SBM Offshore N.V.
SBM Offshore N.V. Fundamental Analysis
SBM Offshore N.V. (SBFFF) shows moderate financial fundamentals with a PE ratio of 6.28, profit margin of 15.63%, and ROE of 22.22%. The company generates $5.9B in annual revenue with weak year-over-year growth of -3.59%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 44.0/100 based on profitability, valuation, growth, and balance sheet metrics. The D grade reflects weak fundamentals and significant financial concerns.
Fundamental Health Score
We analyze SBFFF's fundamental strength across five key dimensions:
Efficiency Score
WeakSBFFF struggles to generate sufficient returns from assets.
Valuation Score
ExcellentSBFFF trades at attractive valuation levels.
Growth Score
WeakSBFFF faces weak or negative growth trends.
Financial Health Score
ModerateSBFFF shows balanced financial health with some risks.
Profitability Score
ExcellentSBFFF achieves industry-leading margins.
Key Financial Metrics
Is SBFFF Expensive or Cheap?
P/E Ratio
SBFFF trades at 6.28 times earnings. This suggests potential undervaluation.
PEG Ratio
When adjusting for growth, SBFFF's PEG of 0.04 indicates potential undervaluation.
Price to Book
The market values SBM Offshore N.V. at 1.32 times its book value. This may indicate undervaluation.
EV/EBITDA
Enterprise value stands at -1.28 times EBITDA. This is generally considered low.
How Well Does SBFFF Make Money?
Net Profit Margin
For every $100 in sales, SBM Offshore N.V. keeps $15.63 as profit after all expenses.
Operating Margin
Core operations generate 30.12 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $22.22 in profit for every $100 of shareholder equity.
ROA
SBM Offshore N.V. generates $5.12 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
SBM Offshore N.V. produces operating cash flow of $996.42M, showing steady but balanced cash generation.
Free Cash Flow
SBM Offshore N.V. generates strong free cash flow of $964.32M, providing ample flexibility for dividends, buybacks, or growth.
FCF Per Share
Each share generates $5.74 in free cash annually.
FCF Yield
SBFFF converts 16.70% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
6.28
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
0.04
vs 25 benchmark
P/B Ratio
Price to book value ratio
1.32
vs 25 benchmark
P/S Ratio
Price to sales ratio
0.98
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
2.10
vs 25 benchmark
Current Ratio
Current assets to current liabilities
1.44
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.22
vs 25 benchmark
ROA
Return on assets percentage
0.05
vs 25 benchmark
ROCE
Return on capital employed
0.13
vs 25 benchmark
How SBFFF Stacks Against Its Sector Peers
| Metric | SBFFF Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 6.28 | 19.95 | Better (Cheaper) |
| ROE | 22.22% | 963.00% | Weak |
| Net Margin | 15.63% | -48347.00% (disorted) | Strong |
| Debt/Equity | 2.10 | -0.54 (disorted) | Distorted |
| Current Ratio | 1.44 | 4.82 | Neutral |
| ROA | 5.12% | -2296.00% (disorted) | Weak |
SBFFF outperforms its industry in 2 out of 6 key metrics, particularly excelling in Net Margin, but lagging in ROE.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews SBM Offshore N.V.'s 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
56.81%
Industry Style: Cyclical, Value, Commodity
High GrowthEPS CAGR
-67.37%
Industry Style: Cyclical, Value, Commodity
DecliningFCF CAGR
845.38%
Industry Style: Cyclical, Value, Commodity
High Growth