Borr Drilling Limited (BORR)
Valuation Overview•Is Borr Drilling Limited Overvalued or Undervalued?
Trading at a discount to intrinsic cash flow value, implying pessimistic long-term market expectations.
Fragile underlying quality score of 44/100; weak margins or elevated debt leverage warrant caution.
Analysts remain bullish, forecasting further upside expansion with consensus targets suggesting solid gains.
Verdict: Average quality business weighed down by significant solvency concerns.
Wall Street is highly bullish, projecting significant upside. However, capital return yields remain modest, anchored by a strong, well-covered dividend yield.
BORR demonstrates adequate business quality with stable profitability. However, the balance sheet carries elevated leverage, requiring careful monitoring of debt servicing capabilities.
The company is driving exceptional top-line expansion (32.0% 3Y CAGR) paired with stable bottom-line earnings. This growth is supported by elite operational efficiency, sustaining an impressive 29.3% operating margin.
| Financial Metric | Trend (12Q) | Latest Qtr | 1Y Growth | 3Y CAGR | 5Y CAGR | 10Y CAGR |
|---|---|---|---|---|---|---|
| Revenue | $247.0M | +1.0% | +32.0% | +27.1% | — | |
| EBITDA | $46.0M | — | +218.1% | — | — | |
| Net Income | -$29.0M | -45.2% | — | — | — | |
| EPS (Diluted) | $-0.09 | -46.9% | — | — | — | |
| Free Cash Flow | -$134.8M | +138.4% | — | — | — |
| Metric | TTM | 3Y Avg | 5Y Avg | 10Y Avg |
|---|---|---|---|---|
| Gross Margin | 46.0% | 69.4% | 66.7% | -3956.0% |
| Operating Margin | 29.3% | 33.7% | 8.4% | -12204.9% |
| Net Margin | 3.4% | 5.1% | -25.9% | -9826.3% |
| FCF Margin | -11.5% | -13.9% | -15.6% | -121159.8% |
| Quarter | EPS Est. | EPS Act. | Surprise | EPS | Rev |
|---|---|---|---|---|---|
| Q2'26Latest | $-0.02 | $-0.09 | -333.9% | ||
| Q1'26 | $-0.02 | $-0.00 | +78.1% | ||
| Q4'25 | $-0.03 | $0.10 | +490.9% | ||
| Q3'25 | $0.10 | $0.14 | +46.5% | ||
| Q2'25 | $-0.06 | $-0.07 | -16.7% | ||
| Q1'25 | $0.11 | $0.10 | -9.1% | ||
| Q4'24 | $0.09 | $0.04 | -55.6% | ||
| Q3'24 | $0.19 | $0.12 | -36.8% |
Total return is +88.4% (1Y), outperforming the benchmark by +63.4%
| Period | Total Return | vs S&P 500 (Alpha) | Dividend Contribution |
|---|---|---|---|
| YTD | +5.8% | -3.5% | — |
| 1Y | +88.4% | +63.4% | — |
| 3YCAGR | -12.4% | -31.6% | +5.3% |
| 5YCAGR | +21.1% | +9.3% | +20.5% |
| 10YCAGR | -13.5% | -27.1% | — |
The S&P 500 is at 31.3x trailing P/E — Expensive relative to historical averages.
Quick answers to common questions about Borr Drilling Limited (BORR) valuation, health, and returns.
Borr Drilling Limited is estimated to be undervalued under our discounted cash flow framework. relative multiples indicate the stock is Fair versus peers compared to industry peers. undervalued (implying +384.1% upside to DCF intrinsic value of $20.43)
Borr Drilling Limited has multiple valuation anchors: DCF Intrinsic Value: $20.43 | Peer Relative Fair Value: $4.39 | Wall Street Analyst Target: $5.70 (implying +35.1% upside). A convergence of these signals offers higher conviction.
Borr Drilling Limited displays fair financial health with a composite quality score of 44/100, supported by a Altman Z-Score of -0.2 (distress zone), Piotroski F-Score of 5/9, Return on Invested Capital (ROIC) of 8.0%.
Borr Drilling Limited pays a 0.4% dividend yield, covered by a 10% payout ratio with 0 years of growth, supplemented by a 0.0% buyback yield.
Borr Drilling Limited's current growth trajectory is Decelerating. The company achieved +1.0% 1Y revenue growth and -46.9% 1Y EPS growth, compared to its 3Y revenue CAGR of +32.0%.
Wall Street consensus is Hold based on 4 analysts, beating EPS expectations in 25% of recent quarters with a -1-quarter streak. The consensus price target represents a +35.1% change from current levels.
Investment risks for Borr Drilling Limited include: -36.2% 1-year max drawdown, high beta (1.55x market volatility), elevated distress risk. Volatility risk is characterized by a beta of 1.55x.
No. These computations are purely quantitative model outputs for informational purposes. They do not account for qualitative management shifts or macro events. Always consult a licensed RIA before buying or selling shares.
Disclaimer: This page is for informational purposes only and does not constitute financial advice. All valuation models, scores, and target estimates are automated computations under stated assumptions and should not be relied upon as the sole basis for any investment decision.