REACH SUBSEA ASA (REACH.OL) Stock Fundamental Analysis
OSL:REACH - NO0003117202 - Common Stock
7 NOK
-0.04 (-0.57%)
REACH gets a fundamental rating of 6 out of 10. The analysis compared the fundamentals against 37 industry peers in the Energy Equipment & Services industry. REACH has an average financial health and profitability rating. REACH is evaluated to be cheap and growing strongly. This does not happen too often! REACH also has an excellent dividend rating.
1. Profitability
1.1 Basic Checks
REACH had positive earnings in the past year.
In the past year REACH had a positive cash flow from operations.
REACH had positive earnings in each of the past 5 years.
Each year in the past 5 years REACH had a positive operating cash flow.
1.2 Ratios
REACH's Return On Assets of 7.86% is fine compared to the rest of the industry. REACH outperforms 72.97% of its industry peers.
REACH's Return On Equity of 19.76% is fine compared to the rest of the industry. REACH outperforms 72.97% of its industry peers.
REACH has a better Return On Invested Capital (17.10%) than 89.19% of its industry peers.
The Average Return On Invested Capital over the past 3 years for REACH is above the industry average of 11.44%.
The 3 year average ROIC (15.65%) for REACH is below the current ROIC(17.10%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 7.86% | ||
| ROE | 19.76% | ||
| ROIC | 17.1% |
ROA(3y)7.44%
ROA(5y)9.35%
ROE(3y)18.53%
ROE(5y)21.76%
ROIC(3y)15.65%
ROIC(5y)17.06%
1.3 Margins
REACH has a Profit Margin of 8.98%. This is comparable to the rest of the industry: REACH outperforms 56.76% of its industry peers.
In the last couple of years the Profit Margin of REACH has declined.
REACH has a Operating Margin of 14.19%. This is comparable to the rest of the industry: REACH outperforms 54.05% of its industry peers.
REACH's Operating Margin has improved in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 14.19% | ||
| PM (TTM) | 8.98% | ||
| GM | N/A |
OM growth 3Y5.14%
OM growth 5YN/A
PM growth 3Y-17.91%
PM growth 5YN/A
GM growth 3YN/A
GM growth 5YN/A
2. Health
2.1 Basic Checks
With a Return on Invested Capital (ROIC) well above the Cost of Capital (WACC), REACH is creating value.
REACH has more shares outstanding than it did 1 year ago.
The number of shares outstanding for REACH has been increased compared to 5 years ago.
Compared to 1 year ago, REACH has a worse debt to assets ratio.
2.2 Solvency
An Altman-Z score of 2.06 indicates that REACH is not a great score, but indicates only limited risk for bankruptcy at the moment.
REACH's Altman-Z score of 2.06 is fine compared to the rest of the industry. REACH outperforms 67.57% of its industry peers.
REACH has a debt to FCF ratio of 1.61. This is a very positive value and a sign of high solvency as it would only need 1.61 years to pay back of all of its debts.
Looking at the Debt to FCF ratio, with a value of 1.61, REACH belongs to the top of the industry, outperforming 81.08% of the companies in the same industry.
REACH has a Debt/Equity ratio of 0.53. This is a neutral value indicating REACH is somewhat dependend on debt financing.
With a Debt to Equity ratio value of 0.53, REACH perfoms like the industry average, outperforming 56.76% of the companies in the same industry.
Even though the debt/equity ratio score it not favorable for REACH, it has very limited outstanding debt, so we won't put too much weight on the DE evaluation.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.53 | ||
| Debt/FCF | 1.61 | ||
| Altman-Z | 2.06 |
ROIC/WACC1.9
WACC8.99%
2.3 Liquidity
A Current Ratio of 0.85 indicates that REACH may have some problems paying its short term obligations.
REACH has a worse Current ratio (0.85) than 78.38% of its industry peers.
REACH has a Quick Ratio of 0.85. This is a bad value and indicates that REACH is not financially healthy enough and could expect problems in meeting its short term obligations.
REACH's Quick ratio of 0.85 is on the low side compared to the rest of the industry. REACH is outperformed by 78.38% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.85 | ||
| Quick Ratio | 0.85 |
3. Growth
3.1 Past
REACH shows a slight negative growth in Earnings Per Share. In the last year, the EPS has decreased by 0.00%.
Measured over the past 5 years, REACH shows a small growth in Earnings Per Share. The EPS has been growing by 1.51% on average per year.
