SUBSEA 7 SA (SUBC.OL) Stock Fundamental Analysis
OSL:SUBC - Euronext Oslo - LU0075646355 - Common Stock - Currency: NOK
Taking everything into account, SUBC scores 5 out of 10 in our fundamental rating. SUBC was compared to 35 industry peers in the Energy Equipment & Services industry. Both the profitability and the financial health of SUBC get a neutral evaluation. Nothing too spectacular is happening here. SUBC has a decent growth rate and is not valued too expensively.
1. Profitability
1.1 Basic Checks
SUBC had positive earnings in the past year.
SUBC had a positive operating cash flow in the past year.
SUBC had positive earnings in 4 of the past 5 years.
In the past 5 years SUBC always reported a positive cash flow from operatings.
1.2 Ratios
The Return On Assets of SUBC (2.62%) is worse than 68.57% of its industry peers.
SUBC has a Return On Equity of 4.74%. This is in the lower half of the industry: SUBC underperforms 65.71% of its industry peers.
With a Return On Invested Capital value of 5.98%, SUBC is not doing good in the industry: 62.86% of the companies in the same industry are doing better.
SUBC had an Average Return On Invested Capital over the past 3 years of 3.46%. This is significantly below the industry average of 10.50%.
The 3 year average ROIC (3.46%) for SUBC is below the current ROIC(5.98%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.62% | ||
| ROE | 4.74% | ||
| ROIC | 5.98% |
ROA(3y)1.21%
ROA(5y)-2.65%
ROE(3y)2.16%
ROE(5y)-3.72%
ROIC(3y)3.46%
ROIC(5y)N/A
1.3 Margins
SUBC has a Profit Margin of 2.95%. This is in the lower half of the industry: SUBC underperforms 71.43% of its industry peers.
SUBC's Profit Margin has improved in the last couple of years.
SUBC has a worse Operating Margin (5.96%) than 74.29% of its industry peers.
In the last couple of years the Operating Margin of SUBC has grown nicely.
The Gross Margin of SUBC (10.31%) is comparable to the rest of the industry.
In the last couple of years the Gross Margin of SUBC has remained more or less at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 5.96% | ||
| PM (TTM) | 2.95% | ||
| GM | 10.31% |
OM growth 3Y41.82%
OM growth 5Y9.29%
PM growth 3Y66.8%
PM growth 5YN/A
GM growth 3Y15.93%
GM growth 5Y-1.33%
2. Health
2.1 Basic Checks
With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), SUBC is destroying value.
The number of shares outstanding for SUBC has been reduced compared to 1 year ago.
The number of shares outstanding for SUBC has been reduced compared to 5 years ago.
SUBC has a better debt/assets ratio than last year.
2.2 Solvency
An Altman-Z score of 2.29 indicates that SUBC is not a great score, but indicates only limited risk for bankruptcy at the moment.
The Altman-Z score of SUBC (2.29) is better than 77.14% of its industry peers.
SUBC has a debt to FCF ratio of 2.03. This is a good value and a sign of high solvency as SUBC would need 2.03 years to pay back of all of its debts.
Looking at the Debt to FCF ratio, with a value of 2.03, SUBC is in the better half of the industry, outperforming 80.00% of the companies in the same industry.
SUBC has a Debt/Equity ratio of 0.19. This is a healthy value indicating a solid balance between debt and equity.
SUBC has a better Debt to Equity ratio (0.19) than 80.00% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.19 | ||
| Debt/FCF | 2.03 | ||
| Altman-Z | 2.29 |
ROIC/WACC0.66
WACC9.06%
2.3 Liquidity
SUBC has a Current Ratio of 1.02. This is a normal value and indicates that SUBC is financially healthy and should not expect problems in meeting its short term obligations.
With a Current ratio value of 1.02, SUBC is not doing good in the industry: 71.43% of the companies in the same industry are doing better.
A Quick Ratio of 0.99 indicates that SUBC may have some problems paying its short term obligations.
With a Quick ratio value of 0.99, SUBC is not doing good in the industry: 68.57% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.02 | ||
| Quick Ratio | 0.99 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an impressive 220.00% over the past year.
SUBC shows a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 82.63% yearly.
SUBC shows quite a strong growth in Revenue. In the last year, the Revenue has grown by 14.45%.
