OB:SUBC

Stock Analysis Report

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Executive Summary

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

Rewards

Trading at 29.9% below our estimate of its fair value

Earnings are forecast to grow 82.86% per year

Risk Analysis

No risks detected for SUBC from our risk checks.


Snowflake Analysis

Excellent balance sheet with moderate growth potential.


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

Stable Share Price: SUBC is not significantly more volatile than the rest of Norwegian stocks over the past 3 months, typically moving +/- 6% a week.

Volatility Over Time: SUBC's weekly volatility (6%) has been stable over the past year.


Market Performance


7 Day Return

7.8%

SUBC

8.7%

NO Energy Services

3.4%

NO Market


1 Year Return

-9.8%

SUBC

-38.9%

NO Energy Services

-1.8%

NO Market

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

Return vs Market: SUBC underperformed the Norwegian Market which returned -1.8% over the past year.


Shareholder returns

SUBCIndustryMarket
7 Day7.8%8.7%3.4%
30 Day40.9%36.5%12.5%
90 Day24.4%20.4%7.4%
1 Year-9.8%-9.8%-36.0%-38.9%1.8%-1.8%
3 Year-25.3%-29.4%-59.2%-62.0%8.8%-3.4%
5 Year43.8%30.9%-27.3%-48.7%54.8%24.2%

Long-Term 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 compared to its fair value and its price relative to the market?

29.9%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: SUBC (NOK87.06) is trading below our estimate of fair value (NOK124.2)

Significantly Below Fair Value: SUBC is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: SUBC is unprofitable, so we can't compare its PE Ratio to the NO Energy Services industry average.

PE vs Market: SUBC 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 SUBC's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: SUBC is overvalued based on its PB Ratio (0.7x) compared to the NO Energy Services industry average (0.5x).


Next Steps

Future Growth

How is Subsea 7 forecast to perform in the next 1 to 3 years based on estimates from 19 analysts?

82.9%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: SUBC is forecast to become profitable over the next 3 years, which is considered faster growth than the savings rate (1.6%).

Earnings vs Market: SUBC is forecast to become profitable over the next 3 years, which is considered above average market growth.

High Growth Earnings: SUBC's is expected to become profitable in the next 3 years.

Revenue vs Market: SUBC's revenue (5.3% per year) is forecast to grow slower than the Norwegian market (6.1% per year).

High Growth Revenue: SUBC's revenue (5.3% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: SUBC's Return on Equity is forecast to be low in 3 years time (3.9%).


Next Steps

Past Performance

How has Subsea 7 performed over the past 5 years?

-33.3%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: SUBC is currently unprofitable.

Growing Profit Margin: SUBC is currently unprofitable.


Past Earnings Growth Analysis

Earnings Trend: SUBC is unprofitable, and losses have increased over the past 5 years at a rate of 33.3% per year.

Accelerating Growth: Unable to compare SUBC's earnings growth over the past year to its 5-year average as it is currently unprofitable

Earnings vs Industry: SUBC is unprofitable, making it difficult to compare its past year earnings growth to the Energy Services industry (-28.6%).


Return on Equity

High ROE: SUBC has a negative Return on Equity (-26.18%), as it is currently unprofitable.


Next Steps

Financial Health

How is Subsea 7's financial position?


Financial Position Analysis

Short Term Liabilities: SUBC's short term assets ($1.7B) exceed its short term liabilities ($1.5B).

Long Term Liabilities: SUBC's short term assets ($1.7B) exceed its long term liabilities ($508.6M).


Debt to Equity History and Analysis

Debt Level: SUBC's debt to equity ratio (5%) is considered satisfactory.

Reducing Debt: SUBC's debt to equity ratio has reduced from 9.6% to 5% over the past 5 years.

Debt Coverage: SUBC's debt is well covered by operating cash flow (271.7%).

Interest Coverage: Insufficient data to determine if SUBC's interest payments on its debt are well covered by EBIT.


Balance Sheet


Next Steps

Dividend

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

0.40%

Forecast Dividend Yield


Dividend Yield vs Market

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

High Dividend: Unable to evaluate SUBC'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 SUBC's dividends per share have been stable in the past.

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


Current Payout to Shareholders

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


Future Payout to Shareholders

Future Dividend Coverage: No need to calculate the sustainability of SUBC'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?

1.0yrs

Average management tenure


CEO

John Evans (57 yo)

0.83

Tenure

Mr. John Evans has been Chief Executive Officer of Subsea 7 SA since January 1, 2020 and served as its Chief Operating Officer since July 2005 until Jnauary 01, 2020. Mr. Evans has over 25 years experience...


Leadership Team

NamePositionTenureCompensationOwnership
John Evans
Chief Executive Officer0.83yrno data0.028%
$ 7.0m
Ricardo Rosa
Chief Financial Officer8.33yrsno data0.014%
$ 3.6m
Phillip Simons
Executive Vice President of Projects & Operations0.83yrno data0.0015%
$ 379.9k
Katherine Tonks
Head of Investor Relationsno datano datano data
Nathalie Louys
General Counsel8.58yrsno data0.0093%
$ 2.4m
Katherine Lyne
Executive Vice President of Human Resources1.17yrsno data0.0049%
$ 1.2m
Victor Bomfim
Senior Vice President of Brazil no datano datano data
Dick Martin
Senior Vice President of Alliancesno datano datano data
Stuart Fitzgerald
Executive Vice President of Alliances & Strategy2.83yrsno data0.0063%
$ 1.6m
Olivier Blaringhem
Executive Vice President of SURF & Conventional0.83yrno data0.0047%
$ 1.2m
Stephen McNeill
Executive Vice President of Renewables0.83yrno data0.0016%
$ 410.5k
Philippe Gleize
Managing Director of Seaway 7 Integrated projects and Floating wind Business Unitno datano datano data

1.0yrs

Average Tenure

52.5yo

Average Age

Experienced Management: SUBC's management team is not considered experienced ( 1 years average tenure), which suggests a new team.


Board Members

NamePositionTenureCompensationOwnership
Jean Cahuzac
Non-Executive Director12.5yrsno data0.060%
$ 15.3m
Dod Fraser
Independent Non-Executive Director10.92yrsUS$119.00k0.0013%
$ 341.7k
Kristian Siem
Chairman9.83yrsUS$200.00kno data
Allen Stevens
Senior Non-Executive Independent Director2.5yrsUS$105.00k0.0036%
$ 912.9k
Elisabeth Proust
Non-Executive Independent Director1.58yrsUS$105.00k0.00028%
$ 71.4k
David Mullen
Independent Non-Executive Director2.58yrsUS$105.00kno data
Niels Kirk
Independent Non-Executive Director2.58yrsUS$111.00kno data

2.6yrs

Average Tenure

66yo

Average Age

Experienced Board: SUBC's board of directors are not considered experienced ( 2.6 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.


Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Top Shareholders

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: kr25.499b
  • Shares outstanding: 297.67m
  • Website: https://www.subsea7.com

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 Analysis2020/11/27 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.