MeritValue

Borr Drilling Ltd

BORRdata completeness 88%9 fiscal years on file

Data notes: no data for concept 'capex'

The thesis, from the filings

Borr Drilling Ltd earns about -0% on invested capital, but has diluted owners by 96% over 5 years — worth asking whether the growth reaches owners. The applicable estimate puts fair value near $0.87 a share.Whether it’s worth owning at today’s price is the last question — and yours to answer, below.

i. The business — what you’d actually own
FigureFY 2021FY 2022FY 2023FY 2024FY 2025
Revenue$245.3M1$443.8M2$771.6M3$1.01B3$1.02B3
Net income−$193M4−$292.8M5$22.1M6$82.1M6$45M6
Operating cash flow−$58.9M7$62.5M8−$50.7M9$77.3M9$251.9M9
Capital expenditure—————
Free cash flow (derived)—————
Total debt$3.83B10$1.64B11$1.7B12$2.11B13$2.15B13
Cash & equivalents$34.9M14$108M15$102.5M15$61.6M15$379.7M15
Diluted shares134.7M178.4M248.2M254.5M264.5M

Superscripts are receipts. Each links to the SEC filing the number came from (full list at the bottom).

ii. Your slice — ownership made literal
If you owned
shares
Net assets behind them
$46.21
your share of equity
Profit it earned you last year
$1.7
Free cash flow it threw off
—
Debt you’d be carrying
$81.28

10 shares is a claim on $46.21 of net worth that earned you $1.7 last year, against $81.28 of debt.

iii. Is this a good business?
Moat signal · return on invested capital
-0% avg · 5y
FY21 -1%FY22 -4%FY23 5%FY24 —FY25 —

It earned an average -0% on invested capital over 5 years. Compare that to what it costs to fund the business.

seeing a moat in the numbers →
Management signal · capital allocation
+96% shares · 5y

Share count is up 96% over 5 years — owners have been diluted. Worth asking what they got for it. Total debt has fallen 44% — deleveraging.

reading capital allocation →

Signals, not verdicts — read from the filings above. Numbers don’t prove a moat; they show its footprint. You decide.

iv. What it’s worth — engine v0.1.0
DCF · Growth Exit 10Y
not applicable
only 0 years of FCF (need ≥3) — model not applicable
DCF · Growth Exit 5Y
not applicable
only 0 years of FCF (need ≥3) — model not applicable
Earnings Power Value
$0.87
assumptions (8)
  • riskFreeRate4.7%
  • equityRiskPremium5.0%
  • beta100.0%
  • equityWeight85.0%
  • costOfDebtSpread1.5%
  • taxRate21.0%
  • normalizedEarnings$22.1M
  • growthAssumed0.0%
Graham Number
$4.2
assumptions (1)
  • grahamMultiplier2250.0%

Different models answer different questions — which to trust when →

Sources — the receipts
  1. 20-F · period ending 2021-12-31 · accession 0001628280-24-013209 (RevenueFromContractWithCustomerExcludingAssessedTax)
  2. 20-F · period ending 2022-12-31 · accession 0001628280-25-014602 (RevenueFromContractWithCustomerExcludingAssessedTax)
  3. 20-F · period ending 2023-12-31 · accession 0001628280-26-021450 (RevenueFromContractWithCustomerExcludingAssessedTax)
  4. 20-F · period ending 2021-12-31 · accession 0001628280-24-013209 (NetIncomeLoss)
  5. 20-F · period ending 2022-12-31 · accession 0001628280-25-014602 (NetIncomeLoss)
  6. 20-F · period ending 2023-12-31 · accession 0001628280-26-021450 (NetIncomeLoss)
  7. 20-F · period ending 2021-12-31 · accession 0001628280-24-013209 (NetCashProvidedByUsedInOperatingActivities)
  8. 20-F · period ending 2022-12-31 · accession 0001628280-25-014602 (NetCashProvidedByUsedInOperatingActivities)
  9. 20-F · period ending 2023-12-31 · accession 0001628280-26-021450 (NetCashProvidedByUsedInOperatingActivities)
  10. 20-F · period ending 2021-12-31 · accession 0001628280-23-009769 (LongTermDebtNoncurrent)
  11. 20-F · period ending 2022-12-31 · accession 0001628280-24-013209 (LongTermDebtNoncurrent)
  12. 20-F · period ending 2023-12-31 · accession 0001628280-25-014602 (LongTermDebtNoncurrent)
  13. 20-F · period ending 2024-12-31 · accession 0001628280-26-021450 (LongTermDebtNoncurrent)
  14. 20-F · period ending 2021-12-31 · accession 0001628280-25-014602 (CashAndCashEquivalentsAtCarryingValue)
  15. 20-F · period ending 2022-12-31 · accession 0001628280-26-021450 (CashAndCashEquivalentsAtCarryingValue)