Executive Summary
Reach Subsea ASA provides subsea services worldwide. More Details
Rewards
Risk Analysis
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
| REACH | Industry | Market | |
|---|---|---|---|
| 7 Day | -3.0% | -0.7% | -2.5% |
| 30 Day | 2.9% | -2.0% | -1.5% |
| 90 Day | 21.8% | -4.1% | 2.5% |
| 1 Year | 174.6%174.6% | 76.8%69.7% | 43.4%38.4% |
| 3 Year | 31.5%27.1% | -67.1%-69.1% | 11.1%-1.0% |
| 5 Year | 97.3%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
1 week ago | Simply Wall St
Is Reach Subsea ASA's (OB:REACH) Stock's Recent Performance Being Led By Its Attractive Financial Prospects?1 month ago | Simply Wall St
Reach Subsea's (OB:REACH) Strong Earnings Are Of Good Quality2 months ago | Simply Wall St
Is Reach Subsea (OB:REACH) A Risky Investment?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
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
| Data | Last Updated (UTC time) |
|---|---|
| Company Analysis | 2021/05/14 02:53 |
| End of Day Share Price | 2021/05/12 00:00 |
| Earnings | 2021/03/31 |
| Annual Earnings | 2020/12/31 |
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.