Valaris Limited cash flow to debt ratio of 45.66% indicates that the company generates enough cash to cover its debts. This level indicates strong financial health.

Valaris Limited's free cash flow has increased -303.31% from $-99.70M last year to $202.70M, signaling increasing performance

Valaris Limited's debt to equity ratio is 0.34, which means that the company's assets are healthy financed, signaling financial stability.

Valaris Limited's debt has decreased relative to shareholder equity from 0.52 last year to 0.34 today, signaling strengthened financials

Valaris Limited has a net debt to EBITDA ratio of 0.74x, which is below the 3.00x threshold, indicating healthy leverage and financial stability

Valaris Limited's interest coverage ratio of 2.63 indicates that earnings with margin can cover interest payments on company debt

Valaris Limited's profit margin has increased (178.11%) in the last year from 15.80% to 43.95%, signaling increasing performance

Valaris Limited's short-term assets of $1.19B exceed its short-term liabilities of $691.60M

Valaris Limited's return on assets of 17.25% is higher than the 5.00% threshold, indicating efficient asset utilization

Valaris Limited's return on equity of 31.33%, is higher than 15.00%, indicating good performance

Valaris Limited's operating cash flow is lower than its net income, indicating that earnings may not be fully backed by cash generation

Valaris Limited had positive net income in 4 out of 5 years, indicating stable and consistent earnings

Valaris Limited has positive free cash flow, indicating the company generates cash after capital expenditures

Valaris Limited has a free cash flow yield of 3.42%, which is above the 2.00% threshold, indicating strong cash generation relative to market value

Valaris Limited's yearly earnings has increased 163.20% since last year from $373.40M to $982.80M, signaling increasing performance

Valaris Limited's yearly revenue has increased 0.27% since last year from $2.36B to $2.37B, signaling increasing performance

ROIC 5.51% (Source: FMP key-metrics). In the 5–10% partial-credit band. Score: 1 of 2. This band sits within the typical US weighted-average cost of capital range. Methodology choice can change the conclusion: under FMP's invested-capital definition the company is at or near its cost of capital; under narrower operating-capital definitions the same company may score higher. Invested capital here includes equity, non-current liabilities, and short-term debt. Cash is not subtracted. See methodology.

Valaris Limited's 3-year revenue CAGR of 13.92% is positive, indicating growing revenue over the past 3 years

Valaris Limited had revenue growth in 4 out of 5 years, indicating consistent revenue performance

Valaris Limited had positive ROE in 4 out of 5 years, indicating consistent and reliable returns on equity

Valaris Limited has insufficient data to evaluate this check.

Valaris Limited has an earnings yield of 15.85%, which is above the 4.00% threshold, indicating the stock offers reasonable value relative to its earnings

Valaris Limited is overvalued relative to its fair value price of 72.11 based on EBITDA multiple model

Valaris Limited has an EV/EBITDA ratio of 8.17x, which is below the 20.00x threshold, indicating reasonable valuation relative to its operating earnings

Valaris Limited has insufficient data to evaluate this check.

Valaris Limited had non-positive diluted EPS five years ago; the PEG ratio is not meaningful and the check fails.

Valaris Limited has a price-to-book ratio of 1.84x, which is below the 5.00x threshold, indicating reasonable valuation relative to its book value

Valaris Limited has a price-to-sales ratio of 2.77x, which is below the 8.00x threshold, indicating reasonable valuation relative to its revenue