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Spectrum

OB:SPU
Snowflake Description

Undervalued with reasonable growth potential.

The Snowflake is generated from 30 checks in 5 different areas, read more below.
SPU
OB
NOK3B
Market Cap
  1. Home
  2. NO
  3. Energy
Company description

Spectrum ASA produces and sells multi-client seismic surveys and seismic data imaging for multi-client survey and proprietary customers in the oil and gas market. The last earnings update was 96 days ago. More info.


Add to Portfolio Compare Print
  • Spectrum has significant price volatility in the past 3 months.
SPU Share Price and Events
7 Day Returns
-3.5%
OB:SPU
-3.2%
NO Energy Services
0.5%
NO Market
1 Year Returns
-2%
OB:SPU
-40.9%
NO Energy Services
-13%
NO Market
SPU Shareholder Return
  7 Day 30 Day 90 Day 1 Year 3 Year 5 Year
Spectrum (SPU) -3.5% -19.3% -20.8% -2% 101.9% 47.3%
NO Energy Services -3.2% -14.5% -21% -40.9% -14.2% -66.8%
NO Market 0.5% -5.4% -4.8% -13% 20.3% 8.8%
1 Year Return vs Industry and Market
  • SPU outperformed the Energy Services industry which returned -40.9% over the past year.
  • SPU outperformed the Market in Norway which returned -13% over the past year.
Price Volatility
SPU
Industry
5yr Volatility vs Market

Value

 Is Spectrum 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 Spectrum 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 Spectrum.

OB:SPU Discounted Cash Flow Data Sources
Data Point Source Value
Valuation Model 2 Stage Free Cash Flow to Equity
Levered Free Cash Flow Average of 5 Analyst Estimates (S&P Global) See below
Discount Rate (Cost of Equity) See below 8.1%
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:SPU
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 1.04
Re-levered Beta = Unlevered beta (1 + (1- tax rate) (Debt/Equity))
= 1.036 (1 + (1- 23%) (7.38%))
1.064
Levered Beta Levered Beta limited to 0.8 to 2.0
(practical range for a stable firm)
1.06
Discount Rate/ Cost of Equity = Cost of Equity = Risk Free Rate + (Levered Beta * Equity Risk Premium)
= 1.76% + (1.064 * 5.96%)
8.1%

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

The calculations below outline how an intrinsic value for Spectrum 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:SPU DCF 1st Stage: Next 10 year cash flow forecast
Levered FCF (USD, Millions) Source Present Value
Discounted (@ 8.1%)
2020 19.07 Analyst x2 17.64
2021 31.86 Analyst x2 27.26
2022 43.23 Est @ 35.7% 34.22
2023 54.26 Est @ 25.52% 39.74
2024 64.24 Est @ 18.39% 43.52
2025 72.85 Est @ 13.4% 45.65
2026 80.06 Est @ 9.91% 46.42
2027 86.04 Est @ 7.46% 46.14
2028 90.99 Est @ 5.75% 45.14
2029 95.13 Est @ 4.55% 43.66
Present value of next 10 years cash flows $389.39
OB:SPU DCF 2nd Stage: Terminal Value
Calculation Result
Terminal Value = FCF2029 × (1 + g) ÷ (Discount Rate – g)
= $95.13 × (1 + 1.76%) ÷ (8.1% – 1.76%)
$1,527.01
Present Value of Terminal Value = Terminal Value ÷ (1 + r)10
= $1,527.01 ÷ (1 + 8.1%)10
$700.80
OB:SPU Total Equity Value
Calculation Result
Total Equity Value = Present value of next 10 years cash flows + Terminal Value
= $389.39 + $700.80
$1,090.20
Equity Value per Share
(USD)
= Total value / Shares Outstanding
= $1,090.20 / 57.41
$18.99
OB:SPU Discount to Share Price
Calculation Result
Exchange Rate USD/NOK
(Reporting currency to currency of OB:SPU)
8.896
Value per Share
(NOK)
= Value per Share in USD x Exchange Rate (USD/NOK)
= $18.99 x 8.896
NOK168.91
Value per share (NOK) From above. NOK168.91
Current discount Discount to share price of NOK54.50
= -1 x (NOK54.50 - NOK168.91) / NOK168.91
67.7%

