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Valaris (Valaris) Piotroski F-Score

: 5 (As of Today)
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The zones of discrimination were as such:

Good or high score = 7, 8, 9
Bad or low score = 0, 1, 2, 3

Valaris has an F-score of 5 indicating the company's financial situation is typical for a stable company.

The historical rank and industry rank for Valaris's Piotroski F-Score or its related term are showing as below:

VAL' s Piotroski F-Score Range Over the Past 10 Years
Min: 5   Med: 5   Max: 5
Current: 5

During the past 5 years, the highest Piotroski F-Score of Valaris was 5. The lowest was 5. And the median was 5.


Valaris Piotroski F-Score Historical Data

The historical data trend for Valaris's Piotroski F-Score can be seen below:

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

* Premium members only.

Valaris Annual Data
Trend Dec19 Dec20 Dec21 Dec22 Dec23
Piotroski F-Score
N/A N/A N/A 5.00 5.00

Valaris Quarterly Data
Dec19 Jun20 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23
Piotroski F-Score Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 5.00 N/A 7.00 6.00 5.00

Competitive Comparison

For the Oil & Gas Equipment & Services subindustry, Valaris's Piotroski F-Score, along with its competitors' market caps and Piotroski F-Score data, can be viewed below:

* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.


Valaris Piotroski F-Score Distribution

For the Oil & Gas industry and Energy sector, Valaris's Piotroski F-Score distribution charts can be found below:

* The bar in red indicates where Valaris's Piotroski F-Score falls into.


How is the Piotroski F-Score calculated?

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

This Year (Dec23) TTM:Last Year (Dec22) TTM:
Net Income was 46.7 + -29.4 + 12.9 + 835.2 = $865 Mil.
Cash Flow from Operations was 151.7 + -29.1 + 48.2 + 96.7 = $268 Mil.
Revenue was 430.1 + 415.2 + 455.1 + 483.8 = $1,784 Mil.
Gross Profit was 29.6 + 17.2 + 38.4 + 54.3 = $140 Mil.
Average Total Assets from the begining of this year (Dec22)
to the end of this year (Dec23) was
(2860.3 + 2951.2 + 3088.4 + 3484.9 + 4322.2) / 5 = $3341.4 Mil.
Total Assets at the begining of this year (Dec22) was $2,860 Mil.
Long-Term Debt & Capital Lease Obligation was $1,128 Mil.
Total Current Assets was $1,272 Mil.
Total Current Liabilities was $744 Mil.
Net Income was -38.6 + 111.6 + 74.3 + 29.2 = $177 Mil.

Revenue was 318.4 + 413.3 + 437.2 + 433.6 = $1,603 Mil.
Gross Profit was -35.4 + 29.2 + 77.9 + 56.4 = $128 Mil.
Average Total Assets from the begining of last year (Dec21)
to the end of last year (Dec22) was
(2603.1 + 2637.7 + 2760.8 + 2821.2 + 2860.3) / 5 = $2736.62 Mil.
Total Assets at the begining of last year (Dec21) was $2,603 Mil.
Long-Term Debt & Capital Lease Obligation was $556 Mil.
Total Current Assets was $1,346 Mil.
Total Current Liabilities was $504 Mil.

*Note: If the latest quarterly/semi-annual/annual total assets data is 0, then we will use previous quarterly/semi-annual/annual data for all the items in the balance sheet.

Profitability

Question 1. Return on Assets (ROA)

Net income before extraordinary items for the year divided by Total Assets at the beginning of the year.

Score 1 if positive, 0 if negative.

Valaris's current Net Income (TTM) was 865. ==> Positive ==> Score 1.

Question 2. Cash Flow Return on Assets (CFROA)

Net cash flow from operating activities (operating cash flow) divided by Total Assets at the beginning of the year.

Score 1 if positive, 0 if negative.

Valaris's current Cash Flow from Operations (TTM) was 268. ==> Positive ==> Score 1.

Question 3. Change in Return on Assets

Compare this year's return on assets (1) to last year's return on assets.

