REACH SUBSEA ASA (REACH.OL) Stock Fundamental Analysis
OSL:REACH - Euronext Oslo - NO0003117202 - Common Stock - Currency: NOK
Overall REACH gets a fundamental rating of 5 out of 10. We evaluated REACH against 35 industry peers in the Energy Equipment & Services industry. There are concerns on the financial health of REACH while its profitability can be described as average. An interesting combination arises when we look at growth and value: REACH is growing strongly while it also seems undervalued. Finally REACH also has an excellent dividend rating.
1. Profitability
1.1 Basic Checks
In the past year REACH was profitable.
REACH had a positive operating cash flow in the past year.
REACH had positive earnings in each of the past 5 years.
In the past 5 years REACH always reported a positive cash flow from operatings.
1.2 Ratios
REACH's Return On Assets of 6.33% is fine compared to the rest of the industry. REACH outperforms 68.57% of its industry peers.
REACH has a better Return On Equity (18.81%) than 71.43% of its industry peers.
REACH has a Return On Invested Capital of 16.58%. This is amongst the best in the industry. REACH outperforms 91.43% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for REACH is significantly above the industry average of 10.15%.
The last Return On Invested Capital (16.58%) for REACH is above the 3 year average (15.65%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 6.33% | ||
| ROE | 18.81% | ||
| ROIC | 16.58% |
ROA(3y)7.44%
ROA(5y)9.35%
ROE(3y)18.53%
ROE(5y)21.76%
ROIC(3y)15.65%
ROIC(5y)17.06%
1.3 Margins
Looking at the Profit Margin, with a value of 7.56%, REACH is in line with its industry, outperforming 48.57% of the companies in the same industry.
REACH's Profit Margin has declined in the last couple of years.
REACH's Operating Margin of 13.38% is in line compared to the rest of the industry. REACH outperforms 48.57% of its industry peers.
REACH's Operating Margin has improved in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 13.38% | ||
| PM (TTM) | 7.56% | ||
| GM | N/A |
OM growth 3Y5.14%
OM growth 5YN/A
PM growth 3Y-17.91%
PM growth 5YN/A
GM growth 3YN/A
GM growth 5YN/A
2. Health
2.1 Basic Checks
The Return on Invested Capital (ROIC) is well above the Cost of Capital (WACC), so REACH is creating value.
REACH has more shares outstanding than it did 1 year ago.
REACH has more shares outstanding than it did 5 years ago.
The debt/assets ratio for REACH is higher compared to a year ago.
2.2 Solvency
The Debt to FCF ratio of REACH is 2.73, which is a good value as it means it would take REACH, 2.73 years of fcf income to pay off all of its debts.
REACH has a Debt to FCF ratio of 2.73. This is in the better half of the industry: REACH outperforms 80.00% of its industry peers.
REACH has a Debt/Equity ratio of 0.68. This is a neutral value indicating REACH is somewhat dependend on debt financing.
REACH has a Debt to Equity ratio (0.68) which is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.68 | ||
| Debt/FCF | 2.73 | ||
| Altman-Z | N/A |
ROIC/WACC2.12
WACC7.84%
2.3 Liquidity
A Current Ratio of 0.72 indicates that REACH may have some problems paying its short term obligations.
With a Current ratio value of 0.72, REACH is not doing good in the industry: 82.86% of the companies in the same industry are doing better.
REACH has a Quick Ratio of 0.72. This is a bad value and indicates that REACH is not financially healthy enough and could expect problems in meeting its short term obligations.
Looking at the Quick ratio, with a value of 0.72, REACH is doing worse than 82.86% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.72 | ||
| Quick Ratio | 0.72 |
3. Growth
3.1 Past
REACH shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -16.32%.
Measured over the past 5 years, REACH shows a small growth in Earnings Per Share. The EPS has been growing by 1.43% on average per year.
REACH shows a strong growth in Revenue. In the last year, the Revenue has grown by 36.16%.
The Revenue has been growing by 39.82% on average over the past years. This is a very strong growth!
