REACH SUBSEA ASA (REACH.OL) Stock Fundamental Analysis
Europe - OSL:REACH - NO0003117202 - Common Stock
6.79 NOK
-0.05 (-0.73%)
Overall REACH gets a fundamental rating of 6 out of 10. We evaluated REACH against 36 industry peers in the Energy Equipment & Services industry. REACH has an excellent profitability rating, but there are some minor concerns on its financial health. REACH has both an excellent growth and valuation score. This means it is growing and it is still cheap. This is a rare combination! Finally REACH also has an excellent dividend rating.
1. Profitability
1.1 Basic Checks
In the past year REACH was profitable.
In the past year REACH had a positive cash flow from operations.
REACH had positive earnings in each of the past 5 years.
In the past 5 years REACH always reported a positive cash flow from operatings.
1.2 Ratios
REACH has a better Return On Assets (7.70%) than 77.78% of its industry peers.
REACH's Return On Equity of 19.56% is fine compared to the rest of the industry. REACH outperforms 75.00% of its industry peers.
With an excellent Return On Invested Capital value of 16.61%, REACH belongs to the best of the industry, outperforming 91.67% of the companies in the same industry.
The Average Return On Invested Capital over the past 3 years for REACH is significantly above the industry average of 10.49%.
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
With a decent Profit Margin value of 8.29%, REACH is doing good in the industry, outperforming 66.67% of the companies in the same industry.
In the last couple of years the Profit Margin of REACH has declined.
Looking at the Operating Margin, with a value of 12.86%, REACH is in line with its industry, outperforming 52.78% of the companies in the same 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
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.
Compared to 5 years ago, REACH has more shares outstanding
REACH has a worse debt/assets ratio than last year.
2.2 Solvency
REACH has an Altman-Z score of 2.13. 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.
Looking at the Altman-Z score, with a value of 2.13, REACH is in the better half of the industry, outperforming 72.22% of the companies in the same industry.
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.
With an excellent Debt to FCF ratio value of 1.81, REACH belongs to the best of the industry, outperforming 83.33% of the companies in the same industry.
A Debt/Equity ratio of 0.53 indicates that REACH is somewhat dependend on debt financing.
REACH has a Debt to Equity ratio of 0.53. This is comparable to the rest of the industry: REACH outperforms 52.78% 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 | 2.13 |
ROIC/WACC1.85
WACC8.98%
2.3 Liquidity
A Current Ratio of 0.85 indicates that REACH may have some problems paying its short term obligations.
REACH has a Current ratio of 0.85. This is amonst the worse of the industry: REACH underperforms 83.33% of its industry peers.
A Quick Ratio of 0.85 indicates that REACH may have some problems paying its short term obligations.
The Quick ratio of REACH (0.85) is worse than 83.33% 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%.
REACH shows a small growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 1.51% yearly.
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.
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
The EPS growth rate is accelerating: in the next years the growth will be better than in the last years.
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
The Price/Earnings ratio is 8.93, which indicates a very decent valuation of REACH.
72.22% of the companies in the same industry are more expensive than REACH, based on the Price/Earnings ratio.
Compared to an average S&P500 Price/Earnings ratio of 27.08, REACH is valued rather cheaply.
A Price/Forward Earnings ratio of 5.49 indicates a rather cheap valuation of REACH.
Compared to the rest of the industry, the Price/Forward Earnings ratio of REACH indicates a rather cheap valuation: REACH is cheaper than 80.56% of the companies listed in the same industry.
REACH is valuated cheaply when we compare the Price/Forward Earnings ratio to 23.09, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 8.93 | ||
| Fwd PE | 5.49 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, REACH is valued cheaply inside the industry as 88.89% of the companies are valued more expensively.
Based on the Price/Free Cash Flow ratio, REACH is valued cheaper than 88.89% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 3.12 | ||
| EV/EBITDA | 2.63 |
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.
A more expensive valuation may be justified as REACH's earnings are expected to grow with 35.05% in the coming years.
PEG (NY)0.37
PEG (5Y)N/A
EPS Next 2Y33.84%
EPS Next 3Y35.05%
5. Dividend
5.1 Amount
REACH has a Yearly Dividend Yield of 5.97%, which is a nice return.
REACH's Dividend Yield is a higher than the industry average which is at 7.20.
Compared to an average S&P500 Dividend Yield of 2.30, REACH pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 5.97% |
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 57.18% of its income as dividend. This is a bit on the high side, but may be sustainable.
The dividend of REACH is growing, but the earnings are growing slower. This means the dividend growth is not sustainable.
DP57.18%
EPS Next 2Y33.84%
EPS Next 3Y35.05%
OSL:REACH (10/28/2025, 9:05:32 AM)
6.79
-0.05 (-0.73%)
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 Cap2.22B
Revenue(TTM)2.90B
Net Income(TTM)240.49M
Analysts84.44
Price Target8.67 (27.69%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 5.97% |
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 | 8.93 | ||
| Fwd PE | 5.49 | ||
| P/S | 0.77 | ||
| P/FCF | 3.12 | ||
| P/OCF | 2.13 | ||
| P/B | 1.81 | ||
| P/tB | 2.03 | ||
| EV/EBITDA | 2.63 |
EPS(TTM)0.76
EY11.19%
EPS(NY)1.24
Fwd EY18.2%
FCF(TTM)2.18
FCFY32.05%
OCF(TTM)3.19
OCFY47.05%
SpS8.87
BVpS3.76
TBVpS3.35
PEG (NY)0.37
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 | 2.13 |
F-Score7
WACC8.98%
ROIC/WACC1.85
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 7 / 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 8.93 and the Price/Book (PB) ratio is 1.81.
How financially healthy is REACH SUBSEA ASA?
The financial health rating of REACH SUBSEA ASA (REACH.OL) is 4 / 10.