Score 1 if it's higher, 0 if it's lower.

ROA (This Year)=Net Income/Total Assets (Dec22)
=865.4/2860.3
=0.30255568

ROA (Last Year)=Net Income/Total Assets (Dec21)
=176.5/2603.1
=0.06780377

Valaris's return on assets of this year was 0.30255568. Valaris's return on assets of last year was 0.06780377. ==> This year is higher. ==> Score 1.

Question 4. Quality of Earnings (Accrual)

Compare Cash flow return on assets (2) to return on assets (1)

Score 1 if CFROA > ROA, 0 if CFROA <= ROA.

Valaris's current Net Income (TTM) was 865. Valaris's current Cash Flow from Operations (TTM) was 268. ==> 268 <= 865 ==> CFROA <= ROA ==> Score 0.

Funding

Question 5. Change in Gearing or Leverage

Compare this year's gearing (long-term debt divided by average total assets) to last year's gearing.

Score 0 if this year's gearing is higher, 1 otherwise.

Gearing (This Year: Dec23)=Long-Term Debt & Capital Lease Obligation/Average Total Assets from Dec22 to Dec23
=1128.2/3341.4
=0.3376429

Gearing (Last Year: Dec22)=Long-Term Debt & Capital Lease Obligation/Average Total Assets from Dec21 to Dec22
=556.2/2736.62
=0.20324342

Valaris's gearing of this year was 0.3376429. Valaris's gearing of last year was 0.20324342. ==> Last year is lower than this year ==> Score 0.

Question 6. Change in Working Capital (Liquidity)

Compare this year's current ratio (current assets divided by current liabilities) to last year's current ratio.

Score 1 if this year's current ratio is higher, 0 if it's lower

Current Ratio (This Year: Dec23)=Total Current Assets/Total Current Liabilities
=1272.2/744.3
=1.70925702

Current Ratio (Last Year: Dec22)=Total Current Assets/Total Current Liabilities
=1346.2/504.4
=2.66891356

Valaris's current ratio of this year was 1.70925702. Valaris's current ratio of last year was 2.66891356. ==> Last year's current ratio is higher ==> Score 0.

Question 7. Change in Shares in Issue

Compare the number of shares in issue this year, to the number in issue last year.

Score 0 if there is larger number of shares in issue this year, 1 otherwise.

Valaris's number of shares in issue this year was 73.7. Valaris's number of shares in issue last year was 75.9. ==> There is smaller number of shares in issue this year, or the same. ==> Score 1.

Efficiency

Question 8. Change in Gross Margin

Compare this year's gross margin (Gross Profit divided by sales) to last year's.

Score 1 if this year's gross margin is higher, 0 if it's lower.

Gross Margin (This Year: TTM)=Gross Profit/Revenue
=139.5/1784.2
=0.0781863

Gross Margin (Last Year: TTM)=Gross Profit/Revenue
=128.1/1602.5
=0.0799376

Valaris's gross margin of this year was 0.0781863. Valaris's gross margin of last year was 0.0799376. ==> Last year's gross margin is higher ==> Score 0.

Question 9. Change in asset turnover

Compare this year's asset turnover (total sales for the year divided by total assets at the beginning of the year) to last year's asset turnover ratio.

Score 1 if this year's asset turnover ratio is higher, 0 if it's lower

Asset Turnover (This Year)=Revenue/Total Assets at the Beginning of This Year (Dec22)
=1784.2/2860.3
=0.62378072

Asset Turnover (Last Year)=Revenue/Total Assets at the Beginning of Last Year (Dec21)
=1602.5/2603.1
=0.61561215

Valaris's asset turnover of this year was 0.62378072. Valaris's asset turnover of last year was 0.61561215. ==> This year's asset turnover is higher. ==> Score 1.

Evaluation

Piotroski F-Score= Que. 1+ Que. 2+ Que. 3+Que. 4+Que. 5+Que. 6+Que. 7+Que. 8+Que. 9
=1+1+1+0+0+0+1+0+1
=5

Good or high score = 7, 8, 9
Bad or low score = 0, 1, 2, 3

Valaris has an F-score of 5 indicating the company's financial situation is typical for a stable company.

