ODFJELL TECHNOLOGY LTD (OTL.OL) Stock Fundamental Analysis
Europe - Euronext Oslo - OSL:OTL - BMG6716L1081 - Common Stock
58.5 NOK
+0.1 (+0.17%)
Overall OTL gets a fundamental rating of 5 out of 10. We evaluated OTL against 36 industry peers in the Energy Equipment & Services industry. OTL has a medium profitability rating, but doesn't score so well on its financial health evaluation. OTL is valued quite cheap, while showing a decent growth score. This is a good combination!
1. Profitability
1.1 Basic Checks
- In the past year OTL was profitable.
- In the past year OTL had a positive cash flow from operations.
- Each year in the past 5 years OTL has been profitable.
- Each year in the past 5 years OTL had a positive operating cash flow.
1.2 Ratios
- OTL has a better Return On Assets (7.95%) than 75.00% of its industry peers.
- OTL's Return On Equity of 27.35% is amongst the best of the industry. OTL outperforms 86.11% of its industry peers.
- Looking at the Return On Invested Capital, with a value of 14.10%, OTL belongs to the top of the industry, outperforming 83.33% of the companies in the same industry.
- Measured over the past 3 years, the Average Return On Invested Capital for OTL is significantly above the industry average of 10.31%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 7.95% | ||
| ROE | 27.35% | ||
| ROIC | 14.1% |
ROA(3y)7.83%
ROA(5y)6.09%
ROE(3y)27.62%
ROE(5y)18.35%
ROIC(3y)15.47%
ROIC(5y)10.98%
1.3 Margins
- The Profit Margin of OTL (6.03%) is comparable to the rest of the industry.
- OTL's Profit Margin has declined in the last couple of years.
- OTL's Operating Margin of 8.80% is in line compared to the rest of the industry. OTL outperforms 41.67% of its industry peers.
- In the last couple of years the Operating Margin of OTL has grown nicely.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 8.8% | ||
| PM (TTM) | 6.03% | ||
| GM | N/A |
OM growth 3Y28.05%
OM growth 5Y2.67%
PM growth 3Y5.69%
PM growth 5Y-12.66%
GM growth 3YN/A
GM growth 5YN/A
2. Health
2.1 Basic Checks
- OTL has a Return on Invested Capital (ROIC), which is just above the Cost of Capital (WACC), which means it is creating some value.
- Compared to 1 year ago, OTL has about the same amount of shares outstanding.
- OTL has about the same amout of shares outstanding than it did 5 years ago.
- The debt/assets ratio for OTL has been reduced compared to a year ago.
2.2 Solvency
- OTL has a Debt/Equity ratio of 1.24. This is a high value indicating a heavy dependency on external financing.
- The Debt to Equity ratio of OTL (1.24) is worse than 77.78% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.24 | ||
| Debt/FCF | N/A | ||
| Altman-Z | N/A |
ROIC/WACC1.63
WACC8.65%
2.3 Liquidity
- A Current Ratio of 1.84 indicates that OTL should not have too much problems paying its short term obligations.
- With a decent Current ratio value of 1.84, OTL is doing good in the industry, outperforming 63.89% of the companies in the same industry.
- OTL has a Quick Ratio of 1.84. This is a normal value and indicates that OTL is financially healthy and should not expect problems in meeting its short term obligations.
- With a decent Quick ratio value of 1.84, OTL is doing good in the industry, outperforming 69.44% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.84 | ||
| Quick Ratio | 1.84 |
3. Growth
3.1 Past
- OTL shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 51.54%, which is quite impressive.
- The Earnings Per Share has been growing by 57.97% on average over the past years. This is a very strong growth
- Looking at the last year, OTL shows a small growth in Revenue. The Revenue has grown by 5.07% in the last year.
- The Revenue has been growing by 81.90% on average over the past years. This is a very strong growth!
EPS 1Y (TTM)51.54%
EPS 3Y28.32%
EPS 5Y57.97%
EPS Q2Q%166.32%
Revenue 1Y (TTM)5.07%
Revenue growth 3Y22.56%
Revenue growth 5Y81.9%
Sales Q2Q%7.5%
3.2 Future
- The Earnings Per Share is expected to grow by 15.55% on average over the next years. This is quite good.
- The Revenue is expected to grow by 0.64% on average over the next years.
EPS Next Y42.13%
EPS Next 2Y19.44%
EPS Next 3Y15.55%
EPS Next 5YN/A
Revenue Next Year3.38%
Revenue Next 2Y0.43%
Revenue Next 3Y0.64%
Revenue Next 5YN/A
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 decreasing: in the next years the growth will be less than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
- The Price/Earnings ratio is 7.01, which indicates a rather cheap valuation of OTL.
- OTL's Price/Earnings ratio is rather cheap when compared to the industry. OTL is cheaper than 80.56% of the companies in the same industry.
- OTL's Price/Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 27.25.
- Based on the Price/Forward Earnings ratio of 6.56, the valuation of OTL can be described as very cheap.
- 86.11% of the companies in the same industry are more expensive than OTL, based on the Price/Forward Earnings ratio.
- Compared to an average S&P500 Price/Forward Earnings ratio of 25.98, OTL is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 7.01 | ||
| Fwd PE | 6.56 |
4.2 Price Multiples
- 63.89% of the companies in the same industry are more expensive than OTL, based on the Enterprise Value to EBITDA ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 4.16 |
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.
- OTL has a very decent profitability rating, which may justify a higher PE ratio.
- A more expensive valuation may be justified as OTL's earnings are expected to grow with 15.55% in the coming years.
PEG (NY)0.17
PEG (5Y)0.12
EPS Next 2Y19.44%
EPS Next 3Y15.55%
5. Dividend
5.1 Amount
- With a Yearly Dividend Yield of 10.76%, OTL is a good candidate for dividend investing.
- OTL's Dividend Yield is rather good when compared to the industry average which is at 3.63. OTL pays more dividend than 97.22% of the companies in the same industry.
- Compared to an average S&P500 Dividend Yield of 1.82, OTL pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 10.76% |
5.2 History
Dividend Growth(5Y)N/A
Div Incr Years0
Div Non Decr Years0
5.3 Sustainability
- OTL pays out 71.20% of its income as dividend. This is not a sustainable payout ratio.
DP71.2%
EPS Next 2Y19.44%
EPS Next 3Y15.55%
ODFJELL TECHNOLOGY LTD / OTL.OL FAQ
What is the ChartMill fundamental rating of ODFJELL TECHNOLOGY LTD (OTL.OL) stock?
ChartMill assigns a fundamental rating of 5 / 10 to OTL.OL.
What is the valuation status for OTL stock?
ChartMill assigns a valuation rating of 7 / 10 to ODFJELL TECHNOLOGY LTD (OTL.OL). This can be considered as Undervalued.
How profitable is ODFJELL TECHNOLOGY LTD (OTL.OL) stock?
ODFJELL TECHNOLOGY LTD (OTL.OL) has a profitability rating of 6 / 10.
Can you provide the financial health for OTL stock?
The financial health rating of ODFJELL TECHNOLOGY LTD (OTL.OL) is 3 / 10.
Can you provide the expected EPS growth for OTL stock?
The Earnings per Share (EPS) of ODFJELL TECHNOLOGY LTD (OTL.OL) is expected to grow by 42.13% in the next year.