Valaris Limited — Earnings Quality Grade F
VAL · Energy
Major red flags
Screening Summary
Management Signals
Financial Trends
Revenue & Net Income ($B)
Margins (%)
18-Point Screening
Revenue Quality
DSO 65 days, change -12 days YoY
AR growth -15.6% vs revenue growth 0.3%
Revenue 0.3%, CFFO 53.7%. Cash follows revenue
Expense Quality
No material inventory
CapEx growth -24.5% vs revenue 0.3%. Normal
SG&A/Gross Profit = 16.4%, excellent (<30%)
Gross margin 25.0%, change +4.7pp. Stable
Cash Flow Quality
CFFO < Net Income for 3 consecutive years
FCF < 50% of Net Income for 3 years
Accruals ratio = 8.2%. Elevated
Cash $0.6B covers 52% of debt $1.2B
Balance Sheet Health
No goodwill. Clean balance sheet
Debt/EBITDA = 1.5x. Healthy
Other assets 7.1% vs revenue 0.3%. Normal
No write-off data
Acquisition Risk
FCF after acquisitions negative for 2/3 years
No goodwill
Manipulation Score
M-Score = -2.20 (grey zone)
Portfolio monitoring
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Beneish M-Score
Altman Z-Score
Generated from public financial data using forensic accounting frameworks. Not investment advice. Data: Yahoo Finance · 2026-04-25