NYSE:OII

Stock Analysis Report

Oceaneering International

Executive Summary

Oceaneering International, Inc. provides engineered services and products to the offshore oil and gas industry, as well as to defense, aerospace, and commercial theme park industries worldwide.


Snowflake Analysis

Imperfect balance sheet with weak fundamentals.


Similar Companies

Share Price & News

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


Latest Share Price and Events

Stable Share Price: OII's share price has been volatile over the past 3 months.


Market Performance


7 Day Return

-17.0%

OII

-8.1%

US Energy Services

-4.2%

US Market


1 Year Return

-29.2%

OII

-36.2%

US Energy Services

14.0%

US Market

Return vs Industry: OII exceeded the US Energy Services industry which returned -36.2% over the past year.

Return vs Market: OII underperformed the US Market which returned 14% over the past year.


Shareholder returns

OIIIndustryMarket
7 Day-17.0%-8.1%-4.2%
30 Day-12.3%-13.1%-1.8%
90 Day-19.3%-13.2%2.6%
1 Year-29.2%-29.2%-34.2%-36.2%16.3%14.0%
3 Year-61.7%-62.1%-58.2%-63.7%43.2%34.0%
5 Year-77.9%-79.4%-60.5%-67.2%65.9%47.6%

Price Volatility Vs. Market

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


Simply Wall St News

Valuation

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

1.02x

Price to Book (PB) ratio


Share Price vs. Fair Value

Below Fair Value: OII ($11.92) is trading above our estimate of fair value ($8.57)

Significantly Below Fair Value: OII is trading above our estimate of fair value.


Price To Earnings Ratio

PE vs Industry: OII is unprofitable, so we can't compare its PE Ratio to the Energy Services industry average.

PE vs Market: OII is unprofitable, so we can't compare its PE Ratio to the US market.


Price to Earnings Growth Ratio

PEG Ratio: Insufficient data to calculate OII's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: OII is overvalued based on its PB Ratio (0.9x) compared to the US Energy Services industry average (0.6x).


Next Steps

Future Growth

How is Oceaneering International forecast to perform in the next 1 to 3 years based on estimates from 14 analysts?

87.0%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: OII is forecast to remain unprofitable over the next 3 years.

Earnings vs Market: OII is forecast to remain unprofitable over the next 3 years.

High Growth Earnings: OII is forecast to remain unprofitable over the next 3 years.

Revenue vs Market: OII's revenue (4.5% per year) is forecast to grow slower than the US market (7.6% per year).

High Growth Revenue: OII's revenue (4.5% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: OII is forecast to be unprofitable in 3 years.


Next Steps

Past Performance

How has Oceaneering International performed over the past 5 years?

-70.4%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: OII is currently unprofitable.

Growing Profit Margin: OII is currently unprofitable.


Past Earnings Growth Analysis

Earnings Trend: OII is unprofitable, and losses have increased over the past 5 years at a rate of -66% per year.

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

Earnings vs Industry: OII is unprofitable, making it difficult to compare its past year earnings growth to the Energy Services industry (-32.9%).


Return on Equity

High ROE: OII has a negative Return on Equity (-11.49%), as it is currently unprofitable.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is Oceaneering International's financial position?


Financial Position Analysis

Short Term Liabilities: OII's short term assets ($1.2B) exceed its short term liabilities ($510.4M).

Long Term Liabilities: OII's short term assets ($1.2B) exceed its long term liabilities ($1.1B).


Debt to Equity History and Analysis

Debt Level: OII's debt to equity ratio (61.4%) is considered high.

Reducing Debt: OII's debt to equity ratio has increased from 12.7% to 61.4% over the past 5 years.


Balance Sheet

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

Debt Coverage by Assets: OII's debt is covered by short term assets (assets are 1.5x debt).


Cash Runway Analysis

For companies that have on average been loss making in the past we assess whether they have at least 1 year of cash runway.

Stable Cash Runway: OII has been profitable on average in the past, therefore cash runway is not a concern.

Forecast Cash Runway: OII has been profitable on average in the past, therefore cash runway is not a concern.


Next Steps

Dividend

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


Dividend Yield vs Market

company0%marketbottom25%1.5%markettop25%3.8%industryaverage4.6%forecastin3Years0%

Current dividend yield vs market & industry

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

High Dividend: Unable to evaluate OII's dividend yield against the top 25% of dividend payers, as the company has not reported any payouts.


Stability and Growth of Payments

Stable Dividend: Insufficient data to determine if OII's dividends per share have been stable in the past.

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


Current Payout to Shareholders

Dividend Coverage: OII is not paying a notable dividend for the US market.


Future Payout to Shareholders

Future Dividend Coverage: No need to calculate the sustainability of OII's dividend in 3 years as they are not forecast to pay a notable one for the US market.