The Revenue has been growing by 13.33% on average over the past years. This is quite good.
EPS 1Y (TTM)220%
EPS 3Y82.63%
EPS 5YN/A
EPS Q2Q%-33.33%
Revenue 1Y (TTM)14.45%
Revenue growth 3Y10.92%
Revenue growth 5Y13.33%
Sales Q2Q%9.6%
3.2 Future
Based on estimates for the next years, SUBC will show a very strong growth in Earnings Per Share. The EPS will grow by 21.26% on average per year.
Based on estimates for the next years, SUBC will show a decrease in Revenue. The Revenue will decrease by -4.41% on average per year.
EPS Next Y105.4%
EPS Next 2Y67.06%
EPS Next 3Y43.53%
EPS Next 5Y21.26%
Revenue Next Year5.6%
Revenue Next 2Y4.03%
Revenue Next 3Y3.51%
Revenue Next 5Y-4.41%
3.3 Evolution
The estimated forward EPS growth is still strong, although it is decreasing when compared to the stronger growth in the past years.
The Revenue growth rate is decreasing: in the next years the growth will be less than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
Based on the Price/Earnings ratio of 26.65, the valuation of SUBC can be described as expensive.
SUBC's Price/Earnings ratio is a bit more expensive when compared to the industry. SUBC is more expensive than 74.29% of the companies in the same industry.
When comparing the Price/Earnings ratio of SUBC to the average of the S&P500 Index (26.20), we can say SUBC is valued inline with the index average.
A Price/Forward Earnings ratio of 9.12 indicates a reasonable valuation of SUBC.
The rest of the industry has a similar Price/Forward Earnings ratio as SUBC.
SUBC is valuated cheaply when we compare the Price/Forward Earnings ratio to 22.13, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 26.65 | ||
| Fwd PE | 9.12 |
4.2 Price Multiples
SUBC's Enterprise Value to EBITDA ratio is in line with the industry average.
SUBC's Price/Free Cash Flow ratio is in line with the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 8.8 | ||
| EV/EBITDA | 5.54 |
4.3 Compensation for Growth
SUBC's low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
A more expensive valuation may be justified as SUBC's earnings are expected to grow with 43.53% in the coming years.
PEG (NY)0.25
PEG (5Y)N/A
EPS Next 2Y67.06%
EPS Next 3Y43.53%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 7.77%, SUBC is a good candidate for dividend investing.
Compared to an average industry Dividend Yield of 6.53, SUBC pays a better dividend. On top of this SUBC pays more dividend than 82.86% of the companies listed in the same industry.
Compared to an average S&P500 Dividend Yield of 2.40, SUBC pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 7.77% |
5.2 History
The dividend of SUBC decreases each year by -2.89%.
Dividend Growth(5Y)-2.89%
Div Incr Years0
Div Non Decr Years0
5.3 Sustainability
SUBC pays out 80.88% of its income as dividend. This is not a sustainable payout ratio.
DP80.88%
EPS Next 2Y67.06%
EPS Next 3Y43.53%
OSL:SUBC (5/28/2025, 7:00:00 PM)
173.2
+1.4 (+0.81%)
Chartmill FA Rating
GICS SectorEnergy
GICS IndustryGroupEnergy
GICS IndustryEnergy Equipment & Services
Earnings (Last)
Earnings (Next)
Inst Owners56.38%
Inst Owner ChangeN/A
