BORRBorr Drilling demonstrates a mixed investment profile. It offers a strong dividend yield and is in a recovering sector, but faces high debt levels and mixed recent profitability. Technicals suggest a recent positive trend but potential for short-term volatility.
The company operates in the oil and gas drilling sector, which is subject to cyclical demand driven by energy prices and exploration activities. The transition to renewable energy sources presents a long-term thematic challenge, while the current energy market dynamics offer some short-to-medium term tailwinds.
Borr Drilling shows a strong dividend yield and improving revenues, but is burdened by significant debt and recent negative free cash flow. Profitability has been inconsistent, with recent quarters showing mixed results after a challenging period.
The stock has shown positive momentum over the last 1-6 months, with prices trading above key moving averages. However, recent performance and some oscillator readings suggest it may be approaching overbought conditions, warranting caution for short-term traders.
| Factor | Score |
|---|---|
| Energy Market Cyclicality | 70 |
| Energy Transition | 40 |
| Offshore Drilling Demand | 75 |
| Geopolitical Factors | 60 |
| Technological Advancement | 65 |
| Factor | Score |
|---|---|
| Valuation | 45 |
| Profitability | 60 |
| Growth | 70 |
| Balance Sheet Health | 30 |
| Cash Flow | 20 |
| Dividends | 85 |
| Factor | Score |
|---|---|
| Trend Analysis | 75 |
| Momentum | 55 |
| Performance | 40 |
| Volume | 70 |
| Support/Resistance | 50 |
Improving Earnings Trend
Recent quarterly EPS surprise was positive (11.11% for Q1 2025) following several quarters of negative surprises, indicating a potential turnaround in profitability.
Attractive P/E Ratio
The trailing P/E ratio of 31.0, while higher than the sector average, is decreasing compared to previous periods, suggesting potential value if earnings continue to recover.
High Enterprise Value to Revenue
The Price/Sales (PS) ratio for 2024 is 1.0, which is relatively high compared to the P/S of 0.8 in 2023, indicating a potential overvaluation as revenue growth slows.
Slowing Revenue Growth
While revenue grew significantly in 2024, the quarterly revenue for Q1 2025 is projected at $216.6 million, a decrease from Q4 2024's $263.1 million, suggesting potential deceleration.
March 2025
3
Ex-Dividend Date
March 2025
19
Next Dividend Date
August 2025
14
Next Earnings Date
H: $0.12
A: $0.10
L: $0.09
H: 269.00M
A: 262.24M
L: 255.10M
Borr Drilling Limited operates as an offshore shallow-water drilling contractor to the oil and gas industry in the United States, the Middle East, South East Asia, Europe, Latin America, and West Africa. The company owns, contracts, and operates jack-up drilling rigs for operations in shallow-water areas, such as the provision of related equipment and work crews to conduct oil and gas drilling and workover operations for exploration and production. It serves oil and gas exploration and production companies, such as integrated oil companies, state-owned national oil companies, and independent oil and gas companies. The company was formerly known as Magni Drilling Limited and changed its name to Borr Drilling Limited in December 2016. Borr Drilling Limited was incorporated in 2016 and is based in Hamilton, Bermuda.
3.20 USD
The 39 analysts offering 1 year price forecasts for BORR have a max estimate of 5.59 and a min estimate of 2.20.