Definitive Analysis
Definitive Analysis

Financial Statements

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Ticker

Industry

Sector

Reach Subsea ASA (REACH.OL)

Company Dividend Discount ModelIndustry: Oil & Gas Equipment & ServicesSector: Energy

Valuation Snapshot

Stable Growth$36.40 - $151.08$92.99
Multi-Stage$18.41 - $20.11$19.25
Blended Fair Value$56.12
Current Price$7.68
Upside630.68%
DecisionBuy

Dividend History & Growth Metrics (10Y)

Metric5Y CAGR10Y CAGR2024202320222021202020192018201720162015
DPS57.65%0.00%0.310.150.130.070.000.030.000.000.000.00
YoY Growth--112.78%13.58%87.94%0.00%-100.00%0.00%0.00%0.00%0.00%0.00%
Dividend Yield--4.18%2.37%3.04%1.53%0.00%3.90%0.00%0.00%0.00%0.00%

Stable Growth Model (Adjusted)

(USD in Millions except Per Share Data)
Net Income To Common (M)240.49
(-) Cash Dividends Paid (M)137.50
(=) Cash Retained (M)102.99
MetricLOWBASEHIGH
Required Retention Ratio20.0%12.5%7.5%
(=) Cash Required (M)48.1030.0618.04
Cash Retained (M)102.99102.99102.99
(-) Cash Required (M)-48.10-30.06-18.04
(=) Excess Retained (M)54.8972.9384.95
(/) Shares Outstanding (M)316.57316.57316.57
(=) Excess Retained per Share0.170.230.27
LTM Dividend per Share0.430.430.43
(+) Excess Retained per Share0.170.230.27
(=) Adjusted Dividend0.610.660.70
WACC / Discount Rate7.26%7.26%7.26%
Growth Rate5.50%6.50%7.50%
Fair Value$36.40$92.99$151.08
Upside / Downside373.99%1,110.78%1,867.15%

Multi-Stage Model: Projections

(USD in Millions)
MetricTTMDec-27Dec-28Dec-29Dec-30Dec-31Terminal
Net Income (M)240.49256.12272.77290.50309.38329.49339.37
Payout Ratio57.18%63.74%70.31%76.87%83.44%90.00%92.50%
Projected Dividends (M)137.50163.25191.77223.30258.13296.54313.92

Multi-Stage Valuation

MetricLOWBASEHIGH
WACC / Discount Rate7.26%7.26%7.26%
Growth Rate5.50%6.50%7.50%
Year 1 PV (M)150.77152.20153.63
Year 2 PV (M)163.57166.68169.83
Year 3 PV (M)175.90180.95186.10
Year 4 PV (M)187.79195.01202.44
Year 5 PV (M)199.24208.87218.86
PV of Terminal Value (M)4,949.685,188.755,436.97
Equity Value (M)5,826.956,092.466,367.82
Shares Outstanding (M)316.57316.57316.57
Fair Value$18.41$19.25$20.11
Upside / Downside139.67%150.59%161.91%

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