SUBSEA 7 SA (SUBC.OL) Stock Fundamental Analysis
OSL:SUBC - Euronext Oslo - LU0075646355 - Common Stock - Currency: NOK
We assign a fundamental rating of 5 out of 10 to SUBC. SUBC was compared to 35 industry peers in the Energy Equipment & Services industry. SUBC has only an average score on both its financial health and profitability. SUBC has a decent growth rate and is not valued too expensively.
1. Profitability
1.1 Basic Checks
SUBC had positive earnings in the past year.
In the past year SUBC had a positive cash flow from operations.
SUBC had positive earnings in 4 of the past 5 years.
In the past 5 years SUBC always reported a positive cash flow from operatings.
1.2 Ratios
SUBC has a Return On Assets of 2.62%. This is in the lower half of the industry: SUBC underperforms 62.86% of its industry peers.
SUBC has a worse Return On Equity (4.74%) than 62.86% of its industry peers.
With a Return On Invested Capital value of 5.98%, SUBC is not doing good in the industry: 65.71% of the companies in the same industry are doing better.
SUBC had an Average Return On Invested Capital over the past 3 years of 3.25%. This is significantly below the industry average of 14.59%.
The 3 year average ROIC (3.25%) for SUBC is below the current ROIC(5.98%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.62% | ||
| ROE | 4.74% | ||
| ROIC | 5.98% |
ROA(3y)1.21%
ROA(5y)-2.65%
ROE(3y)2.16%
ROE(5y)-3.72%
ROIC(3y)3.25%
ROIC(5y)N/A
1.3 Margins
The Profit Margin of SUBC (2.95%) is worse than 74.29% of its industry peers.
SUBC's Profit Margin has improved in the last couple of years.
Looking at the Operating Margin, with a value of 5.96%, SUBC is doing worse than 74.29% of the companies in the same industry.
In the last couple of years the Operating Margin of SUBC has grown nicely.
SUBC's Gross Margin of 10.31% is in line compared to the rest of the industry. SUBC outperforms 45.71% of its industry peers.
In the last couple of years the Gross Margin of SUBC has declined.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 5.96% | ||
| PM (TTM) | 2.95% | ||
| GM | 10.31% |
OM growth 3Y39.33%
OM growth 5Y8.14%
PM growth 3Y66.8%
PM growth 5YN/A
GM growth 3Y14.73%
GM growth 5Y-1.94%
2. Health
2.1 Basic Checks
The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so SUBC is destroying value.
SUBC has less shares outstanding than it did 1 year ago.
Compared to 5 years ago, SUBC has less shares outstanding
The debt/assets ratio for SUBC has been reduced compared to a year ago.
2.2 Solvency
SUBC has an Altman-Z score of 2.17. This is not the best score and indicates that SUBC is in the grey zone with still only limited risk for bankruptcy at the moment.
SUBC's Altman-Z score of 2.17 is amongst the best of the industry. SUBC outperforms 82.86% of its industry peers.
The Debt to FCF ratio of SUBC is 2.03, which is a good value as it means it would take SUBC, 2.03 years of fcf income to pay off all of its debts.
With an excellent Debt to FCF ratio value of 2.03, SUBC belongs to the best of the industry, outperforming 82.86% of the companies in the same industry.
A Debt/Equity ratio of 0.19 indicates that SUBC is not too dependend on debt financing.
The Debt to Equity ratio of SUBC (0.19) is better than 80.00% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.19 | ||
| Debt/FCF | 2.03 | ||
| Altman-Z | 2.17 |
ROIC/WACC0.68
WACC8.75%
2.3 Liquidity
A Current Ratio of 1.02 indicates that SUBC should not have too much problems paying its short term obligations.
The Current ratio of SUBC (1.02) is worse than 71.43% of its industry peers.
A Quick Ratio of 0.99 indicates that SUBC may have some problems paying its short term obligations.
The Quick ratio of SUBC (0.99) is worse than 68.57% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.02 | ||
| Quick Ratio | 0.99 |
3. Growth
3.1 Past
SUBC shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 1575.00%, which is quite impressive.
SUBC shows a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 82.63% yearly.
