OB:BDRILL

Stock Analysis Report

Executive Summary

Borr Drilling Limited operates as an offshore drilling contractor to the oil and gas industry worldwide.

Snowflake

Fundamentals

High growth potential and fair value.

Risks

  • Borr Drilling has significant price volatility in the past 3 months.

Share Price & News

How has Borr Drilling's share price performed over time and what events caused price changes?


Latest Share Price and Events


Market Performance


7 Day Return

-21.1%

OB:BDRILL

-0.3%

NO Energy Services

0.2%

NO Market


1 Year Return

-72.5%

OB:BDRILL

-40.3%

NO Energy Services

-14.4%

NO Market

BDRILL underperformed the Energy Services industry which returned -40.3% over the past year.

BDRILL underperformed the Market in Norway which returned -14.4% over the past year.


Share holder returns

BDRILLIndustryMarket
7 Day-21.1%-0.3%0.2%
30 Day-42.8%-12.6%-3.5%
90 Day-49.3%-24.7%-7.3%
1 Year-72.5%-72.5%-39.1%-40.3%-9.3%-14.4%
3 Yearn/a-4.6%-11.2%39.3%20.8%
5 Yearn/a-52.4%-66.0%38.6%7.0%

Price Volatility Vs. Market

How volatile is Borr Drilling's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is Borr Drilling undervalued based on future cash flows and its price relative to the stock market?

>50%

Discount to future cash flow value


Intrinsic Value Based on Future Cash Flows

Borr Drilling's share price is below the future cash flow value, and at a moderate discount (> 20%).

Borr Drilling's share price is below the future cash flow value, and at a substantial discount (> 40%).


Price Based on Earnings

Borr Drilling is loss making, we can't compare its value to the NO Energy Services industry average.

Borr Drilling is loss making, we can't compare the value of its earnings to the Norway market.


Price Based on Expected Growth

Unable to calculate PEG ratio for Borr Drilling, we can't assess if its growth is good value.


Price Based on Value of Assets

Borr Drilling is good value based on assets compared to the NO Energy Services industry average.


Next Steps

Future Growth

How is Borr Drilling expected to perform in the next 1 to 3 years based on estimates from 7 analysts?

87.0%

Forecasted annual earnings growth


Earnings and Revenue Growth Estimates


Future Annual Growth Analysis

Borr Drilling's revenue is expected to grow significantly at over 20% yearly.

Borr Drilling's earnings are expected to grow significantly at over 20% yearly.

Borr Drilling's revenue growth is expected to exceed the Norway market average.

Borr Drilling's earnings growth is expected to exceed the Norway market average.

Borr Drilling's earnings growth is expected to exceed the low risk savings rate of 1.8%.


Earnings per Share Growth Estimates


Future Return on Equity

Borr Drilling is not expected to efficiently use shareholders’ funds in the future (Return on Equity less than 20%).


Next Steps

Past Performance

How has Borr Drilling performed over the past 5 years?

-81.3%

Last years earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Borr Drilling does not make a profit and there is insufficient past data to establish if their 5 year on year earnings growth rate was positive.

Unable to compare Borr Drilling's 1-year earnings growth to the 5-year average as it is not currently profitable.

Unable to compare Borr Drilling's 1-year growth to the NO Energy Services industry average as it is not currently profitable.


Return on Equity

It is difficult to establish if Borr Drilling has efficiently used shareholders’ funds last year (Return on Equity greater than 20%) as it is loss-making.


Return on Assets

It is difficult to establish if Borr Drilling has efficiently used its assets last year compared to the NO Energy Services industry average (Return on Assets) as it is loss-making.


Return on Capital Employed

It is difficult to establish if Borr Drilling improved its use of capital last year versus 3 years ago (Return on Capital Employed) as it is currently loss-making.


Next Steps

Financial Health

How is Borr Drilling's financial position?


Financial Position Analysis

Borr Drilling is able to meet its short term (1 year) commitments with its holdings of cash and other short term assets.

Borr Drilling's long term commitments exceed its cash and other short term assets.


Debt to Equity History and Analysis

Borr Drilling's level of debt (96.2%) compared to net worth is high (greater than 40%).

Unable to establish if Borr Drilling's debt level has increased without past 5-year debt data.


Balance Sheet

High level of physical assets or inventory.

Debt is not covered by short term assets, assets are 0.1x debt.


Cash Runway Analysis

For companies that have on average been loss making in the past we assess whether they have at least 1 year of cash runway.

Borr Drilling has less than a year of cash runway based on current free cash flow.

Borr Drilling has less than a year of cash runway if free cash flow continues to grow at historical rates of 29.7% each year.


Next Steps

Dividend

What is Borr Drilling's current dividend yield, its reliability and sustainability?

0.25%

Expected Dividend Yield


Dividend Yield and Payments Analysis

Unable to evaluate Borr Drilling's dividend yield against the bottom 25% of dividend payers as the company has not reported any payouts.

Unable to evaluate Borr Drilling's dividend against the top 25% market benchmark as the company has not reported any payouts.

Unable to perform a dividend volatility check as Borr Drilling has not reported any payouts.

Unable to verify if Borr Drilling's dividend has been increasing as the company has not reported any payouts.


