REACH SUBSEA ASA (REACH.OL) Stock Fundamental Analysis
Europe - Euronext Oslo - OSL:REACH - NO0003117202 - Common Stock
6.01 NOK
-0.02 (-0.33%)
Overall REACH gets a fundamental rating of 6 out of 10. We evaluated REACH against 39 industry peers in the Energy Equipment & Services industry. REACH has only an average score on both its financial health and profitability. An interesting combination arises when we look at growth and value: REACH is growing strongly while it also seems undervalued. Finally REACH also has an excellent dividend rating.
1. Profitability
1.1 Basic Checks
In the past year REACH was profitable.
REACH had a positive operating cash flow in the past year.
Each year in the past 5 years REACH has been profitable.
REACH had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
REACH has a better Return On Assets (7.70%) than 76.92% of its industry peers.
REACH's Return On Equity of 19.56% is fine compared to the rest of the industry. REACH outperforms 74.36% of its industry peers.
REACH's Return On Invested Capital of 16.61% is amongst the best of the industry. REACH outperforms 89.74% of its industry peers.
REACH had an Average Return On Invested Capital over the past 3 years of 15.65%. This is above the industry average of 10.99%.
The last Return On Invested Capital (16.61%) for REACH is above the 3 year average (15.65%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 7.7% | ||
| ROE | 19.56% | ||
| ROIC | 16.61% |
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's Profit Margin of 8.29% is fine compared to the rest of the industry. REACH outperforms 66.67% of its industry peers.
REACH's Profit Margin has declined in the last couple of years.
REACH has a Operating Margin (12.86%) which is comparable to the rest of the industry.
In the last couple of years the Operating Margin of REACH has grown nicely.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 12.86% | ||
| PM (TTM) | 8.29% | ||
| 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
REACH has a Return on Invested Capital (ROIC), which is well above the Cost of Capital (WACC), which means it is creating value.
Compared to 1 year ago, REACH has more shares outstanding
The number of shares outstanding for REACH has been increased compared to 5 years ago.
The debt/assets ratio for REACH is higher compared to a year ago.
2.2 Solvency
REACH has an Altman-Z score of 2.05. This is not the best score and indicates that REACH is in the grey zone with still only limited risk for bankruptcy at the moment.
REACH's Altman-Z score of 2.05 is fine compared to the rest of the industry. REACH outperforms 69.23% of its industry peers.
REACH has a debt to FCF ratio of 1.81. This is a very positive value and a sign of high solvency as it would only need 1.81 years to pay back of all of its debts.
With a decent Debt to FCF ratio value of 1.81, REACH is doing good in the industry, outperforming 79.49% 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.
The Debt to Equity ratio of REACH (0.53) is comparable to the rest of the industry.
Although REACH does not score too well on debt/equity it has very limited outstanding debt, which is well covered by the FCF. We will not put too much weight on the debt/equity number as it may be because of low equity, which could be a consequence of a share buyback program for instance. This needs to be investigated.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.53 | ||
| Debt/FCF | 1.81 | ||
| Altman-Z | 2.05 |
ROIC/WACC1.81
WACC9.16%
2.3 Liquidity
A Current Ratio of 0.85 indicates that REACH may have some problems paying its short term obligations.
Looking at the Current ratio, with a value of 0.85, REACH is doing worse than 87.18% of the companies in the same industry.
A Quick Ratio of 0.85 indicates that REACH may have some problems paying its short term obligations.
With a Quick ratio value of 0.85, REACH is not doing good in the industry: 87.18% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.85 | ||
| Quick Ratio | 0.85 |
3. Growth
3.1 Past
The earnings per share for REACH have decreased by 0.00% in the last year.
REACH shows a small growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 1.51% yearly.
Looking at the last year, REACH shows a very strong growth in Revenue. The Revenue has grown by 24.89%.
The Revenue has been growing by 39.82% on average over the past years. This is a very strong growth!
EPS 1Y (TTM)0%
EPS 3Y1.51%
EPS 5YN/A
EPS Q2Q%-26.67%
Revenue 1Y (TTM)24.89%
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
Based on estimates for the next years, REACH will show a quite strong growth in Revenue. The Revenue will grow by 12.32% on average per year.
EPS Next Y23.9%
EPS Next 2Y33.84%
EPS Next 3Y35.05%
EPS Next 5YN/A
Revenue Next Year15.83%
Revenue Next 2Y10.88%
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
REACH is valuated cheaply with a Price/Earnings ratio of 7.91.
Compared to the rest of the industry, the Price/Earnings ratio of REACH indicates a somewhat cheap valuation: REACH is cheaper than 74.36% of the companies listed in the same industry.
Compared to an average S&P500 Price/Earnings ratio of 26.15, REACH is valued rather cheaply.
REACH is valuated cheaply with a Price/Forward Earnings ratio of 4.86.
Compared to the rest of the industry, the Price/Forward Earnings ratio of REACH indicates a rather cheap valuation: REACH is cheaper than 92.31% of the companies listed in the same industry.
REACH's Price/Forward Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 36.12.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 7.91 | ||
| Fwd PE | 4.86 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, REACH is valued cheaply inside the industry as 87.18% 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 87.18% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 2.76 | ||
| EV/EBITDA | 2.43 |
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)0.33
PEG (5Y)N/A
EPS Next 2Y33.84%
EPS Next 3Y35.05%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 6.64%, REACH is a good candidate for dividend investing.
REACH's Dividend Yield is a higher than the industry average which is at 7.32.