Looking at the last year, REACH shows a very strong growth in Revenue. The Revenue has grown by 36.16%.
Measured over the past years, REACH shows a very strong growth in Revenue. The Revenue has been growing by 39.82% on average per year.
EPS 1Y (TTM)0%
EPS 3Y1.51%
EPS 5YN/A
EPS Q2Q%-26.67%
Revenue 1Y (TTM)36.16%
Revenue growth 3Y58.19%
Revenue growth 5Y39.82%
Sales Q2Q%9.81%
3.2 Future
The Earnings Per Share is expected to grow by 35.05% on average over the next years. This is a very strong growth
REACH is expected to show quite a strong growth in Revenue. In the coming years, the Revenue will grow by 12.32% yearly.
EPS Next Y29.12%
EPS Next 2Y33.84%
EPS Next 3Y35.05%
EPS Next 5YN/A
Revenue Next Year15.48%
Revenue Next 2Y12.64%
Revenue Next 3Y12.32%
Revenue Next 5YN/A
3.3 Evolution
The EPS growth rate is accelerating: in the next years the growth will be better than in the last years.
The estimated forward Revenue growth is still strong, although it is decreasing when compared to the stronger growth in the past years.
4. Valuation
4.1 Price/Earnings Ratio
A Price/Earnings ratio of 9.21 indicates a reasonable valuation of REACH.
Based on the Price/Earnings ratio, REACH is valued a bit cheaper than the industry average as 67.57% of the companies are valued more expensively.
The average S&P500 Price/Earnings ratio is at 27.06. REACH is valued rather cheaply when compared to this.
The Price/Forward Earnings ratio is 5.66, which indicates a rather cheap valuation of REACH.
86.49% of the companies in the same industry are more expensive than REACH, based on the Price/Forward Earnings ratio.
The average S&P500 Price/Forward Earnings ratio is at 22.69. REACH is valued rather cheaply when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 9.21 | ||
| Fwd PE | 5.66 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, REACH is valued cheaply inside the industry as 86.49% of the companies are valued more expensively.
REACH's Price/Free Cash Flow ratio is rather cheap when compared to the industry. REACH is cheaper than 91.89% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 2.61 | ||
| EV/EBITDA | 2.7 |
4.3 Compensation for Growth
REACH's low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
REACH has a very decent profitability rating, which may justify a higher PE ratio.
REACH's earnings are expected to grow with 35.05% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.32
PEG (5Y)N/A
EPS Next 2Y33.84%
EPS Next 3Y35.05%
5. Dividend
5.1 Amount
REACH has a Yearly Dividend Yield of 5.88%, which is a nice return.
Compared to an average industry Dividend Yield of 6.65, REACH pays a bit more dividend than its industry peers.
Compared to an average S&P500 Dividend Yield of 2.45, REACH pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 5.88% |
5.2 History
On average, the dividend of REACH grows each year by 38.16%, which is quite nice.
Dividend Growth(5Y)38.16%
Div Incr Years0
Div Non Decr Years0
5.3 Sustainability
REACH pays out 38.33% of its income as dividend. This is a sustainable payout ratio.
REACH's earnings are growing slower than its dividend. This means the dividend growth is not sustainable.
