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Reach Subsea

OB:REACH
Snowflake Description

Excellent balance sheet and slightly overvalued.

The Snowflake is generated from 30 checks in 5 different areas, read more below.
REACH
OB
NOK272M
Market Cap
  1. Home
  2. NO
  3. Energy
Company description

Reach Subsea ASA provides subsea services in Norway. The last earnings update was 23 days ago. More info.


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REACH Share Price and Events
7 Day Returns
-2.8%
OB:REACH
-0.3%
NO Energy Services
1.6%
NO Market
1 Year Returns
-27.4%
OB:REACH
-32.6%
NO Energy Services
-8.3%
NO Market
REACH Shareholder Return
  7 Day 30 Day 90 Day 1 Year 3 Year 5 Year
Reach Subsea (REACH) -2.8% -8% -13.1% -27.4% 18.4% -41.7%
NO Energy Services -0.3% 14.9% -3.1% -32.6% 12.6% -56.2%
NO Market 1.6% 7.6% 2.7% -8.3% 31.1% 16.1%
1 Year Return vs Industry and Market
  • REACH outperformed the Energy Services industry which returned -32.6% over the past year.
  • REACH underperformed the Market in Norway which returned -8.3% over the past year.
Price Volatility
REACH
Industry
5yr Volatility vs Market

REACH Value

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

Value is all about what a company is worth versus what price it is available for. If you went into a grocery store and all the bananas were on sale at half price, they could be considered undervalued.
INTRINSIC VALUE BASED ON FUTURE CASH FLOWS
Here we compare the current share price of Reach Subsea to its discounted cash flow analysis.value.

The discounted cash flow value is simply looking at what the company is worth today, based on estimates of how much money it is expected to make in the future.
Raw Data

Below are the data sources, inputs and calculation used to determine the intrinsic value for Reach Subsea.

OB:REACH Discounted Cash Flow Data Sources
Data Point Source Value
Valuation Model 2 Stage Free Cash Flow to Equity
Levered Free Cash Flow Extrapolated from most recent financials. See below
Discount Rate (Cost of Equity) See below 11.1%
Perpetual Growth Rate 10-Year NO Government Bond Rate 1.8%

An important part of a discounted cash flow is the discount rate, below we explain how it has been calculated.

Calculation of Discount Rate/ Cost of Equity for OB:REACH
Data Point Calculation/ Source Result
Risk-Free Rate 10-Year NO Govt Bond Rate 1.8%
Equity Risk Premium S&P Global 6%
Energy Services Unlevered Beta Simply Wall St/ S&P Global 1.08
Re-levered Beta = Unlevered beta (1 + (1- tax rate) (Debt/Equity))
= 1.083 (1 + (1- 23%) (92.3%))
1.571
Levered Beta Levered Beta limited to 0.8 to 2.0
(practical range for a stable firm)
1.57
Discount Rate/ Cost of Equity = Cost of Equity = Risk Free Rate + (Levered Beta * Equity Risk Premium)
= 1.76% + (1.571 * 5.96%)
11.12%

Discounted Cash Flow Calculation for OB:REACH using 2 Stage Free Cash Flow to Equity Model

The calculations below outline how an intrinsic value for Reach Subsea is arrived at by discounting future cash flows to their present value using the 2 stage method. We try to start with analysts estimates of free cash flow, however if these are not available we use the most recent financial results. In the 1st stage we continue to grow the free cash flow over a 10 year period, with the growth rate trending towards the perpetual growth rate used in the 2nd stage. The 2nd stage assumes the company grows at a stable rate into perpetuity.

Note: Free cash flow to equity valuations ignore the company's cash or debt.

OB:REACH DCF 1st Stage: Next 10 year cash flow forecast
Levered FCF (NOK, Millions) Source Present Value
Discounted (@ 11.12%)
2020 420.40 Est @ 67.67% 378.31
2021 621.76 Est @ 47.9% 503.51
2022 833.52 Est @ 34.06% 607.42
2023 1,036.64 Est @ 24.37% 679.81
2024 1,218.94 Est @ 17.59% 719.33
2025 1,375.43 Est @ 12.84% 730.42
2026 1,506.30 Est @ 9.51% 719.84
2027 1,614.58 Est @ 7.19% 694.34
2028 1,704.34 Est @ 5.56% 659.57
2029 1,779.67 Est @ 4.42% 619.78
Present value of next 10 years cash flows NOK6,312.00
OB:REACH DCF 2nd Stage: Terminal Value
Calculation Result
Terminal Value = FCF2029 × (1 + g) ÷ (Discount Rate – g)
= NOK1,779.67 × (1 + 1.76%) ÷ (11.12% – 1.76%)
NOK19,338.56
Present Value of Terminal Value = Terminal Value ÷ (1 + r)10
= NOK19,338.56 ÷ (1 + 11.12%)10
NOK6,734.70
OB:REACH Total Equity Value
Calculation Result
Total Equity Value = Present value of next 10 years cash flows + Terminal Value
= NOK6,312.00 + NOK6,734.70
NOK13,046.70
Equity Value per Share
(NOK)
= Total value / Shares Outstanding
= NOK13,046.70 / 143.55
NOK90.89
OB:REACH Discount to Share Price
Calculation Result
Value per share (NOK) From above. NOK90.89
Current discount Discount to share price of NOK1.90
= -1 x (NOK1.90 - NOK90.89) / NOK90.89
97.9%

