Added to YB: 2025-02-28
Pitch date: 2025-02-27
VAL [bullish]
Valaris Limited
+181.58%
current return
Author Info
Under the Hood is a private investor (ex-NYSE, Bridgewater, Alliance Bernstein) writing about stocks. Sign up for their newsletter.
Company Info
Valaris Limited, together with its subsidiaries, provides offshore contract drilling services in Brazil, the United Kingdom, U.
Market Cap
$2.8B
Pitch Price
$36.04
Price Target
N/A
Dividend
N/A
EV/EBITDA
5.21
P/E
9.06
EV/Sales
1.42
Sector
Energy Equipment and Services
Category
value
Valaris: Quality Assets at a Distressed Price
VAL: Quality fleet (12 7G drillships, 33 jackups) trading 25% of $13.5B build cost ($850M+ replacement) at $3.4B EV. Post-bankruptcy, generates $600M EBITDA (28% margin), $300M FCF (11% yield). 10% day rate increase=$200M FCF boost. Bull case: 20% rate rise=$700M FCF (25% yield). $4B+ backlog, 2025-26 cash flow positive even w/ 20% rate drop. OHA/Fredriksen own 14%+.
Read full article (9 min)