Looking at the last year, SUBC shows a quite strong growth in Revenue. The Revenue has grown by 14.45% in the last year.
Measured over the past years, SUBC shows a quite strong growth in Revenue. The Revenue has been growing by 13.33% on average per year.
EPS 1Y (TTM)1575%
EPS 3Y82.63%
EPS 5YN/A
EPS Q2Q%216.67%
Revenue 1Y (TTM)14.45%
Revenue growth 3Y10.92%
Revenue growth 5Y13.33%
Sales Q2Q%14.55%
3.2 Future
Based on estimates for the next years, SUBC will show a very strong growth in Earnings Per Share. The EPS will grow by 23.34% on average per year.
SUBC is expected to show a decrease in Revenue. In the coming years, the Revenue will decrease by -4.41% yearly.
EPS Next Y125.36%
EPS Next 2Y67.82%
EPS Next 3Y43.23%
EPS Next 5Y23.34%
Revenue Next Year6.05%
Revenue Next 2Y4.29%
Revenue Next 3Y3.29%
Revenue Next 5Y-4.41%
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.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.
4. Valuation
4.1 Price/Earnings Ratio
With a Price/Earnings ratio of 21.69, SUBC is valued on the expensive side.
Based on the Price/Earnings ratio, SUBC is valued a bit more expensive than 65.71% of the companies in the same industry.
Compared to an average S&P500 Price/Earnings ratio of 29.35, SUBC is valued a bit cheaper.
With a Price/Forward Earnings ratio of 9.63, the valuation of SUBC can be described as very reasonable.
The rest of the industry has a similar Price/Forward Earnings ratio as SUBC.
SUBC's Price/Forward Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 22.10.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 21.69 | ||
| Fwd PE | 9.63 |
4.2 Price Multiples
71.43% of the companies in the same industry are more expensive than SUBC, based on the Enterprise Value to EBITDA ratio.
The rest of the industry has a similar Price/Free Cash Flow ratio as SUBC.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 7.5 | ||
| EV/EBITDA | 4.85 |
4.3 Compensation for Growth
SUBC's low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
SUBC's earnings are expected to grow with 43.23% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.17
PEG (5Y)N/A
EPS Next 2Y67.82%
EPS Next 3Y43.23%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 8.21%, SUBC is a good candidate for dividend investing.
Compared to an average industry Dividend Yield of 7.05, SUBC pays a better dividend. On top of this SUBC pays more dividend than 88.57% of the companies listed in the same industry.
SUBC's Dividend Yield is rather good when compared to the S&P500 average which is at 2.33.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 8.21% |
5.2 History
The dividend of SUBC decreases each year by -2.89%.
Dividend Growth(5Y)-2.89%
Div Incr Years0
Div Non Decr Years0
5.3 Sustainability
SUBC pays out 80.88% of its income as dividend. This is not a sustainable payout ratio.
DP80.88%
EPS Next 2Y67.82%
EPS Next 3Y43.23%
OSL:SUBC (3/5/2025, 3:58:27 PM)
157.5
-0.8 (-0.51%)
Chartmill FA Rating
GICS SectorEnergy
GICS IndustryGroupEnergy
GICS IndustryEnergy Equipment & Services
Earnings (Last)
Earnings (Next)
Inst Owners56.38%
Inst Owner ChangeN/A
Ins Owners0.14%
