Recent News
May 4, 2026 — Valaris reported first-quarter 2026 results. May 19, 2026 — Transocean entered a support agreement to nominate a director as part of the proposed acquisition of Valaris. May 4, 2026 — the company filed its Q1 2026 press release and related SEC exhibits. June 11 and June 23, 2026 — credit-rating actions affecting Transocean cited improved leverage and backlog, relevant to the proposed business combination.
Technical Analysis
Directional strength: ADX at 30.63 indicates a strong trend environment; the directional index readings show DI+ increasing at 16.47 while DI- decreases to 25.72, which together signal recent bullish directional pressure within a strong trend.
MACD momentum: MACD of -2.32 sits above the signal line at -3.16, representing a bullish MACD cross and an increase in upside momentum from recent levels.
MRO (momentum/regression): MRO reads 4.49 with a dip-and-reversal pattern; the positive MRO implies price sits above the model target and therefore contains potential downside pressure that could constrain any rapid advance.
RSI and moving averages: RSI at 42.44 and rising leaves room for higher highs without overbought extremes. Price closed at $78.79, trading above the 200-day average of $75.02 and the 12-day EMA of $77.27 (12-day EMA showing a dip-and-reversal), but below the 50-day average of $86.65 and the 26-day EMA of $79.33—a configuration consistent with a near-term recovery inside a longer consolidation band.
Bands and support: Bollinger bands narrow around the mid-$70s to low-$80s range (upper ~ $78.71–$80.66, lower ~ $72.87–$74.82), indicating compressed volatility; super trend upper at $81.25 provides a proximate resistance level to monitor for continuation of the recent bullish bias.
Fundamental Analysis
Profitability and margins: EBIT at $34,700,000 and EBITDA at $77,400,000 produce an EBIT margin of 7.46%. That margin sits below the industry peer mean (20.32%) and well below the industry peer median (27.11%), indicating operating profitability lags typical industry outcomes despite positive absolute EBIT.
Revenue and earnings trends: Total revenue totaled $465,400,000. QoQ revenue growth registered +36.90%, while the provided revenue growth metric shows -13.40% and the year-over-year change shows -315.71% as reported; sequential recovery contrasts with multi-period contraction. EPS reconciled to an actual loss of -$0.24 versus an estimate of -$0.09, a miss of $0.15 or -166.7% relative to consensus.
Cash flow and capital structure: Operating cash flow of $75,000,000 contrasts with free cash flow of -$25,900,000 and a free cash flow yield of -0.42%. Cash and short-term investments stand at $578,300,000 with net debt of $508,500,000. Debt-to-EBITDA reads 14.92 and interest coverage sits at 1.43, both indicating meaningful leverage relative to current earnings and modest coverage of interest expense.
Balance-sheet ratios and efficiency: Current ratio at 1.55 places the company near the lower end of the industry peer range (industry peer mean ~1.79). Asset turnover at 0.087 falls below the industry peer mean of 0.105, reflecting lower revenue generation per dollar of assets. Return on equity and return on assets remain slightly negative (-0.52% and -0.31% respectively), consistent with the recent net loss of -$16,400,000.
Valuation context: WMDST values the stock as over-valued. Market-derived multiples show a P/B of 1.95, above the industry peer high of 1.55; enterprise multiple measures at 87.07 versus an industry peer mean near 26.51. Forward EPS of $1.82 implies a forward PE around 45.4. Those multiples reflect market expectations that the current fundamentals do not yet substantiate without successful execution of the strategic combination or meaningful earnings recovery.