REACH's Dividend Yield is rather good when compared to the S&P500 average which is at 2.41.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 6.64% |
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
57.18% of the earnings are spent on dividend by REACH. This is a bit on the high side, but may be sustainable.
REACH's earnings are growing slower than its dividend. This means the dividend growth is not sustainable.
DP57.18%
EPS Next 2Y33.84%
EPS Next 3Y35.05%
OSL:REACH (11/26/2025, 2:19:03 PM)
6.01
-0.02 (-0.33%)
Chartmill FA Rating
GICS SectorEnergy
GICS IndustryGroupEnergy
GICS IndustryEnergy Equipment & Services
Earnings (Last)
Earnings (Next)
Inst Owners7.73%
Inst Owner ChangeN/A
Ins Owners1.24%
Ins Owner ChangeN/A
Market Cap1.97B
Revenue(TTM)2.90B
Net Income(TTM)240.49M
Analysts84.44
Price Target8.67 (44.26%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 6.64% |
Yearly Dividend0.35
Dividend Growth(5Y)38.16%
DP57.18%
Div Incr Years0
Div Non Decr Years0
Ex-DateN/A
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)0.31%
Min EPS beat(2)-26.35%
Max EPS beat(2)26.96%
EPS beat(4)2
Avg EPS beat(4)-14.4%
Min EPS beat(4)-62.24%
Max EPS beat(4)26.96%
EPS beat(8)3
Avg EPS beat(8)41.48%
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)0
Avg Revenue beat(2)-5.85%
Min Revenue beat(2)-11.61%
Max Revenue beat(2)-0.09%
Revenue beat(4)2
Avg Revenue beat(4)7.82%
Min Revenue beat(4)-11.61%
Max Revenue beat(4)29.51%
Revenue beat(8)5
Avg Revenue beat(8)6.8%
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)-8.11%
EPS NQ rev (1m)0%
EPS NQ rev (3m)0%
EPS NY rev (1m)0%
EPS NY rev (3m)-4.05%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)0%
Revenue NY rev (1m)0%
Revenue NY rev (3m)0.3%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 7.91 | ||
| Fwd PE | 4.86 | ||
| P/S | 0.68 | ||
| P/FCF | 2.76 | ||
| P/OCF | 1.88 | ||
| P/B | 1.6 | ||
| P/tB | 1.79 | ||
| EV/EBITDA | 2.43 |
EPS(TTM)0.76
EY12.65%
EPS(NY)1.24
Fwd EY20.57%
FCF(TTM)2.18
FCFY36.21%
OCF(TTM)3.19
OCFY53.16%
SpS8.87
BVpS3.76
TBVpS3.35
PEG (NY)0.33
PEG (5Y)N/A
Graham Number8.01
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 7.7% | ||
| ROE | 19.56% | ||
| ROCE | 19.86% | ||
| ROIC | 16.61% | ||
| ROICexc | 18.26% | ||
| ROICexgc | 19.79% | ||
| OM | 12.86% | ||
| PM (TTM) | 8.29% | ||
| GM | N/A | ||
| FCFM | 24.55% |
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%
ROICexgc growth 3Y-6.09%
ROICexgc 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 Turnover0.93
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.53 | ||
| Debt/FCF | 1.81 | ||
| Debt/EBITDA | 0.51 | ||
| Cap/Depr | 36.9% | ||
| Cap/Sales | 11.49% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 81.92% | ||
| Profit Quality | 296.29% | ||
| Current Ratio | 0.85 | ||
| Quick Ratio | 0.85 | ||
| Altman-Z | 2.05 |
F-Score7
WACC9.16%
ROIC/WACC1.81
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 Y23.9%
EPS Next 2Y33.84%
EPS Next 3Y35.05%
EPS Next 5YN/A
Revenue 1Y (TTM)24.89%
Revenue growth 3Y58.19%
Revenue growth 5Y39.82%
Sales Q2Q%9.81%
Revenue Next Year15.83%
Revenue Next 2Y10.88%
Revenue Next 3Y12.32%
Revenue Next 5YN/A
EBIT growth 1Y9.24%
EBIT growth 3Y66.32%
EBIT growth 5YN/A
EBIT Next Year242.58%
EBIT Next 3Y70.26%
EBIT Next 5YN/A
FCF growth 1Y72.15%
FCF growth 3Y29.62%
FCF growth 5Y30.94%
OCF growth 1Y80.99%
OCF growth 3Y45.92%
OCF growth 5Y35.34%
REACH SUBSEA ASA / REACH.OL FAQ
What is the ChartMill fundamental rating of REACH SUBSEA ASA (REACH.OL) stock?
ChartMill assigns a fundamental rating of 6 / 10 to REACH.OL.
What is the valuation status of REACH SUBSEA ASA (REACH.OL) stock?
ChartMill assigns a valuation rating of 9 / 10 to REACH SUBSEA ASA (REACH.OL). This can be considered as Undervalued.
Can you provide the profitability details for REACH SUBSEA ASA?
REACH SUBSEA ASA (REACH.OL) has a profitability rating of 6 / 10.
What is the valuation of REACH SUBSEA ASA based on its PE and PB ratios?
The Price/Earnings (PE) ratio for REACH SUBSEA ASA (REACH.OL) is 7.91 and the Price/Book (PB) ratio is 1.6.
How financially healthy is REACH SUBSEA ASA?
The financial health rating of REACH SUBSEA ASA (REACH.OL) is 4 / 10.