Subsea 7
83
15070100
A view of the same findings, not a new score. How it works
A strong score: the model found few serious problems, but analysts see limited upside from here.
Biggest deductions
- Merger with Saipem and EU scrutiny−7
- Multiples vs own history−5
- Margin−4
Strengths
- Raised guidance+2
- Order book+1
- Net cash+1
How the score is built
From 100 to 83, step by step: points off for the business, the price and the cracks, back for documented strengths, then three data adjustments.
Start
Score
Hover or select a step to see what drove it. Steps with findings open them below.
Key numbers
As of 2 Nov 2026. Analyst targets tend to be optimistic; read upside as a hint, not a forecast.
- Price
- 319.20 NOK
- Median analyst target
- 366.78 NOK
- Upside to median
- +14.9%
- Analysts
- 17
- Target range
- 242.80 – 460.03 NOK
- 52-week change
- +73%
- P/E (trailing)
- 15.7
- Forward P/E
- 12.6
- PEG
- 0.45
Findings
Every deduction and every plus, with its source. Open a step to read them.
Business
Is the company getting stronger, not just bigger? · 3 findings−8 of −30
- −4MarginOperating margin 13.7% and net margin 8.2% (TTM) – but only 1.5–2.8% in 2021–2023 and 6.3% in 2024. The margin lift follows a tight market for installation vessels in the offshore cycle, not a lasting improvement; ROIC of 16.7% is a peak-cycle figure.
- −2Future segmentRenewables (about 17% of revenue) is on a 'pause' with few contracts expected in H2 2026; the offshore wind order book is only USD 1.9bn, and segment revenue has been stuck around USD 1.2–1.3bn since 2021.
- −2Quality of growthBook-to-bill only 0.9x in H1 2026 (1.1x in Q2), and analysts expect just 1.6% revenue growth in 2027; the order book for execution in 2027 is USD 5.6bn vs expected revenue of USD 7.7bn in 2026.
Price
Today's multiples against the company's own history and its peers. · 2 findings−7 of −35
- −5Multiples vs own historyP/B 2.26 vs 0.47–1.34 in 2021–2025 (a record), forward P/E 12.7 vs 9.6 in 2025 and 13.1 in 2024, EV/EBITDA 5.7 mid-range of 5.3–9.6. The share price is up 58% in a year and priced on peak-cycle margins.
- −2FCF qualityP/FCF of 6.0 looks cheap, but TTM FCF of USD 1.65bn is lifted by USD 489m of customer advances, and management expects working capital to give back about USD 200m in H2. Analysts expect FCF of USD 874m in 2026 (about a 9% FCF yield).
Cracks
Cash flow, customers, debt, insiders, guidance and what sits behind the headline numbers. · 2 findings−9 of −35
- −7Merger with Saipem and EU scrutinyOn 22 July the European Commission opened a phase 2 investigation with 'serious doubts' about the SURF market (two of only three global leaders) and paused it on 25 Aug; closing could slip to 2027, and remedies could require divestments. On completion, Subsea 7 shareholders own 50% of a company where Saipem has only a 4% operating margin.
- −2Cycle normalisationEPS is expected only +4.5% in 2027 after +74% in 2026; 3 of 17 analysts rate it strong sell, and the lowest target is NOK 239 (−28%).
Plus
Only documented strengths. · 3 findings+4 of +15
- +2Raised guidance2026 adjusted EBITDA margin guidance raised to about 24% from about 23%; adjusted EBITDA +31% in Q2 to USD 471m.
- +1Order bookRecord order book in Subsea & Conventional of USD 11.8bn; USD 13.6bn in total (about 1.8 years of revenue).
- +1Net cashNet cash of USD 190m (excl. leases) vs net debt of USD 602m at the end of 2024; dividends (USD 606m) are clearly below FCF.
Caveats
What the score does not capture, or where the data is weak.
Accounts in USD, price in NOK. P/E recalculated: price NOK 334 and USD/NOK about 9.9 give a trailing P/E of about 16 (EPS USD 2.06) and about 13 on the 2026 estimate (USD 2.52), so stockanalysis' figures are not distorted here. The share still trades in Oslo (29 Sep. 2026), but the merger with Saipem (Saipem7) has not been completed: each Subsea 7 share is to be exchanged for about 6.69 Saipem shares plus a special dividend (about USD 529m in total), so the price in practice follows Saipem. The score applies to Subsea 7 alone and becomes outdated on completion. Peers: cheaper than TechnipFMC (forward P/E 20.6) and Saipem (18.6) – hence no peer deduction. TTM FCF is lifted by customer advances.
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