Executive Summary
Reach Subsea ASA provides subsea services in Norway.
Rewards
Risk Analysis
Earnings have declined by -43.38% per year over past 5 years
Currently unprofitable and not forecast to become profitable over the next 3 years
Snowflake Analysis
Excellent balance sheet and slightly overvalued.
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 has not had significant price volatility in the past 3 months.
Market Performance
7 Day Return
-2.9%
REACH
-3.5%
NO Energy Services
0.2%
NO Market
1 Year Return
-39.3%
REACH
-27.0%
NO Energy Services
-0.7%
NO Market
Return vs Industry: REACH underperformed the Norwegian Energy Services industry which returned -27% over the past year.
Return vs Market: REACH underperformed the Norwegian Market which returned -0.7% over the past year.
Shareholder returns
| REACH | Industry | Market | |
|---|---|---|---|
| 7 Day | -2.9% | -3.5% | 0.2% |
| 30 Day | -2.9% | -12.2% | -1.3% |
| 90 Day | -17.1% | -13.1% | 1.7% |
| 1 Year | -37.2%-39.3% | -24.9%-27.0% | 4.5%-0.7% |
| 3 Year | -38.5%-40.6% | -18.9%-24.6% | 33.3%16.6% |
| 5 Year | -51.5%-53.1% | -13.2%-46.3% | 58.2%24.1% |
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
Here's Why Reach Subsea (OB:REACH) Has A Meaningful Debt Burden1 month ago | Simply Wall St
Is Reach Subsea ASA's (OB:REACH) CEO Salary Justified?2 months ago | Simply Wall St
Should You Buy Reach Subsea ASA (OB:REACH) For Its Dividend?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 (NOK1.36) is trading below our estimate of fair value (NOK21.95)
Significantly Below Fair Value: REACH is trading below fair value by more than 20%.
Price To Earnings Ratio
PE vs Industry: REACH is unprofitable, so we can't compare its PE Ratio to the Energy Services industry average.
PE vs Market: REACH is unprofitable, so we can't compare its PE Ratio to the Norwegian market.
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 (1x) compared to the NO Energy Services industry average (0.6x).
Next Steps
Future Growth
How is Reach Subsea forecast to perform in the next 1 to 3 years based on estimates from 0 analysts?
39.9%
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
- Examine Reach Subsea's financial health to determine how well-positioned it is against times of financial stress by looking at its level of debt over time and how much cash it has left.
- 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?
-43.4%
Historical annual earnings growth
Earnings and Revenue History
Quality Earnings: REACH is currently unprofitable.
Growing Profit Margin: REACH is currently unprofitable.
Past Earnings Growth Analysis
Earnings Trend: REACH is unprofitable, and losses have increased over the past 5 years at a rate of -43.4% per year.
Accelerating Growth: Unable to compare REACH's earnings growth over the past year to its 5-year average as it is currently unprofitable
Earnings vs Industry: REACH is unprofitable, making it difficult to compare its past year earnings growth to the Energy Services industry (-44.4%).
Return on Equity
High ROE: REACH has a negative Return on Equity (-9.05%), as it is currently unprofitable.
Return on Assets
Return on Capital Employed
Next Steps
Financial Health
How is Reach Subsea's financial position?
Financial Position Analysis
Short Term Liabilities: REACH's short term assets (NOK198.1M) do not cover its short term liabilities (NOK233.1M).
Long Term Liabilities: REACH's short term assets (NOK198.1M) exceed its long term liabilities (NOK97.1M).
Debt to Equity History and Analysis
Debt Level: REACH's debt to equity ratio (9.9%) is considered satisfactory.
Reducing Debt: REACH's debt to equity ratio has reduced from 12% to 9.9% over the past 5 years.
Balance Sheet
Inventory Level: REACH has a high level of physical assets or inventory.
Debt Coverage by Assets: REACH's debt is covered by short term assets (assets are 10.5x 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.
Stable Cash Runway: Whilst unprofitable REACH has sufficient cash runway for more than 3 years if it maintains its current positive free cash flow level.
Forecast Cash Runway: REACH is unprofitable but has sufficient cash runway for more than 3 years, due to free cash flow being positive and growing by 68.5% per year.
Next Steps
Dividend
What is Reach Subsea's current dividend yield, its reliability and sustainability?
5.15%
Current Dividend Yield
Dividend Yield vs Market
Current dividend yield vs market & industry
Notable Dividend: REACH's dividend (5.15%) is higher than the bottom 25% of dividend payers in the Norwegian market (2.83%).
High Dividend: REACH's dividend (5.15%) is low compared to the top 25% of dividend payers in the Norwegian market (6.18%).
Stability and Growth of Payments
Stable Dividend: Too early to tell whether REACH's dividend payments have been stable as they only just started paying a dividend.
Growing Dividend: Too early to tell if REACH's dividend payments are increasing as they only just started paying a dividend.
Current Payout to Shareholders
Dividend Coverage: REACH is paying a dividend but the company is unprofitable.
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?
3.4yrs
Average management tenure
CEO
Jostein Alendal 0
5.3yrs
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
Compensation vs Market: Jostein's total compensation ($USD171.58K) is below average for companies of similar size in the Norwegian market ($USD401.15K).
Compensation vs Earnings: Jostein's compensation has increased whilst the company is unprofitable.
Leadership Team
| Name | Position | Tenure | Compensation | Ownership |
|---|---|---|---|---|
| CEO & MD | 5.3yrs | kr1.59m | 0.035% NOK68.0k | |
| CFO & HR Manager | 0yrs | kr1.14m | 0.097% NOK189.1k | |
| Chief Operating Officer | 3.4yrs | kr1.14m | no data | |
| Head of Technical Ship Management Side | 0yrs | no data | no data | |
| Chief Commercial Officer | 2.9yrs | no data | 0.27% NOK531.3k | |
| VP of Finance & Company Secretary | 0yrs | no data | no data | |
| Secretary of the Board | 5.3yrs | kr250.00k | 0.67% NOK1.3m | |
| Asset Manager | 3yrs | no data | 1.15% NOK2.2m |
3.4yrs
Average Tenure
Experienced Management: REACH's management team is considered experienced (3.4 years average tenure).
Board Members
| Name | Position | Tenure | Compensation | Ownership |
|---|---|---|---|---|
| Director | 7.3yrs | no data | no data | |
| Chairman of the Board | 5.3yrs | no data | 5.27% NOK10.3m | |
| Director | 7.3yrs | no data | 0.38% NOK745.4k | |
| Director | 1.8yrs | no data | no data | |
| Director | 1.1yrs | no data | no data |
5.3yrs
Average Tenure
68yo
Average Age
Experienced Board: REACH's board of directors are considered experienced (5.3 years average tenure).
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.
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: 2008
- Industry: Oil and Gas Equipment and Services
- Sector: Energy
- Market Cap: kr195.223m
- 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 |
| 0EMB | LSE (London Stock Exchange) | Yes | Ordinary Shares | GB | 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 engineering services to the oil industry. The company was formerly known as Transit Invest ASA and changed its name to Reach Subsea ASA in December 2012. Reach Subsea ASA was founded in 2008 and is based in Haugesund, Norway.
Company Analysis and Financial Data Status
| Data | Last Updated (UTC time) |
|---|---|
| Company Analysis | 2020/02/22 20:54 |
| End of Day Share Price | 2020/02/21 00:00 |
| Earnings | 2019/09/30 |
| 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.