Learn more about our DCF calculations in Simply Wall St’s analysis model .

Current Discount
Amount off the current price Reach Subsea is available for.
Intrinsic value
>50%
Share price is NOK1.9 vs Future cash flow value of NOK90.89
Current Discount Checks
For Reach Subsea to be considered undervalued it must be available for at least 20% below the current price. Less than 40% is even better.
  • Reach Subsea's share price is below the future cash flow value, and at a moderate discount (> 20%).
  • Reach Subsea's share price is below the future cash flow value, and at a substantial discount (> 40%).
PRICE RELATIVE TO MARKET
We can also value a company based on what the stock market is willing to pay for it. This is similar to the price of fruit (e.g. Mangoes or Avocados) increasing when they are out of season, or how much your home is worth.

The amount the stock market is willing to pay for Reach Subsea's earnings, growth and assets is considered below, and whether this is a fair price.
Price based on past earnings
Are Reach Subsea's earnings available for a low price, and how does this compare to other companies in the same industry?
Raw Data
OB:REACH PE (Price to Earnings) Ratio Data Sources
Data Point Source Value
Earnings Per Share * Company Filings (2019-06-30) in NOK NOK-0.09
OB:REACH Share Price ** OB (2019-09-19) in NOK NOK1.9
Norway Energy Services Industry PE Ratio Median Figure of 14 Publicly-Listed Energy Services Companies 18.05x
Norway Market PE Ratio Median Figure of 149 Publicly-Listed Companies 13.35x

* Trailing twelve months (TTM) annual GAAP earnings per share excluding extraordinary items.

** Primary Listing of Reach Subsea.

OB:REACH PE (Price to Earnings) Ratio Calculation
Calculation Outcome
PE Ratio

= OB:REACH Share Price ÷ EPS (both in NOK)

= 1.9 ÷ -0.09

-21.35x

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Reach Subsea is loss making, we can't compare its value to the NO Energy Services industry average.
  • Reach Subsea is loss making, we can't compare the value of its earnings to the Norway market.
Price based on expected Growth
Does Reach Subsea's expected growth come at a high price?
Raw Data
OB:REACH PEG (Price to Earnings to Growth) Ratio Data Sources
Data Point Source Value
PE Ratio See PE Ratio Section -21.35x
Net Income Annual Growth Rate See Future Growth Section.
Line of Best Fit* through Consensus Estimate Earnings of 0 Analysts
Not available
Norway Energy Services Industry PEG Ratio Median Figure of 10 Publicly-Listed Energy Services Companies 0.68x
Norway Market PEG Ratio Median Figure of 110 Publicly-Listed Companies 0.77x

*Line of best fit is calculated by linear regression .

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Unable to calculate PEG ratio for Reach Subsea, we can't assess if its growth is good value.
Price based on value of assets
What value do investors place on Reach Subsea's assets?
Raw Data
OB:REACH PB (Price to Book) Ratio Data Sources
Data Point Source Value
Book Value per Share Company Filings (2019-06-30) in NOK NOK1.30
OB:REACH Share Price * OB (2019-09-19) in NOK NOK1.9
Norway Energy Services Industry PB Ratio Median Figure of 35 Publicly-Listed Energy Services Companies 0.64x
Norway Market PB Ratio Median Figure of 239 Publicly-Listed Companies 1.12x
OB:REACH PB (Price to Book) Ratio Calculation
Calculation Outcome
PB Ratio

= OB:REACH Share Price ÷ Book Value per Share (both in NOK)

= 1.9 ÷ 1.30

1.46x

* Primary Listing of Reach Subsea.

