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SBM Offshore NV (NL:SBMO)
:SBMO
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SBM Offshore NV (SBMO) AI Stock Analysis

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NL:SBMO

SBM Offshore NV

(LSE:SBMO)

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Neutral 69 (OpenAI - 4o)
Rating:69Neutral
Price Target:
€24.00
▲(10.50% Upside)
SBM Offshore NV's overall stock score reflects a mixed financial performance with strong cash flow generation but concerns over declining revenue and high leverage. The technical analysis indicates weak momentum, while the valuation suggests potential undervaluation with a solid dividend yield. These factors combined result in a moderate overall score.

SBM Offshore NV (SBMO) vs. iShares MSCI Netherlands ETF (EWN)

SBM Offshore NV Business Overview & Revenue Model

Company DescriptionSBM 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 MoneySBM 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. However, the company's ability to generate cash effectively could support future stability if leveraged wisely.
Income Statement
75
Positive
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
68
Positive
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
70
Positive
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.
BreakdownTTMDec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income Statement
Total Revenue5.40B4.78B4.96B4.91B3.75B3.50B
Gross Profit1.40B1.13B1.42B1.18B922.00M889.00M
EBITDA1.44B1.20B1.39B1.13B959.00M949.00M
Net Income356.00M150.00M491.00M450.00M400.00M191.00M
Balance Sheet
Total Assets17.85B17.16B17.18B15.89B13.21B11.09B
Cash, Cash Equivalents and Short-Term Investments1.01B806.00M543.00M682.00M1.02B414.00M
Total Debt9.16B8.94B9.29B8.56B7.70B5.62B
Total Liabilities11.80B11.31B11.65B10.97B9.68B7.62B
Stockholders Equity3.93B3.62B3.73B3.40B2.58B2.56B
Cash Flow
Free Cash Flow1.97B1.37B-342.00M-1.13B-818.00M-198.00M
Operating Cash Flow2.06B1.48B-169.00M-1.05B-757.00M-128.00M
Investing Cash Flow97.00M92.00M-142.00M67.00M5.00M-17.00M
Financing Cash Flow-1.72B-1.31B170.00M646.00M1.36B50.00M

SBM Offshore NV Technical Analysis

Technical Analysis Sentiment
Negative
Last Price21.72
Price Trends
50DMA
22.37
Negative
100DMA
22.05
Negative
200DMA
19.87
Positive
Market Momentum
MACD
-0.18
Negative
RSI
42.41
Neutral
STOCH
47.03
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For NL:SBMO, the sentiment is Negative. The current price of 21.72 is below the 20-day moving average (MA) of 21.87, below the 50-day MA of 22.37, and above the 200-day MA of 19.87, indicating a neutral trend. The MACD of -0.18 indicates Negative momentum. The RSI at 42.41 is Neutral, neither overbought nor oversold. The STOCH value of 47.03 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for NL:SBMO.

SBM Offshore NV Peers Comparison

Overall Rating
UnderperformOutperform
Sector (65)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
74
Outperform
€1.04B7.1318.31%8.00%-7.57%-51.86%
69
Neutral
€3.78B11.729.56%3.92%13.52%-15.28%
65
Neutral
$15.17B7.614.09%5.20%3.87%-62.32%
* Energy Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
NL:SBMO
SBM Offshore NV
21.72
5.88
37.10%
NL:FUR
Fugro NV
9.38
-9.65
-50.70%
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

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.Date of analysis: Oct 01, 2025