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Relative valuation derived from Energy sector median benchmarks. Model weights: EV/EBITDA (40%), P/B (35%), P/S (25%). Multiples adjusted for extreme outliers and non-recurring volatility.
Auditing capital efficiency...
Quality Profile Audit
Score: 50GRADE C+
Composite assessment of profitability, capital efficiency, and financial strength. Top-tier entities demonstrate sustainable cash flow generation.
Return on Equity
Profit generated per dollar of shareholder equity
20.2%
Sector: 6.7%
Dividend Analysis audit
No Dividend
This company does not currently pay a dividend.
Analyst Projections
Analyst Consensus
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Based on our 6-factor quantitative model, OCEANEERING INTERNATIONAL INC (OII) receives a "Hold" rating with a composite score of 52.3/100, ranked #474 out of 4446 stocks. Key factor scores: Quality 50/100, Value 68/100, Momentum 71/100. This is quantitative analysis only — not investment advice.
OCEANEERING INTERNATIONAL INC (OII) Stock Analysis — April 2026 Rating, Price, and Forecast
Company Overview — What Does OCEANEERING INTERNATIONAL INC Do?
Oceaneering International, Inc. provides engineered services, products, and robotic solutions to the offshore energy, defense, aerospace, manufacturing, and entertainment industries worldwide. The company's Subsea Robotics segment provides remotely operated vehicles (ROVs) for drill support and vessel-based services, including subsea hardware installation, construction, pipeline inspection, survey and facilities inspection, maintenance, and repair. This segment also offers ROV tooling, and survey services, such as hydrographic survey and positioning services, as well as autonomous underwater vehicles for geoscience. As of December 31, 2021, this segment owned 250 work-class ROVs. Its Manufactured Products segment provides distribution and connection systems, including production control umbilicals and field development hardware, pipeline connection, and repair systems to the energy industry; and autonomous mobile robots and automated guided vehicle technology and entertainment systems to various industries. The company's Offshore Projects Group segment offers subsea installation and intervention, including riserless light well intervention services and inspection, and maintenance and repair services; installation and workover control systems, and ROV workover control systems; project management and engineering; and drill pipe riser services and systems, and wellhead load relief solutions. Its Integrity Management & Digital Solutions segment provides asset integrity management; software and analytical solutions for the bulk cargo maritime industry; and software, digital, and connectivity solutions for the energy industry. The company's Aerospace and Defense Technologies segment offers government services and products, including engineering and related manufacturing in defense and space exploration activities to U.S. government agencies and their prime contractors. Oceaneering International, Inc. was founded in 1964 and is headquartered in Houston, Texas. OCEANEERING INTERNATIONAL INC (OII) is classified as a mid-cap stock in the Energy sector, specifically within the Petroleum And Natural Gas industry. The company is led by CEO Roderick A. Larson and employs approximately 9,200 people, headquartered in Houston, Texas. With a market capitalization of $3.6B, OII is one of the notable companies in the Energy sector.
OCEANEERING INTERNATIONAL INC (OII) Stock Rating — Hold (April 2026)
As of April 2026, OCEANEERING INTERNATIONAL INC receives a Hold rating with a composite score of 52.3/100 and 3 out of 5 stars from the Blank Capital Research quantitative model.OII ranks #474 out of 4,446 stocks in our coverage universe. Within the Energy sector, OCEANEERING INTERNATIONAL INC ranks #63 of 128 stocks, placing it in the upper half of its Energy peers. The rating is generated by a multi-factor model that weighs quality (30%), momentum (25%), value (15%), investment (10%), stability (10%), and short interest (10%).
OII Stock Price and 52-Week Range
OCEANEERING INTERNATIONAL INC (OII) currently trades at $35.56. The 52-week high for OII is $39.00, which means the stock is currently trading -8.8% from its annual peak. The 52-week low is $15.46, putting the stock 130.0% above its annual trough. Recent trading volume was 0 shares, suggesting relatively thin trading activity.
Is OII Overvalued or Undervalued? — Valuation Analysis
OCEANEERING INTERNATIONAL INC (OII) carries a value factor score of 68/100 in the Blank Capital model, indicating fair valuation relative to historical norms. The trailing price-to-earnings ratio is 15.72x, compared to the Energy sector average of 20.66x — a discount of 24%. The price-to-book ratio stands at 3.17x, versus the sector average of 1.76x. The price-to-sales ratio is 1.22x, compared to 0.49x for the average Energy stock. On an enterprise value basis, OII trades at 11.63x EV/EBITDA, versus 3.73x for the sector.