MOST-RECENT QUARTERLY REPORT
| REPORT PERIOD ENDING: | 2026-03-31 |
| REPORT DATE: | 2026-05-04 |
| NEXT REPORT DATE: | 2026-08-03 |
| CASH FLOW | Begin Period Cash Flow | $ 617.5 M |
| Operating Cash Flow | $ 75.0 M | |
| Capital Expenditures | $ -100.90 M | |
| Change In Working Capital | $ 80.3 M | |
| Dividends Paid | — | |
| Cash Flow Delta | $ -22.10 M | |
| End Period Cash Flow | $ 595.4 M | |
| INCOME STATEMENT | REVENUE | |
| Total Revenue | $ 465.4 M | |
| Forward Revenue | $ -894.07 M | |
| COSTS | ||
| Cost Of Revenue | $ 416.1 M | |
| Depreciation | $ 42.7 M | |
| Depreciation and Amortization | $ 42.7 M | |
| Research and Development | — | |
| Total Operating Expenses | $ 438.6 M | |
| PROFITABILITY | ||
| Gross Profit | $ 49.3 M | |
| EBITDA | $ 77.4 M | |
| EBIT | $ 34.7 M | |
| Operating Income | $ 26.8 M | |
| Interest Income | $ 17.0 M | |
| Interest Expense | $ 24.3 M | |
| Net Interest Income | $ -7.30 M | |
| Income Before Tax | $ 10.4 M | |
| Tax Provision | $ 28.4 M | |
| Tax Rate | 40.0 % | |
| Net Income | $ -16.40 M | |
| Net Income From Continuing Operations | $ -18.00 M | |
| EARNINGS | ||
| EPS Estimate | $ -0.09 | |
| EPS Actual | $ -0.24 | |
| EPS Difference | $ -0.15 | |
| EPS Surprise | -166.667 % | |
| Forward EPS | $ 1.82 | |
| BALANCE SHEET | ASSETS | |
| Total Assets | $ 5.4 B | |
| Intangible Assets | — | |
| Net Tangible Assets | $ 3.2 B | |
| Total Current Assets | $ 1.2 B | |
| Cash and Short-Term Investments | $ 578.3 M | |
| Cash | $ 578.3 M | |
| Net Receivables | $ 397.9 M | |
| Inventory | — | |
| Long-Term Investments | $ 158.6 M | |
| LIABILITIES | ||
| Accounts Payable | $ 398.5 M | |
| Short-Term Debt | — | |
| Total Current Liabilities | $ 777.7 M | |
| Net Debt | $ 508.5 M | |
| Total Debt | $ 1.2 B | |
| Total Liabilities | $ 2.2 B | |
| EQUITY | ||
| Total Equity | $ 3.2 B | |
| Retained Earnings | $ 2.4 B | |
| VALUATION & PER-SHARE METRICS | EQUITY & PER-SHARE METRICS | |
| Book Value Per-Share | $ 45.62 | |
| Shares Outstanding | 69.300 M | |
| Revenue Per-Share | $ 6.72 | |
| VALUATION | Market Capitalization | $ 6.2 B |
| Enterprise Value | $ 6.7 B | |
| Enterprise Multiple | 87.066 | |
| Enterprise Multiple QoQ | 84.184 % | |
| Enterprise Multiple YoY | 444.816 % | |
| Enterprise Multiple IPRWA | VAL: 87.066 high: 44.943 median: 26.799 mean: 26.507 low: 21.461 |
|
| EV/R | 14.48 | |
| CAPITAL STRUCTURE | ||
| Asset To Equity | 1.697 | |
| Asset To Liability | 2.436 | |
| Debt To Capital | 0.268 | |
| Debt To Assets | 0.215 | |
| Debt To Assets QoQ | -1.465 % | |
| Debt To Assets YoY | -18.785 % | |
| Debt To Assets IPRWA | high: 0.606 mean: 0.297 median: 0.256 VAL: 0.215 low: 0.158 |
|
| Debt To Equity | 0.365 | |
| Debt To Equity QoQ | -0.107 % | |
| Debt To Equity YoY | -30.671 % | |
