Executive Summary
Reach Subsea ASA provides subsea services in Norway.
Snowflake
Fundamentals
Mediocre balance sheet and slightly overvalued.
Risks
- Reach Subsea is not covered by any analysts.
Similar Companies
Share Price & News
How has Reach Subsea's share price performed over time and what events caused price changes?
Latest Share Price and Events
Market Performance
7 Day Return
6.8%
OB:REACH
3.8%
NO Energy Services
2.4%
NO Market
1 Year Return
-20.6%
OB:REACH
-40.8%
NO Energy Services
-14.2%
NO Market
REACH outperformed the Energy Services industry which returned -41.1% over the past year.
REACH underperformed the Market in Norway which returned -14.6% over the past year.
Share holder returns
| REACH | Industry | Market | |
|---|---|---|---|
| 7 Day | 6.8% | 3.8% | 2.4% |
| 30 Day | -5.6% | -13.2% | -3.1% |
| 90 Day | 6.8% | -20.4% | -4.4% |
| 1 Year | -17.8%-20.6% | -39.7%-40.8% | -9.3%-14.2% |
| 3 Year | 24.2%20.0% | -3.2%-9.8% | 38.7%20.4% |
| 5 Year | -47.6%-49.4% | -52.0%-65.8% | 38.0%6.6% |
Price Volatility Vs. Market
How volatile is Reach Subsea's share price compared to the market and industry in the last 5 years?
Simply Wall St News
1 week ago | Simply Wall St
How Much Are Reach Subsea ASA (OB:REACH) Insiders Taking Off The Table?4 weeks ago | Simply Wall St
The Reach Subsea (OB:REACH) Share Price Is Down 54% So Some Shareholders Are Wishing They Sold2 months ago | Simply Wall St
How Much Did Reach Subsea ASA's (OB:REACH) CEO Pocket Last Year?Valuation
Is Reach Subsea undervalued based on future cash flows and its price relative to the stock market?
>50%
Discount to future cash flow value
Intrinsic Value Based on Future Cash Flows
Reach Subsea's share price is below the future cash flow value, and at a moderate discount (> 20%).
Reach Subsea's share price is below the future cash flow value, and at a substantial discount (> 40%).
Price Based on Earnings
Reach Subsea is loss making, we can't compare its value to the NO Energy Services industry average.
Reach Subsea is loss making, we can't compare the value of its earnings to the Norway market.
Price Based on Expected Growth
Unable to calculate PEG ratio for Reach Subsea, we can't assess if its growth is good value.
Price Based on Value of Assets
Reach Subsea is overvalued based on assets compared to the NO Energy Services industry average.
Next Steps
Future Growth
How is Reach Subsea expected to perform in the next 1 to 3 years based on estimates from 0 analysts?
43.8%
Forecasted Energy industry annual growth in earnings
In this section we usually present revenue and earnings growth projections based on the consensus estimates of professional analysts to help investors understand the company’s ability to generate profit. But as Reach Subsea has not provided enough past data and has no analyst forecast, its future earnings cannot be reliably calculated by extrapolating past data or using analyst predictions.
This is quite a rare situation as 97% of companies covered by SimplyWall St do have past financial data.
Next Steps
- Take a look at our analysis of REACH’s management and see if the CEO’s compensation is within a reasonable range, who is on the board and if insiders have been trading lately.
- Reach Subsea competitive advantages and company strategy can generally be found in its financial reports archived here.
- Explore growth companies in the Energy industry.
Past Performance
How has Reach Subsea performed over the past 5 years?
-46.8%
Historical annual earnings growth
Earnings and Revenue History
Past Earnings Growth Analysis
Reach Subsea does not make a profit and their year on year earnings growth rate was negative over the past 5 years.
Unable to compare Reach Subsea's 1-year earnings growth to the 5-year average as it is not currently profitable.
Unable to compare Reach Subsea's 1-year growth to the NO Energy Services industry average as it is not currently profitable.
Return on Equity
It is difficult to establish if Reach Subsea has efficiently used shareholders’ funds last year (Return on Equity greater than 20%) as it is loss-making.
Return on Assets
It is difficult to establish if Reach Subsea has efficiently used its assets last year compared to the NO Energy Services industry average (Return on Assets) as it is loss-making.
Return on Capital Employed
It is difficult to establish if Reach Subsea improved its use of capital last year versus 3 years ago (Return on Capital Employed) as it is currently loss-making.
Next Steps
Financial Health
How is Reach Subsea's financial position?
Financial Position Analysis
Reach Subsea's short term (1 year) commitments are greater than its holdings of cash and other short term assets.
Reach Subsea's cash and other short term assets cover its long term commitments.
Debt to Equity History and Analysis
Reach Subsea's level of debt (52.1%) compared to net worth is high (greater than 40%).
The level of debt compared to net worth has increased over the past 5 years (15.2% vs 52.1% today).
Balance Sheet
High level of physical assets or inventory.
Debt is covered by short term assets, assets are 1.9x 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.
Whilst loss making Reach Subsea has sufficient cash runway for more than 3 years if it maintains the current positive free cash flow level.
Whilst loss making Reach Subsea has sufficient cash runway for more than 3 years, even with free cash flow being positive and shrinking by -126.8% per year.
