Borr Drilling Story

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BORR -- USA Stock  

USD 0.97  0.06  6.59%

Borr Drilling is scheduled to announce its earnings today. The stock is currently experiencing an unusual volatility. While many of us are getting excited about energy space, we are going to sum up the feasibility of buying Borr Drilling. I will address why retail investors ignored this entity since the beginning of the latest economic outlook.
Published over a month ago
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Our latest take on Borr Drilling (NYSE:BORR) analyst consensus
Borr Drilling is OVERVALUED at 0.63 per share with modest projections ahead. We provide trade advice to complement the prevailing expert consensus on Borr Drilling. Our dynamic recommendation engine uses a multidimensional algorithm to analyze the company's potential to grow using all technical and fundamental data available at the time.
What is the right price you would pay to acquire a share of Borr Drilling? For most investors, it would be the price that gives them a wide margin of safety to have minimal downside risk. In other words, most investors are always looking for undervalued stocks. Even if the future performance is not entirely as expected, the loss of holding it is minimized, and the downside risk is negated. Please read more on our stock advisor page.

Watch out for price decline

Please consider monitoring Borr Drilling on a daily basis if you are holding a position in it. Borr Drilling is trading at a penny-stock level, and the possibility of delisting is much higher compared to other equities. However, just because the stock is trading under one dollar, does not mean it will be marked for deletion. Most exchanges require public instruments, such as Borr Drilling stock to be traded above the $1 level to remain listed. If Borr Drilling stock price falls below $1 for 30 consecutive trading days, the exchange can delist it. Once the company reaches this point, they will be sent an initial price violation notice directly from an exchange.

How important is Borr Drilling's Liquidity

Borr Drilling financial leverage refers to using borrowed capital as a funding source to finance Borr Drilling ongoing operations. It is usually used to expand the firm's asset base and generate returns on borrowed capital. Borr Drilling financial leverage is typically calculated by taking the company's all interest-bearing debt and dividing it by total capital. So the higher the debt-to-capital ratio (i.e., financial leverage), the riskier the company. Please check the breakdown between Borr Drilling's total debt and its cash.

How Borr Drilling utilizes its cash?

To perform a cash flow analysis of Borr Drilling, investors first need to understand how to read the cash flow statement. A cash flow statement shows the amount of cash Borr Drilling is receiving and how much cash it distributes out in a given period. The Borr Drilling cash flow statement breaks down these inflows and outflows into different buckets, including operating activities, investing activities, and financing activities. Borr Drilling Net Cash Flow from Operations is relatively stable at the moment as compared to the past year. Borr Drilling reported last year Net Cash Flow from Operations of (102.35 Million)

Is Borr Drilling a risky opportunity?

Let's check the volatility. Borr Drilling is looking slightly risky at this time. Whether you invest your money or manage your clients' funds, remember that it is easy to forget that behind Borr Drilling (NYSE:BORR) stock is an actual business venture. So, do not let stock picking become an abstract concept by ignoring the elementary risk calculations. buying a share of a Borr Drilling stock makes you a part-owner of that company.

The case for Borr Drilling fall maybe to hold

Latest Jensen Alpha is up to -0.06. Price may fall again. As of the 30th of November, Borr Drilling shows the Risk Adjusted Performance of 0.0354, mean deviation of 5.27, and Downside Deviation of 5.54. Borr Drilling technical analysis gives you the methodology to make use of historical prices and volume patterns to determine a pattern that approximates the direction of the firm's future prices. Put another way, you can use this information to find out if the firm will indeed mirror its model of historical prices and volume momentum, or the prices will eventually revert. We were able to analyze nineteen technical drivers for Borr Drilling, which can be compared to its rivals. Please confirm Borr Drilling standard deviation, maximum drawdown, as well as the relationship between the Maximum Drawdown and expected short fall to decide if Borr Drilling is priced correctly, providing market reflects its regular price of 0.76 per share. As Borr Drilling is a penny stock we also strongly suggest to validate its total risk alpha numbers.

Our Bottom Line On Borr Drilling

While some other firms within the oil & gas drilling industry are still a little expensive, even after the recent corrections, Borr Drilling may offer a potential longer-term growth to retail investors. To conclude, as of the 30th of November 2020, we believe that at this point, Borr Drilling is overvalued with above average probability of distress within the next 2 years. Our primary buy vs. sell advice on the enterprise is Strong Sell.

About Contributor

This story should be regarded as informational only and should not be considered a solicitation to sell or buy any financial products. Macroaxis does not express any opinion as to the present or future value of any investments referred to in this post. This post may not be reproduced without the consent of Macroaxis LLC. Macroaxis LLC and Vlad Skutelnik do not own shares of Borr Drilling. Please refer to our Terms of Use for any information regarding our disclosure principles.

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