OCEANEERING INTL INC (OII) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:OII - US6752321025 - Common Stock
30.155 USD
+0.48 (+1.63%)
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 scores excellent on profitability, but there are some minor concerns on its financial health. OII has a correct valuation and a medium growth rate.
1. Profitability
1.1 Basic Checks
- In the past year OII was profitable.
- OII had a positive operating cash flow in the past year.
- 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's Return On Assets of 9.14% is amongst the best of the industry. OII outperforms 90.16% of its industry peers.
- OII has a better Return On Equity (25.58%) than 93.44% of its industry peers.
- OII's Return On Invested Capital of 11.77% is amongst the best of the industry. OII outperforms 90.16% of its industry peers.
- The Average Return On Invested Capital over the past 3 years for OII is significantly below the industry average of 12.90%.
- 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's Profit Margin of 8.21% is fine compared to the rest 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.
- Looking at the Gross Margin, with a value of 20.95%, OII is doing worse than 67.21% of the companies in the same industry.
- 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%
2. Health
2.1 Basic Checks
- With a Return on Invested Capital (ROIC) just above the Cost of Capital (WACC), OII is 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 3.95. This indicates that OII is financially healthy and has little risk of bankruptcy at the moment.
- With an excellent Altman-Z score value of 3.95, OII belongs to the best of the industry, outperforming 85.25% of the companies in the same industry.
- 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's Debt to FCF ratio of 4.35 is in line compared to the rest of the industry. OII outperforms 52.46% of 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 (0.54) which is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.54 | ||
| Debt/FCF | 4.35 | ||
| Altman-Z | 3.95 |
ROIC/WACC1.4
WACC8.43%
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's Current ratio of 1.97 is in line compared to the rest of the industry. OII outperforms 54.10% of its industry peers.
- 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 |
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.
- OII is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 4.89% yearly.
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
- Although the future EPS growth is still strong, it is not able to hold up the even more excellent growth rate of the past years.
- The Revenue growth rate is stable: in the next years the growth will be about the same than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
- The Price/Earnings ratio is 13.17, which 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.
- The average S&P500 Price/Earnings ratio is at 28.60. OII is valued rather cheaply when compared to this.
- Based on the Price/Forward Earnings ratio of 16.16, the valuation of OII can be described as correct.
- OII's Price/Forward Earnings ratio is a bit cheaper when compared to the industry. OII is cheaper than 75.41% of the companies in the same industry.
- OII is valuated rather cheaply when we compare the Price/Forward Earnings ratio to 25.83, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 13.17 | ||
| Fwd PE | 16.16 |
4.2 Price Multiples
- Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of OII indicates a somewhat cheap valuation: OII is cheaper than 65.57% of the companies listed in the same industry.
- The rest of the industry has a similar Price/Free Cash Flow ratio as OII.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 26.95 | ||
| EV/EBITDA | 6.76 |
4.3 Compensation for Growth
- OII's low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
- OII has a very decent profitability rating, which 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.
PEG (NY)0.43
PEG (5Y)N/A
EPS Next 2Y14.22%
EPS Next 3Y14.74%
5. Dividend
5.1 Amount
- OII does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0% |
OCEANEERING INTL INC / OII FAQ
What is the ChartMill fundamental rating of OCEANEERING INTL INC (OII) stock?
ChartMill assigns a fundamental rating of 6 / 10 to OII.
What is the valuation status of OCEANEERING INTL INC (OII) stock?
ChartMill assigns a valuation rating of 6 / 10 to OCEANEERING INTL INC (OII). This can be considered as Fairly Valued.
Can you provide the profitability details for OCEANEERING INTL INC?
OCEANEERING INTL INC (OII) has a profitability rating of 7 / 10.
What is the expected EPS growth for OCEANEERING INTL INC (OII) stock?
The Earnings per Share (EPS) of OCEANEERING INTL INC (OII) is expected to grow by 30.98% in the next year.
Can you provide the dividend sustainability for OII stock?
The dividend rating of OCEANEERING INTL INC (OII) is 0 / 10 and the dividend payout ratio is 0%.