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

Current Discount
Amount off the current price Spectrum is available for.
Intrinsic value
>50%
Share price is NOK54.5 vs Future cash flow value of NOK168.91
Current Discount Checks
For Spectrum to be considered undervalued it must be available for at least 20% below the current price. Less than 40% is even better.
  • Spectrum's share price is below the future cash flow value, and at a moderate discount (> 20%).
  • Spectrum'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 Spectrum's earnings, growth and assets is considered below, and whether this is a fair price.
Price based on past earnings
Are Spectrum's earnings available for a low price, and how does this compare to other companies in the same industry?
Raw Data
OB:SPU PE (Price to Earnings) Ratio Data Sources
Data Point Source Value
Earnings Per Share * Company Filings (2019-03-31) in USD $0.67
OB:SPU Share Price ** OB (2019-08-14) in NOK NOK54.5
OB:SPU Share Price converted to USD reporting currency Exchange rate (NOK/ USD) 0.112 $6.13
Norway Energy Services Industry PE Ratio Median Figure of 13 Publicly-Listed Energy Services Companies 16.4x
Norway Market PE Ratio Median Figure of 133 Publicly-Listed Companies 12.32x

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

** Primary Listing of Spectrum.

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

= OB:SPU Share Price ÷ EPS (both in USD)

= 6.13 ÷ 0.67

9.16x

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

  • Spectrum is good value based on earnings compared to the NO Energy Services industry average.
  • Spectrum is good value based on earnings compared to the Norway market.
Price based on expected Growth
Does Spectrum's expected growth come at a high price?
Raw Data
OB:SPU PEG (Price to Earnings to Growth) Ratio Data Sources
Data Point Source Value
PE Ratio See PE Ratio Section 9.16x
Net Income Annual Growth Rate See Future Growth Section.
Line of Best Fit* through Consensus Estimate Earnings of 5 Analysts
18%per year
Norway Energy Services Industry PEG Ratio Median Figure of 10 Publicly-Listed Energy Services Companies 0.62x
Norway Market PEG Ratio Median Figure of 103 Publicly-Listed Companies 0.75x

*Line of best fit is calculated by linear regression .

OB:SPU PEG (Price to Earnings to Growth) Ratio Calculation
Calculation Outcome
PEG Ratio

= PE Ratio ÷ Net Income Annual Growth Rate

= 9.16x ÷ 18%

0.51x

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

  • Spectrum is good value based on expected growth next year.
Price based on value of assets
What value do investors place on Spectrum's assets?
Raw Data
OB:SPU PB (Price to Book) Ratio Data Sources
Data Point Source Value
Book Value per Share Company Filings (2019-03-31) in USD $3.22
OB:SPU Share Price * OB (2019-08-14) in NOK NOK54.5
OB:SPU Share Price converted to USD reporting currency Exchange rate (NOK/ USD) 0.112 $6.13
Norway Energy Services Industry PB Ratio Median Figure of 32 Publicly-Listed Energy Services Companies 0.64x
Norway Market PB Ratio Median Figure of 215 Publicly-Listed Companies 1.09x
OB:SPU PB (Price to Book) Ratio Calculation
Calculation Outcome
PB Ratio

= OB:SPU Share Price ÷ Book Value per Share (both in USD)

= 6.13 ÷ 3.22

1.9x

* Primary Listing of Spectrum.

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

  • Spectrum is overvalued based on assets compared to the NO Energy Services industry average.
X
Value checks
We assess Spectrum'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. Spectrum has a total score of 5/6, 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.

Future Performance

 How is Spectrum expected to perform in the next 1 to 3 years based on estimates from 5 analysts?

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
18%
Expected annual growth in earnings.
Earnings growth vs Low Risk Savings
Is Spectrum expected to grow at an attractive rate?
  • Spectrum's earnings growth is expected to exceed the low risk savings rate of 1.8%.
Growth vs Market Checks
  • Spectrum's earnings growth is expected to exceed the Norway market average.
  • Spectrum's revenue growth is expected to exceed the Norway market average.
Annual Growth Rates Comparison
Raw Data
OB:SPU Future Growth Rates Data Sources
Data Point Source Value (per year)
OB:SPU Future Earnings Growth Rate Line of Best Fit* through Consensus Estimate Earnings of 5 Analysts 18%
OB:SPU Future Revenue Growth Rate Line of Best Fit* through Consensus Estimate Revenue of 5 Analysts 12.7%
Norway Energy Services Industry Earnings Growth Rate Market Cap Weighted Average 46.3%
Norway Energy Services Industry Revenue Growth Rate Market Cap Weighted Average 12.1%
Norway Market Earnings Growth Rate Market Cap Weighted Average 14.8%
Norway Market Revenue Growth Rate Market Cap Weighted Average 4.5%

