Is VAL a high-quality business?

AlphaMadera's AlphaQuality grade scores Valaris Limited on six pillars — profitability, capital efficiency, balance-sheet strength, growth durability, cash generation, and shareholder yield. The composite letter grade reflects how VAL compares to a Buffett-style quality bar.

What is Valaris Limited's AlphaQuality grade?

AlphaQuality assigns a letter grade (A through F) to VAL based on a six-pillar quantitative model. The live page shows the composite grade plus each pillar's individual score with the underlying metrics.

What makes VAL a quality stock?

AlphaQuality looks at return on capital, free-cash-flow margins, debt-to-equity, revenue stability, dividend and buyback policy, and operating-margin trend. Stocks scoring well across all six pillars earn higher grades — the methodology favors compounders over cyclicals.

VAL - Valaris Limited

Price: -- -- | CONSENSUS: Hold DETAILS | PRICE TARGET: $96.00 DETAILS

AlphaQuality

Quantitative six-pillar business-quality grade

Oil & Gas E&P

AlphaQuality — archetype-weighted quantitative grade

C- 45.0 / 100 composite

Composite Grade

Composite of six pillars weighted for oil & gas e&p businesses. Purely quantitative — no stock price or analyst input.

Profitability

Weight: 15%

C 52.8

5yr Avg ROIC 4.5% 33/100
Operating Margin Trend +20.01 pp/yr 100/100

Capital Efficiency

Weight: 10%

D- 29.0

5yr Avg ROE -13.2% 0/100
5yr Share-Count CAGR -1.4% 83/100

Growth Quality

Weight: 5%

A+ 94.1

5yr Revenue CAGR 17.7% 96/100
5yr EPS CAGR 81.2% 100/100
Revenue-Growth Years (5) 4/5 80/100

Cash Generation

Weight: 25%

F 0.0

5yr FCF Margin -7.0% 0/100
5yr FCF/NI Conversion -0.25x 0/100

Balance Sheet

Weight: 25%

A- 82.0

Net Debt / EBITDA 0.74x 88/100
Interest Coverage (EBIT/Int) 6.59x 71/100
Altman Z-Score 3.32 85/100

Stability

Weight: 20%

C- 45.0

EPS Volatility (σ/μ) 0.55 26/100
Piotroski F-Score 4 44/100
Negative-Revenue Years (5) 1/5 80/100

5 of 6 gurus held; 5 trimmed; 1 full exit.

Holders: 5 -1
Avg Δ position: -37.8%
New buys: 0
Full exits: 1

Pabrai sold -100%
Laffont decreased -73%
Dalio decreased -53%

How this is calculated

AlphaQuality grades six pillars from 0-100 and weights each by archetype:

Profitability (15%) — 5yr Avg ROIC, Operating Margin Trend
Capital Efficiency (10%) — 5yr Avg ROE, 5yr Share-Count CAGR
Growth Quality (5%) — 5yr Revenue CAGR, 5yr EPS CAGR, Revenue-Growth Years (5)
Cash Generation (25%) — 5yr FCF Margin, 5yr FCF/NI Conversion
Balance Sheet (25%) — Net Debt / EBITDA, Interest Coverage (EBIT/Int), Altman Z-Score
Stability (20%) — EPS Volatility (σ/μ), Piotroski F-Score, Negative-Revenue Years (5)

We deliberately ignore stock price, analyst targets, and consensus ratings so the grade is suitable for backtesting forward returns. A minimum of 5 fiscal years of audited statements is required; distressed and highly leveraged infrastructure businesses are declared ungradable rather than forced into a numeric score.