OB:SUBC

Stock Analysis Report

Executive Summary

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


Snowflake Analysis

Flawless balance sheet with reasonable 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 has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

-2.9%

SUBC

-3.5%

NO Energy Services

0.2%

NO Market


1 Year Return

-3.9%

SUBC

-27.0%

NO Energy Services

-0.7%

NO Market

Return vs Industry: SUBC exceeded the Norwegian Energy Services industry which returned -27% over the past year.

Return vs Market: SUBC underperformed the Norwegian Market which returned -0.7% over the past year.


Shareholder returns

SUBCIndustryMarket
7 Day-2.9%-3.5%0.2%
30 Day-8.2%-12.2%-1.3%
90 Day-3.6%-13.1%1.7%
1 Year-2.6%-3.9%-24.9%-27.0%4.5%-0.7%
3 Year-8.3%-16.5%-18.9%-24.6%33.3%16.6%
5 Year38.9%26.5%-13.2%-46.3%58.2%24.1%

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?

>50%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: SUBC (NOK96.12) is trading below our estimate of fair value (NOK205.93)

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


Price To Earnings Ratio

PE vs Industry: SUBC is poor value based on its PE Ratio (35.8x) compared to the Energy Services industry average (10.6x).

PE vs Market: SUBC is poor value based on its PE Ratio (35.8x) compared to the Norwegian market (15.7x).


Price to Earnings Growth Ratio

PEG Ratio: SUBC is poor value based on its PEG Ratio (1.2x)


Price to Book Ratio

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


Next Steps

Future Growth

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

28.8%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: SUBC's forecast earnings growth (28.8% per year) is above the savings rate (0.7%).

Earnings vs Market: SUBC's earnings (28.8% per year) are forecast to grow faster than the Norwegian market (18.7% per year).

High Growth Earnings: earnings are expected to grow significantly over the next 3 years.

Revenue vs Market: SUBC's revenue (4.6% per year) is forecast to grow faster than the Norwegian market (3.3% per year).

High Growth Revenue: SUBC's revenue (4.6% 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 (5%).


Next Steps

Past Performance

How has Subsea 7 performed over the past 5 years?

29.3%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: SUBC has high quality earnings.

Growing Profit Margin: SUBC's current net profit margins (2.4%) are lower than last year (5%).


Past Earnings Growth Analysis

Earnings Trend: SUBC's earnings have grown significantly by 29.3% per year over the past 5 years.

Accelerating Growth: SUBC's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: SUBC had negative earnings growth (-55.2%) over the past year, making it difficult to compare to the Energy Services industry average (-44.4%).


Return on Equity

High ROE: SUBC's Return on Equity (1.4%) is considered low.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is Subsea 7's financial position?


Financial Position Analysis

Short Term Liabilities: SUBC's short term assets ($1.8B) exceed its short term liabilities ($1.4B).

Long Term Liabilities: SUBC's short term assets ($1.8B) exceed its long term liabilities ($640.8M).


Debt to Equity History and Analysis

Debt Level: SUBC's debt to equity ratio (4.4%) is considered satisfactory.

Reducing Debt: SUBC's debt to equity ratio has reduced from 12.3% to 4.4% over the past 5 years.

Debt Coverage: SUBC's debt is well covered by operating cash flow (158.9%).

Interest Coverage: SUBC's interest payments on its debt are well covered by EBIT (19x coverage).


Balance Sheet

Inventory Level: SUBC has a high level of physical assets or inventory.

Debt Coverage by Assets: SUBC's 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?

1.55%

Current Dividend Yield


Dividend Yield vs Market

company1.6%marketbottom25%2.8%markettop25%6.2%industryaverage5.3%forecastin3Years2.7%

Current dividend yield vs market & industry

Notable Dividend: SUBC's dividend (1.55%) isn’t notable compared to the bottom 25% of dividend payers in the Norwegian market (2.83%).

High Dividend: SUBC's dividend (1.55%) is low compared to the top 25% of dividend payers in the Norwegian market (6.18%).


Stability and Growth of Payments

Stable Dividend: SUBC's dividend payments have been volatile in the past 10 years.

Growing Dividend: SUBC's dividend payments have fallen over the past 10 years.


Current Payout to Shareholders

Dividend Coverage: Insufficient data to calculate payout ratio to determine if its dividend payments are covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: SUBC's dividends in 3 years are forecast to be well covered by earnings (44.6% payout ratio).


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

0.4yrs

Average management tenure


CEO

John Evans (56yo)

0.08yrs

Tenure

0

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 Officer0.08yrsno data0.024% $6.8m
Ricardo Rosa
Chief Financial Officer7.6yrsno data0.011% $3.2m
Isabel Green
Head of Investor Relations0yrsno datano data
Nathalie Louys
General Counsel7.8yrsno data0.0074% $2.1m
Kate Lyne
Executive Vice President - Human Resources0.4yrsno data0.0038% $1.1m
Victor Bomfim
Senior Vice President of Brazil 0yrsno datano data
Dick Martin
Senior Vice President of Alliances0yrsno datano data
Stuart Fitzgerald
Executive Vice President of Alliances and Strategy2.1yrsno data0.0046% $1.3m
Olivier Blaringhem
Executive Vice President of SURF and Conventional0.08yrsno datano data
Steph McNeill
Executive Vice President of Renewables0.08yrsno datano data

0.4yrs

Average Tenure

56yo

Average Age

Experienced Management: SUBC's management team is not considered experienced ( 0.4 years average tenure), which suggests a new team.


Board Members

NamePositionTenureCompensationOwnership
Jean Cahuzac
Non-Executive Director11.8yrsno data0.057% $16.4m
Dod Fraser
Independent Director10.2yrsUS$119.00k0.0013% $384.9k
Kristian Siem
Chairman9.1yrsUS$200.00kno data
Allen Stevens
Senior Independent Director1.8yrsUS$105.00k0.0036% $1.0m
Eystein Eriksrud
Director7.9yrsUS$111.00k0.0010% $298.7k
David Mullen
Independent Director1.8yrsUS$74.55kno data
Niels Kirk
Independent Director1.8yrsUS$78.81kno data
Elisabeth Proust
Non-Executive Independent Director0.8yrsno datano data

4.9yrs

Average Tenure

65yo

Average Age

Experienced Board: SUBC's board of directors are considered experienced (4.9 years average tenure).


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.


Recent Insider Transactions

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: kr28.724b
  • Shares outstanding: 298.84m
  • 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 engineering, procurement, fabrication, survey, installation, and commissioning of production facilities on the seabed and the tie-back of its facilities to fixed or floating platforms or to the shore. The company also offers engineering, procurement, construction, and installation of subsea umbilicals, risers, and flowlines; life of field services, such as inspection, repair, maintenance, integrity management, and remote intervention of subsea infrastructure; conventional services comprising fabrication, installation, extension, and refurbishment of fixed and floating platforms and associated pipelines; hook-up services; and refurbishment of fixed and floating platforms in shallow water. In addition, it operates heavy lifting vessels and oil and gas structures; and installs offshore wind farm foundations and inter-array cables, as well as engages in the decommissioning of redundant offshore structures. Further, the company provides remotely operated vehicles (ROVs) and tooling services to support exploration and production activities. It has a fleet of 35 vessels; 2 vessels under construction; and 166 ROVs. Subsea 7 S.A. was incorporated in 1993 and is based in Luxembourg City, Luxembourg. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/02/22 21:08
End of Day Share Price2020/02/21 00:00
Earnings2019/09/30
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.