REACH SUBSEA ASA (REACH.OL) Stock Fundamental Analysis
Europe - OSL:REACH - NO0003117202 - Common Stock
7.42 NOK
-0.08 (-1.07%)
REACH gets a fundamental rating of 6 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 REACH get a neutral evaluation. Nothing too spectacular is happening here. 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.
REACH had a positive operating cash flow in the past year.
In the past 5 years REACH has always been profitable.
In the past 5 years REACH always reported a positive cash flow from operatings.
1.2 Ratios
REACH's Return On Assets of 7.86% is fine compared to the rest of the industry. REACH outperforms 77.14% of its industry peers.
REACH has a better Return On Equity (19.76%) than 74.29% of its industry peers.
The Return On Invested Capital of REACH (17.10%) is better than 88.57% of its industry peers.
The Average Return On Invested Capital over the past 3 years for REACH is above the industry average of 11.28%.
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 (8.98%) which is in line with its industry peers.
REACH's Profit Margin has declined in the last couple of years.
The Operating Margin of REACH (14.19%) 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 | 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.
The number of shares outstanding for REACH has been increased compared to 1 year ago.
Compared to 5 years ago, REACH has more shares outstanding
The debt/assets ratio for REACH is higher compared to a year ago.
2.2 Solvency
An Altman-Z score of 2.11 indicates that REACH is not a great score, but indicates only limited risk for bankruptcy at the moment.
REACH's Altman-Z score of 2.11 is fine compared to the rest of the industry. REACH outperforms 71.43% 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.
The Debt to FCF ratio of REACH (1.61) is better than 80.00% of its industry peers.
A Debt/Equity ratio of 0.53 indicates that REACH is somewhat dependend on debt financing.
REACH has a Debt to Equity ratio (0.53) which is in line with its industry peers.
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 | 1.61 | ||
| Altman-Z | 2.11 |
ROIC/WACC1.94
WACC8.81%
2.3 Liquidity
A Current Ratio of 0.85 indicates that REACH may have some problems paying its short term obligations.
The Current ratio of REACH (0.85) is worse than 77.14% of its industry peers.
A Quick Ratio of 0.85 indicates that REACH may have some problems paying 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 77.14% of its industry peers.
| 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.
The Earnings Per Share has been growing slightly by 1.51% on average over the past years.
REACH shows a strong growth in Revenue. In the last year, the Revenue has grown by 36.16%.
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)36.16%
Revenue growth 3Y58.19%
Revenue growth 5Y39.82%
Sales Q2Q%9.81%
3.2 Future
REACH is expected to show a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 35.05% yearly.
The Revenue is expected to grow by 12.32% on average over the next years. This is quite good.
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
When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.
Although the future Revenue growth is still strong, it is not able to hold up the even more excellent growth rate of the past years.
4. Valuation
4.1 Price/Earnings Ratio
A Price/Earnings ratio of 9.76 indicates a reasonable valuation of REACH.
68.57% of the companies in the same industry are more expensive than REACH, based on the Price/Earnings ratio.
REACH is valuated cheaply when we compare the Price/Earnings ratio to 27.86, which is the current average of the S&P500 Index.
With a Price/Forward Earnings ratio of 6.00, the valuation of REACH can be described as very cheap.
Based on the Price/Forward Earnings ratio, REACH is valued a bit cheaper than 77.14% of the companies in the same industry.
When comparing the Price/Forward Earnings ratio of REACH to the average of the S&P500 Index (23.32), we can say REACH is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 9.76 | ||
| Fwd PE | 6 |
4.2 Price Multiples
REACH's Enterprise Value to EBITDA ratio is rather cheap when compared to the industry. REACH is cheaper than 88.57% of the companies in the same industry.
Based on the Price/Free Cash Flow ratio, REACH is valued cheaply inside the industry as 88.57% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 2.76 | ||
| EV/EBITDA | 2.82 |
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.
The decent profitability rating of REACH may justify a higher PE ratio.
A more expensive valuation may be justified as REACH's earnings are expected to grow with 35.05% in the coming years.
PEG (NY)0.41
PEG (5Y)N/A
EPS Next 2Y33.84%
EPS Next 3Y35.05%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 5.54%, REACH is a good candidate for dividend investing.
Compared to an average industry Dividend Yield of 7.02, REACH pays a bit more dividend than its industry peers.
REACH's Dividend Yield is rather good when compared to the S&P500 average which is at 2.44.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 5.54% |
5.2 History
The dividend of REACH is nicely growing with an annual growth rate of 38.16%!
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 (10/6/2025, 3:50:42 PM)
7.42
-0.08 (-1.07%)
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 Cap2.43B
Analysts84.44
Price Target8.67 (16.85%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 5.54% |
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)-8.11%
PT rev (3m)-8.11%
EPS NQ rev (1m)0%
EPS NQ rev (3m)0%
EPS NY rev (1m)-4.05%
EPS NY rev (3m)-4.05%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)0.07%
Revenue NY rev (1m)0.3%
Revenue NY rev (3m)0.3%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 9.76 | ||
| Fwd PE | 6 | ||
| P/S | 0.85 | ||
| P/FCF | 2.76 | ||
| P/OCF | 2.11 | ||
| P/B | 1.88 | ||
| P/tB | 2.1 | ||
| EV/EBITDA | 2.82 |
EPS(TTM)0.76
EY10.24%
EPS(NY)1.24
Fwd EY16.66%
FCF(TTM)2.69
FCFY36.2%
OCF(TTM)3.52
OCFY47.42%
SpS8.68
BVpS3.95
TBVpS3.54
PEG (NY)0.41
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 | 2.11 |
F-Score7
WACC8.81%
ROIC/WACC1.94
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)36.16%
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 1Y9.32%
EBIT growth 3Y66.32%
EBIT growth 5YN/A
EBIT Next Year242.58%
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%