SUBSEA 7 SA (SUBC.OL) Stock Fundamental Analysis
Europe - Euronext Oslo - OSL:SUBC - LU0075646355 - Common Stock
236.4 NOK
+9.6 (+4.23%)
Taking everything into account, SUBC scores 5 out of 10 in our fundamental rating. SUBC was compared to 38 industry peers in the Energy Equipment & Services industry. Both the profitability and the financial health of SUBC get a neutral evaluation. Nothing too spectacular is happening here. SUBC has a decent growth rate and is not valued too expensively.
1. Profitability
1.1 Basic Checks
- In the past year SUBC was profitable.
- SUBC had a positive operating cash flow in the past year.
- SUBC had positive earnings in 4 of the past 5 years.
- SUBC had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
- SUBC has a Return On Assets (3.46%) which is in line with its industry peers.
- With a Return On Equity value of 6.77%, SUBC is not doing good in the industry: 63.16% of the companies in the same industry are doing better.
- SUBC has a Return On Invested Capital (8.72%) which is in line with its industry peers.
- Measured over the past 3 years, the Average Return On Invested Capital for SUBC is significantly below the industry average of 10.43%.
- The 3 year average ROIC (3.46%) for SUBC is below the current ROIC(8.72%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.46% | ||
| ROE | 6.77% | ||
| ROIC | 8.72% |
ROA(3y)1.21%
ROA(5y)-2.65%
ROE(3y)2.16%
ROE(5y)-3.72%
ROIC(3y)3.46%
ROIC(5y)N/A
1.3 Margins
- With a Profit Margin value of 4.12%, SUBC is not doing good in the industry: 65.79% of the companies in the same industry are doing better.
- In the last couple of years the Profit Margin of SUBC has grown nicely.
- The Operating Margin of SUBC (8.25%) is worse than 63.16% of its industry peers.
- In the last couple of years the Operating Margin of SUBC has grown nicely.
- Looking at the Gross Margin, with a value of 13.02%, SUBC is doing worse than 63.16% of the companies in the same industry.
- In the last couple of years the Gross Margin of SUBC has remained more or less at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 8.25% | ||
| PM (TTM) | 4.12% | ||
| GM | 13.02% |
OM growth 3Y41.82%
OM growth 5Y9.29%
PM growth 3Y66.8%
PM growth 5YN/A
GM growth 3Y15.93%
GM growth 5Y-1.33%
2. Health
2.1 Basic Checks
- With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), 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
- SUBC has a better debt/assets ratio than last year.
2.2 Solvency
- SUBC has an Altman-Z score of 2.38. 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 has a better Altman-Z score (2.38) than 78.95% of its industry peers.
- SUBC has a debt to FCF ratio of 1.20. This is a very positive value and a sign of high solvency as it would only need 1.20 years to pay back of all of its debts.
- Looking at the Debt to FCF ratio, with a value of 1.20, SUBC belongs to the top of the industry, outperforming 84.21% of the companies in the same industry.
- A Debt/Equity ratio of 0.15 indicates that SUBC is not too dependend on debt financing.
- SUBC's Debt to Equity ratio of 0.15 is fine compared to the rest of the industry. SUBC outperforms 76.32% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.15 | ||
| Debt/FCF | 1.2 | ||
| Altman-Z | 2.38 |
ROIC/WACC0.94
WACC9.28%
2.3 Liquidity
- A Current Ratio of 1.02 indicates that SUBC should not have too much problems paying its short term obligations.
- Looking at the Current ratio, with a value of 1.02, SUBC is doing worse than 81.58% of the companies in the same industry.
- A Quick Ratio of 1.00 indicates that SUBC should not have too much problems paying its short term obligations.
- SUBC's Quick ratio of 1.00 is on the low side compared to the rest of the industry. SUBC is outperformed by 78.95% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.02 | ||
| Quick Ratio | 1 |
3. Growth
3.1 Past
- SUBC shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 77.78%, which is quite impressive.
- Measured over the past years, SUBC shows a very strong growth in Earnings Per Share. The EPS has been growing by 82.63% on average per year.
- The Revenue has been growing slightly by 5.97% in the past year.
- The Revenue has been growing by 13.33% on average over the past years. This is quite good.
EPS 1Y (TTM)77.78%
EPS 3Y82.63%
EPS 5YN/A
EPS Q2Q%22.58%
Revenue 1Y (TTM)5.97%
Revenue growth 3Y10.92%
Revenue growth 5Y13.33%
Sales Q2Q%0.31%
3.2 Future
- The Earnings Per Share is expected to grow by 26.76% on average over the next years. This is a very strong growth
- SUBC is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 1.85% yearly.
EPS Next Y124.78%
EPS Next 2Y72.16%
EPS Next 3Y45.95%
EPS Next 5Y26.76%
Revenue Next Year4.83%
Revenue Next 2Y4.05%
Revenue Next 3Y3.36%
Revenue Next 5Y1.85%
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
- SUBC is valuated rather expensively with a Price/Earnings ratio of 24.91.
- Based on the Price/Earnings ratio, SUBC is valued a bit more expensive than 71.05% of the companies in the same industry.
- When comparing the Price/Earnings ratio of SUBC to the average of the S&P500 Index (27.21), we can say SUBC is valued inline with the index average.
- The Price/Forward Earnings ratio is 12.04, which indicates a correct valuation of SUBC.
- Compared to the rest of the industry, the Price/Forward Earnings ratio of SUBC is on the same level as its industry peers.
- The average S&P500 Price/Forward Earnings ratio is at 24.26. SUBC is valued rather cheaply when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 24.91 | ||
| Fwd PE | 12.04 |
4.2 Price Multiples
- SUBC's Enterprise Value to EBITDA ratio is in line with the industry average.
- Based on the Price/Free Cash Flow ratio, SUBC is valued a bit cheaper than the industry average as 65.79% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 8.29 | ||
| EV/EBITDA | 6.3 |
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.
- A more expensive valuation may be justified as SUBC's earnings are expected to grow with 45.95% in the coming years.
PEG (NY)0.2
PEG (5Y)N/A
EPS Next 2Y72.16%
EPS Next 3Y45.95%
5. Dividend
5.1 Amount
- SUBC has a Yearly Dividend Yield of 5.88%, which is a nice return.
- Compared to an average industry Dividend Yield of 3.61, SUBC pays a bit more dividend than its industry peers.
- Compared to an average S&P500 Dividend Yield of 1.82, SUBC pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 5.88% |
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
- 92.01% of the earnings are spent on dividend by SUBC. This is not a sustainable payout ratio.
DP92.01%
EPS Next 2Y72.16%
EPS Next 3Y45.95%
SUBSEA 7 SA / SUBC.OL FAQ
What is the ChartMill fundamental rating of SUBSEA 7 SA (SUBC.OL) stock?
ChartMill assigns a fundamental rating of 5 / 10 to SUBC.OL.
What is the valuation status of SUBSEA 7 SA (SUBC.OL) stock?
ChartMill assigns a valuation rating of 5 / 10 to SUBSEA 7 SA (SUBC.OL). This can be considered as Fairly Valued.
Can you provide the profitability details for SUBSEA 7 SA?
SUBSEA 7 SA (SUBC.OL) has a profitability rating of 4 / 10.
What is the earnings growth outlook for SUBSEA 7 SA?
The Earnings per Share (EPS) of SUBSEA 7 SA (SUBC.OL) is expected to grow by 124.78% in the next year.
Can you provide the dividend sustainability for SUBC stock?
The dividend rating of SUBSEA 7 SA (SUBC.OL) is 4 / 10 and the dividend payout ratio is 92.01%.