OB:SUBC

Stock Analysis Report

Executive Summary

Subsea 7 S.A. delivers offshore projects and services for the evolving energy industry worldwide.

Snowflake

Fundamentals

Flawless balance sheet and good value.

Risks

  • Subsea 7 has significant price volatility in the past 3 months.

Similar Companies

Share Price & News

How has Subsea 7's share price performed over time and what events caused price changes?


Latest Share Price and Events


Market Performance


7 Day Return

-3.8%

OB:SUBC

-5.6%

NO Energy Services

-1.6%

NO Market


1 Year Return

-23.7%

OB:SUBC

-42.0%

NO Energy Services

-14.3%

NO Market

SUBC outperformed the Energy Services industry which returned -42% over the past year.

SUBC underperformed the Market in Norway which returned -14.3% over the past year.


Share holder returns

SUBCIndustryMarket
7 Day-3.8%-5.6%-1.6%
30 Day-10.1%-17.0%-5.5%
90 Day-24.8%-27.3%-8.1%
1 Year-22.7%-23.7%-40.9%-42.0%-9.6%-14.3%
3 Year-1.0%-9.9%-8.8%-15.1%36.7%19.1%
5 Year-11.5%-19.4%-53.5%-66.9%37.0%6.3%

Price Volatility Vs. Market

How volatile is Subsea 7's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is Subsea 7 undervalued based on future cash flows and its price relative to the stock market?

48%

Discount to future cash flow value


Intrinsic Value Based on Future Cash Flows

Subsea 7's share price is below the future cash flow value, and at a moderate discount (> 20%).

Subsea 7's share price is below the future cash flow value, and at a substantial discount (> 40%).


Price Based on Earnings

Subsea 7 is overvalued based on earnings compared to the NO Energy Services industry average.

Subsea 7 is overvalued based on earnings compared to the Norway market.


Price Based on Expected Growth

Subsea 7 is good value based on expected growth next year.


Price Based on Value of Assets

Subsea 7 is good value based on assets compared to the NO Energy Services industry average.


Next Steps

Future Growth

How is Subsea 7 expected to perform in the next 1 to 3 years based on estimates from 22 analysts?

35.7%

Forecasted annual earnings growth


Earnings and Revenue Growth Estimates


Future Annual Growth Analysis

Subsea 7's revenue is expected to grow by 5.8% yearly, however this is not considered high growth (20% yearly).

Subsea 7's earnings are expected to grow significantly at over 20% yearly.

Subsea 7's revenue growth is expected to exceed the Norway market average.

Subsea 7's earnings growth is expected to exceed the Norway market average.

Subsea 7's earnings growth is expected to exceed the low risk savings rate of 1.8%.


Earnings per Share Growth Estimates


Future Return on Equity

Subsea 7 is not expected to efficiently use shareholders’ funds in the future (Return on Equity less than 20%).


Next Steps

Past Performance

How has Subsea 7 performed over the past 5 years?

18.3%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Subsea 7's year on year earnings growth rate has been positive over the past 5 years, however the most recent earnings are below average.

Subsea 7's 1-year earnings growth is negative, it can't be compared to the 5-year average.

Subsea 7's 1-year earnings growth is negative, it can't be compared to the NO Energy Services industry average.


Return on Equity

Subsea 7 has not efficiently used shareholders’ funds last year (Return on Equity less than 20%).


Return on Assets

Subsea 7 used its assets less efficiently than the NO Energy Services industry average last year based on Return on Assets.


Return on Capital Employed

Subsea 7's use of capital deteriorated last year versus 3 years ago (Return on Capital Employed).


Next Steps

Financial Health

How is Subsea 7's financial position?


Financial Position Analysis

Subsea 7 is able to meet its short term (1 year) commitments with its holdings of cash and other short term assets.

Subsea 7's cash and other short term assets cover its long term commitments.


Debt to Equity History and Analysis

Subsea 7's level of debt (4.5%) compared to net worth is satisfactory (less than 40%).

The level of debt compared to net worth has been reduced over the past 5 years (13.4% vs 4.5% today).

Debt is well covered by operating cash flow (205.7%, greater than 20% of total debt).

Interest payments on debt are well covered by earnings (EBIT is 59.5x coverage).


Balance Sheet

High level of physical assets or inventory.

Debt is covered by short term assets, assets are 7.3x debt.


Next Steps

Dividend

What is Subsea 7's current dividend yield, its reliability and sustainability?

3.28%

Expected Dividend Yield


Dividend Yield and Payments Analysis

Subsea 7's pays a lower dividend yield than the bottom 25% of dividend payers in Norway (2.74%).

Subsea 7's dividend is below the markets top 25% of dividend payers in Norway (6.45%).

