SUBSEA 7 SA (SUBC.OL) Stock Fundamental Analysis
OSL:SUBC - Euronext Oslo - LU0075646355 - Common Stock - Currency: NOK
SUBC gets a fundamental rating of 5 out of 10. The analysis compared the fundamentals against 35 industry peers in the Energy Equipment & Services industry. SUBC has only an average score on both its financial health and profitability. SUBC has a correct valuation and a medium growth rate.
1. Profitability
1.1 Basic Checks
In the past year SUBC was profitable.
In the past year SUBC had a positive cash flow from operations.
SUBC had positive earnings in 4 of the past 5 years.
Each year in the past 5 years SUBC had a positive operating cash flow.
1.2 Ratios
SUBC has a worse Return On Assets (2.62%) than 65.71% of its industry peers.
Looking at the Return On Equity, with a value of 4.74%, SUBC is doing worse than 62.86% of the companies in the same industry.
With a Return On Invested Capital value of 5.98%, SUBC is not doing good in the industry: 60.00% of the companies in the same industry are doing better.
Measured over the past 3 years, the Average Return On Invested Capital for SUBC is significantly below the industry average of 10.09%.
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 worse Profit Margin (2.95%) than 74.29% of its industry peers.
In the last couple of years the Profit Margin of SUBC has grown nicely.
The Operating Margin of SUBC (5.96%) is worse than 74.29% of its industry peers.
In the last couple of years the Operating Margin of SUBC has grown nicely.
Looking at the Gross Margin, with a value of 10.31%, SUBC is in line with its industry, outperforming 42.86% of the companies in the same industry.
SUBC's Gross Margin has been stable in the last couple of years.
| 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
SUBC has a Return on Invested Capital (ROIC), which is below the Cost of Capital (WACC), which means it is destroying value.
SUBC has less shares outstanding than it did 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
SUBC has an Altman-Z score of 2.21. This is not the best score and indicates that SUBC is in the grey zone with still only limited risk for bankruptcy at the moment.
SUBC has a Altman-Z score of 2.21. This is amongst the best in the industry. SUBC outperforms 82.86% 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.
SUBC has a Debt to FCF ratio of 2.03. This is amongst the best in the industry. SUBC outperforms 82.86% of its industry peers.
SUBC has a Debt/Equity ratio of 0.19. This is a healthy value indicating a solid balance between debt and equity.
With a decent Debt to Equity ratio value of 0.19, SUBC is doing good in the industry, outperforming 80.00% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.19 | ||
| Debt/FCF | 2.03 | ||
| Altman-Z | 2.21 |
ROIC/WACC0.66
WACC9.03%
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.
Looking at the Current ratio, with a value of 1.02, SUBC is doing worse than 71.43% of the companies in the same industry.
SUBC has a Quick Ratio of 1.02. This is a bad value and indicates that SUBC is not financially healthy enough and could expect problems in meeting its short term obligations.
The Quick ratio of SUBC (0.99) is worse than 68.57% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.02 | ||
| Quick Ratio | 0.99 |
3. Growth
3.1 Past
SUBC shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 220.00%, which is quite impressive.
The Earnings Per Share has been growing by 82.63% on average over the past years. This is a very strong growth
The Revenue has grown by 14.45% in the past year. This is quite good.
Measured over the past years, SUBC shows a quite strong growth in Revenue. The Revenue has been growing by 13.33% on average per year.
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
The Earnings Per Share is expected to grow by 21.26% on average over the next years. This is a very strong growth
The Revenue is expected to decrease by -4.41% on average over the next years.
EPS Next Y105.4%
EPS Next 2Y67.06%
EPS Next 3Y43.53%
EPS Next 5Y21.26%
Revenue Next Year5.47%
Revenue Next 2Y4.1%
Revenue Next 3Y3.47%
Revenue Next 5Y-4.41%
3.3 Evolution
Although the future EPS growth is still strong, it is not able to hold up the even more excellent growth rate of the past years.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.
4. Valuation
4.1 Price/Earnings Ratio
A Price/Earnings ratio of 24.09 indicates a rather expensive valuation of SUBC.
71.43% of the companies in the same industry are cheaper than SUBC, based on the Price/Earnings ratio.
SUBC is valuated at similar levels of the S&P average when we compare the Price/Earnings ratio to 28.22, which is the current average of the S&P500 Index.
The Price/Forward Earnings ratio is 8.24, which indicates a very decent valuation of SUBC.
62.86% of the companies in the same industry are more expensive than SUBC, based on the Price/Forward Earnings ratio.
SUBC is valuated cheaply when we compare the Price/Forward Earnings ratio to 20.86, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 24.09 | ||
| Fwd PE | 8.24 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, SUBC is valued a bit cheaper than the industry average as 62.86% of the companies are valued more expensively.
The rest of the industry has a similar Price/Free Cash Flow ratio as SUBC.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 7.95 | ||
| EV/EBITDA | 5.06 |
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.
SUBC's earnings are expected to grow with 43.53% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.23
PEG (5Y)N/A
EPS Next 2Y67.06%
EPS Next 3Y43.53%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 8.31%, SUBC is a good candidate for dividend investing.
Compared to an average industry Dividend Yield of 7.33, SUBC pays a better dividend. On top of this SUBC pays more dividend than 82.86% of the companies listed in the same industry.
SUBC's Dividend Yield is rather good when compared to the S&P500 average which is at 2.44.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 8.31% |
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 (5/2/2025, 7:00:00 PM)
159.7
+3.2 (+2.04%)
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 Cap47.85B
Analysts82.96
Price Target232.26 (45.44%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 8.31% |
Yearly Dividend5.67
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)1%
PT rev (3m)-4.16%
EPS NQ rev (1m)-36.68%
EPS NQ rev (3m)-32.95%
EPS NY rev (1m)-1.55%
EPS NY rev (3m)-10.65%
Revenue NQ rev (1m)-4.95%
Revenue NQ rev (3m)-7.02%
Revenue NY rev (1m)-0.55%
Revenue NY rev (3m)-0.29%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 24.09 | ||
| Fwd PE | 8.24 | ||
| P/S | 0.68 | ||
| P/FCF | 7.95 | ||
| P/OCF | 4.97 | ||
| P/B | 1.09 | ||
| P/tB | 1.16 | ||
| EV/EBITDA | 5.06 |
EPS(TTM)6.63
EY4.15%
EPS(NY)19.38
Fwd EY12.14%
FCF(TTM)20.09
FCFY12.58%
OCF(TTM)32.15
OCFY20.13%
SpS236.56
BVpS147.07
TBVpS137.68
PEG (NY)0.23
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 | 2.21 |
F-Score8
WACC9.03%
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 Year5.47%
Revenue Next 2Y4.1%
Revenue Next 3Y3.47%
Revenue Next 5Y-4.41%
EBIT growth 1Y322.38%
EBIT growth 3Y57.3%
EBIT growth 5Y23.86%
EBIT Next Year202.29%
EBIT Next 3Y49%
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%