Decoding Oceaneering International Inc (OII)'s Performance Potential: A Deep Dive into Key Metrics
Long-established in the Oil & Gas industry, Oceaneering International Inc (NYSE:OII) has enjoyed a stellar reputation. It has recently witnessed a daily gain of 4.15%, juxtaposed with a three-month change of 47.17%. However, fresh insights from the GF Score hint at potential headwinds. Notably, its diminished rankings in financial strength, growth, and valuation suggest that the company might not live up to its historical performance. Join us as we dive deep into these pivotal metrics to unravel the evolving narrative of Oceaneering International Inc.
Understanding the GF Score
The GF Score is a stock performance ranking system developed by GuruFocus using five aspects of valuation, which has been found to be closely correlated to the long-term performances of stocks by backtesting from 2006 to 2021. The stocks with a higher GF Score generally generate higher returns than those with a lower GF Score. Therefore, when picking stocks, investors should invest in companies with high GF Scores. The GF Score ranges from 0 to 100, with 100 as the highest rank.
Financial strength rank: 6/10
Profitability rank: 4/10
Growth rank: 0/10
GF Value rank: 1/10
Momentum rank: 6/10
Based on the above method, GuruFocus assigned Oceaneering International Inc the GF Score of 53 out of 100, which signals poor future outperformance potential.
Unveiling Oceaneering International Inc's Business
Oceaneering International Inc, with a market cap of $2.54 billion, is a global provider of engineered services and products robotic solutions to the offshore energy, defense, aerospace, manufacturing, and entertainment industries. The company, which primarily serves the offshore oil and gas market, had a 2020 segment realignment to promote synergies and cost efficiency. Its five segments include subsea robotics; manufactured products; offshore projects group; integrity management and digital solutions; and aerospace and defense technologies. The firm is also involved in the offshore renewables and mobility solutions industries. With sales of $2.23 billion and an operating margin of 7.4%, Oceaneering International Inc's business model is worth a closer look.
Profitability Analysis
Oceaneering International Inc's low Profitability rank of 4/10 can raise warning signals for investors. This rank, which is based on several key profitability ratios, suggests that the company's profitability is weaker than most of its industry peers. This could potentially impact the company's ability to generate sustainable profits in the long run.
Growth Prospects
A lack of significant growth is another area where Oceaneering International Inc seems to falter, as evidenced by the company's low Growth rank of 0/10. The company's revenue has declined by -0.6 per year over the past three years, which underperforms worse than 71% of 862 companies in the Oil & Gas industry. Stagnating revenues may pose concerns in a fast-evolving market. Lastly, Oceaneering International Inc predictability rank is just one star out of five, adding to investor uncertainty regarding revenue and earnings consistency.
Conclusion
Given Oceaneering International Inc's financial strength, profitability, and growth metrics, the GF Score highlights the firm's unparalleled position for potential underperformance. While the company has a strong reputation in the industry, its low GF Score and ranks in key areas suggest that it may struggle to maintain its historical performance. Investors should consider these factors when making investment decisions. GuruFocus Premium members can find more companies with strong GF Scores using the following screener link: GF Score Screen.
This article first appeared on GuruFocus.
