OB:SPU

Stock Analysis Report

Executive Summary

Spectrum ASA produces and sells multi-client seismic surveys and seismic data imaging for multi-client survey and proprietary customers in the oil and gas market.

Snowflake

Fundamentals

Undervalued with reasonable growth potential.


Similar Companies

Share Price & News

How has Spectrum's share price performed over time and what events caused price changes?


Latest Share Price and Events


Market Performance


7 Day Return

-3.5%

SPU

1.0%

NO Energy Services

0.07%

NO Market


1 Year Return

-2.0%

SPU

-31.5%

NO Energy Services

-8.7%

NO Market


Shareholder returns

SPUIndustryMarket
7 Day-3.5%1.0%0.07%
30 Day-19.3%-4.6%-1.9%
90 Day-20.8%-3.2%2.1%
1 Year0.2%-2.0%-30.2%-31.5%-3.9%-8.7%
3 Year108.3%101.9%2.5%-4.4%40.2%21.9%
5 Year56.5%47.3%-29.6%-51.1%59.2%22.5%

Price Volatility Vs. Market

How volatile is Spectrum's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is Spectrum undervalued compared to its fair value and its price relative to the market?

>50%

Undervalued compared to fair value


Share Price vs. Fair Value

Undervalued: SPU (NOK54.5) is trading below our estimate of fair value (NOK168.91)

Significantly Undervalued: SPU is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: SPU is good value based on its PE Ratio (9.2x) compared to the Energy Services industry average (17.1x).

PE vs Market: SPU is good value based on its PE Ratio (9.2x) compared to the Norwegian market (13.3x).


Price to Earnings Growth Ratio

Low PEG Ratio: SPU is good value based on its PEG Ratio (0.5x)


Price to Book Ratio

PB vs Industry: SPU is overvalued based on its PB Ratio (1.9x) compared to the NO Energy Services industry average (0.6x).


Next Steps

Future Growth

How is Spectrum forecast to perform in the next 1 to 3 years based on estimates from 5 analysts?

18.0%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: SPU's forecast earnings growth (18% per year) is above the savings rate (1.8%).

Earnings vs Market: SPU's earnings (18% per year) are forecast to grow faster than the Norwegian market (15.1% per year).

High Growth Earnings: SPU's earnings are forecast to grow, but not significantly.

Revenue vs Market: SPU's revenue (12.7% per year) is forecast to grow faster than the Norwegian market (4.7% per year).

High Growth Revenue: SPU's revenue (12.7% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Information is not available.


Next Steps

Past Performance

How has Spectrum performed over the past 5 years?

-35.5%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Earnings Trend: SPU's earnings have declined by -35.5% per year over the past 5 years.

Accelerating Growth: SPU has become profitable in the last year, making the earnings growth rate difficult to compare to its 5-year average.

Earnings vs Industry: SPU has become profitable in the last year, making it difficult to compare its past year earnings growth to the Energy Services industry (5%).


Return on Equity

High ROE: SPU's Return on Equity (20.7%) is considered high.


Return on Assets

ROA vs Industry: SPU has a higher Return on Assets than the Energy Services industry average last year.


Return on Capital Employed

ROCE Improving: SPU has significantly improved its Return on Capital Employed over the past 3 years.


Next Steps

Financial Health

How is Spectrum's financial position?


Financial Position Analysis

Short Term Liabilities: SPU's short term assets ($109.1M) do not cover its short term liabilities ($128.9M)

Long Term Liabilities: SPU's short term assets (109.1M) exceeds its long term liabilities (22.9M)


Debt to Equity History and Analysis

Debt Level: SPU's debt to equity ratio (10.4%) is considered satisfactory

Reducing Debt: SPU's debt to equity ratio has increased from 1% to 10.4% over the past 5 years.

Debt Coverage: SPU's debt is well covered by operating cash flow (482.9%).

Interest Coverage: SPU's interest payments on its debt are well covered by EBIT (35.8x coverage).


Balance Sheet

Information is not available.

Information is not available.


Next Steps

Dividend

What is Spectrum's current dividend yield, its reliability and sustainability?

2.73%

Current Dividend Yield


Dividend Yield vs Market

company2.7%marketbottom25%2.6%markettop25%6.2%industryaverage4.5%forecastin3Years3.5%

Current dividend yield vs market & industry


Stability and Growth of Payments

Notable Dividend: SPU's dividend (2.73%) is higher than the bottom 25% of dividend payers in the Norwegian market (2.62%).