Ins Owners0.14%
Ins Owner ChangeN/A
Market Cap51.89B
Analysts82.96
Price Target229.26 (32.37%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 7.77% |
Yearly Dividend5.57
Dividend Growth(5Y)-2.89%
DP80.88%
Div Incr Years0
Div Non Decr Years0
Ex-DateN/A
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)-19.61%
Min EPS beat(2)-71.13%
Max EPS beat(2)31.92%
EPS beat(4)2
Avg EPS beat(4)85.01%
Min EPS beat(4)-71.13%
Max EPS beat(4)383.48%
EPS beat(8)4
Avg EPS beat(8)-8.61%
EPS beat(12)7
Avg EPS beat(12)52.01%
EPS beat(16)8
Avg EPS beat(16)21.46%
Revenue beat(2)2
Avg Revenue beat(2)1.23%
Min Revenue beat(2)1.1%
Max Revenue beat(2)1.36%
Revenue beat(4)4
Avg Revenue beat(4)1.5%
Min Revenue beat(4)1.1%
Max Revenue beat(4)2.08%
Revenue beat(8)8
Avg Revenue beat(8)4.55%
Revenue beat(12)11
Avg Revenue beat(12)3.09%
Revenue beat(16)14
Avg Revenue beat(16)2.99%
PT rev (1m)-0.31%
PT rev (3m)-5.02%
EPS NQ rev (1m)-29.31%
EPS NQ rev (3m)-55.24%
EPS NY rev (1m)0%
EPS NY rev (3m)-8.86%
Revenue NQ rev (1m)-2.14%
Revenue NQ rev (3m)-6.75%
Revenue NY rev (1m)0.12%
Revenue NY rev (3m)-0.19%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 26.65 | ||
| Fwd PE | 9.12 | ||
| P/S | 0.75 | ||
| P/FCF | 8.8 | ||
| P/OCF | 5.5 | ||
| P/B | 1.2 | ||
| P/tB | 1.28 | ||
| EV/EBITDA | 5.54 |
EPS(TTM)6.5
EY3.75%
EPS(NY)18.99
Fwd EY10.97%
FCF(TTM)19.68
FCFY11.36%
OCF(TTM)31.5
OCFY18.19%
SpS231.78
BVpS144.09
TBVpS134.9
PEG (NY)0.25
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.62% | ||
| ROE | 4.74% | ||
| ROCE | 7.77% | ||
| ROIC | 5.98% | ||
| ROICexc | 6.72% | ||
| ROICexgc | 7.13% | ||
| OM | 5.96% | ||
| PM (TTM) | 2.95% | ||
| GM | 10.31% | ||
| FCFM | 8.49% |
ROA(3y)1.21%
ROA(5y)-2.65%
ROE(3y)2.16%
ROE(5y)-3.72%
ROIC(3y)3.46%
ROIC(5y)N/A
ROICexc(3y)3.93%
ROICexc(5y)N/A
ROICexgc(3y)4.16%
ROICexgc(5y)N/A
ROCE(3y)4.5%
ROCE(5y)N/A
ROICexcg growth 3Y56.37%
ROICexcg growth 5Y26.11%
ROICexc growth 3Y55.98%
ROICexc growth 5Y28.26%
OM growth 3Y41.82%
OM growth 5Y9.29%
PM growth 3Y66.8%
PM growth 5YN/A
GM growth 3Y15.93%
GM growth 5Y-1.33%
F-Score8
Asset Turnover0.89
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.19 | ||
| Debt/FCF | 2.03 | ||
| Debt/EBITDA | 0.79 | ||
| Cap/Depr | 56.02% | ||
| Cap/Sales | 5.1% | ||
| Interest Coverage | 3.73 | ||
| Cash Conversion | 90.21% | ||
| Profit Quality | 288.28% | ||
| Current Ratio | 1.02 | ||
| Quick Ratio | 0.99 | ||
| Altman-Z | 2.29 |
F-Score8
WACC9.06%
ROIC/WACC0.66
Cap/Depr(3y)71.19%
Cap/Depr(5y)58.47%
Cap/Sales(3y)6.45%
Cap/Sales(5y)5.59%
Profit Quality(3y)408.37%
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)220%
EPS 3Y82.63%
EPS 5YN/A
EPS Q2Q%-33.33%
EPS Next Y105.4%
EPS Next 2Y67.06%
EPS Next 3Y43.53%
EPS Next 5Y21.26%
Revenue 1Y (TTM)14.45%
Revenue growth 3Y10.92%
Revenue growth 5Y13.33%
Sales Q2Q%9.6%
Revenue Next Year5.6%
Revenue Next 2Y4.03%
Revenue Next 3Y3.51%
Revenue Next 5Y-4.41%
EBIT growth 1Y322.38%
EBIT growth 3Y57.3%
EBIT growth 5Y23.86%
EBIT Next Year200.76%
EBIT Next 3Y50.93%
EBIT Next 5Y34.17%
FCF growth 1Y672.07%
FCF growth 3Y65.58%
FCF growth 5Y42.68%
OCF growth 1Y41.45%
OCF growth 3Y46.69%
OCF growth 5Y21.12%