SBM Offshore NV (SBMO) AI Stock Analysis

• Market Cap: €3.79B
• Dividend Yield: 3.81%
• Average Volume (3M): 248.57K
• Price to Earnings (P/E): 11.8
• Beta (1Y): 0.59
• 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): 1.34
• Shares Outstanding: 176,361,360
• 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: €27.90
• Price Target Upside: 24.66% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 2
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 71 Outperform
• Price Target: €24.00 ▲(7.24% Upside)

SBM Offshore NV's overall score is driven by a solid valuation and effective cash generation, despite financial risks from high leverage and declining profitability. Technical indicators suggest neutral momentum, while the lack of earnings call and corporate events data limits further insights.

SBM Offshore NV Business Overview & Revenue Model

Company Description

SBM Offshore NV (SBMO) is a leading provider of floating production solutions for the offshore oil and gas industry, specializing in the design, construction, and operation of floating production storage and offloading (FPSO) units. The company operates in the sectors of offshore oil and gas production, marine services, and energy transition solutions. SBM Offshore offers a range of services including lease and operate contracts, engineering and project management, as well as providing technological innovations aimed at enhancing efficiency and sustainability in offshore operations.

How the Company Makes Money

SBM Offshore generates revenue primarily through long-term contracts for leasing and operating FPSO units, which are critical for the extraction and processing of oil and gas in offshore environments. The company's revenue model is largely based on a combination of fixed and variable fees tied to production levels from the fields they serve. Key revenue streams include lease and operate agreements, engineering services for FPSO construction, and maintenance services. Additionally, SBM Offshore often enters into joint ventures and strategic partnerships with major oil and gas companies, which can enhance project financing and risk-sharing, further contributing to its earnings. Factors such as global oil prices, demand for offshore production capabilities, and advancements in technology also significantly influence the company's financial performance.

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: 22.38
• 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 22.38 is above the 20-day moving average (MA) of 22.06, above the 50-day MA of 21.88, and above the 200-day MA of 20.66, indicating a bullish trend. The MACD of 0.09 indicates Negative momentum. The RSI at 55.76 is Neutral, neither overbought nor oversold. The STOCH value of 39.39 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	71 Outperform	€3.79B	11.76	9.56%	3.81%	13.52%	-15.28%
FUR	70 Outperform	€938.11M	6.63	9.91%	8.78%	-7.57%	-51.86%
Sector *	65 Neutral	$15.17B	7.61	4.09%	5.20%	3.87%	-62.32%