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Oceaneering International (OII)
NYSE:OII
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Oceaneering International
(NYSE:OII)65Neutral
Oceaneering International (OII) vs. S&P 500 (SPY)
Market Cap
$1.98B
Dividend YieldN/A
Average Volume (3M)841.56K
Price to Earnings (P/E)13.3
Beta (1Y)1.24
Revenue Growth9.75%
EPS Growth50.93%
CountryUS
Employees10,100
SectorEnergy
Sector Strength57
IndustryFossil Fuels
Share Statistics
EPS (TTM)1.44
Shares Outstanding100,660,995
10 Day Avg. Volume1,210,730
30 Day Avg. Volume841,560
Financial Highlights & Ratios
PEG Ratio0.26
Price to Book (P/B)N/A
Price to Sales (P/S)0.82
Price to Cash Flow (P/CF)4.30
P/FCF Ratio4.00
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
$28.25Price Target Upside46.98% Upside
Rating ConsensusHold
Number of Analyst Covering4
Oceaneering International Business Overview & Revenue Model
Company DescriptionOceaneering International, Inc. is a global provider of engineered services and products, primarily to the offshore oil and gas industry, with a focus on deepwater applications. The company operates in several sectors including remotely operated vehicles (ROVs), subsea products, offshore projects, asset integrity, and advanced technologies. Oceaneering is known for its innovative solutions and expertise in delivering full-service capabilities in harsh and challenging environments.
How the Company Makes MoneyOceaneering International generates revenue through multiple streams primarily derived from the offshore oil and gas industry. Key revenue sources include the leasing and operation of remotely operated vehicles (ROVs) for subsea exploration and development, manufacturing and sale of specialized subsea products, and providing engineering services for offshore projects. Additionally, the company offers asset integrity management services to ensure the safe and efficient operation of offshore facilities. Oceaneering also benefits from contracts and partnerships with major oil and gas companies, defense agencies, and other sectors that require advanced technologies for complex operational environments. Their diversified portfolio allows them to capitalize on various segments of the energy sector, contributing to a stable and robust revenue model.
Oceaneering International Financial Statement Overview
Summary
Oceaneering International has shown significant improvements in revenue and profitability, with strong income statement performance. The balance sheet indicates improved leverage management, but there is room for strengthening financial stability. Cash flow is stable but shows a decline in free cash flow, suggesting the need for increased operational efficiency.Income Statement
Oceaneering International shows strong revenue growth with a 9.75% increase from 2023 to 2024. The gross profit margin improved to 18.24%, reflecting better cost management. The net profit margin also strengthened to 5.54%, indicating enhanced profitability. However, EBIT and EBITDA margins are slightly lower than optimal, suggesting room for operational efficiency improvements.75
Positive
Balance Sheet
The company's debt-to-equity ratio decreased from 1.35 in 2023 to 1.0 in 2024, showing improved leverage management. Return on Equity (ROE) rose to 20.47%, which is a positive sign of profitability. However, the equity ratio is 30.83%, reflecting moderate financial stability with some reliance on debt financing. The balance sheet shows a solid financial position but could be more robust.65
Positive
Cash Flow
Free cash flow decreased by 12.07% from 2023 to 2024, potentially indicating higher capital expenditures or operational challenges. The operating cash flow to net income ratio is 1.38, suggesting strong cash generation relative to net income. However, the decline in free cash flow growth necessitates monitoring for future improvements.70
Positive
| Breakdown | ||||
| Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|
| Income Statement | Total Revenue | |||
| 2.66B | 2.42B | 2.07B | 1.87B | 1.83B | Gross Profit |
| 485.49M | 398.97M | 307.38M | 264.06M | 163.94M | EBIT |
| 246.27M | 181.33M | -3.70M | -106.62M | -31.75M | EBITDA |
| 366.28M | 302.54M | 231.83M | 179.52M | -269.98M | Net Income Common Stockholders |
| 147.47M | 97.40M | 25.94M | -49.31M | -496.75M |
| Balance Sheet | Cash, Cash Equivalents and Short-Term Investments | |||
| 504.52M | 461.57M | 568.75M | 538.11M | 462.19M | Total Assets |
| 2.34B | 2.24B | 2.03B | 1.96B | 2.05B | Total Debt |
| 720.33M | 848.66M | 720.55M | 702.07M | 805.25M | Net Debt |
| 222.82M | 387.09M | 151.81M | 163.95M | 353.24M | Total Liabilities |
| 1.62B | 1.60B | 1.51B | 1.45B | 1.49B | Stockholders Equity |
| 720.32M | 628.02M | 525.80M | 511.02M | 558.16M |
| Cash Flow | Free Cash Flow | |||
| 96.08M | 109.23M | 39.84M | 175.12M | 75.96M | Operating Cash Flow |
| 203.21M | 209.96M | 120.88M | 225.31M | 136.65M | Investing Cash Flow |
| -124.17M | -86.35M | -76.86M | -34.16M | -52.59M | Financing Cash Flow |
| -27.04M | -227.30M | -1.86M | -101.68M | -1.70M |
Oceaneering International Technical Analysis
Negative
19.22
Price Trends
24.91
Negative
25.80
Negative
25.31
Negative
Market Momentum
-1.50
Positive
20.90
Positive
9.03
Positive
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For OII, the sentiment is Negative. The current price of 19.22 is below the 20-day moving average (MA) of 23.23, below the 50-day MA of 24.91, and below the 200-day MA of 25.31, indicating a bearish trend. The MACD of -1.50 indicates Positive momentum. The RSI at 20.90 is Positive, neither overbought nor oversold. The STOCH value of 9.03 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for OII.
