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Oceaneering International (OII)
NYSE:OII
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Oceaneering International
(NYSE:OII)
69Neutral
Oceaneering International (OII) vs. S&P 500 (SPY)
Market Cap
$1.80B
Dividend YieldN/A
Average Volume (3M)1.12M
Price to Earnings (P/E)10.0
Beta (1Y)1.17
Revenue Growth10.04%
EPS Growth68.14%
CountryUS
Employees10,400
SectorEnergy
Sector Strength53
IndustryOil & Gas Equipment & Services
Share Statistics
EPS (TTM)1.79
Shares Outstanding100,594,530
10 Day Avg. Volume1,158,185
30 Day Avg. Volume1,123,093
Financial Highlights & Ratios
PEG Ratio0.15
Price to Book (P/B)N/A
Price to Sales (P/S)0.00
Price to Cash Flow (P/CF)0.00
P/FCF Ratio0.00
Enterprise Value/Market Cap1.48
Enterprise Value/RevenueN/A
Enterprise Value/Gross Profit5.50
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
$25.25Price Target Upside42.25% Upside
Rating ConsensusHold
Number of Analyst Covering5
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 exhibits strong revenue growth and improved profitability margins. The balance sheet indicates stability with moderate leverage and strong equity utilization. Cash flow is stable, but there is room for improvement in free cash flow growth. The company should continue to enhance profitability and cash flow generation to maintain financial health amidst industry fluctuations.Income Statement
Oceaneering International shows robust growth in its income statement. The company achieved a remarkable revenue growth rate of 15.1% from 2022 to 2023 and 9.8% from 2023 to 2024, indicating a strong upward trajectory. Gross profit margin for TTM is 19.3%, and the net profit margin improved significantly to 6.7% for the TTM, reflecting enhanced profitability. EBIT and EBITDA margins also exhibit positive trends, with EBIT margin at 10.3% and EBITDA margin at 13.4% for the TTM. This demonstrates effective cost management and operational efficiency. However, the volatility in net income over the years suggests potential concerns in consistent profitability.75
Positive
Balance Sheet
The balance sheet of Oceaneering International portrays a stable financial position with a debt-to-equity ratio of 0.9, indicating moderate leverage. The company has successfully maintained a healthy equity ratio of 34.2% for the TTM, highlighting financial stability. Return on Equity (ROE) stands at 23.4% for the TTM, reflecting effective use of equity to generate profits. The decrease in total debt from 2023 to 2025 suggests prudent debt management. Nonetheless, the company should be cautious of its liabilities, which remain significant relative to equity.70
Positive
Cash Flow
The cash flow statement reflects a stable cash flow position. Operating cash flow to net income ratio for TTM is 1.1, indicating healthy cash generation relative to net income. Free cash flow to net income ratio is 0.5 for TTM, suggesting reasonable liquidity. However, free cash flow showed a decline from 2023 to 2024 but rebounded slightly in TTM. The company should focus on improving its free cash flow growth to ensure adequate liquidity for future investments and obligations.68
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
17.75
Price Trends
19.91
Negative
22.95
Negative
24.62
Negative
Market Momentum
-0.69
Negative
43.88
Neutral
68.29
Neutral
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 17.75 is above the 20-day moving average (MA) of 17.74, below the 50-day MA of 19.91, and below the 200-day MA of 24.62, indicating a neutral trend. The MACD of -0.69 indicates Negative momentum. The RSI at 43.88 is Neutral, neither overbought nor oversold. The STOCH value of 68.29 is Neutral, 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 (56)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
73 Outperform | $1.10B | 14.17 | 7.06% | 3.21% | -9.78% | -49.45% | |
72 Outperform | $1.77B | 21.79 | 7.33% | ― | 2.24% | -66.96% | |
70 Outperform | $1.84B | 10.63 | 16.78% | ― | 33.25% | 83.81% | |
70 Neutral | $1.82B | 6.00 | 13.18% | 2.45% | -7.45% | -44.88% | |
69 Neutral | $1.80B | 10.04 | 26.17% | ― | 10.04% | 68.14% | |
66 Neutral | $922.82M | 11.09 | 5.64% | ― | 0.34% | ― | |
56 Neutral | $6.93B | 3.27 | -3.99% | 5.91% | -0.52% | -47.74% |
* Energy Sector Average
Performance Comparison
OII
Oceaneering International
17.75
-4.77
-21.18%
HLX
Helix Energy
6.09
-4.74
-43.77%
RES
RPC
4.73
-1.72
-26.67%
TDW
Tidewater
36.19
-57.70
-61.45%
DNOW
Now
15.87
1.61
11.29%
LBRT
Liberty Oilfield Services
11.50
-9.49
-45.21%
Oceaneering International Earnings Call Summary
Earnings Call Date:Apr 23, 2025
(Q1-2025)
| % Change Since: 2.78%|
Next Earnings Date:Jul 23, 2025
Earnings Call Sentiment Positive
The earnings call reflected a strong first quarter performance with significant improvements in net income and revenue. Subsea Robotics and Offshore Projects Group achieved notable growth, and the company secured a major contract in Aerospace and Defense Technologies. However, challenges were noted in the Manufactured Products segment and cash flow management. Overall, the positive aspects slightly outweigh the concerns.Q1-2025 Updates
Positive Updates
Strong First Quarter Performance
Oceaneering International reported net income of $50.4 million, or $0.49 per share, marking a 233% year-over-year increase. Consolidated revenue of $675 million improved by 13% compared to the first quarter of 2024. Consolidated adjusted EBITDA of $96.7 million saw a 57% improvement.
Subsea Robotics and Offshore Projects Group Success
Subsea Robotics (SSR) saw an 8% increase in average ROV revenue per day and a 25% increase in EBITDA. Offshore Projects Group (OPG) achieved a 43% revenue increase, with improved vessel activity contributing to a significant rise in operating income.
Largest Contract in Aerospace and Defense Technologies
The Aerospace and Defense Technologies (AdTech) segment was awarded the largest initial contract value in the company's history, which is expected to drive significant operating income growth in 2025.
Strong Order Intake and Backlog
First quarter 2025 order intake was approximately $1.2 billion, with a current backlog that has improved from the same time last year.
Negative Updates
Decline in Manufactured Products Operating Income
Operating income for Manufactured Products declined significantly due to a $10.4 million inventory reserve related to the theme park ride business. The backlog decreased by $54 million from the first quarter of 2024.
Negative Free Cash Flow
The company reported negative free cash flow of $106.8 million, with a cash balance declining to $382 million.
Flat Performance in Certain Segments
Integrity Management and Digital Solutions (IMDS) and AdTech experienced flat or slightly declining operating income despite relatively flat revenue.
Company Guidance
During Oceaneering International, Inc.'s First Quarter 2025 Earnings Conference Call, the company delivered guidance reflecting a strong performance and a positive outlook for the year. The first quarter saw a net income of $50.4 million, or $0.49 per share, marking a 233% year-over-year increase. Consolidated revenue increased by 13% to $675 million, while EBITDA improved by 57% to $96.7 million. Subsea Robotics (SSR) and Offshore Projects Group (OPG) were key contributors, with SSR achieving a 25% EBITDA increase and OPG experiencing a 43% revenue rise. The company's backlog stood at $543 million, and they reported an order intake of approximately $1.2 billion. For the second quarter, Oceaneering expects revenue and EBITDA to increase, with EBITDA projected between $95 million and $105 million. Full-year 2025 guidance includes EBITDA in the range of $380 million to $430 million, supported by a diverse backlog and sustained market activity despite potential geopolitical uncertainties.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.