BW OFFSHORE LTD (BWO.OL) Stock Fundamental Analysis
OSL:BWO - Oslo Bors ASA - BMG1190N1002 - Common Stock - Currency: NOK
Overall BWO gets a fundamental rating of 5 out of 10. We evaluated BWO against 35 industry peers in the Energy Equipment & Services industry. While BWO is still in line with the averages on profitability rating, there are concerns on its financial health. A decent growth rate in combination with a cheap valuation! Better keep an eye on BWO.
1. Profitability
1.1 Basic Checks
In the past year BWO was profitable.
In the past year BWO had a positive cash flow from operations.
BWO had positive earnings in 4 of the past 5 years.
BWO had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
BWO's Return On Assets of 3.36% is in line compared to the rest of the industry. BWO outperforms 58.82% of its industry peers.
Looking at the Return On Equity, with a value of 12.87%, BWO is in the better half of the industry, outperforming 67.65% of the companies in the same industry.
Looking at the Return On Invested Capital, with a value of 3.43%, BWO is doing worse than 70.59% of the companies in the same industry.
The Average Return On Invested Capital over the past 3 years for BWO is significantly below the industry average of 12.83%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.36% | ||
| ROE | 12.87% | ||
| ROIC | 3.43% |
ROA(3y)2.78%
ROA(5y)-0.03%
ROE(3y)10.63%
ROE(5y)0.29%
ROIC(3y)3.88%
ROIC(5y)4.68%
1.3 Margins
BWO has a Profit Margin of 21.03%. This is amongst the best in the industry. BWO outperforms 91.18% of its industry peers.
BWO's Profit Margin has improved in the last couple of years.
BWO's Operating Margin of 22.34% is amongst the best of the industry. BWO outperforms 88.24% of its industry peers.
BWO's Operating Margin has been stable in the last couple of years.
The Gross Margin of BWO (50.75%) is better than 85.29% of its industry peers.
BWO's Gross Margin has declined in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 22.34% | ||
| PM (TTM) | 21.03% | ||
| GM | 50.75% |
OM growth 3Y1.5%
OM growth 5Y0.92%
PM growth 3YN/A
PM growth 5Y31.67%
GM growth 3Y-10.38%
GM growth 5YN/A
2. Health
2.1 Basic Checks
The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so BWO is destroying value.
The number of shares outstanding for BWO remains at a similar level compared to 1 year ago.
BWO has less shares outstanding than it did 5 years ago.
The debt/assets ratio for BWO is higher compared to a year ago.
2.2 Solvency
A Debt/Equity ratio of 1.34 is on the high side and indicates that BWO has dependencies on debt financing.
Looking at the Debt to Equity ratio, with a value of 1.34, BWO is doing worse than 76.47% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.34 | ||
| Debt/FCF | N/A | ||
| Altman-Z | N/A |
ROIC/WACC0.66
WACC5.22%
2.3 Liquidity
BWO has a Current Ratio of 1.55. This is a normal value and indicates that BWO is financially healthy and should not expect problems in meeting its short term obligations.
The Current ratio of BWO (1.55) is comparable to the rest of the industry.
A Quick Ratio of 1.54 indicates that BWO should not have too much problems paying its short term obligations.
BWO has a Quick ratio of 1.54. This is comparable to the rest of the industry: BWO outperforms 55.88% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.55 | ||
| Quick Ratio | 1.54 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an impressive 26.53% over the past year.
BWO shows a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 24.19% yearly.
Looking at the last year, BWO shows a very negative growth in Revenue. The Revenue has decreased by -14.84% in the last year.
BWO shows a decrease in Revenue. Measured over the last years, the Revenue has been decreasing by -5.41% yearly.
EPS 1Y (TTM)26.53%
EPS 3Y20.12%
EPS 5Y24.19%
EPS Q2Q%-46.67%
Revenue 1Y (TTM)-14.84%
Revenue growth 3Y-9.4%
Revenue growth 5Y-5.41%
Sales Q2Q%-3.52%
3.2 Future
Based on estimates for the next years, BWO will show a quite strong growth in Earnings Per Share. The EPS will grow by 15.10% on average per year.
