OB:REACH

Stock Analysis Report

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

REACHIndustryMarket
7 Day6.8%3.8%2.4%
30 Day-5.6%-13.2%-3.1%
90 Day6.8%-20.4%-4.4%
1 Year-17.8%-20.6%-39.7%-40.8%-9.3%-14.2%
3 Year24.2%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

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

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

Sellkr4,155,84620 Feb 19
Anders Onarheim
EntityIndividual
Role
Member of the Board of Directors
Director
Shares1,755,743
Max Pricekr2.37
Sellkr1,934,03420 Feb 19
Rachid Bendriss
EntityIndividual
Shares817,082
Max Pricekr2.37
Buykr105,071,56220 Feb 19
North Energy ASA
EntityCompany
Shares44,390,156
Max Pricekr2.37
Sellkr96,100,25720 Feb 19
North Energy ASA
EntityCompany
Shares40,600,000
Max Pricekr2.37
Buykr117,50003 Dec 18
Anders Onarheim
EntityIndividual
Role
Member of the Board of Directors
Director
Shares50,000
Max Pricekr2.35
Buykr691,10024 Sep 18
North Energy ASA
EntityCompany
Shares266,525
Max Pricekr2.59
Buykr68,21618 Sep 18
North Energy ASA
EntityCompany
Shares26,543
Max Pricekr2.57
Buykr214,96511 Sep 18
North Energy ASA
EntityCompany
Shares82,800
Max Pricekr2.60
Buykr105,54607 Sep 18
North Energy ASA
EntityCompany
Shares40,657
Max Pricekr2.60
Buykr637,29231 Aug 18
North Energy ASA
EntityCompany
Shares244,886
Max Pricekr2.60

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

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
REACHOB (Oslo Bors)YesOrdinary SharesNONOKJan 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

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/08/21 20:42
End of Day Share Price2019/08/21 00:00
Earnings2019/03/31
Annual Earnings2018/12/31


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.