DCF Tool

OII

Oceaneering International, Inc. – Support Activities for Oil and Gas Operations
oceaneering pushes the frontiers of deep water, space and motion entertainment environments to execute with new, leading-edge connections to solve tomorrow’s challenges, today. as the trusted subsea connection specialist, our experience combined with the depth and breadth of our portfolio of technologies allows us to engineer solutions for the most complex subsea challenges. from routine to extreme, our integrated products, services, and innovative solutions safely de-risk operational systems, increase reliability, and enable a lower total cost of ownership. we are connecting what’s needed with what’s next as the world’s largest rov operator and the leading rov provider to the oil and gas industry with over 300 systems operating worldwide. with our safety-focused and innovative approach, we responsively and decisively react to subsea challenges while providing solutions swiftly and efficiently.
Analysis Results
Intrinsic Value $11.83
Latest Price $20.59
Relative Value 74% overvalued
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Cash Flow (Millions)
Analysis Parameters
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Analysis Details
Growth Rate Projection

An exponential growth model was fit to the past cash flow data, giving more weight to more recent years. This model determined a growth rate estimate of -13.0%.

Weighted Average Cost of Capital (WACC)

The calculated WACC is 3.7%. This value is used as the default discount rate.

Value of Future Flows

Assuming a growth rate of -13.0%, the cash flows for the next 5 years are projected.

The present value of each year's flow is adjusted to present value using the discount rate.

Year Future flow (million) Present value (million)
2023 68.6 66.2
2024 59.7 55.6
2025 52.0 46.7
2026 45.2 39.2
2027 39.3 32.9
Terminal Value

Assuming the company was sold after the projection period at an exit multiple of 30, the terminal value of the company would be 1180 million. This corresponds to a present value of 951 million.

Intrinsic Value Per Share

The total present value of the projected cash flows is 241 million. Adding in the terminal value gives a total present value of 1190 million.

There are presently 101.0 million outstanding shares, so the intrinsic value per share is 11.83.

Financial Statements

The following data was to determine the past cash flows.

Current Assets 1,297,060,000
Current Cash 568,745,000
Current Liabilities 568,414,000
Current Debt 0
Non-Cash Working Capital (NCWC) 159,901,000
Change in NCWC 11,173,000
EBIT 112,570,000
Tax Provision 53,111,000
Depreciation and Amortization 120,969,000
Capital Expenditure -81,043,000
Unlevered Free Cash Flow 88,038,968
Current Assets 1,188,003,000
Current Cash 538,114,000
Current Liabilities 501,161,000
Current Debt 0
Non-Cash Working Capital (NCWC) 148,728,000
Change in NCWC -132,403,000
EBIT 40,393,000
Tax Provision 43,598,000
Depreciation and Amortization 139,723,000
Capital Expenditure -50,199,000
Unlevered Free Cash Flow -2,486,000
Current Assets 1,170,263,000
Current Cash 452,016,000
Current Liabilities 437,116,000
Current Debt 0
Non-Cash Working Capital (NCWC) 281,131,000
Change in NCWC 11,306,000
EBIT -29,486,000
Tax Provision -2,146,000
Depreciation and Amortization 185,015,000
Capital Expenditure -60,687,000
Unlevered Free Cash Flow 106,148,000
Current Assets 1,244,436,000
Current Cash 373,655,000
Current Liabilities 600,956,000
Current Debt 0
Non-Cash Working Capital (NCWC) 269,825,000
Change in NCWC -126,064,000
EBIT -115,316,000
Tax Provision 17,623,000
Depreciation and Amortization 248,714,000
Capital Expenditure -147,684,000
Unlevered Free Cash Flow -140,350,000
Current Assets 1,244,889,000
Current Cash 354,259,000
Current Liabilities 494,741,000
Current Debt 0
Non-Cash Working Capital (NCWC) 395,889,000
Change in NCWC 74,600,000
EBIT -72,816,000
Tax Provision 26,494,000
Depreciation and Amortization 217,141,000
Capital Expenditure -109,467,000
Unlevered Free Cash Flow 109,458,000
Current Assets 1,187,402,000
Current Cash 430,316,000
Current Liabilities 435,797,000
Current Debt 0
Non-Cash Working Capital (NCWC) 321,289,000
Change in NCWC 17,251,000
EBIT 8,673,000
Tax Provision -184,242,000
Depreciation and Amortization 213,519,000
Capital Expenditure -93,680,000
Unlevered Free Cash Flow 145,763,000
Current Assets 1,262,595,000
Current Cash 450,193,000
Current Liabilities 508,364,000
Current Debt 0
Non-Cash Working Capital (NCWC) 304,038,000
Change in NCWC -212,264,000
EBIT 71,008,000
Tax Provision 18,760,000
Depreciation and Amortization 250,247,000
Capital Expenditure -112,392,000
Unlevered Free Cash Flow -34,133,018
Current Assets 1,517,493,000
Current Cash 385,235,000
Current Liabilities 615,956,000
Current Debt 0
Non-Cash Working Capital (NCWC) 516,302,000
Change in NCWC -87,397,000
EBIT 376,040,000
Tax Provision 105,250,000
Depreciation and Amortization 241,235,000
Capital Expenditure -199,970,000
Unlevered Free Cash Flow 212,207,136
Current Assets 1,713,550,000
Current Cash 430,714,000
Current Liabilities 679,137,000
Current Debt 0
Non-Cash Working Capital (NCWC) 603,699,000
Change in NCWC -11,058,000
EBIT 628,279,000
Tax Provision 195,148,000
Depreciation and Amortization 229,779,000
Capital Expenditure -386,883,000
Unlevered Free Cash Flow 263,465,976
Current Assets 1,433,275,000
Current Cash 91,430,000
Current Liabilities 727,088,000
Current Debt 0
Non-Cash Working Capital (NCWC) 614,757,000
Change in NCWC 149,501,000
EBIT 545,249,000
Tax Provision 170,836,000
Depreciation and Amortization 202,228,000
Capital Expenditure -382,531,000
Unlevered Free Cash Flow 342,693,404
Current Assets 1,202,990,000
Current Cash 120,549,000
Current Liabilities 617,185,000
Current Debt 0
Non-Cash Working Capital (NCWC) 465,256,000
Change in NCWC 88,651,000
EBIT 430,270,000
Tax Provision 132,905,000
Depreciation and Amortization 176,483,000
Capital Expenditure -300,598,000
Unlevered Free Cash Flow 259,271,388

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