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Valaris Ltd (VAL-WT) Stock Fundamental Analysis & AI Rating 2026

VAL-WT NYSE Drilling Oil & Gas Wells CIK: 0000314808
Recently Updated • Analysis: Apr 18, 2026 • SEC Data: 2025-12-31
STRONG BUY
78% Conf
Pending
Analysis scheduled

📊 VAL-WT Key Takeaways

Revenue: $2.4B
Net Margin: 41.5%
Free Cash Flow: $202.7M
Current Ratio: 1.77x
Debt/Equity: 0.34x
EPS: $13.86
AI Rating: STRONG BUY with 78% confidence
Valaris Ltd (VAL-WT) receives a STRONG BUY rating with 78% confidence from our AI fundamental analysis based on SEC 10-K filings. With revenue of $2.4B, net profit margin of 41.5%, and return on equity (ROE) of 31.0%, Valaris Ltd demonstrates strong fundamentals in the Energy sector. Below is our complete VAL-WT stock analysis for 2026.

Is Valaris Ltd (VAL-WT) a Good Investment?

Claude

Valaris demonstrates exceptional fundamental strength with a 41.5% net margin, conservative 0.34x debt-to-equity leverage, and robust positive free cash flow generation of $202.7M. The dramatic profitability recovery appears driven by sector cyclicality recovery with strong operational execution evident in 20.1% operating margins and 15.4x interest coverage.

Why Buy Valaris Ltd Stock? VAL-WT Key Strengths

Claude
  • + Exceptional net margin of 41.5% with 31% ROE demonstrates strong operational efficiency
  • + Conservative capital structure (0.34x D/E, 1.77x current ratio) with $599.4M cash provides financial flexibility
  • + Strong cash generation with $546.2M operating cash flow and $202.7M free cash flow after capex
  • + Excellent debt service capacity with 15.4x interest coverage ratio
  • + Positive insider activity (21 Form 4 filings) suggests management confidence

VAL-WT Stock Risks: Valaris Ltd Investment Risks

Claude
  • ! Energy sector cyclicality exposure creates vulnerability to oil price and demand downturns
  • ! Extraordinary YoY growth rates (+19,807.6% revenue) likely reflect post-restructuring recovery with sustainability questions
  • ! Net margins of 41.5% are historically elevated and may normalize downward as industry cycles
  • ! Capital-intensive operations require sustained $343.5M annual capex (63% of operating cash flow)

Key Metrics to Watch

Claude
  • * Crude oil price trends and utilization rates for offshore drilling capacity
  • * Net margin normalization trajectory toward industry averages
  • * Free cash flow sustainability and debt paydown acceleration
  • * Customer contract backlog and revenue visibility

Valaris Ltd (VAL-WT) Financial Metrics & Key Ratios

Revenue
$2.4B
Net Income
$982.8M
EPS (Diluted)
$13.86
Free Cash Flow
$202.7M
Total Assets
$5.3B
Cash Position
$599.4M

💡 AI Analyst Insight

Valaris Ltd presents a mixed fundamental picture. Review the detailed metrics above to form your own investment thesis.

VAL-WT Profit Margin, ROE & Profitability Analysis

Gross Margin N/A
Operating Margin 20.1%
Net Margin 41.5%
ROE 31.0%
ROA 18.5%
FCF Margin 8.6%

VAL-WT vs Energy Sector: How Valaris Ltd Compares

How Valaris Ltd compares to Energy sector averages

Net Margin
VAL-WT 41.5%
vs
Sector Avg 12.0%
VAL-WT Sector
ROE
VAL-WT 31.0%
vs
Sector Avg 14.0%
VAL-WT Sector
Current Ratio
VAL-WT 1.8x
vs
Sector Avg 1.3x
VAL-WT Sector
Debt/Equity
VAL-WT 0.3x
vs
Sector Avg 0.6x
VAL-WT Sector

Sector benchmarks are approximate industry averages. Actual sector performance may vary.

Is Valaris Ltd Stock Overvalued? VAL-WT Valuation Analysis 2026

Based on fundamental analysis, Valaris Ltd appears fundamentally strong relative to the Energy sector in 2026.

Return on Equity
31.0%
Sector avg: 14%
Net Profit Margin
41.5%
Sector avg: 12%
Revenue Growth
N/A
Year-over-year
Debt/Equity
0.34x
Sector avg: 0.6x

Note: This is a fundamental analysis based on SEC filings. For P/E ratio, price targets, and market-based valuation, consult financial data providers. This is not investment advice.

Valaris Ltd Balance Sheet: VAL-WT Debt, Cash & Liquidity

Current Ratio
1.77x
Quick Ratio
1.77x
Debt/Equity
0.34x
Debt/Assets
40.2%
Interest Coverage
15.39x
Long-term Debt
$1.1B

VAL-WT Revenue & Earnings Growth: 5-Year Financial Trend

VAL-WT 5-year financial data: Year 2021: Revenue $2.5M, Net Income -$198.0M, EPS N/A. Year 2022: Revenue $9.2M, Net Income -$4.9B, EPS $-24.42. Year 2023: Revenue $9.2M, Net Income -$4.5B, EPS $-22.38. Year 2024: Revenue $9.6M, Net Income $176.5M, EPS $2.33. Year 2025: Revenue $11.9M, Net Income $865.4M, EPS $11.51.
Revenue
Net Income
EPS (right axis)

5-Year Trend Summary: Valaris Ltd's revenue has grown significantly by 376% over the 5-year period, indicating strong business expansion. The most recent EPS of $11.51 reflects profitable operations.

