REACH SUBSEA ASA (REACH.OL) Stock Fundamental Analysis
Europe - OSL:REACH - NO0003117202 - Common Stock
6.66 NOK
-0.04 (-0.6%)
Taking everything into account, REACH scores 6 out of 10 in our fundamental rating. REACH was compared to 37 industry peers in the Energy Equipment & Services industry. REACH has an average financial health and profitability rating. An interesting combination arises when we look at growth and value: REACH is growing strongly while it also seems undervalued. 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.
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 78.38% of its industry peers.
The Return On Equity of REACH (19.56%) is better than 72.97% of its industry peers.
The Return On Invested Capital of REACH (16.61%) is better than 91.89% 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 10.66%.
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 has a Profit Margin of 8.29%. This is in the better half of the industry: REACH outperforms 67.57% of its industry peers.
REACH's Profit Margin has declined in the last couple of years.
REACH has a Operating Margin of 12.86%. 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 | 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.
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
Compared to 1 year ago, REACH has a worse debt to assets ratio.
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 Altman-Z score of 2.12. This is in the better half of the industry: REACH outperforms 70.27% 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 an excellent Debt to FCF ratio value of 1.81, REACH belongs to the best of the industry, outperforming 81.08% 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 (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 | 1.81 | ||
| Altman-Z | 2.12 |
ROIC/WACC1.84
WACC9.03%
2.3 Liquidity
REACH has a Current 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 has a worse Current ratio (0.85) than 83.78% 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 has a Quick ratio of 0.85. This is amonst the worse of the industry: REACH underperforms 83.78% 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.
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.
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.
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 reasonably with a Price/Earnings ratio of 8.76.
70.27% of the companies in the same industry are more expensive than REACH, based on the Price/Earnings ratio.
The average S&P500 Price/Earnings ratio is at 26.03. REACH is valued rather cheaply when compared to this.
Based on the Price/Forward Earnings ratio of 5.39, the valuation of REACH can be described as very cheap.
Based on the Price/Forward Earnings ratio, REACH is valued cheaper than 81.08% of the companies 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 22.27.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 8.76 | ||
| Fwd PE | 5.39 |
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 89.19% 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 89.19% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 3.06 | ||
| EV/EBITDA | 2.6 |
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)0.37
PEG (5Y)N/A
EPS Next 2Y33.84%
EPS Next 3Y35.05%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 6.27%, REACH is a good candidate for dividend investing.
Compared to an average industry Dividend Yield of 7.26, 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 2.38.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 6.27% |
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 2Y33.84%
EPS Next 3Y35.05%
OSL:REACH (11/4/2025, 7:00:00 PM)
6.66
-0.04 (-0.6%)
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 Cap2.18B
Revenue(TTM)2.90B
Net Income(TTM)240.49M
Analysts84.44
Price Target8.67 (30.18%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 6.27% |
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 | 8.76 | ||
| Fwd PE | 5.39 | ||
| P/S | 0.75 | ||
| P/FCF | 3.06 | ||
| P/OCF | 2.08 | ||
| P/B | 1.77 | ||
| P/tB | 1.99 | ||
| EV/EBITDA | 2.6 |
EPS(TTM)0.76
EY11.41%
EPS(NY)1.24
Fwd EY18.56%
FCF(TTM)2.18
FCFY32.68%
OCF(TTM)3.19
OCFY47.97%
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 | 2.12 |
F-Score7
WACC9.03%
ROIC/WACC1.84
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 8.76 and the Price/Book (PB) ratio is 1.77.
How financially healthy is REACH SUBSEA ASA?
The financial health rating of REACH SUBSEA ASA (REACH.OL) is 4 / 10.