Next Steps
Dividend
What is Reach Subsea's current dividend yield, its reliability and sustainability?
3.43%
Current Dividend Yield
Dividend Yield and Payments Analysis
Reach Subsea's pays a higher dividend yield than the bottom 25% of dividend payers in Norway (2.73%).
Reach Subsea's dividend is below the markets top 25% of dividend payers in Norway (6.42%).
It is too early to tell whether Reach Subsea has stable dividend payments.
Reach Subsea only just started paying a dividend, it is too early to tell if payments are increasing.
Current Payout to Shareholders
The company is paying a dividend however it is incurring a loss.
Future Payout to Shareholders
Insufficient estimate data to determine if a dividend will be paid in 3 years and that it will be sustainable.
Next Steps
Management
What is the CEO of Reach Subsea's salary, the management and board of directors tenure and is there insider trading?
2.9yrs
Average management tenure
CEO
Jostein Alendal 0
4.8yrs
Tenure
kr1,592,000
Compensation
Mr. Jostein Alendal has been the Chief Executive Officer of Reach Subsea ASA since November 2014 and serves as its Managing Director. Mr. Alendal served as Business Development Manager at Reach Subsea ASA. ...
CEO Compensation Analysis
Jostein's remuneration is lower than average for companies of similar size in Norway.
Jostein's compensation has increased whilst company is loss making.
Management Age and Tenure
2.9yrs
Average Tenure
The tenure for the Reach Subsea management team is about average.
Board Age and Tenure
6.8yrs
Average Tenure
64yo
Average Age
The tenure for the Reach Subsea board of directors is about average.
Insider Trading
No 3 month open market individual insider trading information.
Recent Insider Transactions
| Entity | Individual |
| Role | Member of the Board of Directors Director |
| Shares | 1,755,743 |
| Max Price | kr2.37 |
| Entity | Individual |
| Shares | 817,082 |
| Max Price | kr2.37 |
| Entity | Company |
| Shares | 44,390,156 |
| Max Price | kr2.37 |
| Entity | Company |
| Shares | 40,600,000 |
| Max Price | kr2.37 |
| Entity | Individual |
| Role | Member of the Board of Directors Director |
| Shares | 50,000 |
| Max Price | kr2.35 |
| Entity | Company |
| Shares | 266,525 |
| Max Price | kr2.59 |
| Entity | Company |
| Shares | 26,543 |
| Max Price | kr2.57 |
| Entity | Company |
| Shares | 82,800 |
| Max Price | kr2.60 |
| Entity | Company |
| Shares | 40,657 |
| Max Price | kr2.60 |
| Entity | Company |
| Shares | 244,886 |
| Max Price | kr2.60 |
Ownership Breakdown
Management Team
Øyvind Johannessen
Head of Technical Ship Management Side
- Tenure: 0.0yrs
Solveig Byrkjeland (59yo)
VP of Finance & Company Secretary
- Tenure: 0.0yrs
Rune Lande (59yo)
Secretary of the Board
- Tenure: 4.8yrs
- Compensation: kr250.00k
Sven Storesund
Asset Manager
- Tenure: 2.5yrs
Inge Grutle
Chief Operating Officer
- Tenure: 2.9yrs
- Compensation: kr1.14m
Jostein Alendal
CEO & MD
- Tenure: 4.8yrs
- Compensation: kr1.59m
Birgitte Johansen
CFO & HR Manager
- Tenure: 0.0yrs
- Compensation: kr1.14m
Bård Høgheim
Chief Commercial Officer
- Tenure: 2.4yrs
Board Members
Anders Onarheim (60yo)
Director
- Tenure: 6.8yrs
Kåre Lie (73yo)
Chairman of the Board
- Tenure: 4.8yrs
Merete Haugli (55yo)
Director
- Tenure: 6.8yrs
Sverre Mikkelsen (68yo)
Director
- Tenure: 6.8yrs
Kristine Skeie
Director
- Tenure: 1.3yrs
Company Information
Reach Subsea ASA's company bio, employee growth, exchange listings and data sources
Key Information
- Name: Reach Subsea ASA
- Ticker: REACH
- Exchange: OB
- Founded: 2008
- Industry: Oil and Gas Equipment and Services
- Sector: Energy
- Market Cap: kr292.834m
- Shares outstanding: 143.55m
- Website: https://www.reachsubsea.no
Number of Employees
Location
- Reach Subsea ASA
- Garpeskjærveien 2
- Haugesund
- Rogaland
- 5527
- Norway
Listings
| Ticker | Exchange | Primary Security | Security Type | Country | Currency | Listed on |
|---|---|---|---|---|---|---|
| REACH | OB (Oslo Bors) | Yes | Ordinary Shares | NO | NOK | Jan 1992 |
Biography
Reach Subsea ASA provides subsea services in Norway. The company offers inspection, maintenance, and repair services; and remotely operated vehicles, survey, and construction services. It provides engineer ...
Company Analysis and Financial Data Status
| Data | Last Updated (UTC time) |
|---|---|
| Company Analysis | 2019/08/21 20:42 |
| End of Day Share Price | 2019/08/21 00:00 |
| Earnings | 2019/03/31 |
| Annual Earnings | 2018/12/31 |
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.