OII gets a fundamental rating of 6 out of 10. The analysis compared the fundamentals against 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.

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1. Profitability

2. Health

3. Growth

4. Valuation

5. Dividend

1. Profitability

1.1 Basic Checks

OII had positive earnings in the past year.
In the past year OII had a positive cash flow from operations.
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

Looking at the Return On Assets, with a value of 9.14%, OII belongs to the top of the industry, outperforming 90.32% 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 93.55% 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.
The Average Return On Invested Capital over the past 3 years for OII 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

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 has a better Operating Margin (11.72%) than 62.90% of its industry peers.
OII's Operating Margin has improved in the last couple of years.
With a Gross Margin value of 20.95%, OII is not doing good in the industry: 66.13% of the companies in the same industry are doing better.
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.
OII has a better debt/assets ratio than last year.

2.2 Solvency

An Altman-Z score of 3.93 indicates that OII is not in any danger for bankruptcy at the moment.
OII has a Altman-Z score of 3.93. This is amongst the best in the industry. OII outperforms 83.87% 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.
OII has a Debt/Equity ratio of 0.54. This is a neutral value indicating OII is somewhat dependend on debt financing.
Looking at the Debt to Equity ratio, with a value of 0.54, OII is in line with its industry, outperforming 43.55% of the companies in the same industry.

		Industry Rank	Sector Rank
Debt/Equity	0.54
Debt/FCF	4.35
Altman-Z	3.93

ROIC/WACC1.4

WACC8.41%

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

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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.
Measured over the past years, OII shows a very strong growth in Earnings Per Share. The EPS has been growing by 103.37% on average per year.
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

The Earnings Per Share is expected to grow by 12.84% on average over the next years. This is quite good.
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.

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4. Valuation

4.1 Price/Earnings Ratio

Based on the Price/Earnings ratio of 12.74, the valuation of OII can be described as correct.
88.71% of the companies in the same industry are more expensive than OII, based on the Price/Earnings ratio.
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.
The Price/Forward Earnings ratio is 15.63, which indicates a correct valuation of OII.
79.03% of the companies in the same industry are more expensive than OII, based on the Price/Forward Earnings ratio.
The average S&P500 Price/Forward Earnings ratio is at 25.98. OII is valued slightly cheaper when compared to this.

		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 66.13% of the companies 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	26.07
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.
OII's earnings are expected to grow with 14.74% in the coming years. This may justify a more expensive valuation.