SUBSEA 7 SA (SUBC.OL) Stock Fundamental Analysis
OSL:SUBC - Euronext Oslo - LU0075646355 - Common Stock - Currency: NOK
SUBC gets a fundamental rating of 5 out of 10. The analysis compared the fundamentals against 35 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 correct valuation and a medium growth rate.
1. Profitability
1.1 Basic Checks
In the past year SUBC was profitable.
In the past year SUBC had a positive cash flow from operations.
SUBC had positive earnings in 4 of the past 5 years.
Each year in the past 5 years SUBC had a positive operating cash flow.
1.2 Ratios
SUBC's Return On Assets of 2.62% is on the low side compared to the rest of the industry. SUBC is outperformed by 65.71% of its industry peers.
With a Return On Equity value of 4.74%, SUBC is not doing good in the industry: 62.86% of the companies in the same industry are doing better.
SUBC has a worse Return On Invested Capital (5.98%) than 62.86% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for SUBC is significantly below the industry average of 10.15%.
The last Return On Invested Capital (5.98%) for SUBC is above the 3 year average (3.46%), which is a sign of increasing profitability.
| 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)3.46%
ROIC(5y)N/A
1.3 Margins
SUBC has a worse Profit Margin (2.95%) than 74.29% of its industry peers.
In the last couple of years the Profit Margin of SUBC has grown nicely.
SUBC has a worse Operating Margin (5.96%) than 74.29% of its industry peers.
In the last couple of years the Operating Margin of SUBC has grown nicely.
SUBC has a Gross Margin (10.31%) which is in line with its industry peers.
SUBC's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 5.96% | ||
| PM (TTM) | 2.95% | ||
| GM | 10.31% |
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.
The number of shares outstanding for SUBC has been reduced compared to 5 years ago.
SUBC has a better debt/assets ratio than last year.
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 fine compared to the rest of the industry. SUBC outperforms 77.14% of its industry peers.
SUBC has a debt to FCF ratio of 2.03. This is a good value and a sign of high solvency as SUBC would need 2.03 years to pay back of all of its debts.
SUBC has a better Debt to FCF ratio (2.03) than 82.86% of its industry peers.
A Debt/Equity ratio of 0.19 indicates that SUBC is not too dependend on debt financing.
Looking at the Debt to Equity ratio, with a value of 0.19, SUBC is in the better half of the industry, outperforming 80.00% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.19 | ||
| Debt/FCF | 2.03 | ||
| Altman-Z | 2.17 |
ROIC/WACC0.67
WACC8.92%
2.3 Liquidity
A Current Ratio of 1.02 indicates that SUBC should not have too much problems paying its short term obligations.
With a Current ratio value of 1.02, SUBC is not doing good in the industry: 71.43% of the companies in the same industry are doing better.
A Quick Ratio of 0.99 indicates that SUBC may have some problems paying its short term obligations.
Looking at the Quick ratio, with a value of 0.99, SUBC is doing worse than 68.57% of the companies in the same industry.
| 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.
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.
SUBC shows quite a strong growth in Revenue. In the last year, the Revenue has grown by 14.45%.
The Revenue has been growing by 13.33% on average over the past years. This is quite good.
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%14.57%
3.2 Future
The Earnings Per Share is expected to grow by 21.26% on average over the next years. This is a very strong growth
SUBC is expected to show a decrease in Revenue. In the coming years, the Revenue will decrease by -4.41% yearly.
EPS Next Y105.4%
EPS Next 2Y67.06%
EPS Next 3Y43.53%
EPS Next 5Y21.26%
Revenue Next Year6.05%
Revenue Next 2Y4.29%
Revenue Next 3Y3.29%
Revenue Next 5Y-4.41%
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.
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
Based on the Price/Earnings ratio of 22.02, the valuation of SUBC can be described as rather expensive.
71.43% of the companies in the same industry are cheaper than SUBC, based on the Price/Earnings ratio.
The average S&P500 Price/Earnings ratio is at 28.79. SUBC is valued slightly cheaper when compared to this.
Based on the Price/Forward Earnings ratio of 10.73, the valuation of SUBC can be described as reasonable.
SUBC's Price/Forward Earnings is on the same level as the industry average.
The average S&P500 Price/Forward Earnings ratio is at 21.38. SUBC is valued slightly cheaper when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 22.02 | ||
| Fwd PE | 10.73 |
4.2 Price Multiples
SUBC's Enterprise Value to EBITDA ratio is in line with the industry average.