DP38.33%
EPS Next 2Y33.84%
EPS Next 3Y35.05%
OSL:REACH (9/8/2025, 11:48:40 AM)
7
-0.04 (-0.57%)
Chartmill FA Rating
GICS SectorEnergy
GICS IndustryGroupEnergy
GICS IndustryEnergy Equipment & Services
Earnings (Last)
Earnings (Next)
Inst Owners3.67%
Inst Owner ChangeN/A
Ins Owners1.24%
Ins Owner ChangeN/A
Market Cap2.29B
Analysts86
Price Target9.44 (34.86%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 5.88% |
Yearly Dividend0.35
Dividend Growth(5Y)38.16%
DP38.33%
Div Incr Years0
Div Non Decr Years0
Ex-DateN/A
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)-17.64%
Min EPS beat(2)-62.24%
Max EPS beat(2)26.96%
EPS beat(4)2
Avg EPS beat(4)-10.75%
Min EPS beat(4)-62.24%
Max EPS beat(4)26.96%
EPS beat(8)4
Avg EPS beat(8)45.17%
EPS beat(12)N/A
Avg EPS beat(12)N/A
EPS beat(16)N/A
Avg EPS beat(16)N/A
Revenue beat(2)1
Avg Revenue beat(2)6.69%
Min Revenue beat(2)-0.09%
Max Revenue beat(2)13.47%
Revenue beat(4)2
Avg Revenue beat(4)8.66%
Min Revenue beat(4)-8.25%
Max Revenue beat(4)29.51%
Revenue beat(8)6
Avg Revenue beat(8)11.84%
Revenue beat(12)N/A
Avg Revenue beat(12)N/A
Revenue beat(16)N/A
Avg Revenue beat(16)N/A
PT rev (1m)0%
PT rev (3m)0%
EPS NQ rev (1m)0%
EPS NQ rev (3m)0%
EPS NY rev (1m)0%
EPS NY rev (3m)0%
Revenue NQ rev (1m)0.07%
Revenue NQ rev (3m)0.07%
Revenue NY rev (1m)0%
Revenue NY rev (3m)0%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 9.21 | ||
| Fwd PE | 5.66 | ||
| P/S | 0.81 | ||
| P/FCF | 2.61 | ||
| P/OCF | 1.99 | ||
| P/B | 1.77 | ||
| P/tB | 1.98 | ||
| EV/EBITDA | 2.7 |
EPS(TTM)0.76
EY10.86%
EPS(NY)1.24
Fwd EY17.66%
FCF(TTM)2.69
FCFY38.37%
OCF(TTM)3.52
OCFY50.27%
SpS8.68
BVpS3.95
TBVpS3.54
PEG (NY)0.32
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 7.86% | ||
| ROE | 19.76% | ||
| ROCE | 20.45% | ||
| ROIC | 17.1% | ||
| ROICexc | 20.5% | ||
| ROICexgc | 22.31% | ||
| OM | 14.19% | ||
| PM (TTM) | 8.98% | ||
| GM | N/A | ||
| FCFM | 30.95% |
ROA(3y)7.44%
ROA(5y)9.35%
ROE(3y)18.53%
ROE(5y)21.76%
ROIC(3y)15.65%
ROIC(5y)17.06%
ROICexc(3y)20.68%
ROICexc(5y)25.92%
ROICexgc(3y)24.48%
ROICexgc(5y)28.23%
ROCE(3y)18.71%
ROCE(5y)20.39%
ROICexcg growth 3Y-6.09%
ROICexcg growth 5YN/A
ROICexc growth 3Y-8.71%
ROICexc growth 5YN/A
OM growth 3Y5.14%
OM growth 5YN/A
PM growth 3Y-17.91%
PM growth 5YN/A
GM growth 3YN/A
GM growth 5YN/A
F-Score7
Asset Turnover0.88
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.53 | ||
| Debt/FCF | 1.61 | ||
| Debt/EBITDA | 0.54 | ||
| Cap/Depr | 31.95% | ||
| Cap/Sales | 9.6% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 91.67% | ||
| Profit Quality | 344.5% | ||
| Current Ratio | 0.85 | ||
| Quick Ratio | 0.85 | ||
| Altman-Z | 2.06 |
F-Score7
WACC8.99%
ROIC/WACC1.9
Cap/Depr(3y)37.53%
Cap/Depr(5y)22.85%
Cap/Sales(3y)11.42%
Cap/Sales(5y)6.96%
Profit Quality(3y)346.69%
Profit Quality(5y)390.9%
High Growth Momentum
Growth
EPS 1Y (TTM)0%
EPS 3Y1.51%
EPS 5YN/A
EPS Q2Q%-26.67%
EPS Next Y29.12%
EPS Next 2Y33.84%
EPS Next 3Y35.05%
EPS Next 5YN/A
Revenue 1Y (TTM)36.16%
Revenue growth 3Y58.19%
Revenue growth 5Y39.82%
Sales Q2Q%9.81%
Revenue Next Year15.48%
Revenue Next 2Y12.64%
Revenue Next 3Y12.32%
Revenue Next 5YN/A
EBIT growth 1Y9.32%
EBIT growth 3Y66.32%
EBIT growth 5YN/A
EBIT Next Year258.19%
EBIT Next 3Y70.26%
EBIT Next 5YN/A
FCF growth 1Y300.01%
FCF growth 3Y29.62%
FCF growth 5Y30.94%
OCF growth 1Y180.42%
OCF growth 3Y45.92%
OCF growth 5Y35.34%