REACH SUBSEA ASA (REACH.OL) Stock Fundamental Analysis
Europe - Euronext Oslo - OSL:REACH - NO0003117202 - Common Stock
6.65 NOK
-0.15 (-2.21%)
Taking everything into account, REACH scores 6 out of 10 in our fundamental rating. REACH was compared to 39 industry peers in the Energy Equipment & Services industry. While REACH belongs to the best of the industry regarding profitability, there are concerns on its financial health. REACH is not overvalued while it is showing excellent growth. This is an interesting combination.
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.
- 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's Return On Assets of 5.13% is in line compared to the rest of the industry. REACH outperforms 53.85% of its industry peers.
- REACH's Return On Equity of 14.73% is fine compared to the rest of the industry. REACH outperforms 74.36% of its industry peers.
- REACH's Return On Invested Capital of 10.15% is fine compared to the rest of the industry. REACH outperforms 66.67% of its industry peers.
- REACH had an Average Return On Invested Capital over the past 3 years of 15.65%. This is significantly above the industry average of 10.38%.
- The last Return On Invested Capital (10.15%) for REACH is well below the 3 year average (15.65%), which needs to be investigated, but indicates that REACH had better years and this may not be a problem.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 5.13% | ||
| ROE | 14.73% | ||
| ROIC | 10.15% |
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 (6.80%) which is comparable to the rest of the industry.
- REACH's Profit Margin has declined in the last couple of years.
- REACH's Operating Margin of 10.51% is in line compared to the rest of the industry. REACH outperforms 43.59% of its industry peers.
- REACH's Operating Margin has improved in the last couple of years.
- Looking at the Gross Margin, with a value of 71.16%, REACH belongs to the top of the industry, outperforming 89.74% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 10.51% | ||
| PM (TTM) | 6.8% | ||
| GM | 71.16% |
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 just above the Cost of Capital (WACC), which means it is creating some value.
- REACH has more shares outstanding than it did 1 year ago.
- REACH has more shares outstanding than it did 5 years ago.
- The debt/assets ratio for REACH is higher compared to a year ago.
2.2 Solvency
- REACH has an Altman-Z score of 1.80. This is a bad value and indicates that REACH is not financially healthy and even has some risk of bankruptcy.
- Looking at the Altman-Z score, with a value of 1.80, REACH is in the better half of the industry, outperforming 71.79% of the companies in the same industry.
- REACH has a debt to FCF ratio of 2.62. This is a good value and a sign of high solvency as REACH would need 2.62 years to pay back of all of its debts.
- REACH's Debt to FCF ratio of 2.62 is fine compared to the rest of the industry. REACH outperforms 69.23% of its industry peers.
- A Debt/Equity ratio of 0.88 indicates that REACH is somewhat dependend on debt financing.
- With a Debt to Equity ratio value of 0.88, REACH is not doing good in the industry: 66.67% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.88 | ||
| Debt/FCF | 2.62 | ||
| Altman-Z | 1.8 |
ROIC/WACC1.13
WACC8.95%
2.3 Liquidity
- A Current Ratio of 1.14 indicates that REACH should not have too much problems paying its short term obligations.
- REACH's Current ratio of 1.14 is on the low side compared to the rest of the industry. REACH is outperformed by 71.79% of its industry peers.
- REACH has a Quick Ratio of 1.14. This is a normal value and indicates that REACH is financially healthy and should not expect problems in meeting its short term obligations.
- REACH has a Quick ratio of 1.14. This is in the lower half of the industry: REACH underperforms 66.67% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.14 | ||
| Quick Ratio | 1.14 |
3. Growth
3.1 Past
- The earnings per share for REACH have decreased strongly by -30.25% in the last year.
- The Earnings Per Share has been growing slightly by 1.51% on average over the past years.
- Looking at the last year, REACH shows a quite strong growth in Revenue. The Revenue has grown by 9.92% in the last year.
- REACH shows a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 39.82% yearly.
EPS 1Y (TTM)-30.25%
EPS 3Y1.51%
EPS 5YN/A
EPS Q2Q%-60%
Revenue 1Y (TTM)9.92%
Revenue growth 3Y58.19%
Revenue growth 5Y39.82%
Sales Q2Q%-17.56%
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 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
- 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
- With a Price/Earnings ratio of 9.64, the valuation of REACH can be described as very reasonable.
- 74.36% 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 27.30. REACH is valued rather cheaply when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 9.64 | ||
| Fwd PE | N/A |
4.2 Price Multiples
- REACH's Enterprise Value to EBITDA ratio is rather cheap when compared to the industry. REACH is cheaper than 87.18% of the companies in the same industry.
