OB:REACH

Stock Analysis Report

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Executive Summary

Reach Subsea ASA provides subsea services in Norway. More Details


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 is more volatile than 75% of Norwegian stocks over the past 3 months, typically moving +/- 10% a week.

Volatility Over Time: REACH's weekly volatility (10%) has been stable over the past year, but is still higher than 75% of Norwegian stocks.


Market Performance


7 Day Return

7.8%

REACH

8.7%

NO Energy Services

3.8%

NO Market


1 Year Return

35.8%

REACH

-36.5%

NO Energy Services

-0.03%

NO Market

Return vs Industry: REACH exceeded the Norwegian Energy Services industry which returned -38.9% over the past year.

Return vs Market: REACH exceeded the Norwegian Market which returned -1.8% over the past year.


Shareholder returns

REACHIndustryMarket
7 Day7.8%8.7%3.8%
30 Day36.2%45.4%17.2%
90 Day33.7%22.4%8.5%
1 Year35.8%35.8%-33.4%-36.5%3.7%-0.03%
3 Year7.4%3.7%-58.0%-61.1%9.8%-2.6%
5 Year16.6%12.7%-25.5%-47.9%58.9%27.5%

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 (NOK2.22) is trading below our estimate of fair value (NOK10.79)

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 (78.2x) compared to the NO Energy Services industry average (23.7x).

PE vs Market: REACH is poor value based on its PE Ratio (78.2x) compared to the Norwegian market (15.5x).


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 (1.6x) compared to the NO Energy Services industry average (0.5x).


Next Steps

Future Growth

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

69.4%

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?

-15.7%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: REACH has a large one-off loss of NOK7.5M impacting its September 30 2020 financial results.

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 -15.7% 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 (-28.6%).


Return on Equity

High ROE: REACH's Return on Equity (2.1%) is considered low.


Next Steps

Financial Health

How is Reach Subsea's financial position?


Financial Position Analysis

Short Term Liabilities: REACH's short term assets (NOK246.6M) exceed its short term liabilities (NOK175.8M).

Long Term Liabilities: REACH's short term assets (NOK246.6M) exceed its long term liabilities (NOK15.8M).


Debt to Equity History and Analysis

Debt Level: REACH's debt to equity ratio (7%) is considered satisfactory.

Reducing Debt: REACH's debt to equity ratio has reduced from 8.7% to 7% over the past 5 years.

Debt Coverage: REACH's debt is well covered by operating cash flow (1408.9%).

Interest Coverage: REACH's interest payments on its debt are not well covered by EBIT (2.9x coverage).


Balance Sheet


Next Steps

Dividend

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


Dividend Yield vs Market

Notable Dividend: Unable to evaluate REACH's dividend yield against the bottom 25% of dividend payers, as the company has not reported any recent payouts.

High Dividend: Unable to evaluate REACH's dividend yield against the top 25% of dividend payers, as the company has not reported any recent payouts.


Stability and Growth of Payments

Stable Dividend: Insufficient data to determine if REACH's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if REACH's dividend payments have been increasing.


Current Payout to Shareholders

Dividend Coverage: REACH is not paying a notable dividend for the Norwegian market.


Future Payout to Shareholders

Future Dividend Coverage: No need to calculate the sustainability of REACH's dividend in 3 years as they are not forecast to pay a notable one for the Norwegian market.


Next Steps

Management

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

4.2yrs

Average management tenure


CEO

Jostein Alendal

6yrs

Tenure

kr1,912,000

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 ($USD215.47K) is below average for companies of similar size in the Norwegian market ($USD366.87K).

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


Leadership Team

NamePositionTenureCompensationOwnership
Jostein Alendal
CEO & MD6yrskr1.91m0.035%
NOK 111.0k
Birgitte Johansen
CFO & HR Managerno datakr1.62m0.097%
NOK 308.7k
Inge Grutle
Chief Operating Officer4.17yrskr1.62m0.63%
NOK 2.0m
Øyvind Johannessen
Head of Technical Ship Management Sideno datano datano data
Sven Storesund
Asset Manager3.75yrsno data1.15%
NOK 3.7m
Bård Høgheim
Chief Commercial Officer3.67yrsno data0.27%
NOK 867.2k
Solveig Byrkjeland
VP of Finance & Company Secretaryno datano datano data
Rune Lande
Secretary of the Board6yrskr250.00kno data

4.2yrs

Average Tenure

Experienced Management: REACH's management team is considered experienced (4.2 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Anders Onarheim
Independent Director8yrskr150.00kno data
Kåre Lie
Independent Deputy Chairperson0.50yrkr310.00k5.27%
NOK 16.8m
Martha Kold Bakkevig
Director0.50yrno datano data
Sverre Mikkelsen
Independent Director8yrskr185.00k0.32%
NOK 1.0m
Rachid Bendriss
Chairperson0.50yrno datano data
Kristine Skeie
Independent Director2.5yrskr150.00kno data
Ingunn Iveland
Independent Director1.83yrsno data0.021%
NOK 66.6k

1.8yrs

Average Tenure

65yo

Average Age

Experienced Board: REACH's board of directors are not considered experienced ( 1.8 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: 2008
  • Industry: Oil and Gas Equipment and Services
  • Sector: Energy
  • Market Cap: kr318.583m
  • Shares outstanding: 143.51m
  • 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
0EMBLSE (London Stock Exchange)YesOrdinary SharesGBNOKJan 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 Analysis2020/11/28 17:21
End of Day Share Price2020/11/27 00:00
Earnings2020/09/30
Annual Earnings2019/12/31


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.