Reach Subsea ASA provides subsea services in Norway.
Excellent balance sheet and slightly overvalued.
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's share price has been volatile over the past 3 months.
7 Day Return
NO Energy Services
1 Year Return
NO Energy Services
Return vs Industry: REACH exceeded the Norwegian Energy Services industry which returned -68.4% over the past year.
Return vs Market: REACH underperformed the Norwegian Market which returned -28.9% over the past year.
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
2 weeks ago | Simply Wall StSome Reach Subsea (OB:REACH) Shareholders Have Copped A Big 60% Share Price Drop
1 month ago | Simply Wall StHere's Why Reach Subsea (OB:REACH) Has A Meaningful Debt Burden
2 months ago | Simply Wall StIs Reach Subsea ASA's (OB:REACH) CEO Salary Justified?
Is Reach Subsea undervalued compared to its fair value and its price relative to the market?
Undervalued compared to fair value
Share Price vs. Fair Value
Below Fair Value: REACH (NOK0.85) is trading below our estimate of fair value (NOK7.53)
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 (0.7x) compared to the NO Energy Services industry average (0.2x).
How is Reach Subsea forecast to perform in the next 1 to 3 years based on estimates from 0 analysts?
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.
- 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.
How has Reach Subsea performed over the past 5 years?
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 -41.5% 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 (-28.5%).
Return on Equity
High ROE: REACH has a negative Return on Equity (-21.53%), as it is currently unprofitable.
How is Reach Subsea's financial position?
Financial Position Analysis
Short Term Liabilities: REACH's short term assets (NOK168.1M) do not cover its short term liabilities (NOK195.5M).
Long Term Liabilities: REACH's short term assets (NOK168.1M) exceed its long term liabilities (NOK84.0M).
Debt to Equity History and Analysis
Debt Level: REACH's debt to equity ratio (10.6%) is considered satisfactory.
Reducing Debt: REACH's debt to equity ratio has reduced from 11.7% to 10.6% over the past 5 years.
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 9.6x 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 64.1% per year.
What is Reach Subsea's 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 payouts.
High Dividend: Unable to evaluate REACH's dividend yield against the top 25% of dividend payers, as the company has not reported any 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.
How experienced are the management team and are they aligned to shareholders interests?
Average management tenure
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 ($USD152.64K) is below average for companies of similar size in the Norwegian market ($USD390.88K).
Compensation vs Earnings: Jostein's compensation has increased whilst the company is unprofitable.
|CEO & MD||5.33yrs||kr1.59m||0.035% NOK42.6k|
|CFO & HR Manager||no data||kr1.14m||0.097% NOK118.5k|
|Chief Operating Officer||3.5yrs||kr1.14m||no data|
|Head of Technical Ship Management Side||no data||no data||no data|
|Chief Commercial Officer||3yrs||no data||0.27% NOK332.8k|
|VP of Finance & Company Secretary||no data||no data||no data|
|Secretary of the Board||5.33yrs||kr250.00k||0.67% NOK818.3k|
|Asset Manager||3yrs||no data||1.15% NOK1.4m|
Experienced Management: REACH's management team is considered experienced (3.5 years average tenure).
|Director||7.33yrs||no data||no data|
|Chairman of the Board||5.33yrs||no data||5.27% NOK6.4m|
|Director||7.33yrs||no data||0.38% NOK467.0k|
|Director||1.83yrs||no data||no data|
|Director||1.17yrs||no data||no data|
Experienced Board: REACH's board of directors are considered experienced (5.3 years average tenure).
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.
Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.
Reach Subsea ASA's company bio, employee growth, exchange listings and data sources
- Name: Reach Subsea ASA
- Ticker: REACH
- Exchange: OB
- Founded: 2008
- Industry: Oil and Gas Equipment and Services
- Sector: Energy
- Market Cap: kr122.301m
- Shares outstanding: 143.55m
- Website: https://www.reachsubsea.no
Number of Employees
- Reach Subsea ASA
- Garpeskjærveien 2
|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|
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||2020/03/29 20:55|
|End of Day Share Price||2020/03/27 00:00|
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.