SBM Offshore NV (SBMO) AI Stock Analysis

• Market Cap: €4.29B
• Dividend Yield: 3.46%
• Average Volume (3M): 248.57K
• Price to Earnings (P/E): 13.7
• Beta (1Y): 0.65
• Revenue Growth: 13.52%
• EPS Growth: -15.28%
• Country: NL
• Employees: 6,301
• Sector: Energy
• Sector Strength: 52
• Industry: Oil & Gas Equipment & Services
• EPS (TTM): 1.35
• Shares Outstanding: 171,361,360
• 10 Day Avg. Volume: 260,435
• 30 Day Avg. Volume: 248,572
• PEG Ratio: -0.30
• Price to Book (P/B): 0.87
• Price to Sales (P/S): 0.66
• P/FCF Ratio: 2.30
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: €29.07
• Price Target Upside: 10.94% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 3
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 75 Outperform
• Price Target: €27.00 ▲(3.05% Upside)

SBM Offshore NV's stock score is primarily driven by strong technical indicators and a fair valuation. The stock shows bullish momentum, trading above key moving averages, although the high RSI suggests potential overbought conditions. Financial performance is mixed, with strengths in cash flow but concerns over high leverage and declining profitability. The absence of recent earnings call data and corporate events limits additional insights.

Positive Factors

Cash Generation

The significant improvement in free cash flow indicates strong cash generation capability, which can support future investments and debt management, enhancing long-term financial stability.

Operational Efficiency

A strong EBIT margin reflects SBM Offshore's operational efficiency, allowing it to maintain profitability despite revenue challenges, which is crucial for sustaining competitive advantage.

Revenue Model

SBM Offshore's reliance on long-term contracts provides revenue stability and predictability, reducing exposure to short-term market fluctuations and supporting sustained business operations.

Negative Factors

High Leverage

Substantial leverage poses financial risks, potentially limiting flexibility in capital allocation and increasing vulnerability to interest rate fluctuations, impacting long-term financial health.

Profitability Decline

The decline in net profit margin indicates reduced profitability efficiency, which could affect the company's ability to reinvest in growth and maintain competitive positioning over time.

Revenue Decline

A decline in revenue suggests potential challenges in market demand or competitive pressures, which could hinder growth prospects and necessitate strategic adjustments to regain momentum.

SBM Offshore NV Business Overview & Revenue Model

Company Description

SBM Offshore N.V. provides floating production solutions to the offshore energy industry worldwide. The company operates in two segments, Lease and Operate, and Turnkey. It engages in the design, supply, installation, operation, lease, and life extension of floating production storage and offloading (FPSO) vessels, as well as semi-submersibles, tension leg platforms, liquefied natural gas (LNG) FPSOs, turret mooring systems, LNG regasification to power vessels, floating offshore wind, and brownfield and offshore loading terminals. The company also provides catenary anchor leg mooring (CALM) or single point mooring (SPM) terminal; as well as provides solutions for floating unit mooring, flexible flowline, and subsea structure installation works. As of December 31, 2021, it operated a fleet of 14 FPSOs and 1 semi-submersible unit. The company was formerly known as IHC Caland and changed its name to SBM Offshore N.V. in 2005. SBM Offshore N.V. was founded in 1862 and is headquartered in Schiphol, the Netherlands.

How the Company Makes Money

SBM Offshore generates revenue primarily through long-term contracts for the leasing and operation of its FPSOs, which are often secured for 10 to 25 years. The company also earns income from engineering and project management services provided during the development phase of offshore projects. Key revenue streams include the leasing fees from FPSO units, which are typically linked to production volumes, and additional services such as maintenance and operational support. Significant partnerships with major oil companies and participation in high-value projects in regions like Brazil, West Africa, and the Gulf of Mexico further enhance its earnings potential. Additionally, the company benefits from a strong backlog of projects, which provides visibility into future revenues.

SBM Offshore NV Financial Statement Overview

Summary

SBM Offshore NV shows operational efficiency and cash flow improvements, but declining revenue and increased leverage are concerning. Profitability metrics have decreased, and debt levels remain high, reflecting potential financial risks. The company demonstrates the ability to generate cash effectively, which could support future stability if leveraged wisely.

Income Statement

SBM Offshore NV's income statement reflects moderate stability with mixed growth. The gross profit margin stands at approximately 23.7%, indicating a solid ability to cover direct costs. However, net profit margin declined from 9.9% in 2023 to 3.1% in 2024, raising concerns about profitability efficiency. Revenue decreased by 3.6% from 2023 to 2024, indicating a potential growth challenge. The EBIT margin remains robust at 19.4%, showcasing operational efficiency despite the revenue dip.

Balance Sheet

The balance sheet reveals a high debt-to-equity ratio of 2.47, suggesting substantial leverage, which could pose financial risks. Return on equity dropped to 4.1% in 2024 from 13.2% in 2023, reflecting a decrease in profitability. The equity ratio is relatively low at 21.1%, indicating heavy reliance on debt financing. While the company’s assets have grown, the elevated debt levels warrant caution.

Cash Flow

SBM Offshore NV's cash flow statement highlights a significant improvement with free cash flow turning positive at €1.37 billion in 2024, a notable recovery from negative figures in previous years. The operating cash flow to net income ratio is strong at 9.88, indicating efficient cash generation relative to net income. Free cash flow growth is impressive, yet historical cash flow volatility suggests a need for careful future cash management.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	5.40B	4.78B	4.96B	4.91B	3.75B	3.50B
Gross Profit	1.40B	1.13B	1.42B	1.18B	922.00M	889.00M
EBITDA	1.44B	1.20B	1.39B	1.13B	959.00M	949.00M
Net Income	356.00M	150.00M	491.00M	450.00M	400.00M	191.00M
Balance Sheet
Total Assets	17.85B	17.16B	17.18B	15.89B	13.21B	11.09B
Cash, Cash Equivalents and Short-Term Investments	1.01B	806.00M	543.00M	682.00M	1.02B	414.00M
Total Debt	9.16B	8.94B	9.29B	8.56B	7.70B	5.62B
Total Liabilities	11.80B	11.31B	11.65B	10.97B	9.68B	7.62B
Stockholders Equity	3.93B	3.62B	3.73B	3.40B	2.58B	2.56B
Cash Flow
Free Cash Flow	1.97B	1.37B	-342.00M	-1.13B	-818.00M	-198.00M
Operating Cash Flow	2.06B	1.48B	-169.00M	-1.05B	-757.00M	-128.00M
Investing Cash Flow	97.00M	92.00M	-142.00M	67.00M	5.00M	-17.00M
Financing Cash Flow	-1.72B	-1.31B	170.00M	646.00M	1.36B	50.00M

SBM Offshore NV Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 26.20
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For NL:SBMO, the sentiment is Positive. The current price of 26.2 is above the 20-day moving average (MA) of 24.61, above the 50-day MA of 24.06, and above the 200-day MA of 21.85, indicating a bullish trend. The MACD of 0.34 indicates Negative momentum. The RSI at 68.12 is Neutral, neither overbought nor oversold. The STOCH value of 72.15 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for NL:SBMO.

SBM Offshore NV Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
SBMO	75 Outperform	€4.29B	13.71	9.56%	3.46%	13.52%	-15.28%
FUR	70 Outperform	€1.01B	7.16	9.91%	8.99%	-7.57%	-51.86%
Sector *	65 Neutral	$15.17B	7.61	4.09%	5.20%	3.87%	-62.32%