Overall, OII's valuation appears roughly in line with sector benchmarks, suggesting the market is pricing the stock fairly given its current fundamentals and growth trajectory. Neither deep value nor significantly overpriced, the stock occupies a middle ground on valuation.
OCEANEERING INTERNATIONAL INC Profitability — ROE, Margins, and Quality Score
OCEANEERING INTERNATIONAL INC (OII) earns a quality factor score of 50/100, indicating solid business quality with consistent operational execution. The return on equity (ROE) is 20.2%, compared to the Energy sector average of 6.7%, which demonstrates strong shareholder value creation. Return on assets (ROA) comes in at 8.2% versus the sector average of 3.7%.
On a margin basis, OCEANEERING INTERNATIONAL INC reports gross margins of 20.3%, compared to 52.7% for the sector. The operating margin is 11.1% (sector: 10.7%). Net profit margin stands at 7.7%, versus 6.4% for the average Energy stock. Revenue growth is running at 11.1% on a trailing basis, compared to -1.2% for the sector. The overall profitability profile is adequate, though there may be room for margin expansion.
OII Debt, Balance Sheet, and Financial Health
OCEANEERING INTERNATIONAL INC has a debt-to-equity ratio of 45.0%, compared to the Energy sector average of 55.0%. The low leverage indicates a conservative balance sheet with significant financial flexibility. The current ratio is 1.99x, suggesting adequate working capital coverage. Total debt on the balance sheet is $487M.
OII has a beta of 1.44, meaning it is more volatile than the broader market — a $10,000 investment in OII would be expected to move 43.6% more than the S&P 500 on any given day. The stability factor score for OCEANEERING INTERNATIONAL INC is 50/100, reflecting average volatility within the normal range for its sector.
OCEANEERING INTERNATIONAL INC Revenue and Earnings History — Quarterly Trend
In TTM 2026, OCEANEERING INTERNATIONAL INC reported revenue of $2.80B and earnings per share (EPS) of $3.53. Net income for the quarter was $217M. Gross margin was 20.3%. Operating income came in at $311M.
In FY 2025, OCEANEERING INTERNATIONAL INC reported revenue of $2.78B and earnings per share (EPS) of $3.53. Net income for the quarter was $354M. Gross margin was 20.4%. Revenue grew 4.6% year-over-year compared to FY 2024. Operating income came in at $305M.
In Q3 2025, OCEANEERING INTERNATIONAL INC reported revenue of $743M and earnings per share (EPS) of $0.71. Net income for the quarter was $71M. Gross margin was 20.6%. Revenue grew 9.3% year-over-year compared to Q3 2024. Operating income came in at $87M.
In Q2 2025, OCEANEERING INTERNATIONAL INC reported revenue of $698M and earnings per share (EPS) of $0.54. Net income for the quarter was $54M. Gross margin was 21.3%. Revenue grew 4.4% year-over-year compared to Q2 2024. Operating income came in at $79M.
Over the past 8 quarters, OCEANEERING INTERNATIONAL INC has demonstrated a growth trajectory, with revenue expanding from $669M to $2.80B. Investors analyzing OII stock should weigh these quarterly trends alongside the valuation and quality metrics discussed above.
OII Dividend Yield and Income Analysis
OCEANEERING INTERNATIONAL INC (OII) does not currently pay a dividend. This is common among smaller companies in the Petroleum And Natural Gas industry that prefer to reinvest cash flows into business expansion rather than returning capital to shareholders. Income-focused investors looking for Energy dividend stocks may want to explore other Energy stocks or use the stock screener to filter by dividend yield.
OII Momentum and Technical Analysis Profile
OCEANEERING INTERNATIONAL INC (OII) has a momentum factor score of 71/100, indicating strong price momentum with the stock outperforming the majority of the market over recent periods. Stocks with high momentum scores have historically tended to continue their outperformance in the near term. The investment factor score is 29/100, which measures capital allocation efficiency and asset growth patterns. The short interest score of 16/100 signals elevated short interest, which can indicate bearish sentiment among institutional investors.