Ins Owner ChangeN/A
Market Cap47.19B
Analysts80.74
Price Target231.72 (47.12%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 8.21% |
Yearly Dividend5.92
Dividend Growth(5Y)-2.89%
DP80.88%
Div Incr Years0
Div Non Decr Years0
Ex-DateN/A
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)-19.51%
Min EPS beat(2)-70.93%
Max EPS beat(2)31.92%
EPS beat(4)2
Avg EPS beat(4)85.06%
Min EPS beat(4)-70.93%
Max EPS beat(4)383.48%
EPS beat(8)4
Avg EPS beat(8)-8.58%
EPS beat(12)7
Avg EPS beat(12)52.02%
EPS beat(16)8
Avg EPS beat(16)21.47%
Revenue beat(2)2
Avg Revenue beat(2)1.36%
Min Revenue beat(2)1.1%
Max Revenue beat(2)1.62%
Revenue beat(4)4
Avg Revenue beat(4)1.56%
Min Revenue beat(4)1.1%
Max Revenue beat(4)2.08%
Revenue beat(8)8
Avg Revenue beat(8)4.59%
Revenue beat(12)11
Avg Revenue beat(12)3.11%
Revenue beat(16)14
Avg Revenue beat(16)3%
PT rev (1m)-4.38%
PT rev (3m)-3.44%
EPS NQ rev (1m)0%
EPS NQ rev (3m)3.5%
EPS NY rev (1m)-1.97%
EPS NY rev (3m)-3.15%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-2.42%
Revenue NY rev (1m)0.26%
Revenue NY rev (3m)-0.4%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 21.69 | ||
| Fwd PE | 9.63 | ||
| P/S | 0.64 | ||
| P/FCF | 7.5 | ||
| P/OCF | 4.69 | ||
| P/B | 1.03 | ||
| P/tB | 1.09 | ||
| EV/EBITDA | 4.85 |
EPS(TTM)7.26
EY4.61%
EPS(NY)16.35
Fwd EY10.38%
FCF(TTM)20.99
FCFY13.33%
OCF(TTM)33.6
OCFY21.33%
SpS247.16
BVpS153.66
TBVpS143.85
PEG (NY)0.17
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.62% | ||
| ROE | 4.74% | ||
| ROCE | 7.77% | ||
| ROIC | 5.98% | ||
| ROICexc | 6.72% | ||
| ROICexgc | 7.13% | ||
| OM | 5.96% | ||
| PM (TTM) | 2.95% | ||
| GM | 10.31% | ||
| FCFM | 8.49% |
ROA(3y)1.21%
ROA(5y)-2.65%
ROE(3y)2.16%
ROE(5y)-3.72%
ROIC(3y)3.25%
ROIC(5y)N/A
ROICexc(3y)3.69%
ROICexc(5y)N/A
ROICexgc(3y)3.91%
ROICexgc(5y)N/A
ROCE(3y)4.22%
ROCE(5y)N/A
ROICexcg growth 3Y53.63%
ROICexcg growth 5Y24.78%
ROICexc growth 3Y53.25%
ROICexc growth 5Y26.91%
OM growth 3Y39.33%
OM growth 5Y8.14%
PM growth 3Y66.8%
PM growth 5YN/A
GM growth 3Y14.73%
GM growth 5Y-1.94%
F-Score8
Asset Turnover0.89
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.19 | ||
| Debt/FCF | 2.03 | ||
| Debt/EBITDA | 0.79 | ||
| Cap/Depr | 56.02% | ||
| Cap/Sales | 5.1% | ||
| Interest Coverage | 3.73 | ||
| Cash Conversion | 90.22% | ||
| Profit Quality | 288.28% | ||
| Current Ratio | 1.02 | ||
| Quick Ratio | 0.99 | ||
| Altman-Z | 2.17 |
F-Score8
WACC8.75%
ROIC/WACC0.68
Cap/Depr(3y)71.19%
Cap/Depr(5y)58.47%
Cap/Sales(3y)6.45%
Cap/Sales(5y)5.59%
Profit Quality(3y)408.37%
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)1575%
EPS 3Y82.63%
EPS 5YN/A
EPS Q2Q%216.67%
EPS Next Y125.36%
EPS Next 2Y67.82%
EPS Next 3Y43.23%
EPS Next 5Y23.34%
Revenue 1Y (TTM)14.45%
Revenue growth 3Y10.92%
Revenue growth 5Y13.33%
Sales Q2Q%14.55%
Revenue Next Year6.05%
Revenue Next 2Y4.29%
Revenue Next 3Y3.29%
Revenue Next 5Y-4.41%
EBIT growth 1Y322.28%
EBIT growth 3Y54.54%
EBIT growth 5Y22.55%
EBIT Next Year208.19%
EBIT Next 3Y50.23%
EBIT Next 5Y34.48%
FCF growth 1Y672.07%
FCF growth 3Y65.58%
FCF growth 5Y42.68%
OCF growth 1Y41.45%
OCF growth 3Y46.69%
OCF growth 5Y21.12%