Current Payout to Shareholders

Unable to calculate sustainability of dividends as Borr Drilling has not reported any payouts.


Future Payout to Shareholders

No need to calculate the sustainability of Borr Drilling's dividends in 3 years as they are not expected to pay a notable one for Norway.


Next Steps

Management

What is the CEO of Borr Drilling's salary, the management and board of directors tenure and is there insider trading?

1.4yrs

Average management tenure


CEO

Svend Maier (54yo)

1.4yrs

Tenure

US$7,492

Compensation

Mr. Svend Anton Maier serves as Chief Executive Officer at Borr Drilling Limited and served as Chief Operating Officer. Mr. Maier joined Borr Drilling Management Oslo on 19 December 2016. He transferred to ...


CEO Compensation Analysis

Insufficient data for Svend to establish whether their remuneration is reasonable compared to companies of similar size in Norway.

Insufficient data for Svend to compare compensation growth.


Management Age and Tenure

1.4yrs

Average Tenure

55yo

Average Age

The average tenure for the Borr Drilling management team is less than 2 years, this suggests a new team.


Board Age and Tenure

1.8yrs

Average Tenure

55yo

Average Age

The average tenure for the Borr Drilling board of directors is less than 3 years, this suggests a new board.


Insider Trading

More shares have been bought than sold by Borr Drilling individual insiders in the past 3 months.


Recent Insider Transactions

BuyUS$9,52427 Jun 19
Midelfart Capital As
EntityCompany
Shares125
Max PriceUS$76.19
BuyUS$527,00431 May 19
Svend Maier
EntityIndividual
Role
Chief Executive Officer
Chief Executive Officer
Shares6,000
Max PriceUS$87.83
BuyUS$9,97031 May 19
Midelfart Capital As
EntityCompany
Shares115
Max PriceUS$86.69
BuyUS$250,00012 Dec 18
Svend Maier
EntityIndividual
Role
Chief Executive Officer
Chief Executive Officer
Shares2,000
Max PriceUS$125.00
BuyUS$435,00003 Dec 18
Svend Maier
EntityIndividual
Role
Chief Executive Officer
Chief Executive Officer
Shares3,000
Max PriceUS$145.00
BuyUS$273,86723 Nov 18
Svend Maier
EntityIndividual
Role
Chief Executive Officer
Chief Executive Officer
Shares2,000
Max PriceUS$136.93
BuyUS$13,740,68030 Aug 18
Drew Holdings Limited
EntityCompany
Shares80,000
Max PriceUS$171.76

Ownership Breakdown


Management Team

  • Georgina Sousa (68yo)

    Company Secretary & Director

    • Tenure: 0.5yrs
  • Svend Maier (54yo)

    Chief Executive Officer

    • Tenure: 1.4yrs
    • Compensation: US$7.49k
  • Rune Lundetræ (42yo)

    Deputy CEO & CFO

    • Tenure: 2.0yrs
    • Compensation: US$21.03k
  • Tor Trøim (56yo)

    Founder & Chairman of the Board

    • Tenure: 2.0yrs
  • Vidar Hasund

    Chief Accounting Officer

    • Tenure: 0.0yrs
  • Magnus Vaaler

    Investor Relations Officer

    • Tenure: 0.0yrs

Board Members

  • Jan Rask (63yo)

    Director

    • Tenure: 2.0yrs
  • Georgina Sousa (68yo)

    Company Secretary & Director

    • Tenure: 0.5yrs
  • Fredrik Halvorsen (46yo)

    Director

    • Tenure: 2.7yrs
  • Patrick Schorn (50yo)

    Director

    • Tenure: 1.6yrs
  • Tor Trøim (56yo)

    Founder & Chairman of the Board

    • Tenure: 2.0yrs
  • Alexandra Blankenship (54yo)

    Director

    • Tenure: 0.5yrs

Company Information

Borr Drilling Limited's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Borr Drilling Limited
  • Ticker: BDRILL
  • Exchange: OB
  • Founded: 2016
  • Industry: Oil and Gas Drilling
  • Sector: Energy
  • Market Cap: kr5.333b
  • Shares outstanding: 110.82m
  • Website: https://www.borrdrilling.com

Number of Employees


Location

  • Borr Drilling Limited
  • S.E. Pearman Building
  • 2nd Floor
  • Hamilton
  • HM11
  • Bermuda

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
BDRILLOB (Oslo Bors)YesCommon SharesNONOKDec 2016
B2WPDB (Deutsche Boerse AG)YesCommon SharesDEEURDec 2016
0BDRLSE (London Stock Exchange)YesCommon SharesGBNOKDec 2016
BDRILOBATS-CHIXE (BATS 'Chi-X Europe')YesCommon SharesGBNOKDec 2016
BORRNYSE (New York Stock Exchange)YesCommon SharesUSUSDDec 2016

Biography

Borr Drilling Limited operates as an offshore drilling contractor to the oil and gas industry worldwide. The company operates a fleet of 27 jack-up drilling rigs. It provides drilling services to the oil a ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/08/20 22:06
End of Day Share Price2019/08/20 00:00
Earnings2019/03/31
Annual Earnings2018/12/31


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.