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 an average financial health and profitability rating. SUBC has a correct valuation and a medium growth rate.
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.
Of the past 5 years SUBC 4 years were profitable.
SUBC had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
SUBC has a worse Return On Assets (2.47%) than 68.57% of its industry peers.
SUBC's Return On Equity of 4.48% is on the low side compared to the rest of the industry. SUBC is outperformed by 71.43% of its industry peers.
With a Return On Invested Capital value of 6.91%, SUBC perfoms like the industry average, outperforming 48.57% of the companies in the same industry.
Measured over the past 3 years, the Average Return On Invested Capital for SUBC is significantly below the industry average of 10.77%.
The 3 year average ROIC (3.46%) for SUBC is below the current ROIC(6.91%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.47% | ||
| ROE | 4.48% | ||
| ROIC | 6.91% |
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
Looking at the Profit Margin, with a value of 2.78%, SUBC is doing worse than 74.29% of the companies in the same industry.
In the last couple of years the Profit Margin of SUBC has grown nicely.
Looking at the Operating Margin, with a value of 6.74%, SUBC is doing worse than 71.43% of the companies in the same industry.
In the last couple of years the Operating Margin of SUBC has grown nicely.
The Gross Margin of SUBC (11.26%) is comparable to the rest of the 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 | 6.74% | ||
| PM (TTM) | 2.78% | ||
| GM | 11.26% |
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%
2. Health
2.1 Basic Checks
The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so SUBC is destroying value.
Compared to 1 year ago, SUBC has less shares outstanding
The number of shares outstanding for SUBC has been reduced compared to 5 years ago.
Compared to 1 year ago, SUBC has an improved debt to assets ratio.
2.2 Solvency
SUBC has an Altman-Z score of 2.39. 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.
Looking at the Altman-Z score, with a value of 2.39, SUBC is in the better half of the industry, outperforming 77.14% of the companies in the same industry.
SUBC has a debt to FCF ratio of 1.68. This is a very positive value and a sign of high solvency as it would only need 1.68 years to pay back of all of its debts.
The Debt to FCF ratio of SUBC (1.68) is better than 77.14% of its industry peers.
A Debt/Equity ratio of 0.17 indicates that SUBC is not too dependend on debt financing.
Looking at the Debt to Equity ratio, with a value of 0.17, 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 | 0.17 | ||
| Debt/FCF | 1.68 | ||
| Altman-Z | 2.39 |
ROIC/WACC0.75
WACC9.19%
2.3 Liquidity
A Current Ratio of 1.04 indicates that SUBC should not have too much problems paying its short term obligations.
SUBC has a worse Current ratio (1.04) than 71.43% of its industry peers.
A Quick Ratio of 1.02 indicates that SUBC should not have too much problems paying its short term obligations.
The Quick ratio of SUBC (1.02) is worse than 62.86% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.04 | ||
| Quick Ratio | 1.02 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an impressive 220.00% over the past year.
The Earnings Per Share has been growing by 82.63% on average over the past years. This is a very strong growth
SUBC shows quite a strong growth in Revenue. In the last year, the Revenue has grown by 13.85%.
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)220%
EPS 3Y82.63%
EPS 5YN/A
EPS Q2Q%-33.33%
Revenue 1Y (TTM)13.85%
Revenue growth 3Y10.92%
Revenue growth 5Y13.33%
Sales Q2Q%9.6%
3.2 Future
The Earnings Per Share is expected to grow by 27.94% on average over the next years. This is a very strong growth
The Revenue is expected to grow by 4.94% on average over the next years.
EPS Next Y105.4%
EPS Next 2Y67.06%
EPS Next 3Y43.53%
EPS Next 5Y27.94%
Revenue Next Year5.6%
Revenue Next 2Y4.03%
Revenue Next 3Y3.51%
Revenue Next 5Y4.94%
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
The Price/Earnings ratio is 30.06, which means the current valuation is very expensive for SUBC.
SUBC's Price/Earnings ratio is a bit more expensive when compared to the industry. SUBC is more expensive than 77.14% of the companies in the same industry.
When comparing the Price/Earnings ratio of SUBC to the average of the S&P500 Index (27.28), we can say SUBC is valued inline with the index average.
SUBC is valuated reasonably with a Price/Forward Earnings ratio of 10.29.
Compared to the rest of the industry, the Price/Forward Earnings ratio of SUBC indicates a slightly more expensive valuation: SUBC is more expensive than 62.86% of the companies listed in the same industry.
When comparing the Price/Forward Earnings ratio of SUBC to the average of the S&P500 Index (21.76), we can say SUBC is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 30.06 | ||
| Fwd PE | 10.29 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of SUBC is on the same level as its industry peers.
The rest of the industry has a similar Price/Free Cash Flow ratio as SUBC.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 8.87 | ||
| EV/EBITDA | 5.64 |
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.
