Valaris Limited (VAL) exhibits -30.0% gross margins and 10.3% return on invested capital within Energy (Oil & Gas Production), balanced against a 9.8x enterprise multiple and 7.1% implied options volatility.
Sustained -30.0% gross profitability converts into 75.0% operating margin and 10.3% ROIC, outpacing sector cost of capital.
ROIC: 10.3% // GM: -30.0%YoY revenue trajectory of +24.0% paired with 2.87% free cash flow yield supports self-funded R&D and capital return.
REV YOY: +24.0% // FCF YLD: 2.87%Altman Z-Score of 3.03 and Piotroski F-Score of 7/9 indicate low near-term refinancing stress.
ALTMAN Z: 3.03 // F-SCORE: 7/9Trading at 7.2x trailing P/E (6.0x Fwd P/E) leaves valuation vulnerable if real 10Y TIPS yields spike.
P/E: 7.2x // EV/EBITDA: 9.8xOptions market prices a ±7.1% implied move with a 0.90 put/call ratio around $100.00 max pain.
IMPL MOVE: ±7.1% // P/C: 0.90Elevated industry capital intensity and customer concentration in Oil & Gas Production require continuous execution to defend 68.0% net margins.
NET MARGIN: 68.0% // D/E: 0.34x| FILER | SIDE | $ VALUE |
|---|---|---|
| INSPECT FULL OWNERSHIP LEDGER IN OWN <GO> | ||
| STRIKE / EXP | TYPE | PREMIUM |
|---|---|---|
| INSPECT GEX & CHAIN IN OPT <GO> | ||
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