| Debt To Equity IPRWA | high: 1.925 mean: 0.579 median: 0.418 VAL: 0.365 low: 0.221 |
|
| PRICE-BASED VALUATION | ||
| Price To Book (P/B) | 1.949 | |
| Price To Book QoQ | 45.296 % | |
| Price To Book YoY | 61.634 % | |
| Price To Book IPRWA | VAL: 1.949 high: 1.554 mean: 1.178 median: 1.116 low: 0.823 |
|
| Price To Earnings (P/E) | -370.527 | |
| Price To Earnings QoQ | -6285.985 % | |
| Price To Earnings YoY | -2010.143 % | |
| Price To Earnings IPRWA | high: 171.971 mean: -108.231 median: -154.81 VAL: -370.527 low: -562.033 |
|
| PE/G Ratio | 3.621 | |
| Price To Sales (P/S) | 13.242 | |
| Price To Sales QoQ | 67.329 % | |
| Price To Sales YoY | 208.772 % | |
| Price To Sales IPRWA | VAL: 13.242 high: 9.075 median: 7.04 mean: 6.933 low: 3.156 |
|
| FORWARD MULTIPLES | ||
| Forward P/E | 45.366 | |
| Forward PE/G | -0.443 | |
| Forward P/S | -7.003 | |
| EFFICIENCY | OPERATIONAL | |
| Operating Leverage | 3.232 | |
| ASSET & SALES | ||
| Asset Turnover Ratio | 0.087 | |
| Asset Turnover Ratio QoQ | -19.288 % | |
| Asset Turnover Ratio YoY | -38.103 % | |
| Asset Turnover Ratio IPRWA | high: 0.204 mean: 0.105 median: 0.09 VAL: 0.087 low: 0.067 |
|
| Receivables Turnover | 1.132 | |
| Receivables Turnover Ratio QoQ | -8.488 % | |
| Receivables Turnover Ratio YoY | -8.218 % | |
| Receivables Turnover Ratio IPRWA | high: 1.904 mean: 1.576 median: 1.525 low: 1.169 VAL: 1.132 |
|
| Inventory Turnover | — | |
| Inventory Turnover Ratio QoQ | — | |
| Inventory Turnover Ratio YoY | — | |
| Inventory Turnover Ratio IPRWA | — | |
| Days Sales Outstanding (DSO) | 80.584 | |
| CASH CYCLE | ||
| Cash Conversion Cycle Days (CCC) | 5.544 | |
| Cash Conversion Cycle Days QoQ | 33.69 % | |
| Cash Conversion Cycle Days YoY | -22.453 % | |
| Cash Conversion Cycle Days IPRWA | high: 139.728 mean: 75.275 median: 34.702 VAL: 5.544 low: -15.241 |
|
| CAPITAL DEPLOYMENT | ||
| Cash Conversion Ratio | 1.089 | |
| CapEx To Revenue | -0.217 | |
| CapEx To Depreciation | -2.363 | |
| CAPITAL, LIQUIDITY & COVERAGE | CAPITAL STRUCTURE | |
| Total Capital | $ 4.2 B | |
| Net Invested Capital | $ 4.2 B | |
| Invested Capital | $ 4.2 B | |
| Net Tangible Assets | $ 3.2 B | |
| Net Working Capital | $ 427.2 M | |
| LIQUIDITY | ||
| Cash Ratio | 0.744 | |
| Current Ratio | 1.549 | |
| Current Ratio QoQ | -12.552 % | |
| Current Ratio YoY | -7.052 % | |
| Current Ratio IPRWA | high: 1.994 median: 1.836 mean: 1.793 VAL: 1.549 low: 1.538 |
|
| Quick Ratio | — | |
| Quick Ratio QoQ | — | |
| Quick Ratio YoY | — | |
| Quick Ratio IPRWA | — | |
| COVERAGE & LEVERAGE | ||
| Debt To EBITDA | 14.917 | |
| Cost Of Debt | 1.26 % | |
| Interest Coverage Ratio | 1.428 | |
| Interest Coverage Ratio QoQ | -42.134 % | |
| Interest Coverage Ratio YoY | -80.571 % | |
| Interest Coverage Ratio IPRWA | high: 5.775 mean: 2.425 VAL: 1.428 median: 1.062 low: -0.605 |
