 VAL: 0.502 median: 0.427 low: 0.216 |
|
| PRICE-BASED VALUATION | ||
| Price To Book (P/B) | 1.401 | |
| Price To Book QoQ | 16.129 % | |
| Price To Book YoY | -43.51 % | |
| Price To Book IPRWA | VAL: 1.401 high: 0.933 mean: 0.664 median: 0.639 low: 0.28 |
|
| Price To Earnings (P/E) | 27.387 | |
| Price To Earnings QoQ | 41.184 % | |
| Price To Earnings YoY | -25.423 % | |
| Price To Earnings IPRWA | high: 206.048 median: 140.921 mean: 112.773 VAL: 27.387 low: -47.965 |
|
| PE/G Ratio | -0.068 | |
| Price To Sales (P/S) | 5.304 | |
| Price To Sales QoQ | 23.681 % | |
| Price To Sales YoY | -40.044 % | |
| Price To Sales IPRWA | VAL: 5.304 high: 5.086 mean: 3.437 median: 2.649 low: 1.698 |
|
| FORWARD MULTIPLES | ||
| Forward P/E | 30.464 | |
| Forward PE/G | -0.075 | |
| Forward P/S | 26.069 | |
| EFFICIENCY | OPERATIONAL | |
| Operating Leverage | 5.118 | |
| ASSET & SALES | ||
| Asset Turnover Ratio | 0.138 | |
| Asset Turnover Ratio QoQ | -1.816 % | |
| Asset Turnover Ratio YoY | -0.525 % | |
| Asset Turnover Ratio IPRWA | high: 0.215 VAL: 0.138 mean: 0.118 median: 0.109 low: 0.054 |
|
| Receivables Turnover | 1.239 | |
| Receivables Turnover Ratio QoQ | 0.431 % | |
| Receivables Turnover Ratio YoY | -0.799 % | |
| Receivables Turnover Ratio IPRWA | high: 2.251 median: 1.552 mean: 1.526 VAL: 1.239 low: 1.118 |
|
| Inventory Turnover | — | |
| Inventory Turnover Ratio QoQ | — | |
| Inventory Turnover Ratio YoY | — | |
| Inventory Turnover Ratio IPRWA | — | |
| Days Sales Outstanding (DSO) | 73.644 | |
| CASH CYCLE | ||
| Cash Conversion Cycle Days (CCC) | — | |
| Cash Conversion Cycle Days QoQ | — | |
| Cash Conversion Cycle Days YoY | — | |
| Cash Conversion Cycle Days IPRWA | — | |
| CAPITAL DEPLOYMENT | ||
| Cash Conversion Ratio | 1.121 | |
| CapEx To Revenue | -0.109 | |
| CapEx To Depreciation | -1.893 | |
| CAPITAL, LIQUIDITY & COVERAGE | CAPITAL STRUCTURE | |
| Total Capital | $ 3.4 B | |
| Net Invested Capital | $ 3.4 B | |
| Invested Capital | $ 3.4 B | |
| Net Tangible Assets | $ 2.3 B | |
| Net Working Capital | $ 548.7 M | |
| LIQUIDITY | ||
| Cash Ratio | 0.742 | |
| Current Ratio | 1.808 | |
| Current Ratio QoQ | 8.495 % | |
| Current Ratio YoY | 4.497 % | |
| Current Ratio IPRWA | high: 1.866 VAL: 1.808 median: 1.8 mean: 1.676 low: 1.264 |
|
| Quick Ratio | — | |
| Quick Ratio QoQ | — | |
| Quick Ratio YoY | — | |
| Quick Ratio IPRWA | — | |
| COVERAGE & LEVERAGE | ||
| Debt To EBITDA | 5.679 | |
| Cost Of Debt | 1.667 % | |
| Interest Coverage Ratio | 6.875 | |
| Interest Coverage Ratio QoQ | -6.46 % | |
| Interest Coverage Ratio YoY | 8.351 % | |
| Interest Coverage Ratio IPRWA | VAL: 6.875 high: 3.499 mean: -1.26 median: -1.692 low: -8.759 |
|
| Operating Cash Flow Ratio | 0.248 | |
