# Subsea 7 (SUBC.OL)

Canonical: https://gigainvestors.com/s/SUBC.OL

Analysis as of: 2026-10-16T07:35:50.232Z. Financial observations: FY2016–FY2025.

Listing currency: NOK. Reporting currency: USD.

## Verdict

Not a wonderful business

Quality tests for Buy: not passed (profit record: pass; earnings resilience is evidence only). Published buy qualification: no.

Share price: NOK 327.40 per share; close as of 2026-10-15.

Estimated value: low NOK 166.14 per share, central NOK 185.11 per share, high NOK 210.36 per share. Buy at or below the central value NOK 185.11 per share. Valuation as of 2026-10-16T07:35:50.232Z; scenarios are not confidence intervals.

Expected annual return: 6.6% at the stated quote. About 6.6% a year at today's price (required return 10.0%). required return 10.0% a year (10% floor; NO 10-year bond 4.5% + 4 points).

## Checklist

### understandable: fail

- 2 revenue declines in the last 10 years (informational)

- operating margin variation exceeds 0.35

- Financial history: 10 years

- Years with declining revenue: 2

- Years with a net loss: 2

- Operating margin variation: 1.56×

Chart: Operating margin; fiscal year observations.

- FY2016: 0.17×

- FY2017: 0.16×

- FY2018: 0.05×

- FY2019: 0.02×

- FY2020: -0.12×

- FY2021: 0.01×

- FY2022: 0.03×

- FY2023: 0.02×

- FY2024: 0.06×

- FY2025: 0.10×

### moat: fail

- ROIC median below threshold

- ROIC worst years below threshold (more than 1 bad year allowed)

- ROIC, median of available years: 3.0%

- ROIC, second-lowest year: 1.2%

- Typical minus recent gross margin: -0.4 pp

- Typical gross margin (annual median): 9.9%

- Recent gross margin (lower of latest and 3-year median): 10.3%

- Years with nonpositive capital: 0

- Capital spending / revenue: 5.2%

- ROIC including acquisitions, ten-year median: 4.6%

Chart: ROIC excluding acquisitions; fiscal year observations.

- FY2016: 13.1%

- FY2017: 11.3%

- FY2018: 3.6%

- FY2019: 1.3%

- FY2020: -7.9%

- FY2021: 1.2%

- FY2022: 2.4%

- FY2023: 1.3%

- FY2024: 5.7%

- FY2025: 11.3%

### economics: pass

- Owner earnings / net income, 5-yr: 2.17×

- Cash conversion uses consolidated totals: No

- Owner earnings, five-year total: $1.6B

- Net income, five-year total: $717M

- Return on incremental invested capital: >100%

- Working capital / revenue, annual change: -0.3 pp

- Working capital / revenue, change between three-year averages: -1.8 pp

- Working capital / revenue, final three-year average: 4.9%

Chart: Annual owner cash / profit; fiscal year observations.

- FY2021: 8.27×

- FY2022: 4.24×

- FY2023: -4.95×

- FY2024: 1.91×

- FY2025: 1.80×

### management: pass

- Historical market-dollar context (not the management verdict): 2017 to 2025 (8 years)

- buybacks leaned toward cheaper years (informational)

- ROIC first 3 years vs last 3 years: 11.3% vs 5.7%

- Per-share earnings: 0.57 to 0.67 (three-year endpoint medians)

- Management verdict uses per-share economic progress: Yes

- Ordinary dilution, 5-year annual growth: 0.0%

- Market cap gain: $2.2B

- Cumulative retained earnings: -$919M

- Diluted shares, 5-year annual growth: 0.0%

- $1 test, starting fiscal year: FY2017

- $1 test, ending fiscal year: FY2025

- Per-share value growth: 2.7%

- Per-share value change: $0.10

- Per-share value, starting three-year median: $0.57

- Per-share value, ending three-year median: $0.67

- Buybacks concentrated in cheaper years (correlation): 0.30

- Average buyback yield: 2.6%

- Buyback history: 5 years

- Debt-funded buybacks: No

- Cumulative net income, 10 years: $614M

- ROIC, first three-year median: 11.3%

- ROIC, last three-year median: 5.7%

Chart: Earnings per share; fiscal year observations.