*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:SPU Analysts Growth Expectations Data Sources
Data Point Source Value
Past Financials Company Filings (4 months ago) See Below
Future Estimates Average of up to 5 Analyst Estimates (S&P Global) See Below
All numbers in USD Millions and using Trailing twelve months (TTM) annual period rather than quarterly.
OB:SPU Future Estimates Data
Date (Data in USD Millions) Revenue Cash Flow Net Income * Avg. No. Analysts
2021-12-31 241 189 67 4
2020-12-31 218 175 59 4
2019-12-31 190 158 50 5
OB:SPU Past Financials Data
Date (Data in USD Millions) Revenue Cash Flow Net Income *
2019-03-31 169 89 37
2018-12-31 139 74 19
2018-09-30 129 77 -19
2018-06-30 118 92 -23
2018-03-31 109 92 -30
2017-12-31 119 99 -27
2017-09-30 107 104 -10
2017-06-30 111 84 -8
2017-03-31 94 53 -16
2016-12-31 87 61 -20
2016-09-30 94 79 -28
2016-06-30 92 103 -30

*GAAP earnings excluding extraordinary items.

Super high growth metrics
High Growth Checks
  • Spectrum's earnings are expected to grow by 18% yearly, however this is not considered high growth (20% yearly).
  • Spectrum's revenue is expected to grow by 12.7% yearly, however this is not considered high growth (20% yearly).
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:SPU Past and Future Earnings per Share
Data Point Source Value
Past Financials Company Filings (4 months ago) See Below
Future Estimates Average of up to 5 Analyst Estimates (S&P Global) See Below

All data from Spectrum Company Filings, last reported 4 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

OB:SPU Future Estimates Data
Date (Data in USD Millions) EPS * EPS High Estimate EPS Low Estimate Avg. No. Analysts
2021-12-31 1.14 1.38 1.01 5.00
2020-12-31 1.01 1.26 0.82 5.00
2019-12-31 0.86 1.07 0.68 4.00
OB:SPU Past Financials Data
Date (Data in USD Millions) EPS *
2019-03-31 0.67
2018-12-31 0.35
2018-09-30 -0.34
2018-06-30 -0.43
2018-03-31 -0.56
2017-12-31 -0.49
2017-09-30 -0.19
2017-06-30 -0.15
2017-03-31 -0.30
2016-12-31 -0.38
2016-09-30 -0.52
2016-06-30 -0.55

*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.
  • Spectrum is expected to efficiently use shareholders’ funds in the future (Return on Equity greater than 20%).
X
Future performance checks
We assess Spectrum'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.
Spectrum has a total score of 4/6, 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.

Past Performance

  How has Spectrum 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 Spectrum'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.
  • Spectrum's year on year earnings growth rate was negative over the past 5 years, however the most recent earnings are above average.
  • Spectrum has become profitable in the last year making the earnings growth rate difficult to compare to the 5-year average.
  • Spectrum has become profitable in the last year making it difficult to compare the NO Energy Services industry average.
Earnings and Revenue History
Spectrum'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 Spectrum Company Filings, last reported 4 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

OB:SPU Past Revenue, Cash Flow and Net Income Data
Date (Data in USD Millions) Revenue Net Income * G+A Expenses R&D Expenses
2019-03-31 168.79 36.53 21.10
2018-12-31 138.79 18.91 21.10
2018-09-30 129.24 -18.53 14.50
2018-06-30 118.21 -23.38 14.50
2018-03-31 109.16 -30.35 14.50
2017-12-31 118.85 -26.84 14.50
2017-09-30 107.32 -10.09 12.37
2017-06-30 110.75 -8.09 12.37
2017-03-31 93.95 -16.10 12.37
2016-12-31 86.85 -20.28 12.37
2016-09-30 94.28 -28.30 14.25
2016-06-30 92.04 -29.51 14.25
2016-03-31 113.18 -13.23 14.25
2015-12-31 109.84 -8.65 14.25
2015-09-30 115.70 8.81 17.01
2015-06-30 150.34 27.63 17.01
2015-03-31 160.18 28.95 16.29
2014-12-31 183.30 38.23 17.01
2014-09-30 173.96 39.16 19.00
2014-06-30 136.19 27.14 19.00
2014-03-31 120.95 28.28 16.30
2013-12-31 143.02 29.16 19.00
2013-09-30 155.35 28.36 13.01
2013-06-30 160.67 29.61 13.44
2013-03-31 152.27 30.90 17.14
2012-12-31 116.97 23.12 16.06
2012-09-30 90.01 20.09 14.54

