Oceaneering International (OII) Fundamental & Technical Analysis - Post Earnings Q2


Chart done on daily candles. Oceaneering International is labeled as a company in the oil & gas equipment sector, but it does far more than just that. The company wears many hats, and provides services and products to a variety of industries such as energy, defense, aerospace, manufacturing, and more. They have a list of customers that’s too large to list, so I’ve attached a link so you can see for yourself. Unfortunately, most companies in the heavy equipment industry suffer from high cost of revenue, which has been a challenge for OII when we look at the their net income. Revenue is healthy and slowly making a comeback from the pandemic shutdowns, but investors want to see cost-cutting to bring up net. OII’s balance sheet is healthy, and so is their cash flow, but neither pieces of the fundamentals are very strong. Their dividend also ended a long time ago, so without strong growth, investors may not have a reason to hold long term. If entered, consider a short to medium length hold and watch earnings closely, net income needs to come up and they need to accelerate revenue growth. Price to earnings valuation is currently at 34, the industry average is 33. This company is at a fair valuation, but there are many others in the same industry with better fundamentals and that pay dividends.