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Reach Subsea is overvalued based on assets compared to the NO Energy Services industry average.
X
Value checks
We assess Reach Subsea's value by looking at:
  1. Is the discounted cash flow value less than 20%, or 40% of the share price? (2 checks) ( Click here or on bar chart for details of DCF calculation. )
  2. Is the PE ratio less than the market average, and/ or less than the Energy Services industry average (and greater than 0)? (2 checks)
  3. Is the PEG ratio within a reasonable range (0 to 1)? (1 check)
  4. Is the PB ratio less than the Energy Services industry average (and greater than 0)? (1 check)
  5. Reach Subsea has a total score of 2/6, see the detailed checks below.

    Note: We use GAAP Earnings per Share in all our calculations including PE and PEG Ratio.

    Full details on the Value part of the Simply Wall St company analysis model.

REACH Future Performance

 How is Reach Subsea expected to perform in the next 1 to 3 years based on estimates from 0 analysts?

In this section we usually present revenue and earnings growth projections based on the consensus estimates of professional analysts to help investors understand the company’s ability to generate profit. But as Reach Subsea has not provided enough past data and has no analyst forecast, its future earnings cannot be reliably calculated by extrapolating past data or using analyst predictions.

This is quite a rare situation as 97% of companies covered by Simply Wall St do have past financial data. You can see them here.

Show me the analysis anyway

The future performance of a company is measured in the same way as past performance, by looking at estimated growth and how much profit it is expected to make.

Future estimates come from professional analysts. Just like forecasting the weather, they don’t always get it right!
Annual Growth Rate
39.4%
Expected Energy Services industry annual growth in earnings.
Earnings growth vs Low Risk Savings
Is Reach Subsea expected to grow at an attractive rate?
  • Unable to compare Reach Subsea's earnings growth to the low risk savings rate as no estimate data is available.
Growth vs Market Checks
  • Unable to compare Reach Subsea's earnings growth to the Norway market average as no estimate data is available.
  • Unable to compare Reach Subsea's revenue growth to the Norway market average as no estimate data is available.
Annual Growth Rates Comparison
Raw Data
OB:REACH Future Growth Rates Data Sources
Data Point Source Value (per year)
Norway Energy Services Industry Earnings Growth Rate Market Cap Weighted Average 39.4%
Norway Energy Services Industry Revenue Growth Rate Market Cap Weighted Average 11.4%
Norway Market Earnings Growth Rate Market Cap Weighted Average 14.8%
Norway Market Revenue Growth Rate Market Cap Weighted Average 4.4%

*Line of best fit is calculated by linear regression .

Industry and Market average data is calculated daily.

Learn more about our growth rate calculations in Simply Wall St’s analysis model.

Analysts growth expectations
Raw Data
OB:REACH Analysts Growth Expectations Data Sources
Data Point Source Value
Past Financials Company Filings (2 months ago) See Below
Future Estimates Average of up to 0 Analyst Estimates (S&P Global) See Below
All numbers in NOK Millions and using Trailing twelve months (TTM) annual period rather than quarterly.
OB:REACH Future Estimates Data
Date (Data in NOK Millions) Revenue Cash Flow Net Income * Avg. No. Analysts
OB:REACH Past Financials Data
Date (Data in NOK Millions) Revenue Cash Flow Net Income *
2019-06-30 618 291 -12
2019-03-31 628 285 -11
2018-12-31 675 249 -12
2018-09-30 596 226 -16
2018-06-30 548 115 -21
2018-03-31 436 44 -37
2017-12-31 360 19 -31
2017-09-30 314 3 -26
2017-06-30 269 -2 -35
2017-03-31 280 19 -21
2016-12-31 327 2 -23
2016-09-30 397 10 -17

*GAAP earnings excluding extraordinary items.

Super high growth metrics
High Growth Checks
  • Unable to determine if Reach Subsea is high growth as no earnings estimate data is available.
  • Unable to determine if Reach Subsea is high growth as no revenue estimate data is available.
Past and Future Earnings per Share
The accuracy of the analysts who estimate the future performance data can be gauged below. We look back 3 years and see if they were any good at predicting what actually occurred. We also show the highest and lowest estimates looking forward to see if there is a wide range.
Raw Data
OB:REACH Past and Future Earnings per Share
Data Point Source Value
Past Financials Company Filings (2 months ago) See Below
Future Estimates Average of up to 0 Analyst Estimates (S&P Global) See Below

All data from Reach Subsea Company Filings, last reported 2 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

OB:REACH Future Estimates Data
Date (Data in NOK Millions) EPS * EPS High Estimate EPS Low Estimate Avg. No. Analysts
OB:REACH Past Financials Data
Date (Data in NOK Millions) EPS *
2019-06-30 -0.09
2019-03-31 -0.08
2018-12-31 -0.08
2018-09-30 -0.11
2018-06-30 -0.15
2018-03-31 -0.25
2017-12-31 -0.22
2017-09-30 -0.20
2017-06-30 -0.32
2017-03-31 -0.23
2016-12-31 -0.28
2016-09-30 -0.23

*GAAP earnings excluding extraordinary items.

