OII gets a fundamental rating of 6 out of 10. The analysis compared the fundamentals against 62 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 decent growth rate and is not valued too expensively.

Quickly go to:

1. Profitability

2. Health

3. Growth

4. Valuation

5. Dividend

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 has a better Return On Assets (9.14%) than 90.32% of its industry peers.
OII has a Return On Equity of 25.58%. This is amongst the best in the industry. OII outperforms 93.55% of its industry peers.
OII's Return On Invested Capital of 11.77% is amongst the best of the industry. OII outperforms 90.32% of its industry peers.
OII had an Average Return On Invested Capital over the past 3 years of 7.48%. This is significantly below the industry average of 12.77%.
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

Looking at the Profit Margin, with a value of 8.21%, OII is in the better half of the industry, outperforming 77.42% 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 62.90% of its industry peers.
In the last couple of years the Operating Margin of OII has grown nicely.
Looking at the Gross Margin, with a value of 20.95%, OII is doing worse than 66.13% of the companies in the same industry.
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%

More info and screens

ROA

ROE

ROIC

Operating and Profit Margin

Show most profitable peers

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.
The number of shares outstanding for OII remains at a similar level compared to 1 year ago.
OII has more shares outstanding than it did 5 years ago.
The debt/assets ratio for OII has been reduced compared to a year ago.

2.2 Solvency

An Altman-Z score of 3.90 indicates that OII is not in any danger for bankruptcy at the moment.
OII has a Altman-Z score of 3.90. This is amongst the best in the industry. OII outperforms 82.26% of its industry peers.
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.
With a Debt to FCF ratio value of 4.35, OII perfoms like the industry average, outperforming 51.61% of the companies in the same industry.
A Debt/Equity ratio of 0.54 indicates that OII is somewhat dependend on debt financing.
The Debt to Equity ratio of OII (0.54) is comparable to the rest of the industry.

		Industry Rank	Sector Rank
Debt/Equity	0.54
Debt/FCF	4.35
Altman-Z	3.9

ROIC/WACC1.42

WACC8.3%

2.3 Liquidity

A Current Ratio of 1.97 indicates that OII should not have too much problems paying its short term obligations.
OII has a Current ratio (1.97) which is comparable to the rest of the industry.
A Quick Ratio of 1.68 indicates that OII should not have too much problems paying its short term obligations.
The Quick ratio of OII (1.68) is better than 61.29% of its industry peers.

		Industry Rank	Sector Rank
Current Ratio	1.97
Quick Ratio	1.68

More info and screens

WACC

Debt/Equity

How to determine the health of a company

Altman-Z score

Show peers with great health

3. Growth

3.1 Past

The Earnings Per Share has grown by an impressive 114.02% over the past year.
OII shows a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 103.37% yearly.
Looking at the last year, OII shows a quite strong growth in Revenue. The Revenue has grown by 8.71% in the last year.
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.
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.
The Revenue growth rate is stable: in the next years the growth will be about the same than in the last years.

More info and screens

Find the best growth stocks

Show best growing peers

4. Valuation

4.1 Price/Earnings Ratio

OII is valuated correctly with a Price/Earnings ratio of 12.74.
Based on the Price/Earnings ratio, OII is valued cheaper than 88.71% of the companies in the same industry.
When comparing the Price/Earnings ratio of OII to the average of the S&P500 Index (27.21), we can say OII is valued rather cheaply.
OII is valuated correctly with a Price/Forward Earnings ratio of 15.63.
OII's Price/Forward Earnings ratio is rather cheap when compared to the industry. OII is cheaper than 80.65% of the companies in the same industry.
OII is valuated rather cheaply when we compare the Price/Forward Earnings ratio to 24.26, which is the current average of the S&P500 Index.

		Industry Rank	Sector Rank
PE	12.74
Fwd PE	15.63

4.2 Price Multiples

Based on the Enterprise Value to EBITDA ratio, OII is valued a bit cheaper than the industry average as 67.74% of the companies are valued more expensively.
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	26.07
EV/EBITDA	6.48

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.