Oceaneering International, Inc.
Oceaneering International, Inc. Fundamental Analysis
Oceaneering International, Inc. (OII) shows strong financial fundamentals with a PE ratio of 9.85, profit margin of 12.71%, and ROE of 39.31%. The company generates $2.8B in annual revenue with moderate year-over-year growth of 9.75%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 67.8/100 based on profitability, valuation, growth, and balance sheet metrics. The C+ grade reflects average fundamentals, with notable risks in certain areas.
Fundamental Health Score
We analyze OII's fundamental strength across five key dimensions:
Efficiency Score
ExcellentOII demonstrates superior asset utilization.
Valuation Score
ExcellentOII trades at attractive valuation levels.
Growth Score
ExcellentOII delivers strong and consistent growth momentum.
Financial Health Score
ExcellentOII maintains a strong and stable balance sheet.
Profitability Score
ModerateOII maintains healthy but balanced margins.
Key Financial Metrics
Is OII Expensive or Cheap?
P/E Ratio
OII trades at 9.85 times earnings. This suggests potential undervaluation.
PEG Ratio
When adjusting for growth, OII's PEG of 0.03 indicates potential undervaluation.
Price to Book
The market values Oceaneering International, Inc. at 3.24 times its book value. This suggests the stock is fully valued or overvalued on an asset basis.
EV/EBITDA
Enterprise value stands at 9.01 times EBITDA. This is generally considered low.
How Well Does OII Make Money?
Net Profit Margin
For every $100 in sales, Oceaneering International, Inc. keeps $12.71 as profit after all expenses.
Operating Margin
Core operations generate 10.94 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $39.31 in profit for every $100 of shareholder equity.
ROA
Oceaneering International, Inc. generates $13.26 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
Oceaneering International, Inc. produces operating cash flow of $319.10M, showing steady but balanced cash generation.
Free Cash Flow
Oceaneering International, Inc. produces free cash flow of $208.70M, offering steady but limited capital for shareholder returns and expansion.
FCF Per Share
Each share generates $2.08 in free cash annually.
FCF Yield
OII converts 6.00% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
9.85
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
0.03
vs 25 benchmark
P/B Ratio
Price to book value ratio
3.24
vs 25 benchmark
P/S Ratio
Price to sales ratio
1.24
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
0.45
vs 25 benchmark
Current Ratio
Current assets to current liabilities
1.99
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.39
vs 25 benchmark
ROA
Return on assets percentage
0.13
vs 25 benchmark
ROCE
Return on capital employed
0.16
vs 25 benchmark
How OII Stacks Against Its Sector Peers
| Metric | OII Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 9.85 | 20.19 | Better (Cheaper) |
| ROE | 39.31% | 1019.00% | Weak |
| Net Margin | 12.71% | -44017.00% (disorted) | Strong |
| Debt/Equity | 0.45 | -0.65 (disorted) | Distorted |
| Current Ratio | 1.99 | 4.60 | Neutral |
| ROA | 13.26% | -11655350.00% (disorted) | Strong |
OII outperforms its industry in 3 out of 6 key metrics, particularly excelling in Net Margin, but lagging in ROE.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews Oceaneering International, Inc.'s 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
26.97%
Industry Style: Cyclical, Value, Commodity
High GrowthEPS CAGR
141.36%
Industry Style: Cyclical, Value, Commodity
High GrowthFCF CAGR
26.03%
Industry Style: Cyclical, Value, Commodity
High Growth