Discounted Cash Flow (DCF) Analysis Unlevered

Oceaneering International, Inc. (OII)

$17.07

+0.52 (+3.14%)

All numbers are in Millions, Currency in USD

Stock DCF: -24.93 | 17.07 | overvalue

Operating Data

Year A/P	2018 Actual	2019 Actual	2020 Actual	2021 Actual	2022 Actual	2023 Projected	2024 Projected	2025 Projected	2026 Projected	2027 Projected
Revenue	1,909.48	2,048.12	1,827.89	1,869.28	2,066.08	2,114.12	2,163.28	2,213.58	2,265.05	2,317.71
Revenue (%)
EBITDA	145.50	-24.68	73.90	172.82	238.24	132.06	135.13	138.28	141.49	144.78
EBITDA (%)
EBIT	-148.09	-288.11	-455	33.10	117.27	-166.03	-169.89	-173.85	-177.89	-182.02
EBIT (%)
Depreciation	293.59	263.43	528.90	139.72	120.97	298.10	305.03	312.12	319.38	326.81
Depreciation (%)

Balance Sheet Data

Year A/P	2018 Actual	2019 Actual	2020 Actual	2021 Actual	2022 Actual	2023 Projected	2024 Projected	2025 Projected	2026 Projected	2027 Projected
Total Cash	364.44	383.83	462.20	538.11	568.74	504.97	516.71	528.72	541.02	553.60
Total Cash (%)
Account Receivables	625.09	642.65	518.21	576.13	636.79	651.60	666.75	682.25	698.11	714.35
Account Receivables (%)
Inventories	194.51	174.74	141.24	164.78	182.13	186.36	190.70	195.13	199.67	204.31
Inventories (%)
Accounts Payable	102.64	145.93	94.21	110	121.58	124.41	127.30	130.26	133.29	136.39
Accounts Payable (%)
Capital Expenditure	-109.47	-147.68	-60.69	-50.20	-81.04	-96.71	-98.96	-101.26	-103.61	-106.02
Capital Expenditure (%)

Weighted Average Cost Of Capital

Share price	$ 17.07
Beta	2.851
Diluted Shares Outstanding	101.45
Cost of Debt
Tax Rate	67.18
After-tax Cost of Debt	1.47%
Risk-Free Rate
Market Risk Premium
Cost of Equity	16.936
Total Debt	852.82
Total Equity	1,731.70
Total Capital	2,584.52
Debt Weighting	33.00
Equity Weighting	67.00
Wacc

Build Up Free Cash

Year A/P	2018 Actual	2019 Actual	2020 Actual	2021 Actual	2022 Actual	2023 Projected	2024 Projected	2025 Projected	2026 Projected	2027 Projected
Revenue	1,909.48	2,048.12	1,827.89	1,869.28	2,066.08	2,114.12	2,163.28	2,213.58	2,265.05	2,317.71
EBITDA	145.50	-24.68	73.90	172.82	238.24	132.06	135.13	138.28	141.49	144.78
EBIT	-148.09	-288.11	-455	33.10	117.27	-166.03	-169.89	-173.85	-177.89	-182.02
Tax Rate	-14.26%	-5.33%	0.43%	-763.67%	67.18%	-143.13%	-143.13%	-143.13%	-143.13%	-143.13%
EBIAT	-169.20	-303.46	-453.04	285.88	38.48	-403.68	-413.06	-422.67	-432.49	-442.55
Depreciation	293.59	263.43	528.90	139.72	120.97	298.10	305.03	312.12	319.38	326.81
Accounts Receivable	-	-17.56	124.44	-57.92	-60.66	-14.81	-15.15	-15.50	-15.86	-16.23
Inventories	-	19.76	33.50	-23.54	-17.35	-4.23	-4.33	-4.43	-4.54	-4.64
Accounts Payable	-	43.30	-51.73	15.79	11.58	2.83	2.89	2.96	3.03	3.10
Capital Expenditure	-109.47	-147.68	-60.69	-50.20	-81.04	-96.71	-98.96	-101.26	-103.61	-106.02
UFCF	14.92	-142.22	121.38	309.74	11.98	-218.50	-223.58	-228.78	-234.10	-239.54
WACC
PV UFCF						-195.38	-178.78	-163.58	-149.68	-136.96
SUM PV UFCF										-824.38

Terminal Value

Growth in perpetuity method:
Long-term growth rate
WACC (%)	11.83
Free cash flow (t + 1)	-244.33
Terminal Value	-2,485.56
Present Value of Terminal Value	-1,421.12

Intrinsic Value

Enterprise Value	-2,245.51
Net Debt	284.07
Equity Value	-2,529.58
Shares Outstanding	101.45
Equity Value Per Share	-24.93