OB:BDRILL

Stock Analysis Report

Executive Summary

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

Snowflake

High growth potential and overvalued.

Share Price & News

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


Latest Share Price and Events

Stable Share Price: BDRILL's share price has been volatile over the past 3 months.


Market Performance


7 Day Return

-0.3%

BDRILL

-0.6%

NO Energy Services

-1.1%

NO Market


1 Year Return

-57.3%

BDRILL

-22.1%

NO Energy Services

-2.5%

NO Market

Return vs Industry: BDRILL underperformed the Norwegian Energy Services industry which returned -22.1% over the past year.

Return vs Market: BDRILL underperformed the Norwegian Market which returned -2.5% over the past year.


Shareholder returns

BDRILLIndustryMarket
7 Day-0.3%-0.6%-1.1%
30 Day12.8%3.0%2.6%
90 Day27.2%15.3%9.1%
1 Year-57.3%-57.3%-20.6%-22.1%2.7%-2.5%
3 Yearn/a7.4%-0.7%41.1%23.4%
5 Yearn/a-30.8%-52.3%57.0%21.2%

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 compared to its fair value and its price relative to the market?

0.5x

Price to Book (PB) ratio


Share Price vs. Fair Value

Below Fair Value: Insufficient data to calculate BDRILL's fair value to establish if it is undervalued.

Significantly Below Fair Value: Insufficient data to calculate BDRILL's fair value to establish if it is undervalued.


Price To Earnings Ratio

PE vs Industry: BDRILL is unprofitable, so we can't compare its PE Ratio to the Energy Services industry average.

PE vs Market: BDRILL is unprofitable, so we can't compare its PE Ratio to the Norwegian market.


Price to Earnings Growth Ratio

PEG Ratio: Insufficient data to calculate BDRILL's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: BDRILL is good value based on its PB Ratio (0.5x) compared to the NO Energy Services industry average (0.6x).


Next Steps

Future Growth

How is Borr Drilling forecast to perform in the next 1 to 3 years based on estimates from 9 analysts?

83.5%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: BDRILL is forecast to become profitable over the next 3 years, which is considered faster growth than the savings rate (1.8%).

Earnings vs Market: BDRILL is forecast to become profitable over the next 3 years, which is considered above average market growth.

High Growth Earnings: BDRILL's is expected to become profitable in the next 3 years.

Revenue vs Market: BDRILL's revenue (41.6% per year) is forecast to grow faster than the Norwegian market (4.2% per year).

High Growth Revenue: BDRILL's revenue (41.6% per year) is forecast to grow faster than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: BDRILL's Return on Equity is forecast to be low in 3 years time (11.1%).


Next Steps

Past Performance

How has Borr Drilling performed over the past 5 years?

-174.2%

Last years earnings growth


Earnings and Revenue History

Quality Earnings: BDRILL has large one-off items impacting its financial results.

Growing Profit Margin: BDRILL's current net profit margins (-127.3%) are higher than last year (-181.6%).


Past Earnings Growth Analysis

Earnings Trend: Insufficient data to determine if BDRILL's year-on-year earnings growth rate was positive over the past 5 years.

Accelerating Growth: Unable to compare BDRILL's earnings growth over the past year to its 5-year average as it is currently unprofitable

Earnings vs Industry: BDRILL is unprofitable, making it difficult to compare its past year earnings growth to the Energy Services industry (14%).


Return on Equity

High ROE: BDRILL has a negative Return on Equity (-22.53%), as it is currently unprofitable.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is Borr Drilling's financial position?


Financial Position Analysis

Short Term Liabilities: BDRILL's short term assets ($312.8M) exceeds its short term liabilities ($159.9M)

Long Term Liabilities: BDRILL's short term assets (312.8M) do not cover its long term liabilities (1.7B)


Debt to Equity History and Analysis

Debt Level: BDRILL's debt to equity ratio (114.6%) is considered high

Reducing Debt: Insufficient data to determine if BDRILL's debt to equity ratio has reduced over the past 5 years.


Balance Sheet

Inventory Level: BDRILL has a high level of physical assets or inventory.

Debt Coverage by Assets: BDRILL's debt is not covered by short term assets (assets are 0.2x 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.

Stable Cash Runway: BDRILL has less than a year of cash runway based on its current free cash flow.

Forecast Cash Runway: BDRILL has less than a year of cash runway if free cash flow continues to reduce at historical rates of -11.3% each year


Next Steps

Dividend

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


Dividend Yield vs Market

companyn/amarketbottom25%2.5%markettop25%6.0%industryaverage4.4%forecastin3Years0%

Current dividend yield vs market & industry

Notable Dividend: Unable to evaluate BDRILL's dividend yield against the bottom 25% of dividend payers, as the company has not reported any payouts.

High Dividend: Unable to evaluate BDRILL's dividend yield against the top 25% of dividend payers, as the company has not reported any payouts.


Stability and Growth of Payments

Stable Dividend: Insufficient data to determine if BDRILL's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if BDRILL's dividend payments have been increasing.


Current Payout to Shareholders

Dividend Coverage: Insufficient data to calculate payout ratio to determine if its dividend payments are covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: No need to calculate the sustainability of BDRILL's dividend in 3 years as they are not forecast to pay a notable one for the Norwegian market.


Next Steps

Management

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

1.7yrs

Average management tenure


CEO

Svend Maier (54yo)

1.7yrs

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

Compensation vs Market: Svend's total compensation ($USD0.00) is below average for companies of similar size in the Norwegian market ($USD543.65K).

Compensation vs Earnings: Insufficient data to compare Svend's compensation with company performance.


Management Age and Tenure

1.7yrs

Average Tenure

55yo

Average Age

Experienced Management: BDRILL's management team is not considered experienced ( 1.7 years average tenure), which suggests a new team.


Board Age and Tenure

0.8yrs

Average Tenure

56yo

Average Age

Experienced Board: BDRILL's board of directors are not considered experienced ( 0.8 years average tenure), which suggests a new board.


Insider Trading

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold 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

Ownership Breakdown

Dilution of Shares: Shareholders have been diluted in the past year, with total shares outstanding growing by 17.3%.


Management Team

  • Tor Trøim (56yo)

    Founder & Deputy Chairman

    • Tenure: 0.2yrs
  • Georgina Sousa (68yo)

    Company Secretary & Director

    • Tenure: 0.8yrs
  • Svend Maier (54yo)

    Chief Executive Officer

    • Tenure: 1.7yrs
    • Compensation: US$7.49k
  • Rune Lundetræ (42yo)

    Deputy CEO & CFO

    • Tenure: 2.3yrs
    • Compensation: US$21.03k
  • Vidar Hasund

    Chief Accounting Officer

    • Tenure: 0yrs
  • Magnus Vaaler

    Investor Relations Officer

    • Tenure: 0yrs

Board Members

  • Jan Ake Rask (63yo)

    Independent Director

    • Tenure: 2.3yrs
  • Tor Trøim (56yo)

    Founder & Deputy Chairman

    • Tenure: 0.2yrs
  • Georgina Sousa (68yo)

    Company Secretary & Director

    • Tenure: 0.8yrs
  • Patrick Arnold Schorn (50yo)

    Director

    • Tenure: 1.8yrs
  • Alexandra Blankenship (54yo)

    Independent Director

    • Tenure: 0.8yrs

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: kr6.627b
  • 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 Analysis2019/11/14 22:11
End of Day Share Price2019/11/14 00:00
Earnings2019/06/30
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.