Performance in 3 years
In the same way as past performance we look at the future estimated return (profit) compared to the available funds. We do this looking forward 3 years.
  • Unable to establish if Reach Subsea will efficiently use shareholders’ funds in the future without estimates of Return on Equity.

Next steps:

  1. Examine Reach Subsea's financial health to determine how well-positioned it is against times of financial stress by looking at its level of debt over time and how much cash it has left.
  2. Reach Subsea's future outlook can be gauged by looking at industry trends and market size, and determining how well-positioned the company is compared to its competitors. Take a look at other high-growth Energy companies here
  3. Reach Subsea's competitive advantages and company strategy can generally be found in its financial reports archived here.
  4. Use fundamentals to screen for another stock to analyse from our database of over 75,000 companies worldwide
X
Future performance checks
We assess Reach Subsea's future performance by looking at:
  1. Is the annual earnings growth rate expected to beat the low risk savings rate, plus a premium to keep pace with inflation?
  2. Is the annual earnings growth rate expected to beat the average growth rate in earnings of the Norway market? (1 check)
  3. Is the annual revenue growth rate expected to beat the average growth rate in revenue of the Norway market? (1 check)
  4. Is the annual earnings growth rate expected to be above 20%? (1 check)
  5. Is the annual revenue growth rate expected to be above 20%? (1 check)
  6. Is the Return on Equity in 3 years expected to be over 20%? (1 check)
Some of the above checks will fail if the company is expected to be loss making in the relevant year.
Reach Subsea has a total score of 0/6, see the detailed checks below.

Note 1: We use GAAP Net Income Excluding Exceptional Items for our Earnings in all our calculations.

Full details on the Future part of the Simply Wall St company analysis model.

REACH Past Performance

  How has Reach Subsea performed over the past 5 years?

The past performance of a company can be measured by how much growth it has experienced and how much profit it makes relative to the funds and assets it has available.
Past earnings growth
Below we compare Reach Subsea's growth in the last year to its industry (Energy Services).
Past Earnings growth analysis
We also check if the company has grown in the past 5 years, and whether it has maintained that growth in the year.
  • Reach Subsea does not make a profit and their year on year earnings growth rate was negative over the past 5 years.
  • Unable to compare Reach Subsea's 1-year earnings growth to the 5-year average as it is not currently profitable.
  • Unable to compare Reach Subsea's 1-year growth to the NO Energy Services industry average as it is not currently profitable.
Earnings and Revenue History
Reach Subsea's revenue and profit over the past 5 years is shown below, any years where they have experienced a loss will show up in red.
Raw Data

All data from Reach Subsea Company Filings, last reported 2 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

OB:REACH Past Revenue, Cash Flow and Net Income Data
Date (Data in NOK Millions) Revenue Net Income * G+A Expenses R&D Expenses
2019-06-30 617.79 -12.21 81.13
2019-03-31 628.22 -11.29 82.10
2018-12-31 675.27 -12.10 88.60
2018-09-30 596.50 -15.80 85.64
2018-06-30 548.42 -20.95 85.69
2018-03-31 436.28 -36.59 80.45
2017-12-31 360.16 -30.76 74.10
2017-09-30 314.31 -26.34 125.24
2017-06-30 269.39 -35.37 99.64
2017-03-31 279.83 -21.32 79.87
2016-12-31 327.49 -23.21 62.89
2016-09-30 397.03 -16.80 509.68
2016-06-30 503.81 -8.22 509.68
2016-03-31 633.73 -4.05 509.68
2015-12-31 634.37 1.39 509.68
2015-09-30 583.07 7.22 204.71
2015-06-30 492.03 12.29 204.71
2015-03-31 349.77 11.80 204.71
2014-12-31 311.05 24.83 204.71
2014-09-30 250.60 7.39 57.87
2014-06-30 184.36 2.71 57.87
2014-03-31 108.72 -9.34 57.87
2013-12-31 62.03 -15.75 57.87
2013-09-30 39.18 -9.04 5.02
2013-06-30 4.52 -13.21 5.02
2013-03-31 3.95 -7.84 5.02
2012-12-31 3.56 -5.50 5.02
2012-09-30 8.58 24.62 0.14

*GAAP earnings excluding extraordinary items.

