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Market Cap

kr465.3m

Last Updated

2021/05/14 02:53 UTC

Data Sources

Company Financials

Executive Summary

Reach Subsea ASA provides subsea services worldwide. More Details


Snowflake Analysis

Excellent balance sheet with proven track record.


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

Stable Share Price: REACH is less volatile than 75% of Norwegian stocks over the past 3 months, typically moving +/- 4% a week.

Volatility Over Time: REACH's weekly volatility (4%) has been stable over the past year.


Market Performance


7 Day Return

-3.0%

REACH

-0.7%

NO Energy Services

-2.5%

NO Market


1 Year Return

174.6%

REACH

69.7%

NO Energy Services

38.4%

NO Market

Return vs Industry: REACH exceeded the Norwegian Energy Services industry which returned 46.5% over the past year.

Return vs Market: REACH exceeded the Norwegian Market which returned 39.2% over the past year.


Shareholder returns

REACHIndustryMarket
7 Day-3.0%-0.7%-2.5%
30 Day2.9%-2.0%-1.5%
90 Day21.8%-4.1%2.5%
1 Year174.6%174.6%76.8%69.7%43.4%38.4%
3 Year31.5%27.1%-67.1%-69.1%11.1%-1.0%
5 Year97.3%90.6%-7.5%-30.6%76.1%43.7%

Long-Term 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

Valuation

Is Reach Subsea 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: REACH (NOK3.24) is trading below our estimate of fair value (NOK24.96)

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


Price To Earnings Ratio

PE vs Industry: REACH is poor value based on its PE Ratio (5.4x) compared to the Norwegian Energy Services industry average (4.4x).

PE vs Market: REACH is good value based on its PE Ratio (5.4x) compared to the Norwegian market (14.9x).


Price to Earnings Growth Ratio

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


Price to Book Ratio

PB vs Industry: REACH is overvalued based on its PB Ratio (2.1x) compared to the NO Energy Services industry average (0.7x).


Future Growth

How is Reach Subsea forecast to perform in the next 1 to 3 years based on estimates from 0 analysts?

37.5%

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.


Past Performance

How has Reach Subsea performed over the past 5 years?

31.7%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: REACH has high quality earnings.

Growing Profit Margin: REACH became profitable in the past.


Past Earnings Growth Analysis

Earnings Trend: REACH has become profitable over the past 5 years, growing earnings by 31.7% per year.

Accelerating Growth: REACH has become profitable in the last year, making the earnings growth rate difficult to compare to its 5-year average.

Earnings vs Industry: REACH has become profitable in the last year, making it difficult to compare its past year earnings growth to the Energy Services industry (-5.2%).


Return on Equity

High ROE: REACH's Return on Equity (38.9%) is considered high.


Financial Health

How is Reach Subsea's financial position?


Financial Position Analysis

Short Term Liabilities: REACH's short term assets (NOK266.9M) exceed its short term liabilities (NOK259.4M).

Long Term Liabilities: REACH's short term assets (NOK266.9M) exceed its long term liabilities (NOK26.6M).


Debt to Equity History and Analysis

Debt Level: REACH's debt to equity ratio (18%) is considered satisfactory.

Reducing Debt: REACH's debt to equity ratio has increased from 3.3% to 18% over the past 5 years.

Debt Coverage: REACH's debt is well covered by operating cash flow (788.4%).

Interest Coverage: REACH's interest payments on its debt are well covered by EBIT (14.5x coverage).


Balance Sheet


Dividend

What is Reach Subsea current dividend yield, its reliability and sustainability?

4.63%

Current Dividend Yield


Upcoming Dividend Payment

TodayMay 14 2021Ex Dividend DateMay 27 2021Dividend Pay DateJun 03 20217 days from Ex DividendBuy in the next 13 days to receive the upcoming dividend

Dividend Yield vs Market

Notable Dividend: REACH's dividend (4.63%) is higher than the bottom 25% of dividend payers in the Norwegian market (1.92%).

High Dividend: REACH's dividend (4.63%) is low compared to the top 25% of dividend payers in the Norwegian market (5.03%).


Stability and Growth of Payments

Stable Dividend: REACH has been paying a dividend for less than 10 years and during this time payments have been volatile.

Growing Dividend: REACH's dividend payments have increased, but the company has only paid a dividend for 2 years.


Current Payout to Shareholders

Dividend Coverage: With its low payout ratio (24.8%), REACH's dividend payments are well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: Insufficient data to determine if a dividend will be paid in 3 years and that it will be covered by earnings.


Next Steps

Management

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

4.7yrs

Average management tenure


CEO

Jostein Alendal

6.5yrs

Tenure

kr1,718,000

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

Compensation vs Market: Jostein's total compensation ($USD205.10K) is below average for companies of similar size in the Norwegian market ($USD374.94K).

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


Leadership Team

Experienced Management: REACH's management team is considered experienced (4.7 years average tenure).


Board Members

Experienced Board: REACH's board of directors are not considered experienced ( 1 years average tenure), which suggests a new board.


Ownership

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


Insider Trading Volume

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Top Shareholders

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: 1909
  • Industry: Oil and Gas Equipment and Services
  • Sector: Energy
  • Market Cap: kr465.283m
  • Shares outstanding: 143.61m
  • Website: https://www.reachsubsea.no

Number of Employees


Location

  • Reach Subsea ASA
  • GarpeskjAerveien 2
  • Haugesund
  • Rogaland
  • 5527
  • Norway

Listings


Biography

Reach Subsea ASA provides subsea services worldwide. It offers inspection, maintenance, and repair (IMR) services, such as structural inspections, WROV operation, SCM changeout, scale squeeze operations, w...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2021/05/14 02:53
End of Day Share Price2021/05/12 00:00
Earnings2021/03/31
Annual Earnings2020/12/31


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.