| Factor | Score | Distribution | Value | Avg | Rank |
|---|---|---|---|---|---|
Valuation | 66 | 6.3x | 17.8x | Top tier | |
Growth | 49 | -13.2% | 7.1% | Around median | |
Quality | 61 | 21.1% | 4.5% | Around median | |
Safety | 62 | 1.3x | 2.6x | Around median | |
Capital Return | 68 | — | 2.12% | Top tier | |
Momentum | 61 | 70.6% | 2.9% | Around median | |
Sentiment | 72 | 5 | 3 | Top tier |
Estimates — analyst targets and a simplified DCF, not investment advice.
Ten ratios that matter, each compared against its sector median and average — so you can see whether a number is rich or cheap relative to peers in the same sector.
Valaris Limited provides contract offshore drilling services to oil and gas producers through a fleet of drillships and jackup rigs. Its revenue is generated from operating days, day rates, and extended contracts, in addition to revenue from rigs leased to ARO; its drillship fleet comprises 13 rigs, 12 of which are seventh-generation, while its jackup rigs provide exposure to the North Sea, Saudi Arabia, Trinidad, and Australia.
In Q2 FY2026, revenue was $539.2 million, gross profit was $123.7 million, net income was $50.4 million, and earnings per share were $0.72. This equates to a gross margin of approximately 22.9% and a net income margin of approximately 9.3%, compared with revenue of $465.4 million and a net loss of $16.4 million in Q1 FY2026; in other words, revenue increased by approximately 15.9%, and the company returned to profitability between the two periods.
Operationally, Valaris's model combines high-specification floating drillships with jackup rigs. In Q3 FY2025, the fleet achieved revenue efficiency of 95%, while jackup segment EBITDA increased year over year, supported by more operating days and higher average day rates, whereas the floater segment was affected by the expiration of the VALARIS DS-15 and VALARIS DS-18 contracts during the quarter without immediate follow-on work.
Automated analysis for informational purposes only — not investment advice.
The analyst consensus on VAL is “Neutral,” with an average price target of $75 and identical high and low targets of $75; therefore, the target range offers no diversity of views on which to rely. This target is approximately 34% below the 52-week range high of $114.12, while the full range extends from $46.70 to $114.12, and the data do not include a valid comparable earnings multiple; the conservative valuation reflects idle-period risks and day-rate pressure despite the contract backlog expected for FY2026.
Figures in the text are as of 2026-08-30; the live price is shown at the top of the page.
Valaris generates its revenue primarily by providing contract offshore drilling services using drillships and jackup rigs, with results linked to operating days and day rates. It also generates revenue from rigs leased to ARO, and higher revenue from these rigs contributed to Q3 FY2025 results exceeding management guidance. Revenue in that quarter was $596 million, with fleetwide revenue efficiency of 95%.
The VALARIS DS-12 contract with BP covers five wells offshore Egypt, is worth approximately $140 million, and has an estimated duration of approximately 350 days. The contract is expected to begin in mid-Q2 FY2026 and includes options for three additional wells that could extend the program to more than two years. The contract also returned the rig to a customer for which Valaris had worked offshore Egypt as part of a seven-year operating relationship with BP.
Q2 FY2026 revenue was approximately $539.2 million, compared with $465.4 million in Q1 FY2026, an increase of approximately 15.9%. Gross profit increased from $92.0 million to $123.7 million, equivalent to a gross margin of approximately 22.9% in the latest period. The company also moved from a net loss of $16.4 million and negative earnings per share of $0.24 to net income of $50.4 million and earnings per share of $0.72.
Total contract backlog reached $4.5 billion during the Q3 FY2025 earnings call, after the addition of more than $2.2 billion since the beginning of the fiscal year. Drillships accounted for approximately $1.4 billion of the additions, equivalent to nine combined contract years. Coverage of available days for active jackup rigs was also approximately 80% for FY2026 and more than 60% for FY2027.
VALARIS DS-15 and VALARIS DS-18 entered an idle period after their contracts expired in Q3 FY2025, despite having long-term contracts beginning later in FY2026. Management did not identify new work in FY2026 for VALARIS MS-1 and VALARIS DPS-1, so it decided to relocate them to Malaysia and keep them warm-stacked to reduce costs. Management also said that available short-term work opportunities may not be sufficient to fill all gaps, while day rates for high-specification drillships ranged from the high $300,000s to the low or mid-$400,000s.
On August 25, 2026, Transocean announced that it had complied with the second request for information issued by the U.S. Department of Justice regarding the merger with Valaris. Valaris had also complied with the request, meaning both parties had satisfied key procedural requirements in the antitrust review. However, this compliance does not constitute final approval, so the transaction remains subject to the Department of Justice's decision following completion of the review.