BWO is expected to show a decrease in Revenue. In the coming years, the Revenue will decrease by -0.22% yearly.
EPS Next Y10.71%
EPS Next 2Y17.43%
EPS Next 3Y15.1%
EPS Next 5YN/A
Revenue Next Year-2.58%
Revenue Next 2Y-6.33%
Revenue Next 3Y-0.22%
Revenue Next 5YN/A
3.3 Evolution
The estimated forward EPS growth is still strong, although it is decreasing when compared to the stronger growth in the past years.
The Revenue growth rate is accelerating: in the next years the growth will be better than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
A Price/Earnings ratio of 4.53 indicates a rather cheap valuation of BWO.
Based on the Price/Earnings ratio, BWO is valued cheaply inside the industry as 97.06% of the companies are valued more expensively.
BWO is valuated cheaply when we compare the Price/Earnings ratio to 28.47, which is the current average of the S&P500 Index.
The Price/Forward Earnings ratio is 3.92, which indicates a rather cheap valuation of BWO.
97.06% of the companies in the same industry are more expensive than BWO, based on the Price/Forward Earnings ratio.
BWO is valuated cheaply when we compare the Price/Forward Earnings ratio to 92.74, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 4.53 | ||
| Fwd PE | 3.92 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of BWO indicates a somewhat cheap valuation: BWO is cheaper than 61.76% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 5.21 |
4.3 Compensation for Growth
BWO's low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
The decent profitability rating of BWO may justify a higher PE ratio.
A more expensive valuation may be justified as BWO's earnings are expected to grow with 15.10% in the coming years.
PEG (NY)0.42
PEG (5Y)0.19
EPS Next 2Y17.43%
EPS Next 3Y15.1%
5. Dividend
5.1 Amount
BWO has a Yearly Dividend Yield of 9.77%, which is a nice return.
Compared to an average industry Dividend Yield of 5.50, BWO pays a better dividend. On top of this BWO pays more dividend than 97.06% of the companies listed in the same industry.
Compared to an average S&P500 Dividend Yield of 2.28, BWO pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 9.77% |
5.2 History
Dividend Growth(5Y)N/A
Div Incr Years0
Div Non Decr Years0
5.3 Sustainability
50.70% of the earnings are spent on dividend by BWO. This is a bit on the high side, but may be sustainable.
DP50.7%
EPS Next 2Y17.43%
EPS Next 3Y15.1%
BW OFFSHORE LTD
OSL:BWO (2/5/2025, 11:01:14 AM)
31.85
-0.15 (-0.47%)
Chartmill FA Rating
GICS SectorEnergy
GICS IndustryGroupEnergy
GICS IndustryEnergy Equipment & Services
Earnings (Last)
Earnings (Next)
Inst Owners23.69%
Inst Owner ChangeN/A
Ins Owners1.03%
Ins Owner ChangeN/A
Market Cap5.89B
Analysts82
Price Target39.27 (23.3%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 9.77% |
Yearly Dividend0.3
Dividend Growth(5Y)N/A
DP50.7%
Div Incr Years0
Div Non Decr Years0
