OB:OCY

Stock Analysis Report

Executive Summary

Ocean Yield ASA, a ship owning company, invests in vessels on long-term charters in Norway.


Snowflake Analysis

Moderate growth potential second-rate dividend payer.

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: OCY's share price has been volatile over the past 3 months.


Market Performance


7 Day Return

5.4%

OCY

7.0%

NO Energy Services

4.8%

NO Market


1 Year Return

-64.1%

OCY

-65.8%

NO Energy Services

-24.3%

NO Market

Return vs Industry: OCY exceeded the Norwegian Energy Services industry which returned -67.7% over the past year.

Return vs Market: OCY underperformed the Norwegian Market which returned -24.3% over the past year.


Shareholder returns

OCYIndustryMarket
7 Day5.4%7.0%4.8%
30 Day-39.0%-45.4%-17.0%
90 Day-51.8%-60.7%-25.0%
1 Year-59.2%-64.1%-64.8%-65.8%-20.3%-24.3%
3 Year-49.0%-62.8%-63.8%-66.3%2.0%-10.7%
5 Year-33.1%-59.2%-56.4%-72.5%16.7%-9.4%

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

Valuation

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

>50%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: OCY (NOK22.9) is trading below our estimate of fair value (NOK87.07)

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


Price To Earnings Ratio

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

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


Price to Earnings Growth Ratio

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


Price to Book Ratio

PB vs Industry: OCY is overvalued based on its PB Ratio (0.4x) compared to the NO Energy Services industry average (0.2x).


Next Steps

Future Growth

How is Ocean Yield forecast to perform in the next 1 to 3 years based on estimates from 4 analysts?

61.6%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: OCY is forecast to become profitable over the next 3 years, which is considered faster growth than the savings rate (0.7%).

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

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

Revenue vs Market: OCY's revenue (1.6% per year) is forecast to grow slower than the Norwegian market (2.9% per year).

High Growth Revenue: OCY's revenue (1.6% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: OCY's Return on Equity is forecast to be low in 3 years time (11.3%).


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: OCY is currently unprofitable.

Growing Profit Margin: OCY is currently unprofitable.


Past Earnings Growth Analysis

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

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

Earnings vs Industry: OCY is unprofitable, making it difficult to compare its past year earnings growth to the Energy Services industry (-28.5%).


Return on Equity

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


Next Steps

Financial Health

How is Ocean Yield's financial position?


Financial Position Analysis

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

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


Debt to Equity History and Analysis

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

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


Balance Sheet

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

Debt Coverage by Assets: OCY'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: OCY has been profitable on average in the past, therefore cash runway is not a concern.

Forecast Cash Runway: OCY 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?

33.92%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: OCY's dividend (34.83%) is higher than the bottom 25% of dividend payers in the Norwegian market (3.73%).

High Dividend: OCY's dividend (34.83%) is in the top 25% of dividend payers in the Norwegian market (8.05%)


Stability and Growth of Payments

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

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


Current Payout to Shareholders

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


Future Payout to Shareholders

Future Dividend Coverage: OCY's dividends in 3 years are forecast to be covered by earnings (78.3% payout ratio).


Next Steps

Management

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

3.8yrs

Average management tenure


CEO

Lars Solbakken (62yo)

8.08s

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 ($USD1.50M) is above average for companies of similar size in the Norwegian market ($USD397.31K).

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


Leadership Team

NamePositionTenureCompensationOwnership
Lars Solbakken
Chief Executive Officer8.08yrsUS$1.50m0.89% $36.4m
Eirik Eide
Chief Financial Officer8.08yrsUS$635.75k0.22% $8.9m
Andreas Reklev
Senior Vice President of Investments3.67yrsno data0.023% $938.1k
Kristine Kosi
Chief Accounting Officerno datano datano data
Marius Magelie
Senior Vice President of Finance & Investor Relations4yrsno data0.075% $3.1m
Andreas Røde
Head of Business Development and M&A2.58yrsno data0.037% $1.5m
Fredrik Bock-Hagen
Managing Director Ocean Yield Malta Ltd2.25yrsno datano data
Håvard Garseth
Managing Director of Aker Floating Production ASno datano datano data

3.8yrs

Average Tenure

40yo

Average Age

Experienced Management: OCY's management team is considered experienced (3.8 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Kjell Røkke
Director7yrsno data0.16% $6.6m
Jens Ismar
Director6.75yrsno data0.011% $469.0k
Frank Reite
Chairman4yrsno data0.035% $1.4m
Anne-Christin Døvigen
Director6.75yrsno data0.033% $1.3m
Annicken Kildahl
Director6.75yrsno datano data
Per Reppe
Deputy Director4yrsno datano data

6.8yrs

Average Tenure

52.5yo

Average Age

Experienced Board: OCY's board of directors are considered experienced (6.8 years average tenure).


Ownership

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


Insider Trading Volume

Insider Buying: OCY 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: OCY
  • Exchange: OB
  • Founded: 2012
  • Industry: Oil and Gas Equipment and Services
  • Sector: Energy
  • Market Cap: kr4.107b
  • Shares outstanding: 175.14m
  • Website: https://www.oceanyield.no

Number of Employees


Location

  • Ocean Yield ASA
  • OksenOeyveien 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
OY3BRSE (Berne Stock Exchange)YesOrdinary SharesCHCHFJul 2013

Biography

Ocean Yield ASA, a ship owning company, invests in vessels on long-term charters in Norway. It operates through FPSO, Other Oil Service, Car Carriers, Container Vessels, Tankers, and Other Shipping segments. The company has a portfolio of 69 vessels in 8 various shipping segments chartered to counterparties that operate within shipping and oil-service. Ocean Yield ASA 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 Analysis2020/04/03 11:20
End of Day Share Price2020/04/02 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.