OII vs Competitors — Energy Sector Ranking and Peer Comparison
Comparing OII against the S&P 500 benchmark is also instructive for understanding relative performance. Investors can view the full OII vs S&P 500 (SPY) comparison to assess how OCEANEERING INTERNATIONAL INC stacks up against the broader market across all factor dimensions.
OII Next Earnings Date
No upcoming earnings date has been announced for OCEANEERING INTERNATIONAL INC (OII) at this time. Check the earnings calendar for the latest scheduling updates across all stocks in our coverage universe.
Should You Buy OII? — Investment Thesis Summary
OCEANEERING INTERNATIONAL INC presents a balanced picture with arguments on both sides. The value score of 68/100 suggests attractive pricing relative to fundamentals. Price momentum is positive at 71/100, suggesting the trend favors buyers.
In summary, OCEANEERING INTERNATIONAL INC (OII) earns a Hold rating with a composite score of 52.3/100 as of April 2026. The rating is derived from the Blank Capital Research methodology, which combines six factor dimensions into a single quantitative ranking. Investors should consider these quantitative signals alongside their own fundamental research, risk tolerance, and investment time horizon before making buy or sell decisions on OII stock.
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Institutional Research Dossier
OCEANEERING INTERNATIONAL INC (OII) Deep Dive Analysis
Published on March 24, 2026
Action RatingHold
Sections
Executive Summary
Oceaneering International Inc. (OII) currently holds a 'Hold' rating, justified by a balanced assessment of its financial performance, strategic positioning, and valuation. While the company demonstrates strong profitability metrics relative to its sector, concerns regarding free cash flow generation and short interest temper enthusiasm. The company's diversified business model, serving both the energy and defense sectors, provides a degree of resilience, but its reliance on the cyclical energy industry introduces inherent volatility.
The primary takeaway is that OII presents a mixed bag of opportunities and risks. Its attractive valuation multiples and robust revenue growth are counterbalanced by negative free cash flow and a relatively low short interest score, suggesting potential downside risk. Investors should closely monitor the company's ability to improve cash flow generation and navigate the evolving energy landscape before considering a more decisive investment stance.
Business Strategy & Overview
Oceaneering International operates as a diversified provider of engineered services and products, primarily catering to the offshore energy sector, but also extending its reach into defense, aerospace, manufacturing, and entertainment industries. The company's core business revolves around subsea robotics, particularly remotely operated vehicles (ROVs), which are crucial for drill support, subsea hardware installation, and pipeline inspection. This segment, owning a substantial fleet of work-class ROVs, forms a significant revenue driver. Beyond ROVs, Oceaneering offers manufactured products like distribution and connection systems, autonomous mobile robots, and automated guided vehicle technology, showcasing its diversification efforts.
The company's strategic positioning involves leveraging its technological expertise and established presence in the offshore energy market to capture opportunities in related sectors. The Offshore Projects Group segment focuses on subsea installation and intervention services, including riserless light well intervention and inspection, maintenance, and repair. This segment benefits from the increasing complexity of offshore projects and the growing demand for specialized subsea solutions. Furthermore, the Integrity Management & Digital Solutions segment provides asset integrity management and software solutions, aligning with the industry's focus on operational efficiency and data-driven decision-making.
Oceaneering's Aerospace and Defense Technologies segment represents a strategic diversification away from the cyclical energy sector. By offering engineering and manufacturing services to U.S. government agencies and their prime contractors, the company aims to generate stable revenue streams and reduce its dependence on the volatile energy market. This segment's involvement in defense and space exploration activities provides access to long-term contracts and potentially higher-margin projects.
The company's product pipeline appears to be focused on enhancing its existing offerings and developing new technologies to address evolving industry needs. This includes advancements in ROV technology, autonomous underwater vehicles, and digital solutions for asset integrity management. By continuously innovating and adapting to changing market demands, Oceaneering seeks to maintain its competitive edge and expand its market share. However, the company's ability to successfully commercialize these innovations and generate sustainable revenue growth remains a key factor in its long-term success.
Execution Benchmarks audit
Revenue Growth
YOY expansion rate
11.1%
Sector: -1.2%
-1047% VS SCTR
Economic Moat Analysis
Oceaneering's economic moat can be classified as Narrow. While the company possesses certain competitive advantages, they are not strong enough to warrant a Wide moat rating. The primary source of its moat stems from a combination of specialized expertise, established relationships, and switching costs within specific niches of the offshore energy and defense sectors.