Performance last year
We want to ensure a company is making the most of what it has available. This is done by comparing the return (profit) to a company's available funds, assets and capital.
  • It is difficult to establish if Reach Subsea has efficiently used shareholders’ funds last year (Return on Equity greater than 20%) as it is loss-making.
  • It is difficult to establish if Reach Subsea has efficiently used its assets last year compared to the NO Energy Services industry average (Return on Assets) as it is loss-making.
  • It is difficult to establish if Reach Subsea improved its use of capital last year versus 3 years ago (Return on Capital Employed) as it is currently loss-making.
X
Past performance checks
We assess Reach Subsea's performance over the past 5 years by checking for:
  1. Has earnings increased in past 5 years? (1 check)
  2. Has the earnings growth in the last year exceeded that of the Energy Services industry? (1 check)
  3. Is the recent earnings growth over the last year higher than the average annual growth over the past 5 years? (1 check)
  4. Is the Return on Equity (ROE) higher than 20%? (1 check)
  5. Is the Return on Assets (ROA) above industry average? (1 check)
  6. Has the Return on Capital Employed (ROCE) increased from 3 years ago? (1 check)
The above checks will fail if the company has reported a loss in the most recent earnings report. Some checks require at least 3 or 5 years worth of data.
Reach Subsea has a total score of 0/6, see the detailed checks below.

Note: We use GAAP Net Income excluding extraordinary items in all our calculations.

Full details on the Past part of the Simply Wall St company analysis model.

REACH Health

 How is Reach Subsea's financial health and their level of debt?

A company's financial position is much like your own financial position, it includes everything you own (assets) and owe (liabilities).

The boxes below represent the relative size of what makes up Reach Subsea's finances.

The net worth of a company is the difference between its assets and liabilities.
Net Worth
  • Reach Subsea's short term (1 year) commitments are greater than its holdings of cash and other short term assets.
  • Reach Subsea's cash and other short term assets cover its long term commitments.
Balance sheet
This treemap shows a more detailed breakdown of Reach Subsea's finances. If any of them are yellow this indicates they may be out of proportion and red means they relate to one of the checks below.
Assets
Liabilities and shares
The 'shares' portion represents any funds contributed by the owners (shareholders) and any profits.
  • High level of physical assets or inventory.
  • Debt is covered by short term assets, assets are 10.9x debt.
Historical Debt
Nearly all companies have debt. Debt in itself isn’t bad, however if the debt is too high, or the company can’t afford to pay the interest on its debts this may have impacts in the future.

The graphic below shows equity (available funds) and debt, we ideally want to see the red area (debt) decreasing.

If there is any debt we look at the companies capability to repay it, and whether the level has increased over the past 5 years.
Raw Data

All data from Reach Subsea Company Filings, last reported 2 months ago.

OB:REACH Past Debt and Equity Data
Date (Data in NOK Millions) Total Equity Total Debt Cash & Short Term Investments
2019-06-30 186.13 19.99 51.41
2019-03-31 191.84 152.34 73.58
2018-12-31 211.25 27.75 63.28
2018-09-30 214.14 31.63 68.67
2018-06-30 204.89 35.50 82.81
2018-03-31 199.49 38.13 127.09
2017-12-31 218.08 15.75 98.95
2017-09-30 228.06 18.38 62.40
2017-06-30 225.23 21.00 70.99
2017-03-31 236.05 23.63 114.67
2016-12-31 162.95 26.25 30.59
2016-09-30 168.56 28.88 14.76
2016-06-30 174.88 31.50 26.46
2016-03-31 143.39 11.55 37.48
2015-12-31 157.44 12.60 54.37
2015-09-30 156.49 13.65 30.97
2015-06-30 152.69 14.70 30.12
2015-03-31 143.40 15.75 44.05
2014-12-31 154.18 18.07 59.75
2014-09-30 148.82 17.85 44.01
2014-06-30 140.33 18.90 37.13
2014-03-31 133.10 19.95 44.58
2013-12-31 128.90 21.00 53.72
2013-09-30 136.96 57.16 105.84
2013-06-30 134.17 0.00 57.36
2013-03-31 41.64 0.00 37.42
2012-12-31 44.22 0.00 45.58
2012-09-30 0.42 0.00 1.07
  • Reach Subsea's level of debt (10.7%) 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 (13.5% vs 10.7% today).
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.