*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.
  • Spectrum has efficiently used shareholders’ funds last year (Return on Equity greater than 20%).
  • Spectrum used its assets more efficiently than the NO Energy Services industry average last year based on Return on Assets.
  • Spectrum has significantly improved its use of capital last year versus 3 years ago (Return on Capital Employed).
X
Past performance checks
We assess Spectrum'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.
Spectrum has a total score of 3/6, 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.

Health

 How is Spectrum'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 Spectrum's finances.

The net worth of a company is the difference between its assets and liabilities.
Net Worth
  • Spectrum's short term (1 year) commitments are greater than its holdings of cash and other short term assets.
  • Spectrum's cash and other short term assets cover its long term commitments.
Balance sheet
This treemap shows a more detailed breakdown of Spectrum'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.
  • Low level of unsold assets.
  • Debt is covered by short term assets, assets are 5.9x 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 Spectrum Company Filings, last reported 4 months ago.

OB:SPU Past Debt and Equity Data
Date (Data in USD Millions) Total Equity Total Debt Cash & Short Term Investments
2019-03-31 176.22 18.36 39.02
2018-12-31 165.74 31.10 37.73
2018-09-30 139.89 32.54 36.48
2018-06-30 139.04 23.63 26.71
2018-03-31 138.29 23.72 20.12
2017-12-31 157.02 25.13 14.16
2017-09-30 171.11 27.11 10.67
2017-06-30 176.86 32.26 6.86
2017-03-31 179.68 35.07 16.68
2016-12-31 181.85 42.56 15.83
2016-09-30 179.33 47.74 7.65
2016-06-30 183.07 49.29 14.88
2016-03-31 193.88 59.33 37.67
2015-12-31 201.58 57.20 23.37
2015-09-30 206.47 74.64 29.46
2015-06-30 211.04 76.94 17.45
2015-03-31 171.99 0.03 17.67
2014-12-31 174.27 0.03 8.36
2014-09-30 161.84 1.33 9.26
2014-06-30 146.73 2.60 0.37
2014-03-31 144.49 3.07 17.37
2013-12-31 138.04 1.28 2.72
2013-09-30 120.28 5.01 3.00
2013-06-30 120.07 4.70 24.14
2013-03-31 115.64 5.63 12.13
2012-12-31 105.39 4.65 16.99
2012-09-30 97.30 5.84 3.82
  • Spectrum's level of debt (10.4%) compared to net worth is satisfactory (less than 40%).
  • The level of debt compared to net worth has increased over the past 5 years (1% vs 10.4% today).
  • Debt is well covered by operating cash flow (482.9%, greater than 20% of total debt).
  • Interest payments on debt are well covered by earnings (EBIT is 35.8x coverage).
X
Financial health checks
We assess Spectrum'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. Spectrum has a total score of 4/6, 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.

Dividends

 What is Spectrum'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
2.73%
Current annual income from Spectrum dividends. Estimated to be 3.5% next year.
If you bought NOK2,000 of Spectrum shares you are expected to receive NOK55 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?
  • Spectrum's pays a higher dividend yield than the bottom 25% of dividend payers in Norway (2.71%).
  • Spectrum's dividend is below the markets top 25% of dividend payers in Norway (6.45%).
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:SPU 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 5 Analyst Estimates (S&P Global) See Below
Norway Energy Services Industry Average Dividend Yield Market Cap Weighted Average of 8 Stocks 4.7%
Norway Market Average Dividend Yield Market Cap Weighted Average of 110 Stocks 4.7%
Norway Minimum Threshold Dividend Yield 10th Percentile 1.9%
Norway Bottom 25% Dividend Yield 25th Percentile 2.7%
Norway Top 25% Dividend Yield 75th Percentile 6.5%

Industry and Market average data is calculated daily.