Ex-DateN/A
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)-17.26%
Min EPS beat(2)-55.89%
Max EPS beat(2)21.37%
EPS beat(4)2
Avg EPS beat(4)-5.29%
Min EPS beat(4)-55.89%
Max EPS beat(4)21.37%
EPS beat(8)3
Avg EPS beat(8)-14.17%
EPS beat(12)N/A
Avg EPS beat(12)N/A
EPS beat(16)N/A
Avg EPS beat(16)N/A
Revenue beat(2)2
Avg Revenue beat(2)34.36%
Min Revenue beat(2)24.8%
Max Revenue beat(2)43.91%
Revenue beat(4)4
Avg Revenue beat(4)29.87%
Min Revenue beat(4)12.49%
Max Revenue beat(4)43.91%
Revenue beat(8)8
Avg Revenue beat(8)25.58%
Revenue beat(12)12
Avg Revenue beat(12)18.82%
Revenue beat(16)15
Avg Revenue beat(16)15.55%
PT rev (1m)0%
PT rev (3m)-5.52%
EPS NQ rev (1m)0%
EPS NQ rev (3m)0%
EPS NY rev (1m)0.88%
EPS NY rev (3m)-0.58%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)0%
Revenue NY rev (1m)4.82%
Revenue NY rev (3m)4.82%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 4.53 | ||
| Fwd PE | 3.92 | ||
| P/S | 0.8 | ||
| P/FCF | N/A | ||
| P/OCF | 0.95 | ||
| P/B | 0.49 | ||
| P/tB | 0.53 | ||
| EV/EBITDA | 5.21 |
EPS(TTM)7.03
EY22.07%
EPS(NY)8.13
Fwd EY25.53%
FCF(TTM)-3.44
FCFYN/A
OCF(TTM)33.38
OCFY104.81%
SpS39.69
BVpS64.82
TBVpS59.67
PEG (NY)0.42
PEG (5Y)0.19
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.36% | ||
| ROE | 12.87% | ||
| ROCE | 3.97% | ||
| ROIC | 3.43% | ||
| ROICexc | 3.91% | ||
| ROICexgc | 4.01% | ||
| OM | 22.34% | ||
| PM (TTM) | 21.03% | ||
| GM | 50.75% | ||
| FCFM | N/A |
ROA(3y)2.78%
ROA(5y)-0.03%
ROE(3y)10.63%
ROE(5y)0.29%
ROIC(3y)3.88%
ROIC(5y)4.68%
ROICexc(3y)4.3%
ROICexc(5y)5.12%
ROICexgc(3y)4.46%
ROICexgc(5y)5.28%
ROCE(3y)4.49%
ROCE(5y)5.42%
ROICexcg growth 3Y-18.92%
ROICexcg growth 5Y-7%
ROICexc growth 3Y-19.65%
ROICexc growth 5Y-7.27%
OM growth 3Y1.5%
OM growth 5Y0.92%
PM growth 3YN/A
PM growth 5Y31.67%
GM growth 3Y-10.38%
GM growth 5YN/A
F-Score6
Asset Turnover0.16
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.34 | ||
| Debt/FCF | N/A | ||
| Debt/EBITDA | 4.33 | ||
| Cap/Depr | 326.54% | ||
| Cap/Sales | 92.77% | ||
| Interest Coverage | 7.53 | ||
| Cash Conversion | 165.72% | ||
| Profit Quality | N/A | ||
| Current Ratio | 1.55 | ||
| Quick Ratio | 1.54 | ||
| Altman-Z | N/A |
F-Score6
WACC5.22%
ROIC/WACC0.66
Cap/Depr(3y)296.18%
Cap/Depr(5y)196.89%
Cap/Sales(3y)83.97%
Cap/Sales(5y)58.05%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)26.53%
EPS 3Y20.12%
EPS 5Y24.19%
EPS Q2Q%-46.67%
EPS Next Y10.71%
EPS Next 2Y17.43%
EPS Next 3Y15.1%
EPS Next 5YN/A
Revenue 1Y (TTM)-14.84%
Revenue growth 3Y-9.4%
Revenue growth 5Y-5.41%
Sales Q2Q%-3.52%
Revenue Next Year-2.58%
Revenue Next 2Y-6.33%
Revenue Next 3Y-0.22%
Revenue Next 5YN/A
EBIT growth 1Y12.44%
EBIT growth 3Y-8.04%
EBIT growth 5Y-4.54%
EBIT Next Year151.67%
EBIT Next 3Y44.02%
EBIT Next 5YN/A
FCF growth 1Y-3840%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y-7.57%
OCF growth 3Y12.99%
OCF growth 5Y5.09%