One-glance verdict
Within fair range
$38.92 our estimate vs market $45.93
Wall Street consensus: $46.00 (18.2% higher than our fair-value estimate)
18% above our estimate
Fundamentals snapshot
Oceaneering International, Inc.
OII · NYQ · Energy · Oil & Gas Equipment & Services
Current price
$45.93
52-week range
$22.02 - $54.25
Market cap
$4.57B
Balance sheet
Healthy
8.24x Adequate
Net debt $185.69M. Interest coverage shows how many times profit covers the interest bill.
What stands out
3 Rewards
2 Risks
3 rewards · 2 risks
- Reward Revenue grew 3.2% last year.
- Reward Returns 34.6% on equity, ahead of 50% of its peers.
- Risk Forward P/E (19.8x) is higher than trailing (13.3x) - earnings are expected to drop.
- Risk Insider ownership is only 1.3% (peer median: 2.1%).
What this company does
Oceaneering International, Inc.
Oceaneering International builds and operates advanced underwater robots and equipment, primarily serving the offshore oil and gas industry. A large part of their business comes from using these robots to perform complex tasks like construction, inspection, and repair deep on the ocean floor where humans can't go. Because their main customers are energy companies, their success often depends on the level of investment in deep-sea oil and gas exploration.
How the company got here
Oceaneering started in 1964 as a small diving company for offshore oil rigs in the Gulf of Mexico. Through a series of mergers and acquisitions, it grew into a global company that provides services and products for complex operations in deepwater, space, and other challenging environments. Key turning points include acquiring companies that specialized in remotely operated vehicles (ROVs), which are unmanned underwater robots, and space systems. This allowed Oceaneering to transfer its expertise from the sea to aerospace and defense projects.
What it actually does
Think of Oceaneering as a high-tech problem solver for industries that work in extreme conditions. For energy companies, they provide robotic vehicles and specialized hardware to explore for oil and gas, build underwater infrastructure, and maintain it. Beyond energy, they use their technology to help with defense, space exploration, and even entertainment systems for theme parks. Essentially, if a company needs to do complex work deep in the ocean or in space, they might hire Oceaneering for their expertise and equipment.
Subsea Robotics
This is Oceaneering's largest business, where they operate a huge fleet of remotely operated vehicles (ROVs), which are like underwater drones controlled by pilots on the surface. Energy companies pay Oceaneering to use these ROVs for tasks like supporting drilling operations, inspecting pipelines, and installing equipment on the seabed. This segment is a major part of the company's revenue (the total money it brings in from sales). They also provide autonomous underwater vehicles (AUVs) that can perform tasks without direct human control.
Manufactured Products
In this segment, Oceaneering designs and builds specialized equipment for the energy industry and other sectors. A key product is umbilicals, which are like giant extension cords that provide power and communication to equipment on the ocean floor. They also manufacture hardware for connecting pipelines and other subsea systems. This part of the business sells physical goods rather than just services.
Offshore Projects Group
This division acts as a project manager for complex offshore jobs. They handle tasks like installing and repairing underwater equipment, which can involve using divers and specialized vessels. For example, an energy company might hire this group to manage the installation of a new subsea well. This segment often integrates services from Oceaneering's other divisions to provide a complete solution.
Integrity Management & Digital Solutions
This part of the company focuses on keeping industrial assets safe and running efficiently. They provide inspection and testing services for both offshore and onshore facilities to check for things like corrosion or other damage. They also offer software and digital solutions that help companies manage the health of their equipment over its entire life. This helps customers prevent failures and optimize maintenance.
Aerospace and Defense Technologies
This segment applies Oceaneering's technology from the deep sea to aerospace and defense applications. They provide engineering services and manufacture products for government agencies, like the U.S. Navy, and their main contractors. This can include work on submarine systems, space exploration hardware, and autonomous vehicles for defense purposes. This business provides a source of revenue that is not directly tied to the oil and gas industry.
What management is betting on now
Management is focused on diversifying the company to be less dependent on the cyclical oil and gas market. A key part of this strategy is growing their Aerospace and Defense Technologies segment, which provides more stable revenue from government contracts. They are also investing in digital solutions and autonomous robotics to meet the growing demand for automation and data-driven decision-making in the industries they serve. Additionally, Oceaneering is positioning itself to support the growing offshore renewable energy market.
Price history
How the share price has moved
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Earnings history
Last 8 quarters — what happened
Click any quarter to read the call summary and what the numbers say.