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

OB:SPU Future Dividends Estimate Data
Date (Data in $) Dividend per Share (annual) Avg. No. Analysts
2021-12-31 0.25 4.00
2020-12-31 0.21 4.00
2019-12-31 0.18 3.00
OB:SPU Past Annualized Dividends Data
Date (Data in $) Dividend per share (annual) Avg. Yield (%)
2019-04-29 0.167 2.356
2018-05-25 0.057 0.969
2017-02-10 0.000 0.000
2016-10-27 0.000 0.000
2016-08-12 0.000 0.000
2016-04-22 0.000 0.000
2016-02-12 0.000 0.000
2015-04-24 0.111 3.411
2015-02-13 0.120 3.009
2014-05-23 0.096 2.240
2013-04-25 0.095 1.457
2013-02-15 0.101 1.042
2012-04-26 0.082 1.644
2012-02-17 0.086 1.784

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

  • Spectrum has been paying a dividend for less than 10 years and during this time payments have been volatile (annual drop of over 20%).
  • Dividend payments have increased, but Spectrum only paid a dividend in the past 7 years.
Current Payout to shareholders
What portion of Spectrum's earnings are paid to the shareholders as a dividend.
  • Dividends paid are well covered by earnings (3.9x coverage).
Future Payout to shareholders
  • Dividends after 3 years are expected to be well covered by earnings (4.7x coverage).
X
Income/ dividend checks
We assess Spectrum's dividend by checking for:
  1. Firstly is the company paying a notable dividend (greater than 1.9%) - 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 Spectrum afford to pay it from its earnings today and in 3 years (Payout ratio less than 90%)? (2 checks)
  7. Spectrum has a total score of 3/6, see the detailed checks below.


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

Management

 What is the CEO of Spectrum'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
Rune Eng
COMPENSATION $1,248,000
AGE 58
TENURE AS CEO 8.7 years
CEO Bio

Mr. Rune Eng has been the President of Spectrum ASA since November 3, 2010 and has been its Chief Executive Officer since December 2010. Mr. Eng served as an Executive Vice President of Marine Contract at Petroleum Geo Services ASA. Mr. Eng served as Group President of Marine at Petroleum Geo Services ASA. He served as the President for Marine Geophysical of Petroleum Geo Services ASA since August 20, 2004. Mr. Eng joined PGS in 1997 and held the position of Area Manager Scandinavia and also served President for the EAME region (Europe, Africa and Middle East) since 2000. He held Senior consultant position in Digital Equipment Computing (DEC) promoting the use of reservoir simulation in the Oil industry. Mr. Eng has worked for 10 years for Geoteam, 3 years for Fugro and 13 years for Petroleum Geo Service (PGS). He has been Director of PGS Geophysical AS since August 2004, DMNG (Dalmorneftegeofizika) PGS AS since October 19 2005, PGS Exploration Nigeria Ltd since November 13, 2001 and PGS Geophysical Angola Ltd. since December 2005. He served as a Non-Executive Director of Genesis Petroleum Corp. Plc since May 15, 2007. Mr. Eng has a Bachelor degree in Applied Geophysics from the University of Oslo and a Master of science degree in Petroleum Explorations from Chalmers University of Technology (Sweden).

CEO Compensation
  • Rune's compensation has increased in line with Spectrum recently becoming profitable.
  • Rune's remuneration is higher than average for companies of similar size in Norway.
Management Team Tenure

Average tenure and age of the Spectrum management team in years:

7.4
Average Tenure
58
Average Age
  • The average tenure for the Spectrum management team is over 5 years, this suggests they are a seasoned and experienced team.
Management Team

Rune Eng

TITLE
CEO & President
COMPENSATION
$1M
AGE
58
TENURE
8.7 yrs

Dean Zuzic

TITLE
Chief Financial Officer
COMPENSATION
$393K
AGE
56
TENURE
0.7 yrs

Jan Schoolmeesters

TITLE
Chief Operating Officer
COMPENSATION
$1M
AGE
53
TENURE
8 yrs

Svein Staalen

TITLE
General Counsel
COMPENSATION
$427K
AGE
48
TENURE
7.4 yrs

Richie Miller

TITLE
Executive Vice President of Multi-Client for Americas
COMPENSATION
$604K
AGE
56
TENURE
8.7 yrs