- FY2017: $1.40

- FY2018: $0.57

- FY2019: -$0.28

- FY2020: -$3.67

- FY2021: $0.11

- FY2022: $0.19

- FY2023: $0.05

- FY2024: $0.67

- FY2025: $1.38

### accounting: pass

- Sloan accruals: -13.2%

- Receivables to sales index (DSRI): 1.27×

- Restructuring years, last five: 0

- Stock compensation / operating cash flow: 0.6%

- Earnings backed by cash: Yes

- Operating cash / earnings: 3.57×

- Accounting red flags: 0

- Goodwill and intangibles / equity: 0.06×

Chart: Sloan accruals; fiscal year observations.

- FY2016: -7.8%

- FY2017: 3.2%

- FY2018: -3.2%

- FY2019: -6.1%

- FY2020: -24.4%

- FY2021: -3.7%

- FY2022: -6.2%

- FY2023: -8.0%

- FY2024: -9.5%

- FY2025: -13.2%

## Holders

## Price story

Price needs cash profits to grow 9% a year for ten years · sales +3.6%

Story as of 2026-10-16T10:00:06.172Z; price observation 2026-10-15.

Price needs cash profits to grow 9% a year for ten years

- 2025-05-02: Subsea7 awarded ‘super-major’ contract offshore Brazil ([finance.yahoo.com](https://finance.yahoo.com/news/subsea7-awarded-super-major-contract-200100131.html))

- 2025-06-17: Subsea 7 - contract award offshore Norway ([finance.yahoo.com](https://finance.yahoo.com/news/subsea-7-contract-award-offshore-143700722.html))

- 2025-07-04: Subsea 7 - awarded contract offshore Egypt ([finance.yahoo.com](https://finance.yahoo.com/news/subsea-7-awarded-contract-offshore-160400770.html))

- 2025-12-23: Subsea 7 - awarded contract offshore US ([finance.yahoo.com](https://finance.yahoo.com/news/subsea-7-awarded-contract-offshore-080000814.html))

- 2026-04-14: Subsea 7 Wins Petrobras Deal Raising Backlog Visibility And Valuation Questions ([finance.yahoo.com](https://finance.yahoo.com/markets/stocks/articles/subsea-7-wins-petrobras-deal-090556600.html))

### Sales · FY2024–2025

sales +3.6%; source https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/; observed 2026-10-16.

- FY2016: $3.6B 

- FY2017: $4.0B 

- FY2018: $4.1B 

- FY2019: $3.7B 

- FY2020: $3.5B 

- FY2021: $5.0B 

- FY2022: $5.1B 

- FY2023: $6.0B 

- FY2024: $6.8B 

- FY2025: $7.1B 

### Gross margin · FY2025

gross margin 15.2%; source https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/; observed 2026-10-16.

- FY2016: 22.6% 

- FY2017: 21.8% 

- FY2018: 12.0% 

- FY2019: 9.5% 

- FY2021: 5.9% 

- FY2022: 7.7% 

- FY2023: 6.1% 

- FY2024: 10.3% 

- FY2025: 15.2% 

## Owner memo

Memo as of 2026-10-16T08:06:05.509Z.

### How it makes money

Annual sales are USD 7.1 billion.

