SUBSEA 7 SA (SUBC.OL) Stock Fundamental Analysis
Europe - Euronext Oslo - OSL:SUBC - LU0075646355 - Common Stock
242 NOK
+5.6 (+2.37%)
SUBC gets a fundamental rating of 5 out of 10. The analysis compared the fundamentals against 36 industry peers in the Energy Equipment & Services industry. SUBC has only an average score on both its financial health and profitability. SUBC is not valued too expensively and it also shows a decent growth rate.
1. Profitability
1.1 Basic Checks
- SUBC had positive earnings in the past year.
- SUBC had a positive operating cash flow in the past year.
- Of the past 5 years SUBC 4 years were profitable.
- Each year in the past 5 years SUBC had a positive operating cash flow.
1.2 Ratios
- SUBC has a Return On Assets (3.46%) which is comparable to the rest of the industry.
- SUBC has a Return On Equity of 6.77%. This is in the lower half of the industry: SUBC underperforms 61.11% of its industry peers.
- The Return On Invested Capital of SUBC (8.72%) is better than 61.11% 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 10.31%.
- The last Return On Invested Capital (8.72%) for SUBC is above the 3 year average (3.46%), which is a sign of increasing profitability.
| 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
- The Profit Margin of SUBC (4.12%) is worse than 63.89% of its industry peers.
- SUBC's Profit Margin has improved in the last couple of years.
- SUBC has a Operating Margin of 8.25%. This is in the lower half of the industry: SUBC underperforms 61.11% of its industry peers.
- In the last couple of years the Operating Margin of SUBC has grown nicely.
- SUBC has a worse Gross Margin (13.02%) than 61.11% of its industry peers.
- SUBC's Gross Margin has been stable in the last couple of years.
| 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
- SUBC has a Return on Invested Capital (ROIC), which is below the Cost of Capital (WACC), which means it is destroying value.
- SUBC has less shares outstanding than it did 1 year ago.
- Compared to 5 years ago, SUBC has less shares outstanding
- Compared to 1 year ago, SUBC has an improved debt to assets ratio.
2.2 Solvency
- SUBC has an Altman-Z score of 2.45. 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 2.45 is amongst the best of the industry. SUBC outperforms 83.33% 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.
- SUBC's Debt to FCF ratio of 1.20 is amongst the best of the industry. SUBC outperforms 83.33% of its industry peers.
- 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 75.00% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.15 | ||
| Debt/FCF | 1.2 | ||
| Altman-Z | 2.45 |
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.
- The Current ratio of SUBC (1.02) is worse than 80.56% of its industry peers.
- A Quick Ratio of 1.00 indicates that SUBC should not have too much problems paying its short term obligations.
- Looking at the Quick ratio, with a value of 1.00, SUBC is doing worse than 77.78% of the companies in the same industry.
| 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.
- Looking at the last year, SUBC shows a small growth in Revenue. The Revenue has grown by 5.97% in the last 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
- Based on estimates for the next years, SUBC will show a very strong growth in Earnings Per Share. The EPS will grow by 26.76% on average per year.
- The Revenue is expected to grow by 1.85% on average over the next years.
EPS Next Y129.13%
EPS Next 2Y73.93%
EPS Next 3Y47.2%
EPS Next 5Y26.76%
Revenue Next Year4.83%
Revenue Next 2Y4.05%
Revenue Next 3Y3.36%
Revenue Next 5Y1.85%
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
- Based on the Price/Earnings ratio of 25.99, the valuation of SUBC can be described as expensive.
- Based on the Price/Earnings ratio, SUBC is valued a bit more expensive than the industry average as 69.44% of the companies are valued more cheaply.
- SUBC's Price/Earnings ratio indicates a similar valuation than the S&P500 average which is at 28.82.
- A Price/Forward Earnings ratio of 12.31 indicates a correct valuation of SUBC.
- The rest of the industry has a similar Price/Forward Earnings ratio as SUBC.
- Compared to an average S&P500 Price/Forward Earnings ratio of 25.95, SUBC is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 25.99 | ||
| Fwd PE | 12.31 |
4.2 Price Multiples
- SUBC's Enterprise Value to EBITDA ratio is in line with the industry average.
- SUBC's Price/Free Cash Flow ratio is a bit cheaper when compared to the industry. SUBC is cheaper than 63.89% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 8.65 | ||
| EV/EBITDA | 6.65 |
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 47.20% in the coming years.
PEG (NY)0.2
PEG (5Y)N/A
EPS Next 2Y73.93%
EPS Next 3Y47.2%
5. Dividend
5.1 Amount
- SUBC has a Yearly Dividend Yield of 5.73%, which is a nice return.
- Compared to an average industry Dividend Yield of 3.63, 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 | 5.73% |
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 92.01% of its income as dividend. This is not a sustainable payout ratio.
DP92.01%
EPS Next 2Y73.93%
EPS Next 3Y47.2%
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 129.13% 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%.