Graham Mayhew

TITLE
Executive Vice President of Multi-Client - Africa
COMPENSATION
$517K
AGE
58

Neil Hodgson

TITLE
Executive Vice President of Geoscience
COMPENSATION
$384K
AGE
58
TENURE
7.2 yrs

Ian Edwards

TITLE
Executive Vice President of North-West Europe & Asia Pacific
AGE
64
TENURE
2.9 yrs

Mike Mellen

TITLE
Executive Vice President of Seismic Imaging
AGE
60
Board of Directors Tenure

Average tenure and age of the Spectrum board of directors in years:

8.6
Average Tenure
47.5
Average Age
  • The tenure for the Spectrum board of directors is about average.
Board of Directors

Pål Stampe

TITLE
Chairman
AGE
44

Glen Rødland

TITLE
Director
COMPENSATION
$32K
AGE
55
TENURE
11.6 yrs

Ingrid Leisner

TITLE
Director
AGE
51
TENURE
8.6 yrs

Maria Tallaksen

TITLE
Director
AGE
39
TENURE
4.6 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)
09. Nov 18 Buy Anuradha Dighe Individual 09. Nov 18 09. Nov 18 2,000 NOK52.63 NOK105,260
18. Oct 18 Buy Graham Mayhew Individual 18. Oct 18 18. Oct 18 7,000 NOK57.20 NOK400,400
02. Oct 18 Buy Magnus Bekkelund Individual 02. Oct 18 02. Oct 18 1,000 NOK62.48 NOK62,480
27. Aug 18 Sell Mike Mellen Individual 27. Aug 18 27. Aug 18 -10,190 NOK60.62 NOK-617,718
27. Aug 18 Sell Ian Setterfield Individual 27. Aug 18 27. Aug 18 -54,553 NOK60.62 NOK-3,307,003
27. Aug 18 Buy Svein Staalen Individual 27. Aug 18 27. Aug 18 3,217 NOK60.62 NOK195,015
27. Aug 18 Sell Ian Edwards Individual 27. Aug 18 27. Aug 18 -13,970 NOK60.62 NOK-846,861
27. Aug 18 Sell Kim Maver Individual 27. Aug 18 27. Aug 18 -112,000 NOK60.62 NOK-6,789,440
20. Aug 18 Buy Rune Eng Individual 20. Aug 18 20. Aug 18 10,000 NOK55.90 NOK559,000
17. Aug 18 Buy Jan Schoolmeesters Individual 17. Aug 18 17. Aug 18 12,500 NOK55.94 NOK699,250
X
Management checks
We assess Spectrum'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. Spectrum 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.

News

Simply Wall St News

Investors Who Bought Spectrum (OB:SPU) Shares Three Years Ago Are Now Up 100%

For example, Spectrum ASA (OB:SPU) shareholders have seen the share price rise 100% over three years, well in excess of the market return (35%, not including dividends). … One way to examine how market sentiment has changed over time is to look at the interaction between a company's share price and its earnings per share (EPS). … During three years of share price growth, Spectrum moved from a loss to profitability.

Simply Wall St -

What does Spectrum ASA's (OB:SPU) Balance Sheet Tell Us About Its Future?

While small-cap stocks, such as Spectrum ASA (OB:SPU) with its market cap of US$3.38b, are popular for their explosive growth, investors should also be aware of their balance sheet to judge whether the company can survive a downturn.

Simply Wall St -

Who Are The Major Shareholders Of Spectrum ASA (OB:SPU)?

Although SPU has a high institutional ownership, such stock moves, in the short-term, are more commonly linked to a particular type of active institutional investors – hedge funds. … Private Company Ownership Potential investors in SPU should also look at another important group of investors: private companies, with a stake of 4.58%, who are primarily invested because of strategic and capital gain interests. … Thus, investors not need worry too much about the consequences of these holdings.Next Steps: SPU's considerably high level of institutional ownership calls for further analysis into its margin of safety.