- Source: https://eodhd.com/api/fundamentals/SOC.STU.json#2025-12-31 (filed 2026-10-16T07:35:50.232Z); FY2025: revenue 7086300000; grossProfit 1074900000; margin = grossProfit / revenue.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16); SUBC.OL: Subsea 7 S.A. delivers offshore projects and services for the energy industry worldwide. The company offers subsea field development products and services, including project management, design and engineering, procurement, fabrication, survey, installation, and commissioning of production facilities on the seabed and the tie-back of its facilities to fixed or floating platforms or to the shore. It also provides remotely operated vehicles and tooling services to support exploration and production activities and to deliver full life-of-field services; procurement and installation of offshore wind turbine foundations and inter-array cables, as well as heavy lifting operations for renewables structures and heavy transportation services; and engineering and advisory services to clients in the oil and gas, renewables, and utilities industries. In addition, the company offers engineering, procurement, installation, and commissioning of subsea oil and gas systems in deep waters; fabrication, installation, extension, and refurbishment of fixed and floating platforms and associated pipelines in shallow water environments; inspection, and repair and maintenance services, management of subsea infrastructure, and remote intervention support; and carbon capture, utilization, and storage services. The company was incorporated in 1993 and is based in Luxembourg, Luxembourg.

### Why customers stay

Margins ranged from 6.1% to 15.2% during 2023–25; it earns 3% on its capital.

- Source: https://eodhd.com/api/fundamentals/SOC.STU.json#2023-12-31 (filed 2026-10-16T07:35:50.232Z); FY2023: grossProfit / revenue = 6.1%.

- Source: https://eodhd.com/api/fundamentals/SOC.STU.json#2024-12-31 (filed 2026-10-16T07:35:50.232Z); FY2024: grossProfit / revenue = 10.3%.

- Source: https://eodhd.com/api/fundamentals/SOC.STU.json#2025-12-31 (filed 2026-10-16T07:35:50.232Z); FY2025: grossProfit / revenue = 15.2%.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:35:50.232Z); 10-year return on capital observations [[2016,0.1306251539619543],[2017,0.11281577862280662],[2018,0.036333371130513666],[2019,0.01271429456851848],[2020,-0.07853857153243983],[2021,0.012431050094217263],[2022,0.024493376388924203],[2023,0.013351246866901737],[2024,0.05673906989696463],[2025,0.11342015769573617]]; median 0.030413373759718934. ROIC follows the displayed moat series; financial companies use return on tangible equity.

### Can it raise prices

Kept about a 8% gross margin through 2022 cost inflation.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:35:50.232Z); Gross margin observations: [[2021,0.059041916167664674],[2022,0.07730051793294132],[2023,0.060732879120143295]]; range within 2 percentage points.

### Where the cash goes

Reinvests 0.4% of cash earnings; paid dividends in 8 of 8 years.

- Source: https://eodhd.com/api/fundamentals/SOC.STU.json#2016-12-31 (filed 2026-10-16T07:35:50.232Z); FY2016: growth capex 0; upkeep 304400000; owner earnings 493400000. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/api/fundamentals/SOC.STU.json#2017-12-31 (filed 2026-10-16T07:35:50.232Z); FY2017: growth capex 0; upkeep 154100000; owner earnings 55200000. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/api/fundamentals/SOC.STU.json#2018-12-31 (filed 2026-10-16T07:35:50.232Z); FY2018: growth capex 0; upkeep 244000000; owner earnings 179600000. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/api/fundamentals/SOC.STU.json#2019-12-31 (filed 2026-10-16T07:35:50.232Z); FY2019: growth capex 0; upkeep 258300000; owner earnings 64160000. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/api/fundamentals/SOC.STU.json#2021-12-31 (filed 2026-10-16T07:35:50.232Z); FY2021: growth capex 0; upkeep 166500000; owner earnings 262920000. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/api/fundamentals/SOC.STU.json#2022-12-31 (filed 2026-10-16T07:35:50.232Z); FY2022: growth capex 0; upkeep 231000000; cash acquisitions 0; owner earnings 242300000. Growth capex plus acquisitions / owner earnings = 0.

- Source: https://eodhd.com/api/fundamentals/SOC.STU.json#2024-12-31 (filed 2026-10-16T07:35:50.232Z); FY2024: growth capex 0; upkeep 348700000; cash acquisitions 153300000; owner earnings 384220000. Growth capex plus acquisitions / owner earnings = 0.3989901618864192.