Subsea 7 is not paying a notable dividend for Norway, therefore no need to check if the payments are stable.

Subsea 7 is not paying a notable dividend for Norway, therefore no need to check if the payments are increasing.


Current Payout to Shareholders

No need to calculate the sustainability of Subsea 7's dividends as it is not paying a notable one for Norway.


Future Payout to Shareholders

Dividends after 3 years are expected to be well covered by earnings (2x coverage).


Next Steps

Management

What is the CEO of Subsea 7's salary, the management and board of directors tenure and is there insider trading?

9.3yrs

Average management tenure


CEO

Jean Cahuzac (65yo)

11.3yrs

Tenure

Mr. Jean P. Cahuzac has been the Chief Executive Officer of Subsea 7 SA since April 14, 2008 and its Executive Director since May 23, 2008. Mr. Cahuzac served as a Controller of Steel Plus Network, Inc. He ...


Management Age and Tenure

9.3yrs

Average Tenure

58.5yo

Average Age

The average tenure for the Subsea 7 management team is over 5 years, this suggests they are a seasoned and experienced team.


Board Age and Tenure

4.4yrs

Average Tenure

65yo

Average Age

The tenure for the Subsea 7 board of directors is about average.


Insider Trading

No 3 month open market individual insider trading information.


Recent Insider Transactions

Buykr209,398,73710 May 19
Siem Industries Inc.
EntityCompany
Shares1,981,046
Max Pricekr105.70

Ownership Breakdown


Management Team

  • Stuart Fitzgerald (50yo)

    Executive Vice President of Strategy & Commercial

    • Tenure: 1.6yrs
  • Dick Martin

    Senior Vice President of Alliances

  • Isabel Green

    Investor Relations Director

  • Nathalie Louys (56yo)

    General Counsel

    • Tenure: 7.3yrs
  • Keith Tipson (61yo)

    Executive Vice President of Human Resources

    • Tenure: 15.8yrs
  • Jean Cahuzac (65yo)

    CEO & Executive Director

    • Tenure: 11.3yrs
  • Victor Bomfim

    Senior Vice President of Brazil

  • Maitre Hoss

    Secretary

  • Ricardo Rosa (63yo)

    Chief Financial Officer

    • Tenure: 7.1yrs
  • John Evans (56yo)

    Chief Operating Officer

    • Tenure: 14.1yrs

Board Members

  • Jean Cahuzac (65yo)

    CEO & Executive Director

    • Tenure: 11.3yrs
  • Dod Fraser (69yo)

    Independent Director

    • Tenure: 9.7yrs
    • Compensation: $119.00k
  • Kristian Siem (70yo)

    Chairman

    • Tenure: 8.6yrs
    • Compensation: $200.00k
  • Allen Stevens (76yo)

    Senior Independent Director

    • Tenure: 1.3yrs
    • Compensation: $105.00k
  • Eystein Eriksrud (49yo)

    Director

    • Tenure: 7.4yrs
    • Compensation: $111.00k
  • David Mullen (61yo)

    Independent Director

    • Tenure: 1.3yrs
    • Compensation: $74.55k
  • Niels Kirk (57yo)

    Independent Director

    • Tenure: 1.3yrs
    • Compensation: $78.81k
  • Elisabeth Proust

    Non-Executive Independent Director

    • Tenure: 0.3yrs

Company Information

Subsea 7 S.A.'s company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Subsea 7 S.A.
  • Ticker: SUBC
  • Exchange: OB
  • Founded: 1993
  • Industry: oil and gas equipment and services
  • Sector: energy
  • Market Cap: kr24.991b
  • Shares outstanding: 298.08m
  • Website: Click here

Number of Employees


Location

  • Subsea 7 S.A.
  • 412F, Route d'Esch
  • Luxembourg City
  • 2086
  • Luxembourg

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
SUBCOB (Oslo Bors)YesCommon SharesNONOKMay 1993
ACGY.FOTCPK (Pink Sheets LLC)YesCommon SharesUSUSDMay 1993
0OGKLSE (London Stock Exchange)YesCommon SharesGBNOKMay 1993
SOCDB (Deutsche Boerse AG)YesCommon SharesDEEURMay 1993
SUBCOBATS-CHIXE (BATS 'Chi-X Europe')YesCommon SharesGBNOKMay 1993
SUBC.YOTCPK (Pink Sheets LLC)SPONSORED ADRUSUSDJun 1998
SOCADB (Deutsche Boerse AG)SPONSORED ADRDEEURJun 1998

Biography

Subsea 7 S.A. delivers offshore projects and services for the evolving energy industry worldwide. It provides subsea field development products and services, including project management, design and engine ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/08/17 20:43
End of Day Share Price2019/08/16 00:00
Earnings2019/06/30
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.