EPS 1Y (TTM)-16.32%
EPS 3Y1.43%
EPS 5YN/A
EPS Q2Q%-61.11%
Revenue 1Y (TTM)36.16%
Revenue growth 3Y58.19%
Revenue growth 5Y39.82%
Sales Q2Q%44.43%
3.2 Future
REACH is expected to show a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 35.05% yearly.
Based on estimates for the next years, REACH will show a quite strong growth in Revenue. The Revenue will grow by 12.32% on average per year.
EPS Next Y29.12%
EPS Next 2Y33.84%
EPS Next 3Y35.05%
EPS Next 5YN/A
Revenue Next Year15.48%
Revenue Next 2Y12.64%
Revenue Next 3Y12.32%
Revenue Next 5YN/A
3.3 Evolution
The EPS growth rate is accelerating: in the next years the growth will be better than in the last years.
The estimated forward Revenue growth is still strong, although it is decreasing when compared to the stronger growth in the past years.
4. Valuation
4.1 Price/Earnings Ratio
A Price/Earnings ratio of 9.93 indicates a reasonable valuation of REACH.
REACH's Price/Earnings ratio is a bit cheaper when compared to the industry. REACH is cheaper than 62.86% of the companies in the same industry.
The average S&P500 Price/Earnings ratio is at 28.79. REACH is valued rather cheaply when compared to this.
A Price/Forward Earnings ratio of 7.69 indicates a rather cheap valuation of REACH.
74.29% of the companies in the same industry are more expensive than REACH, based on the Price/Forward Earnings ratio.
Compared to an average S&P500 Price/Forward Earnings ratio of 21.38, REACH is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 9.93 | ||
| Fwd PE | 7.69 |
4.2 Price Multiples
REACH's Enterprise Value to EBITDA ratio is rather cheap when compared to the industry. REACH is cheaper than 88.57% of the companies in the same industry.
REACH's Price/Free Cash Flow ratio is a bit cheaper when compared to the industry. REACH is cheaper than 77.14% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 3.93 | ||
| EV/EBITDA | 3.01 |
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.
REACH has a very decent profitability rating, which may justify a higher PE ratio.
A more expensive valuation may be justified as REACH's earnings are expected to grow with 35.05% in the coming years.
PEG (NY)0.34
PEG (5Y)N/A
EPS Next 2Y33.84%
EPS Next 3Y35.05%
5. Dividend
5.1 Amount
REACH has a Yearly Dividend Yield of 6.18%, which is a nice return.
REACH's Dividend Yield is a higher than the industry average which is at 7.66.
REACH's Dividend Yield is rather good when compared to the S&P500 average which is at 2.51.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 6.18% |
5.2 History
On average, the dividend of REACH grows each year by 38.16%, which is quite nice.
Dividend Growth(5Y)38.16%
Div Incr Years0
Div Non Decr Years0
5.3 Sustainability
REACH pays out 47.62% of its income as dividend. This is a bit on the high side, but may be sustainable.
REACH's earnings are growing slower than its dividend. This means the dividend growth is not sustainable.
DP47.62%
EPS Next 2Y33.84%
EPS Next 3Y35.05%
OSL:REACH (4/25/2025, 7:00:00 PM)
6.85
-0.03 (-0.44%)
Chartmill FA Rating
GICS SectorEnergy
GICS IndustryGroupEnergy
GICS IndustryEnergy Equipment & Services
Earnings (Last)
Earnings (Next)
Inst Owners5.42%