- Source: https://eodhd.com/api/fundamentals/SOC.STU.json#2025-12-31 (filed 2026-10-16T07:35:50.232Z); FY2025: growth capex 0; upkeep 281000000; cash acquisitions 2800000; owner earnings 739640000. Growth capex plus acquisitions / owner earnings = 0.0037856254394029528.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:35:50.232Z); Dividend observations: [[2017,191100000],[2018,204300000],[2019,53800000],[2021,72000000],[2022,31700000],[2023,112100000],[2024,162900000],[2025,376200000]]. Zero only counted when supported by a complete cash-flow statement.

### Are managers owners

Insiders own 23.7% of the company.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16); SUBC.OL SharesStats.PercentInsiders = 23.71 percentage points; cache date 2026-10-16.

### What the price says

The price assumes cash profits grow 9% yearly over ten years.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:35:50.232Z); Ten-year compound average after fade. Initial solved rate 0.11666578161119137. Price 327.4; FX 9.475080538184574; discount 0.1; same standard ten-year fade to terminal 0.03.  Closing-price date 2026-10-15.

## Monthly share-price history (NOK per share)

- 2016-10: NOK 92.70 per share

- 2016-11: NOK 99.40 per share

- 2016-12: NOK 109.30 per share

- 2017-01: NOK 112.10 per share

- 2017-02: NOK 118.50 per share

- 2017-03: NOK 132.80 per share

- 2017-04: NOK 142.00 per share

- 2017-05: NOK 121.50 per share

- 2017-06: NOK 112.30 per share

- 2017-07: NOK 116.40 per share

- 2017-08: NOK 111.70 per share

- 2017-09: NOK 130.70 per share

- 2017-10: NOK 137.30 per share

- 2017-11: NOK 121.50 per share

- 2017-12: NOK 123.00 per share

- 2018-01: NOK 120.00 per share

- 2018-02: NOK 120.05 per share

- 2018-03: NOK 100.25 per share

- 2018-04: NOK 112.70 per share

- 2018-05: NOK 124.80 per share

- 2018-06: NOK 130.35 per share

- 2018-07: NOK 118.25 per share

- 2018-08: NOK 114.05 per share

- 2018-09: NOK 120.40 per share

- 2018-10: NOK 106.45 per share

- 2018-11: NOK 92.54 per share

- 2018-12: NOK 84.28 per share

- 2019-01: NOK 95.74 per share

- 2019-02: NOK 104.60 per share

- 2019-03: NOK 106.70 per share

- 2019-04: NOK 109.60 per share

- 2019-05: NOK 97.34 per share

- 2019-06: NOK 102.65 per share

- 2019-07: NOK 95.50 per share

- 2019-08: NOK 88.18 per share

- 2019-09: NOK 93.98 per share

- 2019-10: NOK 86.00 per share

- 2019-11: NOK 96.52 per share

- 2019-12: NOK 104.95 per share

- 2020-01: NOK 99.18 per share

- 2020-02: NOK 82.54 per share

- 2020-03: NOK 49.54 per share

- 2020-04: NOK 56.82 per share

- 2020-05: NOK 55.80 per share

- 2020-06: NOK 60.60 per share

- 2020-07: NOK 68.24 per share

- 2020-08: NOK 70.70 per share

- 2020-09: NOK 67.06 per share

- 2020-10: NOK 62.88 per share

- 2020-11: NOK 84.44 per share

- 2020-12: NOK 87.84 per share

- 2021-01: NOK 80.46 per share

- 2021-02: NOK 90.38 per share

- 2021-03: NOK 85.90 per share

- 2021-04: NOK 84.48 per share

- 2021-05: NOK 81.08 per share

- 2021-06: NOK 82.66 per share

- 2021-07: NOK 70.90 per share

- 2021-08: NOK 66.22 per share

- 2021-09: NOK 76.08 per share

- 2021-10: NOK 75.76 per share