| TIMING / LIQUIDITY | ||
| Days Payables Outstanding (DPO) | 67.363 | |
| DIVIDENDS | ||
| Dividend Coverage Ratio | — | |
| Dividend Payout Ratio | — | |
| Dividend Rate | — | |
| Dividend Yield | — | |
| PERFORMANCE | GROWTH | |
| Asset Growth Rate | 2.656 % | |
| Revenue Growth | -0.886 % | |
| Revenue Growth QoQ | -114.265 % | |
| Revenue Growth YoY | -105.466 % | |
| Revenue Growth IPRWA | high: 23.592 % mean: 2.982 % median: 2.449 % VAL: -0.886 % low: -4.781 % |
|
| Earnings Growth | -403.774 % | |
| Earnings Growth QoQ | -15279.474 % | |
| Earnings Growth YoY | -184.12 % | |
| Earnings Growth IPRWA | high: -50.0 % mean: -98.974 % median: -113.043 % low: -300.0 % VAL: -403.774 % |
|
| MARGINS | ||
| Gross Margin | 29.909 % | |
| Gross Margin QoQ | 7.559 % | |
| Gross Margin YoY | 28.774 % | |
| Gross Margin IPRWA | high: 86.291 % VAL: 29.909 % mean: 29.778 % median: 20.124 % low: 2.304 % |
|
| EBIT Margin | 27.715 % | |
| EBIT Margin QoQ | -3.68 % | |
| EBIT Margin YoY | 17.916 % | |
| EBIT Margin IPRWA | high: 35.338 % VAL: 27.715 % median: -2.449 % mean: -14.421 % low: -99.291 % |
|
| Return On Sales (ROS) | 26.853 % | |
| Return On Sales QoQ | -6.676 % | |
| Return On Sales YoY | 14.249 % | |
| Return On Sales IPRWA | high: 36.048 % VAL: 26.853 % median: 16.002 % mean: 10.43 % low: -2.378 % |
|
| CASH FLOW | ||
| Free Cash Flow (FCF) | $ 52.8 M | |
| Free Cash Flow Yield | 1.618 % | |
| Free Cash Flow Yield QoQ | -22.695 % | |
| Free Cash Flow Yield YoY | -188.464 % | |
| Free Cash Flow Yield IPRWA | high: 3.973 % median: 2.312 % VAL: 1.618 % mean: 1.54 % low: -1.313 % |
|
| Free Cash Growth | -5.206 % | |
| Free Cash Growth QoQ | -101.569 % | |
| Free Cash Growth YoY | -75.257 % | |
| Free Cash Growth IPRWA | VAL: -5.206 % high: -36.66 % mean: -77.932 % median: -83.333 % low: -123.951 % |
|
| Free Cash To Net Income | 0.459 | |
| Cash Flow Margin | 27.341 % | |
| Cash Flow To Earnings | 1.461 | |
| VALUE & RETURNS | ||
| Economic Value Added | $ 0.03 | |
| Return On Assets (ROA) | 2.589 % | |
| Return On Assets QoQ | -400.697 % | |
| Return On Assets YoY | -24.121 % | |
| Return On Assets IPRWA | VAL: 2.589 % high: 1.039 % median: -0.867 % mean: -1.375 % low: -5.094 % |
|
| Return On Capital Employed (ROCE) | 4.458 % | |
| Return On Equity (ROE) | 0.049 | |
| Return On Equity QoQ | -387.769 % | |
| Return On Equity YoY | -28.1 % | |
| Return On Equity IPRWA | VAL: 0.049 high: 0.035 median: -0.015 mean: -0.028 low: -0.1 |
|
| DuPont ROE | 5.074 % | |
| Return On Invested Capital (ROIC) | 3.914 % | |
| Return On Invested Capital QoQ | 20.172 % | |
| Return On Invested Capital YoY | -112.749 % | |
| Return On Invested Capital IPRWA | VAL: 3.914 % high: 2.716 % median: -0.517 % mean: -0.69 % low: -5.294 % |
|