In the subsea robotics segment, Oceaneering's extensive fleet of work-class ROVs and its deep understanding of subsea operations create a barrier to entry for new competitors. The capital expenditure required to build a comparable ROV fleet and the technical expertise needed to operate and maintain these vehicles are significant. Furthermore, the company's long-standing relationships with major oil and gas companies provide a competitive edge in securing contracts for drill support, subsea hardware installation, and pipeline inspection. However, this advantage is not insurmountable, as other established players in the subsea services market also possess similar capabilities and relationships.
Switching costs play a role in certain segments, particularly in the Integrity Management & Digital Solutions segment. Once customers adopt Oceaneering's asset integrity management software and digital solutions, they may face significant costs and disruptions in switching to alternative providers. This creates a degree of customer stickiness and provides Oceaneering with recurring revenue streams. However, the switching costs are not uniformly high across all segments, and customers may be willing to switch if they perceive a significant improvement in performance or cost savings from alternative solutions.
The Aerospace and Defense Technologies segment benefits from intangible assets in the form of specialized engineering expertise and certifications required to work on government contracts. These intangible assets provide a competitive advantage in securing projects related to defense and space exploration activities. However, the government contracting market is highly competitive, and Oceaneering faces competition from other established players with similar capabilities and relationships. The company's ability to consistently win contracts and maintain its reputation for quality and reliability is crucial for sustaining its competitive advantage in this segment.
Overall, Oceaneering's economic moat is not particularly wide or deep. While the company possesses certain competitive advantages in specific niches, these advantages are not strong enough to provide a sustainable and significant barrier to entry. The company's reliance on the cyclical energy sector and the presence of other established players in its key markets limit its ability to generate consistently high returns on invested capital and maintain a dominant market position. Therefore, a Narrow moat rating is appropriate.
Financial Health & Profitability
Oceaneering's financial health presents a mixed picture. The company has demonstrated solid revenue growth, with a TTM revenue of $2.78 billion, representing an 11.1% increase compared to the previous year's $2.66 billion. This growth is particularly noteworthy considering the sector's average revenue decline of 1.7%. The company's net income has also improved significantly, reaching $353.76 million in the TTM period, compared to $147.47 million in the previous year. This translates to a healthy net margin of 7.7%, exceeding the sector average of 6.3%. The company's ROE of 20.2% is also significantly higher than the sector average of 6.9%, indicating efficient utilization of equity.
However, the company's free cash flow (FCF) is a cause for concern. The TTM FCF is negative at -$83.69 million. This suggests that the company is not generating enough cash from its operations to cover its capital expenditures and other cash outflows. While the company's EBITDA of $304.55 million indicates underlying profitability, the negative FCF raises questions about the sustainability of its growth and its ability to fund future investments. The Q3 FY2025 FCF of -$83.69M is particularly alarming, suggesting a worsening trend.
The company's balance sheet appears to be reasonably healthy. The current ratio of 1.99 indicates that the company has sufficient liquid assets to cover its short-term liabilities. The debt-to-equity ratio of 45.00 is lower than the sector average of 55.00, suggesting that the company is not excessively leveraged. However, the total debt of $487.42 million represents a significant financial obligation, and the company's ability to service this debt will depend on its future cash flow generation.
Analyzing the quarterly financial history reveals a consistent trend of revenue growth and improving profitability. The company's gross margin has steadily increased from 14.4% in Q1 FY2023 to 20.6% in Q3 FY2025. Similarly, the operating margin has improved from 5.0% in Q1 FY2023 to 11.6% in Q3 FY2025. This indicates that the company is becoming more efficient in its operations and is able to generate higher profits from its revenue. However, the lack of consistent FCF data across all quarters makes it difficult to assess the long-term sustainability of this trend.
Valuation Assessment
Oceaneering's valuation metrics suggest that the stock is reasonably valued relative to its sector. The company's P/E ratio of 9.9x is significantly lower than the sector average of 19.5x, indicating that the stock may be undervalued based on its earnings. Similarly, the company's EV/EBITDA ratio of 3.3x is slightly lower than the sector average of 3.5x, suggesting that the stock may be undervalued based on its enterprise value and earnings before interest, taxes, depreciation, and amortization.