- 2021-11: NOK 63.50 per share

- 2021-12: NOK 63.18 per share

- 2022-01: NOK 66.52 per share

- 2022-02: NOK 60.10 per share

- 2022-03: NOK 82.42 per share

- 2022-04: NOK 78.00 per share

- 2022-05: NOK 97.68 per share

- 2022-06: NOK 78.74 per share

- 2022-07: NOK 86.82 per share

- 2022-08: NOK 89.38 per share

- 2022-09: NOK 86.50 per share

- 2022-10: NOK 104.00 per share

- 2022-11: NOK 110.55 per share

- 2022-12: NOK 113.05 per share

- 2023-01: NOK 123.85 per share

- 2023-02: NOK 135.30 per share

- 2023-03: NOK 123.90 per share

- 2023-04: NOK 121.65 per share

- 2023-05: NOK 112.55 per share

- 2023-06: NOK 133.65 per share

- 2023-07: NOK 136.05 per share

- 2023-08: NOK 138.50 per share

- 2023-09: NOK 147.40 per share

- 2023-10: NOK 146.40 per share

- 2023-11: NOK 151.80 per share

- 2023-12: NOK 148.20 per share

- 2024-01: NOK 142.55 per share

- 2024-02: NOK 154.95 per share

- 2024-03: NOK 172.55 per share

- 2024-04: NOK 180.20 per share

- 2024-05: NOK 193.80 per share

- 2024-06: NOK 200.80 per share

- 2024-07: NOK 210.20 per share

- 2024-08: NOK 189.20 per share

- 2024-09: NOK 170.50 per share

- 2024-10: NOK 168.30 per share

- 2024-11: NOK 174.30 per share

- 2024-12: NOK 180.10 per share

- 2025-01: NOK 187.30 per share

- 2025-02: NOK 172.70 per share

- 2025-03: NOK 167.60 per share

- 2025-04: NOK 156.50 per share

- 2025-05: NOK 173.80 per share

- 2025-06: NOK 189.30 per share

- 2025-07: NOK 201.80 per share

- 2025-08: NOK 209.80 per share

- 2025-09: NOK 206.00 per share

- 2025-10: NOK 185.00 per share

- 2025-11: NOK 195.10 per share

- 2025-12: NOK 203.20 per share

- 2026-01: NOK 245.60 per share

- 2026-02: NOK 274.80 per share

- 2026-03: NOK 300.40 per share

- 2026-04: NOK 333.20 per share

- 2026-05: NOK 305.00 per share

- 2026-06: NOK 338.00 per share

- 2026-07: NOK 318.40 per share

- 2026-08: NOK 344.80 per share

- 2026-09: NOK 325.00 per share

- 2026-10: NOK 327.40 per share

## Annual estimated value (NOK per share)

- FY2020: low NOK 34.24 per share, central NOK 37.16 per share, high NOK 41.04 per share

- FY2021: low NOK 45.34 per share, central NOK 49.58 per share, high NOK 55.24 per share

- FY2022: low NOK 96.45 per share, central NOK 107.49 per share, high NOK 122.18 per share

- FY2023: low NOK 55.50 per share, central NOK 60.51 per share, high NOK 67.17 per share

- FY2024: low NOK 125.30 per share, central NOK 140.66 per share, high NOK 161.11 per share

- FY2025: low NOK 155.71 per share, central NOK 173.54 per share, high NOK 197.29 per share

Historical values use today's bond yield for every fiscal year

Historical values use today's FX rate into trading currency for every fiscal year

Historical values use current restated fundamentals and current commodity classification; they are not point-in-time estimates

Prior published observations retained from 2026-10-15T06:41:28.743Z where newer inputs omit a numeric field or fiscal period.

## Sources

Estimates depend on assumptions and are not guarantees or investment advice. Underlying data remains subject to its source licenses; public reading does not grant bulk redistribution rights.