High Dividend: SPU's dividend (2.73%) is low compared to the top 25% of dividend payers in the Norwegian market (6.23%).

Stable Dividend: SPU has been paying a dividend for less than 10 years and during this time payments have been volatile.

Growing Dividend: SPU's dividend payments have increased, but the company has only paid a dividend for 7 years.


Current Payout to Shareholders

Dividend Coverage: With its reasonably low payout ratio (25.9%), SPU's dividend payments are well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: SPU's dividends in 3 years are forecast to be well covered by earnings (21.2% payout ratio).


Next Steps

Management

What is the CEO of Spectrum's salary, the management and board of directors tenure and is there insider trading?

7.4yrs

Average management tenure


CEO

Rune Eng (58yo)

8.7yrs

Tenure

US$1,248,000

Compensation

Mr. Rune Eng has been the President of Spectrum ASA since November 3, 2010 and has been its Chief Executive Officer since December 2010. Mr. Eng served as an Executive Vice President of Marine Contract at ...


CEO Compensation Analysis

Information is not available.

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


Management Age and Tenure

7.4yrs

Average Tenure

58yo

Average Age

Experienced Management: SPU's management team is seasoned and experienced (7.4 years average tenure).


Board Age and Tenure

8.6yrs

Average Tenure

47.5yo

Average Age

Experienced Board: SPU's board of directors are considered experienced (8.6 years average tenure).


Insider Trading

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

BuyUS$105,26009 Nov 18
Anuradha Dighe
EntityIndividual
Shares2,000
Max PriceUS$52.63

Ownership Breakdown


Management Team

  • Rune Eng (58yo)

    CEO & President

    • Tenure: 8.7yrs
    • Compensation: US$1.25m
  • Neil Hodgson (58yo)

    Executive Vice President of Geoscience

    • Tenure: 7.2yrs
    • Compensation: US$384.00k
  • Richie Miller (56yo)

    Executive Vice President of Multi-Client for Americas

    • Tenure: 8.7yrs
    • Compensation: US$604.00k
  • Jan Schoolmeesters (53yo)

    Chief Operating Officer

    • Tenure: 8yrs
    • Compensation: US$1.03m
  • Ian Edwards (64yo)

    Executive Vice President of North-West Europe & Asia Pacific

    • Tenure: 2.9yrs
  • Svein Staalen (48yo)

    General Counsel

    • Tenure: 7.4yrs
    • Compensation: US$427.00k
  • Graham Mayhew (58yo)

    Executive Vice President of Multi-Client - Africa

    • Tenure: 0yrs
    • Compensation: US$517.00k
  • Mike Mellen (60yo)

    Executive Vice President of Seismic Imaging

    • Tenure: 0yrs
  • Dean Zuzic (56yo)

    Chief Financial Officer

    • Tenure: 0.7yrs
    • Compensation: US$393.00k

Board Members

  • Maria Tallaksen (39yo)

    Director

    • Tenure: 4.6yrs
  • Pål Stampe (44yo)

    Chairman

    • Tenure: 0yrs
  • Glen Rødland (55yo)

    Director

    • Tenure: 11.6yrs
    • Compensation: US$32.00k
  • Ingrid Leisner (51yo)

    Director

    • Tenure: 8.6yrs

Company Information

Spectrum ASA's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Spectrum ASA
  • Ticker: SPU
  • Exchange: OB
  • Founded: 1986
  • Industry: Oil and Gas Equipment and Services
  • Sector: Energy
  • Market Cap: kr3.129b
  • Shares outstanding: 57.41m
  • Website: https://www.spectrumgeo.com

Number of Employees


Location

  • Spectrum ASA
  • Karenslyst Allè 11
  • Oslo
  • Oslo
  • 278
  • Norway

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
SPUOB (Oslo Bors)YesOrdinary SharesNONOKJul 2008
0JIILSE (London Stock Exchange)YesOrdinary SharesGBNOKJul 2008
SPTY.FOTCPK (Pink Sheets LLC)YesOrdinary SharesUSUSDJul 2008
SPUOBATS-CHIXE (BATS 'Chi-X Europe')YesOrdinary SharesGBNOKJul 2008
7S9DB (Deutsche Boerse AG)YesOrdinary SharesDEEURJul 2008

Biography

Spectrum ASA produces and sells multi-client seismic surveys and seismic data imaging for multi-client survey and proprietary customers in the oil and gas market. The company operates through two segments, ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/08/14 21:27
End of Day Share Price2019/08/14 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.