Odfjell Technology (OB:OTL) - Share price, News & Analysis

Q: What is the Fair Price of OTL when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

OTL (NOK24.21) is trading below our estimate of [[fair value]] (NOK909.93)

OTL fundamental analysis
Snowflake Score
Valuation	4/6
Future Growth	2/6
Past Performance	5/6
Financial Health	4/6
Dividends	0/6

OTL Stock Overview

Odfjell Technology Ltd., a technology and engineering company, provides well, drilling, and engineering services in Norway, Europe, the Middle East, Asia, and the United Kingdom.

Rewards

Trading at 97.3% below our estimate of its fair value

Revenue is forecast to grow 7.17% per year

Earnings grew by 56.9% over the past year

Risk Analysis

Earnings are forecast to decline by an average of 5.2% per year for the next 3 years

Has a high level of debt

Does not have a meaningful market cap (NOK955M)

Odfjell Technology Competitors

Odfjell Drilling

OB:ODL

kr5.8b

Seadrill

OB:SDRL

kr12.9b

S.D. Standard ETC

OB:SDSD

kr987.9m

Reach Subsea

OB:REACH

kr778.2m

Price History & Performance

Summary of all time highs, changes and price drops for Odfjell Technology
Historical stock prices
Current Share Price	kr24.21
52 Week High	kr30.00
52 Week Low	kr18.10
Beta	0
1 Month Change	13.40%
3 Month Change	1.72%
1 Year Change	n/a
3 Year Change	n/a
5 Year Change	n/a
Change since IPO	3.91%

Shareholder Returns

	OTL	NO Energy Services	NO Market
7D	3.3%	1.6%	0.7%
1Y	n/a	60.6%	10.5%

Return vs Industry: Insufficient data to determine how OTL performed against the Norwegian Energy Services industry.

Return vs Market: Insufficient data to determine how OTL performed against the Norwegian Market.

Price Volatility

Is OTL's price volatile compared to industry and market?
OTL volatility
OTL Average Weekly Movement	8.6%
Energy Services Industry Average Movement	8.4%
Market Average Movement	6.6%
10% most volatile stocks in NO Market	12.2%
10% least volatile stocks in NO Market	3.7%

Stable Share Price: OTL is not significantly more volatile than the rest of Norwegian stocks over the past 3 months, typically moving +/- 9% a week.

Volatility Over Time: Insufficient data to determine OTL's volatility change over the past year.

About the Company

Founded	Employees	CEO	Website
1973	1,862	n/a	https://www.odfjelltechnology.com

Odfjell Technology Ltd., a technology and engineering company, provides well, drilling, and engineering services in Norway, Europe, the Middle East, Asia, and the United Kingdom. It offers tubular and casing running, drilling tool rental, fishing, wellbore clean-up, and casing while drilling services; crew for drilling and maintenance on fixed or floating platforms; smart circulation tools; downhole tools; wired drill pipes; integrated solutions for plug and abandonment markets; and maintenance and recertification services for drilling equipment. The company also provides upgrades and modifications of drilling units; special periodic surveys; rig recertifications; yard stays; engineering and project management; marine and operability analysis; offshore execution, installation, and construction; energy mapping and reduction; and inspection and integrity management services.

Odfjell Technology Fundamentals Summary

How do Odfjell Technology's earnings and revenue compare to its market cap?
OTL fundamental statistics
Market Cap	kr955.42m
Earnings (TTM)	kr196.35m
Revenue (TTM)	kr3.17b

4.9x

P/E Ratio

0.3x

P/S Ratio

Is OTL overvalued?

See Fair Value and valuation analysis

Earnings & Revenue

Key profitability statistics from the latest earnings report
OTL income statement (TTM)
Revenue	kr3.17b
Cost of Revenue	kr0
Gross Profit	kr3.17b
Other Expenses	kr2.98b
Earnings	kr196.35m

Last Reported Earnings

Mar 31, 2022

Next Earnings Date

Aug 24, 2022

Earnings per share (EPS)	4.98
Gross Margin	100.00%
Net Profit Margin	6.19%
Debt/Equity Ratio	287.9%

How did OTL perform over the long term?

See historical performance and comparison

We’ve recently updated our valuation analysis.

Valuation

Is OTL undervalued compared to its fair value, analyst forecasts and its price relative to the market?

Valuation Score

4/6

Valuation Score 4/6

Price-To-Earnings vs Peers
Price-To-Earnings vs Industry
Price-To-Earnings vs Fair Ratio
Below Fair Value
Significantly Below Fair Value
Analyst Forecast

Key Valuation Metric

Which metric is best to use when looking at relative valuation for OTL?

Other financial metrics that can be useful for relative valuation.

The above table shows the n/a ratio for OTL. This is calculated by dividing OTL's market cap by their current preferred multiple.
What is OTL's n/a Ratio?
n/a Ratio	0x
n/a	n/a
Market Cap	kr955.42m

OTL key valuation metrics and ratios. From Price to Earnings, Price to Sales and Price to Book to Price to Earnings Growth Ratio, Enterprise Value and EBITDA.
Key Statistics
Enterprise Value/Revenue	0.6x
Enterprise Value/EBITDA	4.4x
PEG Ratio	-0.9x

Price to Earnings Ratio vs Peers

How does OTL's PE Ratio compare to its peers?

OTL PE Ratio vs Peers

The above table shows the PE ratio for OTL vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
Company	PE	Estimated Growth	Market Cap
Peer Average	6.8x
ODL Odfjell Drilling	6.1x	1.5%	kr5.8b
SDRL Seadrill	0.4x	-12.0%	kr12.9b
SDSD S.D. Standard ETC	4.3x	n/a	kr987.9m
REACH Reach Subsea	16.5x	33.8%	kr778.2m
OTL Odfjell Technology	4.9x	-5.2%	kr955.4m

Price-To-Earnings vs Peers: OTL is good value based on its Price-To-Earnings Ratio (4.9x) compared to the peer average (6.8x).

