Subsea 7 S.A.
Subsea 7 S.A. Fundamental Analysis
Subsea 7 S.A. (SUBCY) shows moderate financial fundamentals with a PE ratio of 19.07, profit margin of 5.80%, and ROE of 9.61%. The company generates $7.1B in annual revenue with strong year-over-year growth of 14.45%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 57.5/100 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 SUBCY's fundamental strength across five key dimensions:
Efficiency Score
WeakSUBCY struggles to generate sufficient returns from assets.
Valuation Score
ExcellentSUBCY trades at attractive valuation levels.
Growth Score
ExcellentSUBCY delivers strong and consistent growth momentum.
Financial Health Score
ExcellentSUBCY maintains a strong and stable balance sheet.
Profitability Score
WeakSUBCY struggles to sustain strong margins.
Key Financial Metrics
Is SUBCY Expensive or Cheap?
P/E Ratio
SUBCY trades at 19.07 times earnings. This indicates a fair valuation.
PEG Ratio
When adjusting for growth, SUBCY's PEG of 0.45 indicates potential undervaluation.
Price to Book
The market values Subsea 7 S.A. at 1.78 times its book value. This may indicate undervaluation.
EV/EBITDA
Enterprise value stands at 5.34 times EBITDA. This is generally considered low.
How Well Does SUBCY Make Money?
Net Profit Margin
For every $100 in sales, Subsea 7 S.A. keeps $5.80 as profit after all expenses.
Operating Margin
Core operations generate 11.06 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $9.61 in profit for every $100 of shareholder equity.
ROA
Subsea 7 S.A. generates $5.12 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
Subsea 7 S.A. produces operating cash flow of $1.48B, showing steady but balanced cash generation.
Free Cash Flow
Subsea 7 S.A. generates strong free cash flow of $1.20B, providing ample flexibility for dividends, buybacks, or growth.
FCF Per Share
Each share generates $4.04 in free cash annually.
FCF Yield
SUBCY converts 15.25% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
19.07
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
0.45
vs 25 benchmark
P/B Ratio
Price to book value ratio
1.78
vs 25 benchmark
P/S Ratio
Price to sales ratio
1.11
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
0.25
vs 25 benchmark
Current Ratio
Current assets to current liabilities
1.11
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.10
vs 25 benchmark
ROA
Return on assets percentage
0.05
vs 25 benchmark
ROCE
Return on capital employed
0.15
vs 25 benchmark
How SUBCY Stacks Against Its Sector Peers
| Metric | SUBCY Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 19.07 | 19.95 | Neutral |
| ROE | 9.61% | 963.00% | Weak |
| Net Margin | 5.80% | -48347.00% (disorted) | Weak |
| Debt/Equity | 0.25 | -0.54 (disorted) | Distorted |
| Current Ratio | 1.11 | 4.82 | Neutral |
| ROA | 5.12% | -2296.00% (disorted) | Weak |
SUBCY outperforms its industry in 0 out of 6 key metrics, but lagging in ROE.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews Subsea 7 S.A.'s 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
91.18%
Industry Style: Cyclical, Value, Commodity
High GrowthEPS CAGR
349.91%
Industry Style: Cyclical, Value, Commodity
High GrowthFCF CAGR
166.98%
Industry Style: Cyclical, Value, Commodity
High Growth