Oil & Gas Field Services, NEC
Oceaneering International, Inc. provides engineered services and products, and robotic solutions to the offshore energy, defense, aerospace, manufacturing, and entertainment industries worldwide. The company's Subsea Robotics segment provides remotely operated vehicles (ROVs) for drill support and vessel-based services, including subsea hardware installation, construction, pipeline inspection, survey and facilities inspection, maintenance, and repair. This segment also offers ROV tooling, and survey services, such as hydrographic survey and positioning services, as well as autonomous underwater vehicles for geoscience. Its Manufactured Products segment provides distribution and connection systems, including production control umbilicals and field development hardware, pipeline connection, and repair systems to the energy industry; and autonomous mobile robots technology and entertainment systems to various industries. The company's Offshore Projects Group segment offers subsea installation and intervention, including riserless light well intervention services and inspection, and maintenance and repair services; installation and workover control systems, and ROV workover control systems; diving services; project management and engineering; and drill pipe riser services and systems, and wellhead load relief solutions. Its Integrity Management & Digital Solutions segment provides asset integrity management; software and analytical solutions for the bulk cargo maritime industry; and software, digital, and connectivity solutions for the energy industry. The company's Aerospace and Defense Technologies segment offers government services and products, including engineering and related manufacturing in defense and space exploration activities to U.S. government agencies and their prime contractors. Oceaneering International, Inc. was founded in 1964 and is headquartered in Houston, Texas.
Discounted Cash Flow Valuation of Oceaneering International Inc
Growth
%
%
Discount
%
%
Multiple
g\r | +10% | +11% | +12% | +13% | +14% |
---|---|---|---|---|---|
0% | 10 | 9 | 8 | 8 | 7 |
+1% | 11 | 10 | 9 | 8 | 8 |
+2% | 13 | 11 | 10 | 9 | 8 |
+3% | 14 | 13 | 11 | 10 | 9 |
+4% | 17 | 14 | 12 | 11 | 10 |
Years | 0 | 1 | 2 | 3 | 4 | 5 | 6 | 7 | 8 | 9 | 10 | TV |
---|---|---|---|---|---|---|---|---|---|---|---|---|
FCF | $75.22M | $62.53M | $51.98M | $43.21M | $35.92M | $29.86M | $24.82M | $20.63M | $17.15M | $14.26M | $11.85M | $118.5M |
DCF | $54.37M | $39.3M | $28.41M | $20.54M | $14.85M | $10.73M | $7.757M | $5.607M | $4.053M | $2.93M | $29.3M | |
Value | $217.8M |
In the chart Earnings are multiplied by this value.
High margins render the company resilient under dire circumstances, hence able to drive competitors out or acquire them. ROE and ROA measure the average flow generated by each invested dollar. Their marginal value is a forecast of future growth, and it is considered by Buffett and Munger the most important single indicator.
Years | 12-2015 | 12-2016 | 12-2017 | 12-2018 | 12-2019 | 12-2020 | 12-2021 | 12-2022 | 12-2023 | TTM |
---|---|---|---|---|---|---|---|---|---|---|
Net Margin | 7.5% | 1.1% | 8.7% | -11% | -17% | -27% | -2.6% | 1.3% | 4% | 4.4% |
ROA | 11% | 2.3% | 0.35% | -5.1% | -11% | -22% | 2% | 5.5% | 8.1% | 8.6% |
ROE | 15% | 1.6% | 10% | -15% | -32% | -89% | -9.6% | 4.9% | 15% | 17% |
The average Net Margin over the past 5 years is -8.78%.
The trend of Net Margin over the past 5 years is +4.43%.
The average ROA over the past 5 years is -3.66%.
The trend of ROA over the past 5 years is +3.95%.
The average ROE over the past 5 years is -20.96%.
The trend of ROE over the past 5 years is +9.8%.
Being debt the number one cause of investment losses and company death, the ratio Debt/FCF is of utmost importance to guarantee safety. On the other hand the Graham’s stability measures the drawdown of earnings, hence indicating the reliability of the flow generated by the company.
Years | 12-2015 | 12-2016 | 12-2017 | 12-2018 | 12-2019 | 12-2020 | 12-2021 | 12-2022 | 12-2023 | TTM |
---|---|---|---|---|---|---|---|---|---|---|
Debt FCF | 2.21 | 3.48 | 18.51 | -10.79 | 80.58 | 10.60 | 4.01 | 17.59 | 4.37 | 6.36 |
Debt Equity | 0.50 | 0.52 | 0.48 | 0.56 | 0.74 | 1.44 | 1.37 | 1.33 | 0.75 | 0.76 |
MIN | ||||||||||
Graham Stability | - | - | 73% | -150% | - | - | - | - | - | -150% |
The Debt/FCF trailing twelve month is 6.36.
The trend of Debt/FCF over the past 5 years is -3.42.
Graham’s Stability measure stands at -1.51.
Growth can be dangerous when forecasting, simply projecting the current growth is in general wrong. A company passes through multiple phases, from being young and unprofitable, to the first periods of profitability and high growth, until it arrives at a period of regime with limited growth. Identifying in which phase the company is in may help forecasting.
Years | 12-2016 | 12-2018 | 12-2020 | 12-2022 | Trend |
---|---|---|---|---|---|
Revenue | 0.94% | 4.9% | 9.9% | 17% | 4.5% |
Net Income | 22% | - | - | 280% | 33% |
Stockholders Equity | -12% | -15% | 4.3% | 21% | 0.87% |
FCF | -10% | - | 13% | 170% | 26% |
The Revenue CAGR over the past 5 years is +4.89%.
The trend of Revenue growth rate over the past 5 years is +4.48%.
The Earnings CAGR over the past 5 years is -.
The trend of Earnings growth rate over the past 5 years is +33.46%.
The Equity CAGR over the past 5 years is -14.84%.
The trend of Equity growth rate over the past 5 years is +0.87%.
The FCF CAGR over the past 5 years is -.
The trend of FCF growth rate over the past 5 years is +25.9%.