Price to Earnings Ratio vs Industry

How does OTL's PE Ratio compare vs other companies in the European Energy Services Industry?

Price-To-Earnings vs Industry: OTL is good value based on its Price-To-Earnings Ratio (4.9x) compared to the Norwegian Energy Services industry average (9.3x)

Price to Earnings Ratio vs Fair Ratio

What is OTL's PE Ratio compared to its Fair PE Ratio? This is the expected PE Ratio taking into account the company's forecast earnings growth, profit margins and other risk factors.

OTL PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio	4.9x
Fair PE Ratio	n/a

Price-To-Earnings vs Fair Ratio: Insufficient data to calculate OTL's Price-To-Earnings Fair Ratio for valuation analysis.

Share Price vs Fair Value

What is the Fair Price of OTL when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: OTL (NOK24.21) is trading below our estimate of fair value (NOK909.93)

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

Analyst Price Targets

What is the analyst 12-month forecast and do we have any statistical confidence in the consensus price target?

Analyst Forecast: Insufficient data to show price forecast.

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Future Growth

How is Odfjell Technology forecast to perform in the next 1 to 3 years based on estimates from 1 analyst?

Future Growth Score

2/6

Future Growth Score 2/6

Earnings vs Savings Rate
Earnings vs Market
High Growth Earnings
Revenue vs Market
High Growth Revenue
Future ROE

-5.2%

Forecasted annual earnings growth

Earnings and Revenue Growth Forecasts

Analyst Future Growth Forecasts

Earnings vs Savings Rate: OTL's earnings are forecast to decline over the next 3 years (-5.2% per year).

Earnings vs Market: OTL's earnings are forecast to decline over the next 3 years (-5.2% per year).

High Growth Earnings: OTL's earnings are forecast to decline over the next 3 years.

Revenue vs Market: OTL's revenue (7.2% per year) is forecast to grow faster than the Norwegian market (-0.4% per year).

High Growth Revenue: OTL's revenue (7.2% per year) is forecast to grow slower than 20% per year.

Earnings per Share Growth Forecasts

Future Return on Equity

Future ROE: OTL's Return on Equity is forecast to be high in 3 years time (22.7%)

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Past Performance

How has Odfjell Technology performed over the past 5 years?

Past Performance Score

5/6

Past Performance Score 5/6

Quality Earnings
Growing Profit Margin
Earnings Trend
Accelerating Growth
Earnings vs Industry
High ROE

1.2%

Historical annual earnings growth

Earnings and Revenue History

Quality Earnings: OTL has high quality earnings.

Growing Profit Margin: OTL's current net profit margins (6.2%) are higher than last year (5%).

Past Earnings Growth Analysis

Earnings Trend: OTL's earnings have grown by 1.2% per year over the past 5 years.

Accelerating Growth: OTL's earnings growth over the past year (56.9%) exceeds its 5-year average (1.2% per year).

Earnings vs Industry: OTL earnings growth over the past year (56.9%) exceeded the Energy Services industry -45.5%.

Return on Equity

High ROE: Whilst OTL's Return on Equity (44.03%) is outstanding, this metric is skewed due to their high level of debt.

Discover strong past performing companies

Financial Health

How is Odfjell Technology's financial position?

Financial Health Score

4/6

Financial Health Score 4/6

Short Term Liabilities
Long Term Liabilities
Debt Level
Reducing Debt
Debt Coverage
Interest Coverage

Financial Position Analysis

Short Term Liabilities: OTL's short term assets (NOK1.4B) exceed its short term liabilities (NOK853.9M).

Long Term Liabilities: OTL's short term assets (NOK1.4B) exceed its long term liabilities (NOK1.3B).

Debt to Equity History and Analysis

Debt Level: OTL's net debt to equity ratio (193.1%) is considered high.

Reducing Debt: Insufficient data to determine if OTL's debt to equity ratio has reduced over the past 5 years.

Debt Coverage: OTL's debt is well covered by operating cash flow (28.7%).

Interest Coverage: OTL's interest payments on its debt are well covered by EBIT (5.7x coverage).

Balance Sheet

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Dividend

What is Odfjell Technology current dividend yield, its reliability and sustainability?

Dividend Score

0/6

Dividend Score 0/6

Notable Dividend
High Dividend
Stable Dividend
Growing Dividend
Earnings Coverage
Cash Flow Coverage

Dividend Yield vs Market

Notable Dividend: Unable to evaluate OTL's dividend yield against the bottom 25% of dividend payers, as the company has not reported any recent payouts.

High Dividend: Unable to evaluate OTL's dividend yield against the top 25% of dividend payers, as the company has not reported any recent payouts.

Stability and Growth of Payments

Stable Dividend: Insufficient data to determine if OTL's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if OTL's dividend payments have been increasing.

Earnings Payout to Shareholders

Earnings Coverage: Insufficient data to calculate payout ratio to determine if its dividend payments are covered by earnings.

Cash Payout to Shareholders

Cash Flow Coverage: Unable to calculate sustainability of dividends as OTL has not reported any payouts.

Discover strong dividend paying companies

Management

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

CEO

Odfjell Technology has no CEO, or we have no data on them.

Ownership

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

Insider Trading Volume

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

Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: OTL only recently listed within the past 12 months.

Data	Last Updated (UTC time)
Company Analysis	2022/08/16 00:00
End of Day Share Price	2022/08/16 00:00
Earnings	2022/03/31
Annual Earnings	2021/12/31