REACH SUBSEA ASA (REACH.OL) Stock Fundamental Analysis
OSL:REACH - Euronext Oslo - NO0003117202 - Common Stock - Currency: NOK
Overall REACH gets a fundamental rating of 6 out of 10. We evaluated REACH 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 growing strongly while it also seems undervalued. This is an interesting combination Finally 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.
REACH had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
With a decent Return On Assets value of 7.86%, REACH is doing good in the industry, outperforming 74.29% of the companies in the same industry.
With a decent Return On Equity value of 19.76%, REACH is doing good in the industry, outperforming 77.14% of the companies in the same industry.
With an excellent Return On Invested Capital value of 17.10%, REACH belongs to the best of the industry, outperforming 94.29% of the companies in the same industry.
REACH had an Average Return On Invested Capital over the past 3 years of 15.65%. This is significantly above the industry average of 10.50%.
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 of 8.98%. This is comparable to the rest of the industry: REACH outperforms 57.14% of its industry peers.
In the last couple of years the Profit Margin of REACH has declined.
Looking at the Operating Margin, with a value of 14.19%, REACH is in line with its industry, outperforming 48.57% 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 | 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
The Return on Invested Capital (ROIC) is well above the Cost of Capital (WACC), so REACH is creating value.
REACH has more shares outstanding than it did 1 year ago.
The number of shares outstanding for REACH has been increased compared to 5 years ago.
REACH has a worse debt/assets ratio than last year.
2.2 Solvency
REACH has an Altman-Z score of 2.18. 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 has a better Altman-Z score (2.18) than 74.29% 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.
REACH's Debt to FCF ratio of 1.61 is amongst the best of the industry. REACH outperforms 82.86% of its industry peers.
REACH has a Debt/Equity ratio of 0.53. This is a neutral value indicating REACH is somewhat dependend on debt financing.
Looking at the Debt to Equity ratio, with a value of 0.53, REACH is in line with its industry, outperforming 54.29% of the companies in the same 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 | 1.61 | ||
| Altman-Z | 2.18 |
ROIC/WACC1.93
WACC8.88%
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 80.00% of its industry peers.
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: 80.00% 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
REACH shows a small growth in Earnings Per Share. In the last year, the EPS has grown by 5.00%.
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 21.57%.
The Revenue has been growing by 39.82% on average over the past years. This is a very strong growth!
EPS 1Y (TTM)5%
EPS 3Y1.51%
EPS 5YN/A
EPS Q2Q%750%
Revenue 1Y (TTM)21.57%
Revenue growth 3Y58.19%
Revenue growth 5Y39.82%
Sales Q2Q%21.46%
3.2 Future
Based on estimates for the next years, REACH will show a very strong growth in Earnings Per Share. The EPS will grow by 35.05% on average per year.
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 Y29.12%
EPS Next 2Y33.84%
EPS Next 3Y35.05%
EPS Next 5YN/A
Revenue Next Year15.48%
Revenue Next 2Y12.64%
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 9.60, which indicates a very decent valuation of REACH.
Compared to the rest of the industry, the Price/Earnings ratio of REACH indicates a somewhat cheap valuation: REACH is cheaper than 62.86% of the companies listed in the same industry.
When comparing the Price/Earnings ratio of REACH to the average of the S&P500 Index (26.20), we can say REACH is valued rather cheaply.
With a Price/Forward Earnings ratio of 6.52, the valuation of REACH can be described as very cheap.
Compared to the rest of the industry, the Price/Forward Earnings ratio of REACH indicates a somewhat cheap valuation: REACH is cheaper than 71.43% of the companies listed in the same industry.
When comparing the Price/Forward Earnings ratio of REACH to the average of the S&P500 Index (22.13), we can say REACH is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 9.6 | ||
| Fwd PE | 6.52 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, REACH is valued cheaper than 85.71% of the companies in the same industry.
Based on the Price/Free Cash Flow ratio, REACH is valued cheaply inside the industry as 82.86% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 3 | ||
| EV/EBITDA | 3.03 |
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.
The decent profitability rating of REACH 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 5.42%, REACH is a good candidate for dividend investing.
Compared to an average industry Dividend Yield of 6.53, 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 2.40.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 5.42% |
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
38.33% of the earnings are spent on dividend by REACH. This is a low number and 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 (5/28/2025, 7:00:00 PM)
8.06
0 (0%)
Chartmill FA Rating
GICS SectorEnergy
GICS IndustryGroupEnergy
GICS IndustryEnergy Equipment & Services
Earnings (Last)
Earnings (Next)
Inst Owners5.42%
Inst Owner ChangeN/A
Ins Owners1.4%
Ins Owner ChangeN/A
Market Cap2.64B
Analysts86
Price Target9.44 (17.12%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 5.42% |
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)0%
PT rev (3m)-2.63%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-27.5%
EPS NY rev (1m)0%
EPS NY rev (3m)-15.61%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)6.83%
Revenue NY rev (1m)0%
Revenue NY rev (3m)6.39%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 9.6 | ||
| Fwd PE | 6.52 | ||
| P/S | 0.93 | ||
| P/FCF | 3 | ||
| P/OCF | 2.29 | ||
| P/B | 2.04 | ||
| P/tB | 2.28 | ||
| EV/EBITDA | 3.03 |
EPS(TTM)0.84
EY10.42%
EPS(NY)1.24
Fwd EY15.33%
FCF(TTM)2.69
FCFY33.32%
OCF(TTM)3.52
OCFY43.66%
SpS8.68
BVpS3.95
TBVpS3.54
PEG (NY)0.33
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 | 2.18 |
F-Score7
WACC8.88%
ROIC/WACC1.93
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)5%
EPS 3Y1.51%
EPS 5YN/A
EPS Q2Q%750%
EPS Next Y29.12%
EPS Next 2Y33.84%
EPS Next 3Y35.05%
EPS Next 5YN/A
Revenue 1Y (TTM)21.57%
Revenue growth 3Y58.19%
Revenue growth 5Y39.82%
Sales Q2Q%21.46%
Revenue Next Year15.48%
Revenue Next 2Y12.64%
Revenue Next 3Y12.32%
Revenue Next 5YN/A
EBIT growth 1Y9.32%
EBIT growth 3Y66.32%
EBIT growth 5YN/A
EBIT Next Year258.19%
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%