DB:OY3

Stock Analysis Report

Executive Summary

Ocean Yield ASA, a ship owning company, invests in vessels on long-term charters within oil-service and industrial shipping areas in Norway.


Snowflake Analysis

Moderate growth potential and slightly overvalued.

Share Price & News

How has Ocean Yield's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: OY3 has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

-10.4%

OY3

-2.0%

DE Energy Services

-0.9%

DE Market


1 Year Return

-32.6%

OY3

-17.5%

DE Energy Services

12.8%

DE Market

Return vs Industry: OY3 underperformed the German Energy Services industry which returned -16.1% over the past year.

Return vs Market: OY3 underperformed the German Market which returned 13.7% over the past year.


Shareholder returns

OY3IndustryMarket
7 Day-10.4%-2.0%-0.9%
30 Day-11.7%-7.5%-0.2%
90 Day-6.6%-5.4%3.0%
1 Year-23.3%-32.6%-15.3%-17.5%16.3%12.8%
3 Year-15.0%-38.2%-29.2%-36.9%15.8%5.7%
5 Year31.8%-21.8%-56.5%-75.0%19.8%3.4%

Price Volatility Vs. Market

How volatile is Ocean Yield's share price compared to the market and industry in the last 5 years?


Simply Wall St News

No news available

Valuation

Is Ocean Yield undervalued compared to its fair value and its price relative to the market?

27.2%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: OY3 (€4.21) is trading below our estimate of fair value (€5.77)

Significantly Below Fair Value: OY3 is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: OY3 is unprofitable, so we can't compare its PE Ratio to the Energy Services industry average.

PE vs Market: OY3 is unprofitable, so we can't compare its PE Ratio to the German market.


Price to Earnings Growth Ratio

PEG Ratio: Insufficient data to calculate OY3's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: OY3 is overvalued based on its PB Ratio (0.9x) compared to the XE Energy Services industry average (0.7x).


Next Steps

Future Growth

How is Ocean Yield forecast to perform in the next 1 to 3 years based on estimates from 5 analysts?

68.7%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: OY3 is forecast to become profitable over the next 3 years, which is considered faster growth than the savings rate (-0.4%).

Earnings vs Market: OY3 is forecast to become profitable over the next 3 years, which is considered above average market growth.

High Growth Earnings: OY3's is expected to become profitable in the next 3 years.

Revenue vs Market: OY3's revenue (1.4% per year) is forecast to grow slower than the German market (5% per year).

High Growth Revenue: OY3's revenue (1.4% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: OY3's Return on Equity is forecast to be low in 3 years time (9%).


Next Steps

Past Performance

How has Ocean Yield performed over the past 5 years?

-24.6%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: OY3 is currently unprofitable.

Growing Profit Margin: OY3 is currently unprofitable.


Past Earnings Growth Analysis

Earnings Trend: OY3 is unprofitable, and losses have increased over the past 5 years at a rate of -24.6% per year.

Accelerating Growth: Unable to compare OY3's earnings growth over the past year to its 5-year average as it is currently unprofitable

Earnings vs Industry: OY3 is unprofitable, making it difficult to compare its past year earnings growth to the Energy Services industry (46.6%).


Return on Equity

High ROE: OY3 has a negative Return on Equity (-4.55%), as it is currently unprofitable.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is Ocean Yield's financial position?


Financial Position Analysis

Short Term Liabilities: OY3's short term assets ($412.3M) exceed its short term liabilities ($333.0M).

Long Term Liabilities: OY3's short term assets ($412.3M) do not cover its long term liabilities ($1.9B).


Debt to Equity History and Analysis

Debt Level: OY3's debt to equity ratio (249.3%) is considered high.

Reducing Debt: OY3's debt to equity ratio has increased from 138.3% to 249.3% over the past 5 years.


Balance Sheet

Inventory Level: OY3 has a high level of physical assets or inventory.

Debt Coverage by Assets: OY3's debt is not covered by short term assets (assets are 0.2x debt).


Cash Runway Analysis

For companies that have on average been loss making in the past we assess whether they have at least 1 year of cash runway.

Stable Cash Runway: OY3 has been profitable on average in the past, therefore cash runway is not a concern.

Forecast Cash Runway: OY3 has been profitable on average in the past, therefore cash runway is not a concern.


Next Steps

Dividend

What is Ocean Yield's current dividend yield, its reliability and sustainability?

16.47%

Current Dividend Yield


Dividend Yield vs Market

company16.5%marketbottom25%1.3%markettop25%3.6%industryaverage4.8%forecastin3Years13.5%

Current dividend yield vs market & industry

Notable Dividend: OY3's dividend (16.47%) is higher than the bottom 25% of dividend payers in the German market (1.31%).

