Is the business good?
How good a business is VAL?
Valaris Limited earns 7.6% on the capital it employs against a 9.0% cost of capital, so growth costs more than it returns.
7.6%
Return on invested capital · cost of capital 9.0% · 1.4 points below what the capital costs: growth destroys value
- Operating margin
- 16%
Operating margin · Oil & Gas Drilling median 5.0% · 12 months to Q1 2026
- Cash conversion
- 0.12×
Cash conversion · 0.26× a year ago · some of the reported profit has not turned into cash yet
- Share count, year on year
- −2.5%
Share count, year on year · bought back, each share owns more of the company
| Year | Operating margin |
|---|---|
| FY2020 | −304% |
| FY2021 | −73% |
| FY2022 | 2.3% |
| FY2023 | 3.0% |
| FY2024 | 15% |
| FY2025 | 20% |
Details›
- Gross margin12 months to Q1 2026
- 28%
- Operating margin12 months to Q1 2026
- 16%
- Net margin12 months to Q1 2026
- 45%
- Free cash flow margin
- 5.5%
- Revenue, trailing twelve months
- $2.21B
- Free cash flow, trailing twelve months
- $121M
- Net income, trailing twelve months
- $1.00B
- Return on invested capitaloperating profit after tax ÷ debt + equity − cash
- 7.6%
Margins, capital and share counts from the statements as filed with the SEC; cash conversion from the cash flow statement.