We assign a fundamental rating of 6 out of 10 to OII. OII was compared to 61 industry peers in the Energy Equipment & Services industry. OII has an excellent profitability rating, but there are some minor concerns on its financial health. OII has a decent growth rate and is not valued too expensively.

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1. Profitability

2. Health

3. Growth

4. Valuation

5. Dividend

1. Profitability

1.1 Basic Checks

In the past year OII was profitable.
In the past year OII had a positive cash flow from operations.
In multiple years OII reported negative net income over the last 5 years.
In the past 5 years OII always reported a positive cash flow from operatings.

1.2 Ratios

OII has a Return On Assets of 9.14%. This is amongst the best in the industry. OII outperforms 90.16% of its industry peers.
With an excellent Return On Equity value of 25.58%, OII belongs to the best of the industry, outperforming 93.44% of the companies in the same industry.
Looking at the Return On Invested Capital, with a value of 11.77%, OII belongs to the top of the industry, outperforming 90.16% of the companies in the same industry.
The Average Return On Invested Capital over the past 3 years for OII is significantly below the industry average of 12.88%.
The last Return On Invested Capital (11.77%) for OII is above the 3 year average (7.48%), which is a sign of increasing profitability.

		Industry Rank	Sector Rank
ROA	9.14%
ROE	25.58%
ROIC	11.77%

ROA(3y)3.98%

ROA(5y)-2.97%

ROE(3y)13.72%

ROE(5y)-11.72%

ROIC(3y)7.48%

ROIC(5y)N/A

1.3 Margins

OII has a Profit Margin of 8.21%. This is in the better half of the industry: OII outperforms 77.05% of its industry peers.
The Operating Margin of OII (11.72%) is better than 62.30% of its industry peers.
OII's Operating Margin has improved in the last couple of years.
The Gross Margin of OII (20.95%) is worse than 67.21% of its industry peers.
OII's Gross Margin has improved in the last couple of years.

		Industry Rank	Sector Rank
OM	11.72%
PM (TTM)	8.21%
GM	20.95%

OM growth 3Y63.2%

OM growth 5YN/A

PM growth 3YN/A

PM growth 5YN/A

GM growth 3Y8.9%

GM growth 5Y30.64%

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ROA

ROE

ROIC

Operating and Profit Margin

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2. Health

2.1 Basic Checks

OII has a Return on Invested Capital (ROIC), which is just above the Cost of Capital (WACC), which means it is creating some value.
The number of shares outstanding for OII remains at a similar level compared to 1 year ago.
The number of shares outstanding for OII has been increased compared to 5 years ago.
The debt/assets ratio for OII has been reduced compared to a year ago.

2.2 Solvency

OII has an Altman-Z score of 3.97. This indicates that OII is financially healthy and has little risk of bankruptcy at the moment.
OII has a better Altman-Z score (3.97) than 85.25% of its industry peers.
The Debt to FCF ratio of OII is 4.35, which is a neutral value as it means it would take OII, 4.35 years of fcf income to pay off all of its debts.
OII has a Debt to FCF ratio (4.35) which is in line with its industry peers.
A Debt/Equity ratio of 0.54 indicates that OII is somewhat dependend on debt financing.
OII has a Debt to Equity ratio of 0.54. This is comparable to the rest of the industry: OII outperforms 44.26% of its industry peers.

		Industry Rank	Sector Rank
Debt/Equity	0.54
Debt/FCF	4.35
Altman-Z	3.97

ROIC/WACC1.4

WACC8.43%

2.3 Liquidity

A Current Ratio of 1.97 indicates that OII should not have too much problems paying its short term obligations.
With a Current ratio value of 1.97, OII perfoms like the industry average, outperforming 54.10% of the companies in the same industry.
OII has a Quick Ratio of 1.68. This is a normal value and indicates that OII is financially healthy and should not expect problems in meeting its short term obligations.
OII has a better Quick ratio (1.68) than 62.30% of its industry peers.

		Industry Rank	Sector Rank
Current Ratio	1.97
Quick Ratio	1.68

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WACC

Debt/Equity

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Altman-Z score

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3. Growth

3.1 Past

OII shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 114.02%, which is quite impressive.
OII shows a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 103.37% yearly.
OII shows quite a strong growth in Revenue. In the last year, the Revenue has grown by 8.71%.
OII shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 5.38% yearly.

EPS 1Y (TTM)114.02%

EPS 3Y103.37%

EPS 5YN/A

EPS Q2Q%77.5%

Revenue 1Y (TTM)8.71%

Revenue growth 3Y12.49%

Revenue growth 5Y5.38%

Sales Q2Q%9.28%

3.2 Future

Based on estimates for the next years, OII will show a quite strong growth in Earnings Per Share. The EPS will grow by 12.84% on average per year.
The Revenue is expected to grow by 4.89% on average over the next years.

EPS Next Y30.98%

EPS Next 2Y14.22%

EPS Next 3Y14.74%

EPS Next 5Y12.84%

Revenue Next Year5.94%

Revenue Next 2Y3.36%

Revenue Next 3Y4.96%

Revenue Next 5Y4.89%

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.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is stable.

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4. Valuation

4.1 Price/Earnings Ratio

With a Price/Earnings ratio of 13.14, OII is valued correctly.
Based on the Price/Earnings ratio, OII is valued cheaply inside the industry as 88.52% of the companies are valued more expensively.
Compared to an average S&P500 Price/Earnings ratio of 28.30, OII is valued rather cheaply.
Based on the Price/Forward Earnings ratio of 16.13, the valuation of OII can be described as correct.
Based on the Price/Forward Earnings ratio, OII is valued a bit cheaper than 75.41% of the companies in the same industry.
When comparing the Price/Forward Earnings ratio of OII to the average of the S&P500 Index (25.57), we can say OII is valued slightly cheaper.

		Industry Rank	Sector Rank
PE	13.14
Fwd PE	16.13

4.2 Price Multiples

OII's Enterprise Value to EBITDA ratio is a bit cheaper when compared to the industry. OII is cheaper than 65.57% of the companies in the same industry.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of OII is on the same level as its industry peers.

		Industry Rank	Sector Rank
P/FCF	26.9
EV/EBITDA	6.93

4.3 Compensation for Growth

The low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
The decent profitability rating of OII may justify a higher PE ratio.
OII's earnings are expected to grow with 14.74% in the coming years. This may justify a more expensive valuation.