High Dividend: OY3's dividend (16.47%) is in the top 25% of dividend payers in the German market (3.65%)


Stability and Growth of Payments

Stable Dividend: Whilst dividend payments have been stable, OY3 has been paying a dividend for less than 10 years.

Growing Dividend: OY3's dividend payments have increased, but the company has only paid a dividend for 6 years.


Current Payout to Shareholders

Dividend Coverage: OY3 is paying a dividend but the company is unprofitable.


Future Payout to Shareholders

Future Dividend Coverage: OY3's dividends in 3 years are not forecast to be well covered by earnings (130.3% payout ratio).


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

3.7yrs

Average management tenure


CEO

Lars Solbakken (62yo)

7.9yrs

Tenure

US$1,502,670

Compensation

Mr. Lars Solbakken has been the Chief Executive Officer at Ocean Yield AS since March 23, 2012. Mr. Solbakken served as the Chief Executive Officer at Eidsiva Rederi ASA (also known as Norwegian Car Carrie ...


CEO Compensation Analysis

Compensation vs Market: Lars's total compensation ($USD1.50M) is about average for companies of similar size in the German market ($USD1.19M).

Compensation vs Earnings: Lars's compensation has been consistent with company performance over the past year.


Leadership Team

NamePositionTenureCompensationOwnership
Lars Solbakken
Chief Executive Officer7.9yrsUS$1.50m0.89% $6.6m
Eirik Eide
Chief Financial Officer7.9yrsUS$635.75k0.20% $1.5m
Andreas Reklev
Senior Vice President of Investments3.5yrsno data0.017% $128.0k
Kristine Kosi
Chief Accounting Officer0yrsno datano data
Marius Magelie
Senior Vice President of Finance & Investor Relations3.8yrsno data0.067% $499.9k
Andreas Røde
Head of Business Development and M&A2.4yrsno data0.026% $192.1k
Fredrik Bock-Hagen
Managing Director Ocean Yield Malta Ltd2.1yrsno datano data
Håvard Garseth
Managing Director of Aker Floating Production AS0yrsno datano data

3.7yrs

Average Tenure

40yo

Average Age

Experienced Management: OY3's management team is considered experienced (3.7 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Kjell Røkke
Director6.8yrsno data0.16% $1.2m
Jens Ismar
Director6.6yrsno data0.011% $85.3k
Frank Reite
Chairman3.8yrsno data0.0063% $47.4k
Anne-Christin Døvigen
Director6.6yrsno data0.018% $138.3k
Annicken Kildahl
Director6.6yrsno datano data
Per Reppe
Deputy Director3.8yrsno datano data

6.6yrs

Average Tenure

52.5yo

Average Age

Experienced Board: OY3's board of directors are considered experienced (6.6 years average tenure).


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: OY3 insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: Shareholders have been diluted in the past year, with total shares outstanding growing by 2.2%.


Top Shareholders

Company Information

Ocean Yield ASA's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Ocean Yield ASA
  • Ticker: OY3
  • Exchange: DB
  • Founded: 2012
  • Industry: Oil and Gas Equipment and Services
  • Sector: Energy
  • Market Cap: kr7.537b
  • Listing Market Cap: kr747.873m
  • Shares outstanding: 175.08m
  • Website: https://www.oceanyield.no

Number of Employees


Location

  • Ocean Yield ASA
  • Oksenøyveien 10
  • Lysaker
  • Akershus
  • 1366
  • Norway

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
OCYOB (Oslo Bors)YesOrdinary SharesNONOKJul 2013
OY3DB (Deutsche Boerse AG)YesOrdinary SharesDEEURJul 2013
0QG5LSE (London Stock Exchange)YesOrdinary SharesGBNOKJul 2013
OYIE.FOTCPK (Pink Sheets LLC)YesOrdinary SharesUSUSDJul 2013
OCYOBATS-CHIXE (BATS 'Chi-X Europe')YesOrdinary SharesGBNOKJul 2013

Biography

Ocean Yield ASA, a ship owning company, invests in vessels on long-term charters within oil-service and industrial shipping areas in Norway. The company operates through FPSO, Other Oil Service, Car Carriers, Container Vessels, Tankers, and Other Shipping segments. As of October 15, 2019, it operated a fleet of 65 vessels. The company was founded in 2012 and is headquartered in Lysaker, Norway. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/02/22 22:35
End of Day Share Price2020/02/21 00:00
Earnings2019/12/31
Annual Earnings2019/12/31


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.