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 36 industry peers in the Energy Equipment & Services industry. REACH has an average financial health and profitability rating. REACH has both an excellent growth and valuation score. This means it is growing and it is still cheap. This is a rare combination! 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.
In the past 5 years REACH has always been profitable.
Each year in the past 5 years REACH had a positive operating cash flow.
1.2 Ratios
REACH has a better Return On Assets (7.86%) than 72.22% of its industry peers.
The Return On Equity of REACH (19.76%) is better than 75.00% of its industry peers.
REACH's Return On Invested Capital of 17.10% is amongst the best of the industry. REACH outperforms 88.89% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for REACH is above the industry average of 11.23%.
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 55.56% of its industry peers.
REACH's Profit Margin has declined in the last couple of years.
REACH has a Operating Margin of 14.19%. This is comparable to the rest of the industry: REACH outperforms 52.78% of its industry peers.
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
REACH has a Return on Invested Capital (ROIC), which is well above the Cost of Capital (WACC), which means it 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 2.18 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 2.18. This is in the better half of the industry: REACH outperforms 66.67% 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.
With an excellent Debt to FCF ratio value of 1.61, 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.
Looking at the Debt to Equity ratio, with a value of 0.53, REACH is in line with its industry, outperforming 55.56% 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/WACC1.86
WACC9.21%
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 80.56% 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's Quick ratio of 0.85 is on the low side compared to the rest of the industry. REACH is outperformed by 80.56% of its industry peers.
| 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%.
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.
REACH shows a strong growth in Revenue. In the last year, the Revenue has grown by 21.57%.
Measured over the past years, REACH shows a very strong growth in Revenue. The Revenue has been growing by 39.82% on average per year.
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
The Earnings Per Share is expected to grow by 35.05% on average over the next years. This is a very strong growth
The Revenue is expected to grow by 12.32% on average over the next years. This is quite good.
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.
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 9.56.
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 26.54, REACH is valued rather cheaply.
The Price/Forward Earnings ratio is 6.50, which indicates a rather cheap valuation of REACH.
Based on the Price/Forward Earnings ratio, REACH is valued a bit cheaper than the industry average as 69.44% of the companies are valued more expensively.
REACH's Price/Forward Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 35.28.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 9.56 | ||
| Fwd PE | 6.5 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, REACH is valued cheaper than 83.33% of the companies in the same industry.
Based on the Price/Free Cash Flow ratio, REACH is valued cheaply inside the industry as 91.67% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 2.99 | ||
| EV/EBITDA | 3.01 |
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.
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)0.33
PEG (5Y)N/A
EPS Next 2Y33.84%
EPS Next 3Y35.05%
5. Dividend
5.1 Amount
REACH has a Yearly Dividend Yield of 5.32%, which is a nice return.
REACH's Dividend Yield is a higher than the industry average which is at 6.44.
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 | 5.32% |
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.
The dividend of REACH is growing, but the earnings are growing slower. This means the dividend growth is not sustainable.
DP38.33%
EPS Next 2Y33.84%
EPS Next 3Y35.05%
OSL:REACH (8/8/2025, 3:21:56 PM)
8.03
-0.16 (-1.95%)
Chartmill FA Rating
GICS SectorEnergy
GICS IndustryGroupEnergy
GICS IndustryEnergy Equipment & Services
Earnings (Last)
Earnings (Next)
Inst Owners3.67%
Inst Owner ChangeN/A
Ins Owners1.24%
Ins Owner ChangeN/A
Market Cap2.63B
Analysts86
Price Target9.44 (17.56%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 5.32% |
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)0%
EPS NQ rev (1m)0%
EPS NQ rev (3m)0%
EPS NY rev (1m)0%
EPS NY rev (3m)0%
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 | 9.56 | ||
| Fwd PE | 6.5 | ||
| P/S | 0.93 | ||
| P/FCF | 2.99 | ||
| P/OCF | 2.28 | ||
| P/B | 2.03 | ||
| P/tB | 2.27 | ||
| EV/EBITDA | 3.01 |
EPS(TTM)0.84
EY10.46%
EPS(NY)1.24
Fwd EY15.39%
FCF(TTM)2.69
FCFY33.45%
OCF(TTM)3.52
OCFY43.82%
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
WACC9.21%
ROIC/WACC1.86
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%