  • Whilst loss making Reach Subsea has sufficient cash runway for more than 3 years if it maintains the current positive free cash flow level.
  • Whilst loss making Reach Subsea has sufficient cash runway for more than 3 years, even with free cash flow being positive and shrinking by -118.9% per year.
X
Financial health checks
We assess Reach Subsea's financial health by checking for:
  1. Are short term assets greater than short term liabilities? (1 check)
  2. Are short term assets greater than long term liabilities? (1 check)
  3. Has the debt to equity ratio increased in the past 5 years? (1 check)
  4. Is the debt to equity ratio over 40%? (1 check)
  5. Is the debt covered by operating cash flow? (1 check)
  6. Are earnings greater than 5x the interest on debt (if company pays interest at all)? (1 check)
  7. Reach Subsea has a total score of 5/6, see the detailed checks below.
For companies that are loss making and have been so on average in the past we replace the last 2 checks with:
  1. Does cash and short term investments cover stable operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)
  2. Does cash and short term investments cover growing operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)


Full details on the Health part of the Simply Wall St company analysis model.

REACH Dividends

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

Dividends are regular cash payments to you from the company, similar to a bank paying you interest on a savings account.
Annual Dividend Income
Dividend payments
3.69%
Current annual income from Reach Subsea dividends.
If you bought NOK2,000 of Reach Subsea shares you are expected to receive NOK74 in your first year as a dividend.
Dividend Amount
Here we look how much dividend is being paid, if any. Is it above what you can get in a savings account? It is up there with the best dividend paying companies?
  • Reach Subsea's pays a higher dividend yield than the bottom 25% of dividend payers in Norway (2.54%).
  • Reach Subsea's dividend is below the markets top 25% of dividend payers in Norway (6.4%).
Annualized Historical and Future Dividends
It is important to see if the dividend for a company is stable, and not wildly increasing/decreasing each year. This graph shows you the historical rate to count toward your assessment of the stock.

We also check to see if the dividend has increased in the past 10 years.
Raw Data
OB:REACH Annualized Past and Future Dividends
Data Point Source Value
Past Annualized Dividend Yield S&P Global Market Data See Below
Past Dividends per Share Company Filings/ Annualized Dividend Payments See Below
Future Dividends per Share Estimates Average of up to 0 Analyst Estimates (S&P Global) See Below
Norway Energy Services Industry Average Dividend Yield Market Cap Weighted Average of 8 Stocks 4.2%
Norway Market Average Dividend Yield Market Cap Weighted Average of 115 Stocks 4.4%
Norway Minimum Threshold Dividend Yield 10th Percentile 1.5%
Norway Bottom 25% Dividend Yield 25th Percentile 2.5%
Norway Top 25% Dividend Yield 75th Percentile 6.4%

Industry and Market average data is calculated daily.

Note all dividend per share amounts are annualized and not quarterly or other period.

OB:REACH Future Dividends Estimate Data
Date (Data in NOK) Dividend per Share (annual) Avg. No. Analysts
OB:REACH Past Annualized Dividends Data
Date (Data in NOK) Dividend per share (annual) Avg. Yield (%)
2019-02-19 0.070 3.330

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • It is too early to tell whether Reach Subsea has stable dividend payments.
  • Reach Subsea only just started paying a dividend, it is too early to tell if payments are increasing.
Current Payout to shareholders
What portion of Reach Subsea's earnings are paid to the shareholders as a dividend.
  • The company is paying a dividend however it is incurring a loss.
Future Payout to shareholders
  • Insufficient estimate data to determine if a dividend will be paid in 3 years and that it will be sustainable.
X
Income/ dividend checks
We assess Reach Subsea's dividend by checking for:
  1. Firstly is the company paying a notable dividend (greater than 1.5%) - if not then the rest of the checks are ignored.
  2. Is current dividend yield above the bottom 25% of dividend payers? (1 check)
  3. Is current dividend yield above the top 25% of dividend payers? (1 check)
  4. Have they paid a dividend for 10 years, and during this period has the dividend been volatile (drop of more than 25%)? (1 check)
  5. If they have paid a dividend for 10 years has it increased in this time? (1 check)
  6. How sustainable is the dividend, can Reach Subsea afford to pay it from its earnings today and in 3 years (Payout ratio less than 90%)? (2 checks)
  7. Reach Subsea has a total score of 1/6, see the detailed checks below.


Full details on the Dividends part of the Simply Wall St company analysis model.

REACH Management

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

Management is one of the most important areas of a company. We look at unreasonable CEO compensation, how long the team and board of directors have been around for and insider trading.
CEO
Jostein Alendal
COMPENSATION NOK1,592,000
TENURE AS CEO 4.8 years
CEO Bio

Mr. Jostein Alendal has been the Chief Executive Officer of Reach Subsea ASA since November 2014 and serves as its Managing Director. Mr. Alendal served as Business Development Manager at Reach Subsea ASA. Mr. Alendal served as a Business Development Manager of Reach Subsea AS and serves as its Director. He has 20+ years of experience in subsea.