Oceaneering International Peers Comparison
Overall Rating
UnderperformOutperform
Sector (57)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
79 Outperform | $41.90B | 14.22 | 18.47% | 2.03% | 9.10% | 55.56% | |
77 Outperform | $11.17B | 13.88 | 27.06% | 0.75% | 16.23% | 1403.29% | |
75 Outperform | $21.00B | 8.54 | 25.14% | 2.81% | -0.32% | -3.41% | |
75 Outperform | $5.43B | 8.89 | 10.12% | 1.93% | 3.42% | -35.98% | |
72 Outperform | $53.62B | 12.69 | 21.59% | 2.81% | 9.58% | 6.53% | |
65 Neutral | $1.98B | 13.34 | 21.97% | ― | 9.75% | 50.93% | |
57 Neutral | $8.34B | 5.35 | -5.98% | 7.29% | 0.20% | -69.45% |
* Energy Sector Average
Performance Comparison
OII
Oceaneering International
19.22
-1.35
-6.56%
BKR
Baker Hughes Company
42.89
12.99
43.44%
FTI
TechnipFMC
26.67
4.82
22.06%
HAL
Halliburton
25.00
-10.38
-29.34%
NOV
NOV
14.96
-2.42
-13.92%
SLB
Schlumberger
41.37
-7.73
-15.74%
Oceaneering International Earnings Call Summary
Earnings Call Date: Feb 19, 2025 | % Change Since: -23.67% | Next Earnings Date: Apr 23, 2025
Earnings Call Sentiment Positive
The earnings call highlighted a strong financial performance for Oceaneering with significant achievements in order intake, ROV uptime, and safety improvements. The company also secured a notable defense contract and projected a positive outlook for 2025. However, challenges in the Manufactured Products, IMDS, and AdTech segments, along with a decrease in free cash flow, were noted.Highlights
Strong Order Intake
Recorded notable order intake of $2.9 billion, indicating strong customer confidence in Oceaneering's services and products.
ROV Uptime and Pricing Improvements
Achieved a year-end ROV uptime rate of 99% and improved ROV pricing by 13% over the year.
Record Quarterly Revenue and EBITDA
Attained highest quarterly revenue since Q4 2015 and surpassed $100 million in adjusted EBITDA for the first time since Q2 2016.
Defense Contract Win
Won a contract from the Defense Innovation Unit to build a Freedom Vehicle for the US Navy, showcasing cross-industry applications of Oceaneering's technology.
Safety Achievements
Achieved a 56% reduction in high potential incidents and a TRIR of 0.29, nearly matching the record low TRIR of 2022.
Positive 2025 Outlook
Projected 2025 consolidated revenue to grow by mid to high single digits, with expectations for increased revenue and operating income in each segment.
Lowlights
Manufactured Products Segment Challenges
Operating income margin declined to 3% in Q4 2024 due to a reserve taken on an umbilical project, with a year-end backlog decrease of $17 million.
IMDS and AdTech Margin Declines
IMDS operating income margin declined from 5% to 3% and AdTech margin declined to 10% due to project mix changes and costs associated with acquisitions and new ERP system implementation.
Free Cash Flow Decrease
For the full year 2024, free cash flow was $96.1 million, a decrease from $109 million in 2023, due to increased net working capital and cash taxes.
Company Guidance
During Oceaneering's fourth quarter and full year 2024 earnings call, several key metrics and guidance were highlighted. The company reported a notable order intake of $2.9 billion and achieved a year-end ROV uptime rate of 99%. They realized a 13% improvement in ROV pricing and a 361 basis point improvement in SSR EBITDA margin, ending at 36%. For the fourth quarter, Oceaneering reported a net income of $56.1 million, a 26% year-over-year increase, and consolidated revenue of $713 million, up 9% from the prior year. The consolidated operating income was $77.9 million, a 64% increase year-over-year. For 2025, Oceaneering expects positive free cash flow between $110 million to $130 million and EBITDA ranging from $380 million to $430 million, with consolidated revenue projected to grow by mid to high single digits. The company forecasts ROV fleet utilization between the high sixty to low seventy percent range and anticipates a 17% year-over-year EBITDA increase. Additionally, the company highlighted a significant reduction in high potential incidents by 56% and a TRIR of 0.29 for the year.Oceaneering International Corporate Events
Regulatory Filings and Compliance
Oceaneering International Releases Investor Handout Online
Neutral
Feb 24, 2025
Oceaneering International announced that an investor handout will be available for viewing and downloading on their website’s Investor Relations page starting February 24, 2025, after market close. This release is intended for institutional investor meetings and will not be considered filed under the Securities Exchange Act of 1934 or incorporated by reference in any filings unless specifically identified.
Glossary
OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.
NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.
UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.