VAL-WT Revenue Growth, EPS Growth & YoY Performance

Revenue Growth
N/A
Year-over-year
Net Income Growth
N/A
Year-over-year
EPS Growth
N/A
Earnings per share
FCF Margin
8.6%
Free cash flow / Revenue

VAL-WT Quarterly Earnings & Performance

Quarterly financial performance data for Valaris Ltd including revenue, net income, and earnings per share.
Quarter Revenue Net Income EPS
Q3 2025 $6.7M $64.6M $0.88
Q2 2025 $1.1M $77.2M $1.08
Q1 2025 $400.0K $25.5M $0.35
Q3 2024 $11.3M $12.9M $0.17
Q2 2024 $7.4M $17.3M $0.23
Q1 2024 $2.6M $25.5M $0.35
Q3 2023 $5.3M $12.9M $0.17
Q2 2023 $3.9M $17.3M $0.23

Data sourced from SEC EDGAR 10-Q quarterly filings. Figures may represent quarterly or cumulative values.

Valaris Ltd Dividends, Buybacks & Capital Allocation

Operating Cash Flow
$546.2M
Cash generated from operations
Stock Buybacks
$100.0M
Shares repurchased (TTM)
Capital Expenditures
$343.5M
Investment in assets
Dividends
None
No dividend program

VAL-WT SEC Filings: Latest 10-K & 10-Q Analysis

Access official SEC EDGAR filings for Valaris Ltd (CIK: 0000314808)

📋 Recent SEC Filings

Date Form Document Action
Apr 16, 2026 DEF 14A val-20260416.htm View →
Apr 9, 2026 4 xslF345X06/wk-form4_1775767083.xml View →
Apr 9, 2026 4 xslF345X06/wk-form4_1775767043.xml View →
Apr 9, 2026 4 xslF345X06/wk-form4_1775767020.xml View →
Apr 9, 2026 4 xslF345X06/wk-form4_1775766999.xml View →

Frequently Asked Questions about VAL-WT

What is the AI rating for VAL-WT?

Valaris Ltd (VAL-WT) has an AI rating of STRONG BUY with 78% confidence, based on fundamental analysis of SEC EDGAR filings.

What are VAL-WT's key strengths?

Claude: Exceptional net margin of 41.5% with 31% ROE demonstrates strong operational efficiency. Conservative capital structure (0.34x D/E, 1.77x current ratio) with $599.4M cash provides financial flexibility.

What are the risks of investing in VAL-WT?

Claude: Energy sector cyclicality exposure creates vulnerability to oil price and demand downturns. Extraordinary YoY growth rates (+19,807.6% revenue) likely reflect post-restructuring recovery with sustainability questions.

What is VAL-WT's revenue and growth?

Valaris Ltd reported revenue of $2.4B.

Does VAL-WT pay dividends?

Valaris Ltd does not currently pay dividends.

Where can I find VAL-WT SEC filings?

Official SEC filings for Valaris Ltd (CIK: 0000314808) including 10-K, 10-Q, and 8-K reports are available on SEC EDGAR.

What is VAL-WT's EPS?

Valaris Ltd has a diluted EPS of $13.86.

How is the AI analysis conducted?

Two independent AI systems — Claude (Anthropic) and ChatGPT (OpenAI) — analyze SEC EDGAR filings including 10-K annual reports and 10-Q quarterly reports. Each AI evaluates financial health, profitability ratios, balance sheet strength, and growth metrics. The combined rating reflects both perspectives for balanced insights.

Is VAL-WT a good stock to buy right now?

Based on our AI fundamental analysis in April 2026, Valaris Ltd has a STRONG BUY rating with 78% confidence. The AI analysis suggests favorable fundamentals based on SEC filings. This is not investment advice.

Is VAL-WT stock overvalued or undervalued?

Valuation metrics for VAL-WT: ROE of 31.0% (sector avg: 14%), net margin of 41.5% (sector avg: 12%). Higher ROE suggests strong returns relative to peers.

Should I buy VAL-WT stock in 2026?

Our dual AI analysis gives Valaris Ltd a combined STRONG BUY rating for 2026. Revenue is data pending, with profitability above sector average. Always conduct your own research.

What is VAL-WT's free cash flow?

Valaris Ltd's operating cash flow is $546.2M, with capital expenditures of $343.5M. FCF margin is 8.6%.

How does VAL-WT compare to other Energy stocks?

Vs Energy sector averages: Net margin 41.5% (avg: 12%), ROE 31.0% (avg: 14%), current ratio 1.77 (avg: 1.3).

Why is VAL-WT's return on equity (ROE) so high?

Valaris Ltd has a return on equity of 31.0%, significantly above the Energy sector average of 14%. A high ROE indicates the company is efficient at generating profits from shareholder equity. This is supported by a 41.5% net margin.

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Disclaimer: This analysis is generated by Claude AI (Anthropic) and ChatGPT (OpenAI) based on publicly available SEC EDGAR filings. It does not include stock price data and should not be considered financial advice. All fundamental data is sourced from SEC public domain filings. Always conduct your own research and consult with a qualified financial advisor before making investment decisions.
Data Source: SEC EDGAR | Analysis Date: Apr 18, 2026 | Data as of: 2025-12-31 | Powered by Claude AI