Overall OII gets a fundamental rating of 6 out of 10. We evaluated OII against 61 industry peers in the Energy Equipment & Services industry. While OII belongs to the best of the industry regarding profitability, there are some minor concerns on its financial health. OII has a correct valuation and a medium growth rate.

Quickly go to:

1. Profitability

2. Health

3. Growth

4. Valuation

5. Dividend

1. Profitability

1.1 Basic Checks

OII had positive earnings in the past year.
OII had a positive operating cash flow in the past year.
The reported net income has been mixed in the past 5 years: OII reported negative net income in multiple years.
Each year in the past 5 years OII had a positive operating cash flow.

1.2 Ratios

With an excellent Return On Assets value of 9.14%, OII belongs to the best of the industry, outperforming 90.16% of the companies in the same industry.
OII has a Return On Equity of 25.58%. This is amongst the best in the industry. OII outperforms 93.44% of its industry peers.
With an excellent Return On Invested Capital value of 11.77%, OII belongs to the best of the industry, outperforming 90.16% of the companies in the same industry.
OII had an Average Return On Invested Capital over the past 3 years of 7.48%. This is significantly below the industry average of 12.92%.
The 3 year average ROIC (7.48%) for OII is below the current ROIC(11.77%), indicating increased profibility in the last year.

		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

With a decent Profit Margin value of 8.21%, OII is doing good in the industry, outperforming 77.05% of the companies in the same industry.
OII's Operating Margin of 11.72% is fine compared to the rest of the industry. OII outperforms 62.30% of its industry peers.
In the last couple of years the Operating Margin of OII has grown nicely.
OII's Gross Margin of 20.95% is on the low side compared to the rest of the industry. OII is outperformed by 67.21% of its industry peers.
In the last couple of years the Gross Margin of OII has grown nicely.

		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

The Return on Invested Capital (ROIC) is just above the Cost of Capital (WACC), so OII is still creating some value.
Compared to 1 year ago, OII has about the same amount of shares outstanding.
OII has more shares outstanding than it did 5 years ago.
Compared to 1 year ago, OII has an improved debt to assets ratio.

2.2 Solvency

OII has an Altman-Z score of 3.93. This indicates that OII is financially healthy and has little risk of bankruptcy at the moment.
With an excellent Altman-Z score value of 3.93, OII belongs to the best of the industry, outperforming 85.25% of the companies in the same industry.
OII has a debt to FCF ratio of 4.35. This is a neutral value as OII would need 4.35 years to pay back of all of its debts.
Looking at the Debt to FCF ratio, with a value of 4.35, OII is in line with its industry, outperforming 52.46% of the companies in the same industry.
OII has a Debt/Equity ratio of 0.54. This is a neutral value indicating 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	3.93

ROIC/WACC1.4

WACC8.41%

2.3 Liquidity

OII has a Current Ratio of 1.97. 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 Current ratio (1.97) which is comparable to the rest of the 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.
With a decent Quick ratio value of 1.68, OII is doing good in the industry, outperforming 62.30% of the companies in the same industry.

		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

The Earnings Per Share has grown by an impressive 114.02% over the past year.
The Earnings Per Share has been growing by 103.37% on average over the past years. This is a very strong growth
OII shows quite a strong growth in Revenue. In the last year, the Revenue has grown by 8.71%.
Measured over the past years, OII shows a small growth in Revenue. The Revenue has been growing by 5.38% on average per year.

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.
Based on estimates for the next years, OII will show a small growth in Revenue. The Revenue will grow by 4.89% on average per year.

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

A Price/Earnings ratio of 12.74 indicates a correct valuation of OII.
OII's Price/Earnings ratio is rather cheap when compared to the industry. OII is cheaper than 88.52% of the companies in the same industry.
Compared to an average S&P500 Price/Earnings ratio of 27.21, OII is valued rather cheaply.
Based on the Price/Forward Earnings ratio of 15.63, the valuation of OII can be described as correct.
78.69% of the companies in the same industry are more expensive than OII, based on the Price/Forward Earnings ratio.
Compared to an average S&P500 Price/Forward Earnings ratio of 25.98, OII is valued a bit cheaper.

		Industry Rank	Sector Rank
PE	12.74
Fwd PE	15.63

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.
OII's Price/Free Cash Flow is on the same level as the industry average.

		Industry Rank	Sector Rank
P/FCF	26.07
EV/EBITDA	6.65

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.
A more expensive valuation may be justified as OII's earnings are expected to grow with 14.74% in the coming years.