Simply Wall St -

Before You Buy Spectrum ASA's (OB:SPU), Consider This

A popular measure of market risk for a stock is its beta, and the market as a whole represents a beta value of one. … Based on this beta value, SPU appears to be a stock that an investor with a high-beta portfolio would look for to reduce risk exposure to the market. … Therefore, this is a type of risk which is associated with higher beta.

Simply Wall St -

Is Spectrum ASA's (OB:SPU) Balance Sheet Strong Enough To Weather A Storm?

How does SPU’s operating cash flow stack up against its debt? … Moreover, SPU has generated US$99.40M in operating cash flow during the same period of time, resulting in an operating cash to total debt ratio of 384.67%, indicating that SPU’s operating cash is sufficient to cover its debt. … Investors' risk associated with debt is very low with SPU, and the company has plenty of headroom and ability to raise debt should it need to in the future.Next Steps: SPU’s high cash coverage and low debt levels indicate its ability to utilise its borrowings efficiently in order to generate ample cash flow.

Simply Wall St -

Analysts Expect Breakeven For Spectrum ASA (OB:SPU)

I’ve put together a brief outline of industry analyst expectations for SPU, its year of breakeven and its implied growth rate. … OB:SPU Past Future Earnings Apr 7th 18 Underlying developments driving SPU’s growth isn’t the focus of this broad overview, but, keep in mind that typically an oil and gas business has lumpy cash flows which are contingent on the natural resource and stage at which the company is operating. … So, a high growth rate is not out of the ordinary, particularly when a company is in a period of investment.

Simply Wall St -

Is It Time To Buy Spectrum ASA (OB:SPU)?

Spectrum ASA (OB:SPU), an energy company based in Norway, saw a decent share price growth in the teens level on the OB over the last few months. … It’s trading around 1% above my intrinsic value, which means if you buy Spectrum today, you’d be paying a relatively reasonable price for it. … SPU’s optimistic future growth appears to have been factored into the current share price, with shares trading around its fair value.

Simply Wall St -

Does Spectrum ASA's (OB:SPU) -32.34% Earnings Drop Reflect A Longer Term Trend?

When Spectrum ASA (OB:SPU) announced its most recent earnings (31 December 2017), I did two things: looked at its past earnings track record, then look at what is happening in the industry. … I use the ‘latest twelve-month’ data, which either annualizes the most recent 6-month earnings update, or in some cases, the most recent annual report is already the latest available financial data. … This means that whatever tailwind the industry is benefiting from, Spectrum has not been able to realize the gains unlike its industry peers.What does this mean?

Simply Wall St -

Company Info

Description

Spectrum ASA produces and sells multi-client seismic surveys and seismic data imaging for multi-client survey and proprietary customers in the oil and gas market. The company operates through two segments, Multi-Client and Seismic Imaging. Its multi-client library comprises approximately 3.35 million kilometers of 2D seismic data covering various oil and gas producing regions worldwide; and 200 thousand square kilometers of 3D seismic data from East Mediterranean, West Africa, North Sea, Australia, Brazil, and Gulf of Mexico. The company was founded in 1986 and is based in Oslo, Norway.

Details
Name: Spectrum ASA
SPU
Exchange: OB
Founded: 1986
NOK3,129,087,797
57,414,455
Website: http://www.spectrumgeo.com
Address: Spectrum ASA
Karenslyst Allè 11,
Oslo,
Oslo, 0278,
Norway
Listings
Exchange Symbol Ticker Symbol Security Exchange Country Currency Listed on
OB SPU Ordinary Shares Oslo Bors NO NOK 04. Jul 2008
OTCPK SPTY.F Ordinary Shares Pink Sheets LLC US USD 04. Jul 2008
DB 7S9 Ordinary Shares Deutsche Boerse AG DE EUR 04. Jul 2008
LSE 0JII Ordinary Shares London Stock Exchange GB NOK 04. Jul 2008
BATS-CHIXE SPUO Ordinary Shares BATS 'Chi-X Europe' GB NOK 04. Jul 2008
Number of employees
Current staff
Staff numbers
158
Spectrum employees.
Industry
Oil and Gas Equipment and Services
Energy
Company Analysis and Financial Data Status
Area Date (UTC time)
Company Analysis updated: 2019/08/14 21:27
End of day share price update: 2019/08/14 00:00
Last estimates confirmation: 2019/08/12
Last earnings filing: 2019/05/10
Last earnings reported: 2019/03/31
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.