REACH SUBSEA ASA (REACH.OL) Stock Fundamental Analysis
Europe - Euronext Oslo - OSL:REACH - NO0003117202 - Common Stock
6.75 NOK
+0.05 (+0.75%)
REACH gets a fundamental rating of 6 out of 10. The analysis compared the fundamentals against 36 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 not priced too expensively while it is growing strongly. Keep and eye on this one! 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 Return On Assets of 7.70%. This is in the better half of the industry: REACH outperforms 77.78% of its industry peers.
Looking at the Return On Equity, with a value of 19.56%, REACH is in the better half of the industry, outperforming 77.78% of the companies in the same industry.
Looking at the Return On Invested Capital, with a value of 16.61%, REACH belongs to the top of the industry, outperforming 88.89% of the companies in the same industry.
The Average Return On Invested Capital over the past 3 years for REACH is above the industry average of 10.82%.
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.
In the last couple of years the Profit Margin of REACH has declined.
The Operating Margin of REACH (12.86%) 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
The Return on Invested Capital (ROIC) is well above the Cost of Capital (WACC), so REACH 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
An Altman-Z score of 2.12 indicates that REACH is not a great score, but indicates only limited risk for bankruptcy at the moment.
REACH has a better Altman-Z score (2.12) than 75.00% of its industry peers.
The Debt to FCF ratio of REACH is 1.81, which is an excellent value as it means it would take REACH, only 1.81 years of fcf income to pay off all of its debts.
REACH has a Debt to FCF ratio of 1.81. This is in the better half of the industry: REACH outperforms 77.78% of its industry peers.
A Debt/Equity ratio of 0.53 indicates that REACH is somewhat dependend on debt financing.
REACH's Debt to Equity ratio of 0.53 is in line compared to the rest of the industry. REACH outperforms 50.00% of 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 | 1.81 | ||
| Altman-Z | 2.12 |
ROIC/WACC1.82
WACC9.11%
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 86.11% of the companies in the same industry.
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.
Looking at the Quick ratio, with a value of 0.85, REACH is doing worse than 86.11% of the companies in the same industry.
| 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.
The Revenue has grown by 24.89% in the past year. This is a very strong growth!
REACH shows a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 39.82% yearly.
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
REACH is expected to show a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 35.05% yearly.
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 Y-100%
EPS Next 2Y-41.42%
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 8.88 indicates a reasonable valuation of REACH.
Based on the Price/Earnings ratio, REACH is valued a bit cheaper than the industry average as 75.00% of the companies are valued more expensively.
REACH is valuated cheaply when we compare the Price/Earnings ratio to 27.19, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 8.88 | ||
| Fwd PE | N/A |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of REACH indicates a rather cheap valuation: REACH is cheaper than 86.11% of the companies listed in the same industry.
REACH's Price/Free Cash Flow ratio is rather cheap when compared to the industry. REACH is cheaper than 86.11% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 3.1 | ||
| EV/EBITDA | 2.6 |
4.3 Compensation for Growth
REACH has a very decent profitability rating, which 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)N/A
PEG (5Y)N/A
EPS Next 2Y-41.42%
EPS Next 3Y35.05%
5. Dividend
5.1 Amount
REACH has a Yearly Dividend Yield of 6.15%, which is a nice return.
Compared to an average industry Dividend Yield of 3.89, 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 1.94.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 6.15% |
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 57.18% of its income as dividend. 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 2Y-41.42%
EPS Next 3Y35.05%
OSL:REACH (1/9/2026, 7:00:00 PM)
6.75
+0.05 (+0.75%)
Chartmill FA Rating
GICS SectorEnergy
GICS IndustryGroupEnergy
GICS IndustryEnergy Equipment & Services
Earnings (Last)
Earnings (Next)
Inst Owners7.64%
Inst Owner ChangeN/A
Ins Owners1.45%
Ins Owner ChangeN/A
Market Cap2.21B
Revenue(TTM)2.90B
Net Income(TTM)240.49M
Analysts84.44
Price Target8.67 (28.44%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 6.15% |
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)0%
EPS NQ rev (1m)0%
EPS NQ rev (3m)0%
EPS NY rev (1m)-100%
EPS NY rev (3m)-100%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)0%
Revenue NY rev (1m)0%
Revenue NY rev (3m)0%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 8.88 | ||
| Fwd PE | N/A | ||
| P/S | 0.76 | ||
| P/FCF | 3.1 | ||
| P/OCF | 2.11 | ||
| P/B | 1.8 | ||
| P/tB | 2.01 | ||
| EV/EBITDA | 2.6 |
EPS(TTM)0.76
EY11.26%
EPS(NY)0
Fwd EYN/A
FCF(TTM)2.18
FCFY32.24%
OCF(TTM)3.19
OCFY47.33%
SpS8.87
BVpS3.76
TBVpS3.35
PEG (NY)N/A
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 | 2.12 |
F-Score7
WACC9.11%
ROIC/WACC1.82
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 Y-100%
EPS Next 2Y-41.42%
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 for REACH stock?
ChartMill assigns a valuation rating of 6 / 10 to REACH SUBSEA ASA (REACH.OL). This can be considered as Fairly Valued.
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 expected EPS growth for REACH SUBSEA ASA (REACH.OL) stock?
The Earnings per Share (EPS) of REACH SUBSEA ASA (REACH.OL) is expected to decline by -100% in the next year.
Can you provide the dividend sustainability for REACH stock?
The dividend rating of REACH SUBSEA ASA (REACH.OL) is 7 / 10 and the dividend payout ratio is 57.18%.