|
| Operating Cash Flow Ratio | 0.132 | |
| TIMING / LIQUIDITY | ||
| Days Payables Outstanding (DPO) | 75.04 | |
| DIVIDENDS | ||
| Dividend Coverage Ratio | — | |
| Dividend Payout Ratio | — | |
| Dividend Rate | — | |
| Dividend Yield | — | |
| PERFORMANCE | GROWTH | |
| Asset Growth Rate | 1.11 % | |
| Revenue Growth | -13.398 % | |
| Revenue Growth QoQ | 36.896 % | |
| Revenue Growth YoY | -315.714 % | |
| Revenue Growth IPRWA | high: 3.643 % median: 2.784 % mean: 1.036 % low: -4.78 % VAL: -13.398 % |
|
| Earnings Growth | -102.339 % | |
| Earnings Growth QoQ | -135.637 % | |
| Earnings Growth YoY | -3947.331 % | |
| Earnings Growth IPRWA | high: 200.0 % median: 188.889 % mean: 11.214 % VAL: -102.339 % low: -250.0 % |
|
| MARGINS | ||
| Gross Margin | 10.593 % | |
| Gross Margin QoQ | -31.742 % | |
| Gross Margin YoY | -61.905 % | |
| Gross Margin IPRWA | high: 86.772 % mean: 42.67 % median: 21.397 % VAL: 10.593 % low: 4.455 % |
|
| EBIT Margin | 7.456 % | |
| EBIT Margin QoQ | -34.528 % | |
| EBIT Margin YoY | -74.088 % | |
| EBIT Margin IPRWA | high: 29.812 % median: 27.105 % mean: 20.316 % VAL: 7.456 % low: -0.948 % |
|
| Return On Sales (ROS) | 5.758 % | |
| Return On Sales QoQ | -45.136 % | |
| Return On Sales YoY | -79.989 % | |
| Return On Sales IPRWA | high: 26.179 % median: 17.572 % mean: 15.915 % VAL: 5.758 % low: -1.281 % |
|
| CASH FLOW | ||
| Free Cash Flow (FCF) | $ -25.90 M | |
| Free Cash Flow Yield | -0.42 % | |
| Free Cash Flow Yield QoQ | -47.631 % | |
| Free Cash Flow Yield YoY | -120.067 % | |
| Free Cash Flow Yield IPRWA | high: 2.376 % median: 2.018 % mean: 0.378 % VAL: -0.42 % low: -7.752 % |
|
| Free Cash Growth | -24.047 % | |
| Free Cash Growth QoQ | -81.002 % | |
| Free Cash Growth YoY | -107.248 % | |
| Free Cash Growth IPRWA | high: 679.191 % mean: 134.22 % VAL: -24.047 % median: -44.444 % low: -120.373 % |
|
| Free Cash To Net Income | 1.579 | |
| Cash Flow Margin | 22.089 % | |
| Cash Flow To Earnings | -6.268 | |
| VALUE & RETURNS | ||
| Economic Value Added | $ 0.04 | |
| Return On Assets (ROA) | -0.307 % | |
| Return On Assets QoQ | -102.127 % | |
| Return On Assets YoY | -64.344 % | |
| Return On Assets IPRWA | high: 1.609 % mean: 0.508 % median: 0.461 % VAL: -0.307 % low: -0.781 % |
|
| Return On Capital Employed (ROCE) | 0.757 % | |
| Return On Equity (ROE) | -0.005 | |
| Return On Equity QoQ | -102.293 % | |
| Return On Equity YoY | -69.773 % | |
| Return On Equity IPRWA | high: 0.026 median: 0.009 mean: 0.008 VAL: -0.005 low: -0.024 |
|
| DuPont ROE | -0.518 % | |
| Return On Invested Capital (ROIC) | 0.49 % | |
| Return On Invested Capital QoQ | -48.367 % | |
| Return On Invested Capital YoY | -84.955 % | |
| Return On Invested Capital IPRWA | high: 2.245 % median: 1.306 % mean: 1.223 % VAL: 0.49 % low: -0.211 % |
|