Next Steps

Management

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

2.8yrs

Average management tenure


CEO

Rod Larson (52yo)

2.8yrs

Tenure

US$2,625,089

Compensation

Mr. Roderick A. Larson, also known as Rod, has been the President and Chief Executive Officer of Oceaneering International, Inc. since February 19, 2015 and May 5, 2017 respectively. Mr. Larson has been Pr ...


CEO Compensation Analysis

Compensation vs Market: Rod's total compensation ($USD2.63M) is about average for companies of similar size in the US market ($USD2.52M).

Compensation vs Earnings: Rod's compensation has increased whilst the company is unprofitable.


Leadership Team

NamePositionTenureCompensationOwnership
Roderick Larson
President2.8yrsUS$2.63m0.048% $570.5k
Alan Curtis
Senior VP & CFO4.5yrsUS$915.84k0.027% $323.1k
David Lawrence
Senior VP8.1yrsUS$801.12k0.022% $263.7k
Stephen Barrett
Senior Vice President of Asset Integrity & Business Development4.6yrsUS$749.20k0.021% $247.1k
Charles Davison
Chief Operating Officer0.7yrsno data0.11% $1.3m
Witland LeBlanc
VP & Chief Accounting Officer0.9yrsno data0.015% $180.0k
Mark Peterson
Vice President of Corporate Development & Investor Relations1.3yrsno datano data
Holly Kriendler
VP & Chief Human Resources Officer1.8yrsno datano data
Marvin Migura
Senior Vice President4.2yrsUS$3.70mno data
John Kreider
Senior Vice President of Growth Strategies0yrsno datano data

2.8yrs

Average Tenure

59yo

Average Age

Experienced Management: OII's management team is considered experienced (2.8 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Roderick Larson
President2.8yrsUS$2.63m0.048% $570.5k
T. Collins
Independent Director18.1yrsUS$225.26k0.032% $372.9k
M. McEvoy
Independent Director8.8yrsUS$225.48k0.25% $2.9m
Paul Murphy
Independent Director7.5yrsUS$246.54k0.033% $388.4k
Steven Webster
Independent Director4.9yrsUS$234.40k0.033% $388.4k
John Huff
Non Executive Chairman29.5yrsUS$340.86k0.13% $1.5m
William Berry
Independent Director3.7yrsUS$239.54k0.029% $340.7k
Jon Erik Reinhardsen
Independent Director3.3yrsUS$215.86k0.029% $340.7k
Deanna Goodwin
Independent Director2yrsUS$228.21k0.019% $221.6k

4.9yrs

Average Tenure

66yo

Average Age

Experienced Board: OII'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

Oceaneering International, Inc.'s company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Oceaneering International, Inc.
  • Ticker: OII
  • Exchange: NYSE
  • Founded: 1964
  • Industry: Oil and Gas Equipment and Services
  • Sector: Energy
  • Market Cap: US$1.179b
  • Shares outstanding: 98.93m
  • Website: https://www.oceaneering.com

Number of Employees


Location

  • Oceaneering International, Inc.
  • 11911 FM 529
  • Houston
  • Texas
  • 77041
  • United States

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
OIINYSE (New York Stock Exchange)YesCommon StockUSUSDNov 1975
OIIDB (Deutsche Boerse AG)YesCommon StockDEEURNov 1975
0KANLSE (London Stock Exchange)YesCommon StockGBUSDNov 1975

Biography

Oceaneering International, Inc. provides engineered services and products to the offshore oil and gas industry, as well as to defense, aerospace, and commercial theme park industries worldwide. The company’s Remotely Operated Vehicles (ROVs) segment offers submersible vehicles for drill support, vessel-based inspection, maintenance and repair, installation and construction support, pipeline inspection and surveys, and subsea production facility operation and maintenance services. As of December 31, 2018, this segment owned 275 work-class ROVs. The company’s Subsea Products segment constructs various specialty subsea hardware products, including subsea umbilicals utilizing steel tubes, thermoplastic hoses, and termination assemblies; tooling, ROV tooling, and subsea work packages; production control equipment; installation and workover control systems; clamp connectors; pipeline connector and repair systems; subsea and topside control valves; and subsea chemical injection valves, as well as offers riserless light well intervention services. Its Subsea Projects segment performs subsea oilfield hardware installation and inspection, maintenance, and repair services; serves shallow water projects; and performs subsea intervention and hardware installation services, such as subsea well tie-backs, pipeline/flow line tie-ins and repairs, pipeline crossing, and umbilical and other subsea equipment installations, and subsea intervention services. The company’s Asset Integrity segment offers asset integrity services for the safety of customers’ facilities onshore and offshore; third-party inspections to customers in the oil and gas, petrochemical, and power generation industries; and first-pass integrity evaluation and assessment, and nondestructive testing services. Its Advanced Technologies segment provides project management, engineering services, and equipment for applications in non-energy industries. The company was founded in 1964 and is headquartered in Houston, Texas. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/02/26 00:10
End of Day Share Price2020/02/25 00:00
Earnings2019/12/31
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.