Long-established in the Oil & Gas industry, Oceaneering International Inc (OII, Financial) has enjoyed a stellar reputation. It has recently witnessed a surge of 2.52%, juxtaposed with a three-month change of 40.85%. However, fresh insights from the GuruFocus Score Rating 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.
Decoding 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.
- 1. Financial strength rank: 6/10
- 2. Profitability rank: 4/10
- 3. Growth rank: 0/10
- 4. GF Value rank: 1/10
- 5. 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.
Understanding Oceaneering International Inc's Business
Oceaneering International Inc, with a market cap of $2.54 billion and sales of $2.23 billion, is a global provider of engineered services and products robotic solutions to the offshore energy, defense, aerospace, manufacturing, and entertainment industries. Most of its products are produced for the offshore oil and gas market. It had a 2020 segment realignment to promote synergies and cost efficiency. The five segments are 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.
Profitability Breakdown
Oceaneering International Inc's low Profitability rank can also raise warning signals. With an operating margin of 7.4%, the company's profitability is a concern, especially when compared to other players in the industry.
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. The company's revenue has declined by -0.6 per year over the past three years, which underperforms worse than 70.71% of 850 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 the company's financial strength, profitability, and growth metrics, the GuruFocus Score Rating highlights the firm's unparalleled position for potential underperformance. While Oceaneering International Inc has a strong reputation in the industry, its current financial and growth indicators 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