However, it is important to consider the company's growth prospects and risk profile when assessing its valuation. While the company has demonstrated strong revenue growth in recent periods, its negative free cash flow raises concerns about the sustainability of this growth. Furthermore, the company's reliance on the cyclical energy sector introduces inherent volatility and uncertainty. These factors may justify a lower valuation multiple compared to companies with more stable and predictable earnings.
Compared to its historical valuation, Oceaneering's current P/E ratio is below its historical average, suggesting that the stock may be undervalued. However, it is important to note that the company's historical performance may not be indicative of its future performance. Changes in the industry landscape, competitive dynamics, and macroeconomic conditions could significantly impact the company's future earnings and valuation.
Considering the company's strong profitability metrics, solid revenue growth, and reasonable valuation multiples, the stock appears to be fairly valued. However, the negative free cash flow and the inherent risks associated with the energy sector warrant caution. Investors should closely monitor the company's ability to improve cash flow generation and navigate the evolving energy landscape before considering a more decisive investment stance. A discounted cash flow analysis, incorporating realistic growth assumptions and discount rates, would provide a more comprehensive assessment of the stock's intrinsic value.
Risk & Uncertainty
Oceaneering faces several specific risks that could negatively impact its business and financial performance. A primary risk is its significant exposure to the cyclical nature of the energy industry, particularly the offshore oil and gas sector. Downturns in oil prices or reductions in offshore drilling activity could lead to decreased demand for the company's services and products, resulting in lower revenue and profitability. The transition to renewable energy sources also poses a long-term threat to the company's core business, as demand for offshore oil and gas exploration and production may decline over time.
Competition is another significant risk. The subsea services market is highly competitive, with several established players vying for market share. Increased competition could lead to pricing pressures and reduced profit margins. Furthermore, technological advancements could disrupt the industry and render some of Oceaneering's existing technologies obsolete. The company's ability to innovate and adapt to changing market demands is crucial for maintaining its competitive edge.
The company's negative free cash flow is a major concern. If the company is unable to improve its cash flow generation, it may need to raise additional capital through debt or equity financing, which could dilute existing shareholders or increase its financial leverage. Furthermore, the negative free cash flow could limit the company's ability to invest in future growth opportunities and maintain its competitive position.
Regulatory risks also exist, particularly in the offshore energy sector. Changes in environmental regulations or safety standards could increase the company's operating costs and limit its ability to conduct certain activities. Furthermore, political instability or geopolitical events in regions where the company operates could disrupt its operations and impact its financial performance.
Bulls Say / Bears Say
The Bull Case
BULL VIEWOceaneering's strong revenue growth and improving profitability demonstrate its ability to capitalize on the recovery in the offshore energy market, making it an attractive investment.
BULL VIEWThe company's diversified business model, with exposure to both the energy and defense sectors, provides a degree of resilience and reduces its dependence on the volatile energy market.
BULL VIEWOceaneering's attractive valuation multiples, particularly its low P/E ratio compared to the sector average, suggest that the stock is undervalued and has significant upside potential.
The Bear Case
BEAR VIEWOceaneering's negative free cash flow raises concerns about its financial health and its ability to fund future growth, potentially leading to a decline in its stock price.
BEAR VIEWThe company's significant exposure to the cyclical energy sector makes it vulnerable to downturns in oil prices and reductions in offshore drilling activity, negatively impacting its revenue and profitability.
BEAR VIEWThe increasing adoption of renewable energy sources poses a long-term threat to Oceaneering's core business, as demand for offshore oil and gas exploration and production may decline over time.
About the Author
Marques Blank
Founder & Chief Investment Officer, Blank Capital
Marques brings 15 years of institutional finance and investing experience, having overseen financial planning for a $1.6B defense business unit. He developed the proprietary 6-factor quantitative model used to score OII and 4,400+ other equities.
OCEANEERING INTERNATIONAL INC exhibits a 104% valuation premium relative to institutional benchmarks. This represents a potential valuation overextension based on current multiples.
Return on Assets
Efficiency of asset utilization
8.2%
Sector: 3.7%
Gross Margin
Pricing power and cost efficiency
20.3%
Sector: 52.7%
Operating Margin
Core business profitability
11.1%
Sector: 10.7%
Net Margin
Bottom-line profitability
7.7%
Sector: 6.4%
Factor Methodology
The Quality factor evaluates the persistence and magnitude of cash flows. Companies with scores >70 exhibit superior competitive moats and financial resilience through economic cycles.
