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
| SUBC | Industry | Market | |
|---|---|---|---|
| 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
11 months ago | Simply Wall St
What Are Analysts Saying About Subsea 7 SA's (OB:SUBC) Future?1 year ago | Simply Wall St
With An ROE Of 4.83%, Has Subsea 7 SA's (OB:SUBC) Management Done Well?1 year ago | Simply Wall St
Has Subsea 7 SA (OB:SUBC) Got Enough Cash?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
| Entity | Company |
| Shares | 1,981,046 |
| Max Price | kr105.70 |
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
| Ticker | Exchange | Primary Security | Security Type | Country | Currency | Listed on |
|---|---|---|---|---|---|---|
| SUBC | OB (Oslo Bors) | Yes | Common Shares | NO | NOK | May 1993 |
| ACGY.F | OTCPK (Pink Sheets LLC) | Yes | Common Shares | US | USD | May 1993 |
| 0OGK | LSE (London Stock Exchange) | Yes | Common Shares | GB | NOK | May 1993 |
| SOC | DB (Deutsche Boerse AG) | Yes | Common Shares | DE | EUR | May 1993 |
| SUBCO | BATS-CHIXE (BATS 'Chi-X Europe') | Yes | Common Shares | GB | NOK | May 1993 |
| SUBC.Y | OTCPK (Pink Sheets LLC) | SPONSORED ADR | US | USD | Jun 1998 | |
| SOCA | DB (Deutsche Boerse AG) | SPONSORED ADR | DE | EUR | Jun 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
| Data | Last Updated (UTC time) |
|---|---|
| Company Analysis | 2019/08/17 20:43 |
| End of Day Share Price | 2019/08/16 00:00 |
| Earnings | 2019/06/30 |
| 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.