SUBC's earnings are expected to grow with 43.53% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.29
PEG (5Y)N/A
EPS Next 2Y67.06%
EPS Next 3Y43.53%
5. Dividend
5.1 Amount
SUBC has a Yearly Dividend Yield of 7.02%, which is a nice return.
SUBC's Dividend Yield is a higher than the industry average which is at 6.33.
Compared to an average S&P500 Dividend Yield of 2.42, SUBC pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 7.02% |
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
84.19% of the earnings are spent on dividend by SUBC. This is not a sustainable payout ratio.
DP84.19%
EPS Next 2Y67.06%
EPS Next 3Y43.53%
OSL:SUBC (7/2/2025, 7:00:00 PM)
193
+5 (+2.66%)
Chartmill FA Rating
GICS SectorEnergy
GICS IndustryGroupEnergy
GICS IndustryEnergy Equipment & Services
Earnings (Last)
Earnings (Next)
Inst Owners53.3%
Inst Owner ChangeN/A
Ins Owners0.08%
Ins Owner ChangeN/A
Market Cap57.82B
Analysts82.96
Price Target229.26 (18.79%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 7.02% |
Yearly Dividend5.51
Dividend Growth(5Y)-2.89%
DP84.19%
Div Incr Years0
Div Non Decr Years0
Ex-DateN/A
Surprises & Revisions
EPS beat(2)0
Avg EPS beat(2)-56.87%
Min EPS beat(2)-71.13%
Max EPS beat(2)-42.61%
EPS beat(4)1
Avg EPS beat(4)-21.51%
Min EPS beat(4)-71.13%
Max EPS beat(4)31.92%
EPS beat(8)4
Avg EPS beat(8)34.69%
EPS beat(12)6
Avg EPS beat(12)48.07%
EPS beat(16)8
Avg EPS beat(16)21.37%
Revenue beat(2)2
Avg Revenue beat(2)2.88%
Min Revenue beat(2)1.36%
Max Revenue beat(2)4.4%
Revenue beat(4)4
Avg Revenue beat(4)2.08%
Min Revenue beat(4)1.1%
Max Revenue beat(4)4.4%
Revenue beat(8)8
Avg Revenue beat(8)3.31%
Revenue beat(12)11
Avg Revenue beat(12)3.2%
Revenue beat(16)14
Avg Revenue beat(16)3.23%
PT rev (1m)0%
PT rev (3m)-0.31%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-8.22%
EPS NY rev (1m)0%
EPS NY rev (3m)-1.55%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-1.36%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-0.42%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 30.06 | ||
| Fwd PE | 10.29 | ||
| P/S | 0.83 | ||
| P/FCF | 8.87 | ||
| P/OCF | 5.81 | ||
| P/B | 1.34 | ||
| P/tB | 1.43 | ||
| EV/EBITDA | 5.64 |
EPS(TTM)6.42
EY3.33%
EPS(NY)18.75
Fwd EY9.72%
FCF(TTM)21.77
FCFY11.28%
OCF(TTM)33.21
OCFY17.21%
SpS233.36
BVpS144.54
TBVpS135.07
PEG (NY)0.29
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.47% | ||
| ROE | 4.48% | ||
| ROCE | 8.98% | ||
| ROIC | 6.91% | ||
| ROICexc | 7.58% | ||
| ROICexgc | 8.05% | ||
| OM | 6.74% | ||
| PM (TTM) | 2.78% | ||
| GM | 11.26% | ||
| FCFM | 9.33% |
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 | 0.17 | ||
| Debt/FCF | 1.68 | ||
| Debt/EBITDA | 0.66 | ||
| Cap/Depr | 53.41% | ||
| Cap/Sales | 4.9% | ||
| Interest Coverage | 4.38 | ||
| Cash Conversion | 89.4% | ||
| Profit Quality | 336.07% | ||
| Current Ratio | 1.04 | ||
| Quick Ratio | 1.02 | ||
| Altman-Z | 2.39 |
F-Score8
WACC9.19%
ROIC/WACC0.75
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)220%
EPS 3Y82.63%
EPS 5YN/A
EPS Q2Q%-33.33%
EPS Next Y105.4%
EPS Next 2Y67.06%
EPS Next 3Y43.53%
EPS Next 5Y27.94%
Revenue 1Y (TTM)13.85%
Revenue growth 3Y10.92%
Revenue growth 5Y13.33%
Sales Q2Q%9.6%
Revenue Next Year5.6%
Revenue Next 2Y4.03%
Revenue Next 3Y3.51%
Revenue Next 5Y4.94%
EBIT growth 1Y287.94%
EBIT growth 3Y57.3%
EBIT growth 5Y23.86%
EBIT Next Year200.76%
EBIT Next 3Y50.93%
EBIT Next 5Y28.67%
FCF growth 1Y1280.68%
FCF growth 3Y65.58%
FCF growth 5Y42.68%
OCF growth 1Y212.11%
OCF growth 3Y46.69%
OCF growth 5Y21.12%