- Based on the Price/Free Cash Flow ratio, REACH is valued cheaper than 89.74% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 3.18 | ||
| EV/EBITDA | 2.8 |
4.3 Compensation for Growth
- 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)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 6.27%, which is a nice return.
- REACH's Dividend Yield is a higher than the industry average which is at 3.81.
- Compared to an average S&P500 Dividend Yield of 1.92, REACH pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 6.27% |
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 73.37% of its income as dividend. This is not a sustainable payout ratio.
- REACH's earnings are growing slower than its dividend. This means the dividend growth is not sustainable.
DP73.37%
EPS Next 2Y-41.42%
EPS Next 3Y35.05%
OSL:REACH (1/14/2026, 4:19:58 PM)
6.65
-0.15 (-2.21%)
Chartmill FA Rating
GICS SectorEnergy
GICS IndustryGroupEnergy
GICS IndustryEnergy Equipment & Services
Earnings (Last)11-18 2025-11-18
Earnings (Next)02-12 2026-02-12
Inst Owners7.64%
Inst Owner ChangeN/A
Ins Owners1.45%
Ins Owner ChangeN/A
Market Cap2.18B
Revenue(TTM)2.76B
Net Income(TTM)187.40M
Analysts84.44
Price Target8.67 (30.38%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 6.27% |
Yearly Dividend0.35
Dividend Growth(5Y)38.16%
DP73.37%
Div Incr Years0
Div Non Decr Years0
Ex-DateN/A
Surprises & Revisions
EPS beat(2)N/A
Avg EPS beat(2)N/A
Min EPS beat(2)N/A
Max EPS beat(2)N/A
EPS beat(4)N/A
Avg EPS beat(4)N/A
Min EPS beat(4)N/A
Max EPS beat(4)N/A
EPS beat(8)N/A
Avg EPS beat(8)N/A
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)-12.93%
Min Revenue beat(2)-14.25%
Max Revenue beat(2)-11.61%
Revenue beat(4)1
Avg Revenue beat(4)-3.12%
Min Revenue beat(4)-14.25%
Max Revenue beat(4)13.47%
Revenue beat(8)4
Avg Revenue beat(8)3.48%
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 | 9.64 | ||
| Fwd PE | N/A | ||
| P/S | 0.79 | ||
| P/FCF | 3.18 | ||
| P/OCF | 2.03 | ||
| P/B | 1.71 | ||
| P/tB | 1.91 | ||
| EV/EBITDA | 2.8 |
EPS(TTM)0.69
EY10.38%
EPS(NY)0
Fwd EYN/A
FCF(TTM)2.09
FCFY31.43%
OCF(TTM)3.28
OCFY49.34%
SpS8.42
BVpS3.89
TBVpS3.49
PEG (NY)N/A
PEG (5Y)N/A
Graham Number7.77
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 5.13% | ||
| ROE | 14.73% | ||
| ROCE | 12.13% | ||
| ROIC | 10.15% | ||
| ROICexc | 13.68% | ||
| ROICexgc | 14.77% | ||
| OM | 10.51% | ||
| PM (TTM) | 6.8% | ||
| GM | 71.16% | ||
| FCFM | 24.83% |
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-Score6
Asset Turnover0.75
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.88 | ||
| Debt/FCF | 2.62 | ||
| Debt/EBITDA | 0.92 | ||
| Cap/Depr | 42.16% | ||
| Cap/Sales | 14.15% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 88.44% | ||
| Profit Quality | 365.15% | ||
| Current Ratio | 1.14 | ||
| Quick Ratio | 1.14 | ||
| Altman-Z | 1.8 |
F-Score6
WACC8.95%
ROIC/WACC1.13
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)-30.25%
EPS 3Y1.51%
EPS 5YN/A
EPS Q2Q%-60%
EPS Next Y-100%
EPS Next 2Y-41.42%
EPS Next 3Y35.05%
EPS Next 5YN/A
Revenue 1Y (TTM)9.92%
Revenue growth 3Y58.19%
Revenue growth 5Y39.82%
Sales Q2Q%-17.56%
Revenue Next Year15.83%
Revenue Next 2Y10.88%
Revenue Next 3Y12.32%
Revenue Next 5YN/A
EBIT growth 1Y-20.27%
EBIT growth 3Y66.32%
EBIT growth 5YN/A
EBIT Next Year242.58%
EBIT Next 3Y70.26%
EBIT Next 5YN/A
FCF growth 1Y54.48%
FCF growth 3Y29.62%
FCF growth 5Y30.94%
OCF growth 1Y67.05%
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 7 / 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 6 / 10 and the dividend payout ratio is 73.37%.