CEO Compensation
  • Jostein's compensation has increased whilst company is loss making.
  • Jostein's remuneration is lower than average for companies of similar size in Norway.
Management Team Tenure

Average tenure of the Reach Subsea management team in years:

3
Average Tenure
  • The tenure for the Reach Subsea management team is about average.
Management Team

Jostein Alendal

TITLE
CEO & MD
COMPENSATION
NOK2M
TENURE
4.8 yrs

Birgitte Johansen

TITLE
CFO & HR Manager
COMPENSATION
NOK1M

Inge Grutle

TITLE
Chief Operating Officer
COMPENSATION
NOK1M
TENURE
3 yrs

Øyvind Johannessen

TITLE
Head of Technical Ship Management Side

Bård Høgheim

TITLE
Chief Commercial Officer
TENURE
2.5 yrs

Solveig Byrkjeland

TITLE
VP of Finance & Company Secretary
AGE
59

Rune Lande

TITLE
Secretary of the Board
COMPENSATION
NOK250K
AGE
59
TENURE
4.8 yrs

Sven Storesund

TITLE
Asset Manager
TENURE
2.6 yrs
Board of Directors Tenure

Average tenure and age of the Reach Subsea board of directors in years:

4.8
Average Tenure
68
Average Age
  • The tenure for the Reach Subsea board of directors is about average.
Board of Directors

Kåre Lie

TITLE
Chairman of the Board
AGE
73
TENURE
4.8 yrs

Sverre Mikkelsen

TITLE
Director
AGE
68
TENURE
6.8 yrs

Anders Onarheim

TITLE
Director
AGE
60
TENURE
6.8 yrs

Kristine Skeie

TITLE
Director
TENURE
1.3 yrs

Ingunn Iveland

TITLE
Director
TENURE
0.7 yrs
Who owns this company?
Recent Insider Trading
  • No 3 month open market individual insider trading information.
Recent Insider Transactions
Announced Type Name Entity Role Start End Shares Max Price (NOK) Value (NOK)
20. Feb 19 Sell Rachid Bendriss Individual 20. Feb 19 20. Feb 19 -817,082 NOK2.37 NOK-1,934,034
20. Feb 19 Sell North Energy ASA Company 20. Feb 19 20. Feb 19 -40,600,000 NOK2.37 NOK-96,100,257
20. Feb 19 Buy North Energy ASA Company 20. Feb 19 20. Feb 19 44,390,156 NOK2.37 NOK105,071,562
20. Feb 19 Sell Anders Onarheim Individual 20. Feb 19 20. Feb 19 -1,755,743 NOK2.37 NOK-4,155,846
03. Dec 18 Buy Anders Onarheim Individual 03. Dec 18 03. Dec 18 50,000 NOK2.35 NOK117,500
24. Sep 18 Buy North Energy ASA Company 24. Sep 18 24. Sep 18 266,525 NOK2.59 NOK691,100
X
Management checks
We assess Reach Subsea's management by checking for:
  1. Is the CEO's compensation unreasonable compared to market cap? (1 check)
  2. Has the CEO's compensation increased more than 20% whilst the EPS is down more then 20%? (1 check)
  3. Is the average tenure of the management team less than 2 years? (1 check)
  4. Is the average tenure of the board of directors team less than 3 years? (1 check)
  5. Reach Subsea has a total score of 0/6, this is not included on the snowflake, see the detailed checks below.


Note: We use the top 6 management executives and board members in our calculations.

Note 2: Insider trading include any internal stakeholders and these transactions .

Full details on the Management part of the Simply Wall St company analysis model.

REACH News

Simply Wall St News

These 4 Measures Indicate That Reach Subsea (OB:REACH) Is Using Debt Reasonably Well

Despite its noteworthy liabilities, Reach Subsea boasts net cash, so it's fair to say it does not have a heavy debt load! … While Reach Subsea has net cash on its balance sheet, it's still worth taking a look at its ability to convert earnings before interest and tax (EBIT) to free cash flow, to help us understand how quickly it is building (or eroding) that cash balance. … Over the last three years, Reach Subsea actually produced more free cash flow than EBIT.

Simply Wall St -

How Much Are Reach Subsea ASA (OB:REACH) Insiders Taking Off The Table?