FY2024 Q3
$67.05M
FY2024 Q4
$94.50M
FY2025 Q1
$-106.81M
FY2025 Q2
$46.91M
FY2025 Q3
$77.05M
FY2025 Q4
$190.69M
FY2026 Q1
$-76.52M
FY2026 Q2
$32.03M
Revenue
$768.18M
Net income
$65.02M
Diluted EPS
0.65
Operating cash flow
$55.21M
Free cash flow
$32.03M
Fetching…
Sources
Revenue
$692.43M
Net income
$36.11M
Diluted EPS
0.36
Operating cash flow
$-59.12M
Free cash flow
$-76.52M
Fetching…
Sources
Revenue
$668.57M
Net income
—
Diluted EPS
1.75
Operating cash flow
$221.13M
Free cash flow
$190.69M
Fetching…
Sources
Revenue
$742.90M
Net income
—
Diluted EPS
0.71
Operating cash flow
$101.26M
Free cash flow
$77.05M
Fetching…
Sources
Revenue
$698.16M
Net income
$54.44M
Diluted EPS
0.54
Operating cash flow
$77.19M
Free cash flow
$46.91M
Fetching…
Sources
Revenue
$674.52M
Net income
$50.38M
Diluted EPS
0.49
Operating cash flow
$-80.72M
Free cash flow
$-106.81M
Fetching…
Sources
Revenue
$713.45M
Net income
—
Diluted EPS
0.55
Operating cash flow
$128.38M
Free cash flow
$94.50M
Fetching…
Sources
Revenue
$679.81M
Net income
—
Diluted EPS
0.40
Operating cash flow
$91.93M
Free cash flow
$67.05M
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Sources
Is it cheap or expensive?
Fair value $38.92 vs current price $45.93
Wall Street consensus is the average analyst price target: $46.00 (18.2% higher than our fair-value estimate).
Our most-likely fair value is $38.92 a share — about 15.3% away from today's price of $45.93, so the stock currently looks fairly priced.
Is it drowning in debt?
Healthy
Net debt $185.7M. Interest coverage 8.2x.
Net debt
$185.69M
Interest coverage
8.24x
Oceaneering International, Inc.'s profit covers its interest bill about 8.2 times over. which is stronger than most peers shown here and 1 peers sit below 1x, which is the danger zone where profit does not fully cover the interest bill.
Healthy
Worse cushion
Baseline
Better cushion
OII
BASELINE
Oceaneering International, Inc.
Total debt $822.16M Interest coverage 8.24x This is the baseline the peer rows are being compared against.
Total debt $1.24B Interest coverage 17.11x +108% vs OII Carries about 2.1x more debt cushion than OII.
Total debt $490.11M Interest coverage 2.52x -69% vs OII Carries about 3.3x less debt cushion than OII.
Total debt $2.33B Interest coverage 6.41x -22% vs OII Carries about 1.3x less debt cushion than OII.
Total debt $1.62B Interest coverage 5.43x -34% vs OII Carries about 1.5x less debt cushion than OII.
Total debt $36.22M Interest coverage 0.30x -96% vs OII Carries about 27.0x less debt cushion than OII.
What you should know
The case for and against OII
3 Rewards
2 Risks
Rewards
-
Revenue grew 3.2% last year.
-
Returns 34.6% on equity, ahead of 50% of its peers.
-
Free cash flow was positive in 9/10 years.
Risks
-
Forward P/E (19.8x) is higher than trailing (13.3x) - earnings are expected to drop.
-
Insider ownership is only 1.3% (peer median: 2.1%).
The numbers
All the key metrics, grouped by purpose
Tap any ? icon to learn what it means.
Valuation
How expensive the stock looks
P/E (TTM)
13.27x
Forward P/E
19.80x
P/B
3.93x
P/S
1.59x
EV/EBITDA
11.76x
PEG ratio
8.01x
Profitability
How much profit each dollar creates
Gross margin
19.8%
Operating margin
11.5%
Net margin
12.2%
ROE
34.6%
ROA
7.4%
Health
Liquidity and balance-sheet strength
Debt / equity
0.70x
Current ratio
2.18x
Quick ratio
1.76x
Total debt
$822.16M
Total cash
$636.47M
Growth
How the business has been compounding
Revenue TTM
$2.87B
Revenue 5Y CAGR
10.5%
EPS TTM
3.46
EPS 5Y CAGR
138.0%
Cash flow
How much cash the business throws off
Operating CF TTM
$318.48M
Free CF TTM
$207.85M
FCF margin
7.2%
Dividend
Shareholder payout
Yield
—
Payout ratio
0.0%
Last ex-div date
2017-08-23