SUBC's Price/Free Cash Flow is on the same level as the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 7.62 | ||
| EV/EBITDA | 4.85 |
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.
A more expensive valuation may be justified as SUBC's earnings are expected to grow with 43.53% in the coming years.
PEG (NY)0.21
PEG (5Y)N/A
EPS Next 2Y67.06%
EPS Next 3Y43.53%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 8.59%, SUBC is a good candidate for dividend investing.
SUBC's Dividend Yield is rather good when compared to the industry average which is at 7.66. SUBC pays more dividend than 82.86% of the companies in the same industry.
Compared to an average S&P500 Dividend Yield of 2.51, SUBC pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 8.59% |
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 2Y67.06%
EPS Next 3Y43.53%
OSL:SUBC (4/25/2025, 7:00:00 PM)
153.5
+2.2 (+1.45%)
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 Cap45.99B
Analysts81.48
Price Target232.26 (51.31%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 8.59% |
Yearly Dividend5.7
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)-19.61%
Min EPS beat(2)-71.13%
Max EPS beat(2)31.92%
EPS beat(4)2
Avg EPS beat(4)85.01%
Min EPS beat(4)-71.13%
Max EPS beat(4)383.48%
EPS beat(8)4
Avg EPS beat(8)-8.61%
EPS beat(12)7
Avg EPS beat(12)52.01%
EPS beat(16)8
Avg EPS beat(16)21.46%
Revenue beat(2)2
Avg Revenue beat(2)1.23%
Min Revenue beat(2)1.1%
Max Revenue beat(2)1.36%
Revenue beat(4)4
Avg Revenue beat(4)1.5%
Min Revenue beat(4)1.1%
Max Revenue beat(4)2.08%
Revenue beat(8)8
Avg Revenue beat(8)4.55%
Revenue beat(12)11
Avg Revenue beat(12)3.09%
Revenue beat(16)14
Avg Revenue beat(16)2.99%
PT rev (1m)-0.76%
PT rev (3m)-4.6%
EPS NQ rev (1m)-36.68%
EPS NQ rev (3m)-34.46%
EPS NY rev (1m)-8.86%
EPS NY rev (3m)-11.73%
Revenue NQ rev (1m)-4.95%
Revenue NQ rev (3m)-7.02%
Revenue NY rev (1m)0%
Revenue NY rev (3m)0.29%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 22.02 | ||
| Fwd PE | 10.73 | ||
| P/S | 0.65 | ||
| P/FCF | 7.62 | ||
| P/OCF | 4.76 | ||
| P/B | 1.04 | ||
| P/tB | 1.11 | ||
| EV/EBITDA | 4.85 |
EPS(TTM)6.97
EY4.54%
EPS(NY)14.31
Fwd EY9.32%
FCF(TTM)20.15
FCFY13.13%
OCF(TTM)32.25
OCFY21.01%
SpS237.28
BVpS147.51
TBVpS138.1
PEG (NY)0.21
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)3.46%
ROIC(5y)N/A
ROICexc(3y)3.93%
ROICexc(5y)N/A
ROICexgc(3y)4.16%
ROICexgc(5y)N/A
ROCE(3y)4.5%
ROCE(5y)N/A
ROICexcg growth 3Y56.37%
ROICexcg growth 5Y26.11%
ROICexc growth 3Y55.98%
ROICexc growth 5Y28.26%
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%
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 | 90.21% | ||
| Profit Quality | 288.28% | ||
| Current Ratio | 1.02 | ||
| Quick Ratio | 0.99 | ||
| Altman-Z | 2.17 |
F-Score8
WACC8.92%
ROIC/WACC0.67
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 Y105.4%
EPS Next 2Y67.06%
EPS Next 3Y43.53%
EPS Next 5Y21.26%
Revenue 1Y (TTM)14.45%
Revenue growth 3Y10.92%
Revenue growth 5Y13.33%
Sales Q2Q%14.57%
Revenue Next Year6.05%
Revenue Next 2Y4.29%
Revenue Next 3Y3.29%
Revenue Next 5Y-4.41%
EBIT growth 1Y322.38%
EBIT growth 3Y57.3%
EBIT growth 5Y23.86%
EBIT Next Year202.29%
EBIT Next 3Y49%
EBIT Next 5Y34.17%
FCF growth 1Y672.07%
FCF growth 3Y65.58%
FCF growth 5Y42.68%
OCF growth 1Y41.45%
OCF growth 3Y46.69%
OCF growth 5Y21.12%