Valaris  (NYSE:VAL) Piotroski F-Score Explanation

The developer of the system is Joseph D. Piotroski is relatively unknown accounting professor who shuns publicity and rarely gives interviews.

He graduated from the University of Illinois with a B.S. in accounting in 1989, received an M.B.A. from Indiana University in 1994. Five years later, in 1999, after earning a Ph.D. in accounting from the University of Michigan, he became an associate professor of accounting at the University of Chicago.

In 2000, he wrote a research paper called "Value Investing: The Use of Historical Financial Statement Information to Separate Winners from Losers" (pdf).

He wanted to see if he can develop a system (using a simple nine-point scoring system) that can increase the returns of a strategy of investing in low price to book (referred to in the paper as high book to market) value companies.

What he found was something that exceeded his most optimistic expectations.

Buying only those companies that scored highest (8 or 9) on his nine-point scale, or F-Score as he called it, over the 20 year period from 1976 to 1996 led to an average out-performance over the market of 13.4%.

Even more impressive were the results of a strategy of investing in the highest F-Score companies (8 or 9) and shorting companies with the lowest F-Score (0 or 1).

Over the same period from 1976 to 1996 (20 years) this strategy led to an average yearly return of 23%, substantially outperforming the average S&P 500 index return of 15.83% over the same period.


Valaris Piotroski F-Score Related Terms

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Valaris (Valaris) Business Description

Traded in Other Exchanges
N/A
Address
2 Church Street, Claredon House, Hamilton, BMU, HM 11
Valaris Ltd is the industry leader in offshore drilling services across all water depths and geographies. It is a high-quality rig fleet of ultra-deepwater drillships, versatile semisubmersibles and modern shallow-water jackups.
Executives
Grable Colleen officer: Controller 5847 SAN FELIPE, SUITE 3300, HOUSTON TX 77057
Oak Hill Advisors Lp 10 percent owner 1 VANDERBILT AVE, 16TH FLOOR, NEW YORK NY 10017
Kristian Johansen director 5847 SAN FELIPE, SUITE 3300, HOUSTON TX 77024
Catherine Hughes director 5847 SAN FELIPE, SUITE 3300, HOUSTON TX 77057
Matthew Lyne officer: SVP - CCO 5847 SAN FELIPE, SUITE 3300, HOUSTON TX 77057
Christopher T Weber officer: SVP - CFO 5 GREENWAY PLAZA, SUITE 100, HOUSTON TX 77046
Gunnar W. Eliassen director C/O QUINTANA MINERALS CORPORATION, 1415 LOUISIANA STREET, SUITE 2400, HOUSTON TX 77002
Davor Vudakin officer: SVP & General Counsel C/O VALARIS LIMITED, CLARENDON HOUSE, 2 CHURCH STREET, HAMILTON D0 HM 11
Darin Gibbins officer: Interim CFO and VP 5847 SAN FELIPE, SUITE 3300, HOUSTON TX 77057
Anton Dibowitz director C/O VALARIS, CLARENDON HOUSE, 2 CHURCH STREET, HAMILTON D0 HM 11
Joseph Goldschmid director, other: See Remarks C/O VALARIS, CLARENDON HOUSE, 2 CHURCH STREET, HAMILTON D0 00000
Elizabeth Leykum director C/O 5500 TRILLIUM BOULEVARD, SUITE 501, HOFFMAN ESTATES IL 60192
Deepak Munganahalli director C/O VALARIS, CLARENDON HOUSE, 2 CHURCH STREET, HAMILTON D0 00000
Dick Fagerstal director C/O SEACOR HOLDINGS INC., 460 PARK AVENUE, 12TH FLOOR, NEW YORK NY 10022
Oak Hill Advisors Genpar, L.p. 10 percent owner 1114 AVENUE OF THE AMERICAS, 27TH FLOOR, NEW YORK NY 10036

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