Inst Owner ChangeN/A
Ins Owners1.4%
Ins Owner ChangeN/A
Market Cap2.24B
Analysts86
Price Target9.44 (37.81%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 6.18% |
Yearly Dividend0.35
Dividend Growth(5Y)38.16%
DP47.62%
Div Incr Years0
Div Non Decr Years0
Ex-DateN/A
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)-29.11%
Min EPS beat(2)-62.24%
Max EPS beat(2)4.02%
EPS beat(4)1
Avg EPS beat(4)-37.1%
Min EPS beat(4)-78.42%
Max EPS beat(4)4.02%
EPS beat(8)N/A
Avg EPS beat(8)N/A
EPS beat(12)N/A
Avg EPS beat(12)N/A
EPS beat(16)N/A
Avg EPS beat(16)N/A
Revenue beat(2)2
Avg Revenue beat(2)21.49%
Min Revenue beat(2)13.47%
Max Revenue beat(2)29.51%
Revenue beat(4)3
Avg Revenue beat(4)10.85%
Min Revenue beat(4)-8.25%
Max Revenue beat(4)29.51%
Revenue beat(8)N/A
Avg Revenue beat(8)N/A
Revenue beat(12)N/A
Avg Revenue beat(12)N/A
Revenue beat(16)N/A
Avg Revenue beat(16)N/A
PT rev (1m)0%
PT rev (3m)-2.63%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-7.14%
EPS NY rev (1m)-15.61%
EPS NY rev (3m)-25.75%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)15.28%
Revenue NY rev (1m)0%
Revenue NY rev (3m)6.39%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 9.93 | ||
| Fwd PE | 7.69 | ||
| P/S | 0.83 | ||
| P/FCF | 3.93 | ||
| P/OCF | 2.69 | ||
| P/B | 2.05 | ||
| P/tB | 2.34 | ||
| EV/EBITDA | 3.01 |
EPS(TTM)0.69
EY10.07%
EPS(NY)0.89
Fwd EY13.01%
FCF(TTM)1.74
FCFY25.44%
OCF(TTM)2.55
OCFY37.15%
SpS8.3
BVpS3.34
TBVpS2.92
PEG (NY)0.34
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 6.33% | ||
| ROE | 18.81% | ||
| ROCE | 19.83% | ||
| ROIC | 16.58% | ||
| ROICexc | 19.55% | ||
| ROICexgc | 21.4% | ||
| OM | 13.38% | ||
| PM (TTM) | 7.56% | ||
| GM | N/A | ||
| FCFM | 20.99% |
ROA(3y)7.44%
ROA(5y)9.35%
ROE(3y)18.53%
ROE(5y)21.76%
ROIC(3y)15.65%
ROIC(5y)17.06%
ROICexc(3y)20.68%
ROICexc(5y)25.92%
ROICexgc(3y)24.48%
ROICexgc(5y)28.23%
ROCE(3y)18.71%
ROCE(5y)20.39%
ROICexcg growth 3Y-6.09%
ROICexcg growth 5YN/A
ROICexc growth 3Y-8.71%
ROICexc growth 5YN/A
OM growth 3Y5.14%
OM growth 5YN/A
PM growth 3Y-17.91%
PM growth 5YN/A
GM growth 3YN/A
GM growth 5YN/A
F-Score5
Asset Turnover0.84
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.68 | ||
| Debt/FCF | 2.73 | ||
| Debt/EBITDA | 0.63 | ||
| Cap/Depr | 32.6% | ||
| Cap/Sales | 9.67% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 71.22% | ||
| Profit Quality | 277.65% | ||
| Current Ratio | 0.72 | ||
| Quick Ratio | 0.72 | ||
| Altman-Z | N/A |
F-Score5
WACC7.84%
ROIC/WACC2.12
Cap/Depr(3y)37.53%
Cap/Depr(5y)22.85%
Cap/Sales(3y)11.42%
Cap/Sales(5y)6.96%
Profit Quality(3y)341.12%
Profit Quality(5y)387.56%
High Growth Momentum
Growth
EPS 1Y (TTM)-16.32%
EPS 3Y1.43%
EPS 5YN/A
EPS Q2Q%-61.11%
EPS Next Y29.12%
EPS Next 2Y33.84%
EPS Next 3Y35.05%
EPS Next 5YN/A
Revenue 1Y (TTM)36.16%
Revenue growth 3Y58.19%
Revenue growth 5Y39.82%
Sales Q2Q%44.43%
Revenue Next Year15.48%
Revenue Next 2Y12.64%
Revenue Next 3Y12.32%
Revenue Next 5YN/A
EBIT growth 1Y9.64%
EBIT growth 3Y66.32%
EBIT growth 5YN/A
EBIT Next Year258.19%
EBIT Next 3Y70.26%
EBIT Next 5YN/A
FCF growth 1Y-23.95%
FCF growth 3Y27.12%
FCF growth 5Y29.42%
OCF growth 1Y-12.54%
OCF growth 3Y43.97%
OCF growth 5Y34.26%