So shareholders might well want to know whether insiders have been buying or selling shares in Reach Subsea ASA (OB:REACH). … As Peter Lynch said, 'insiders might sell their shares for any number of reasons, but they buy them for only one: they think the price will rise.' View our latest analysis for Reach Subsea The Last 12 Months Of Insider Transactions At Reach Subsea In the last twelve months, the biggest single sale by an insider was when the Director, Anders Onarheim, sold kr4.2m worth of shares at a price of kr2.37 per share. … Over the last year we saw more insider selling of Reach Subsea shares, than buying.

Simply Wall St -

How Much Of Reach Subsea ASA (OB:REACH) Do Insiders Own?

The big shareholder groups in Reach Subsea ASA (OB:REACH) have power over the company. … With a market capitalization of øre316m, Reach Subsea is a small cap stock, so it might not be well known by many institutional investors. … Let's take a closer look to see what the different types of shareholder can tell us about REACH

Simply Wall St -

Should Reach Subsea ASA (OB:REACH) Be Part Of Your Income Portfolio?

Reach Subsea ASA (OB:REACH) has started paying a dividend to shareholders. … Let's take a look at Reach Subsea in more detail. … When assessing a stock as a potential addition to my dividend Portfolio, I look at these five areas:

Simply Wall St -

Is Reach Subsea ASA's (OB:REACH) CEO Paid Enough Relative To Peers?

How Does Jostein Alendal's Compensation Compare With Similar Sized Companies. … Our data indicates that Reach Subsea ASA is worth øre306m, and total annual CEO compensation is øre1.4m. … We examined a group of similar sized companies, with market capitalizations of below øre1.7b

Simply Wall St -

Did You Manage To Avoid Reach Subsea's 25% Share Price Drop?

So we wouldn't blame long term Reach Subsea ASA (OB:REACH) shareholders for doubting their decision to hold, with the stock down 25% over a half decade. … By comparing earnings per share (EPS) and and share price changes over time, we can get a feel for how investor attitudes to a company have morphed over time. … A more detailed examination of the revenue and earnings may or may not explain why the share price languishes; there could be an opportunity

Simply Wall St -

What Type Of Shareholder Owns Reach Subsea ASA's (OB:REACH)?

Every investor in Reach Subsea ASA (OB:REACH) should be aware of the most powerful shareholder groups. … Reach Subsea is not a large company by global standards. … View our latest analysis for Reach Subsea

Simply Wall St -

How Financially Strong Is Reach Subsea ASA (OB:REACH)?

Investors are always looking for growth in small-cap stocks like Reach Subsea ASA (OB:REACH), with a market cap of øre336m. … However, an important fact which most ignore is: how financially healthy is the business? … Evaluating financial health as part of your investment thesis is

Simply Wall St -

Our Take On Reach Subsea ASA's (OB:REACH) CEO Salary

This analysis aims first to contrast CEO compensation with other companies that have similar market capitalization. … How Does Jostein Alendal's Compensation Compare With Similar Sized Companies. … According to our data, Reach Subsea ASA has a market capitalization of øre342m, and pays its CEO total annual compensation worth øre1.4m.

Simply Wall St -

How Much Of Reach Subsea ASA (OB:REACH) Do Insiders Own?

If you want to know who really controls Reach Subsea ASA (OB:REACH), then you'll have to look at the makeup of its share registry. … Reach Subsea is not a large company by global standards. … View our latest analysis for Reach Subsea

Simply Wall St -

REACH Company Info

Description

Reach Subsea ASA provides subsea services in Norway. The company offers inspection, maintenance, and repair services; and remotely operated vehicles, survey, and construction services. It provides engineering services to the oil industry. The company was formerly known as Transit Invest ASA and changed its name to Reach Subsea ASA in December 2012. Reach Subsea ASA was founded in 2008 and is based in Haugesund, Norway.

Details
Name: Reach Subsea ASA
REACH
Exchange: OB
Founded: 2008
NOK272,019,685
143,546,008
Website: http://www.reachsubsea.no
Address: Reach Subsea ASA
Garpeskjærveien 2,
Haugesund,
Rogaland, 5527,
Norway
Listings
Exchange Symbol Ticker Symbol Security Exchange Country Currency Listed on
OB REACH Ordinary Shares Oslo Bors NO NOK 02. Jan 1992
Number of employees
Current staff
Staff numbers
119
Reach Subsea employees.
Industry
Oil and Gas Equipment and Services
Energy
Company Analysis and Financial Data Status
Area Date (UTC time)
Company Analysis updated: 2019/09/19 20:39
End of day share price update: 2019/09/19 00:00
Last estimates confirmation: 2017/02/16
Last earnings filing: 2019/08/27
Last earnings reported: 2019/06/30
Last annual earnings reported: 2018/12/31


All dates and times in UTC. All financial data provided by Standard & Poor’s Capital IQ.

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.