Oceaneering International (Oceaneering International) Predictability Rank

View and export this data going back to 1975. Start your Free Trial

What is Oceaneering International Predictability Rank?

Warren Buffett said many times that the companies he likes are:

1. Simple businesses that he understands
2. that have predictable and proven earnings and
3. with economic moat
4. those can be bought at a reasonable price.

It is hard to quantify "simple businesses that he (Buffett) understands", so we will focus on the other three characteristics instead. In GuruFocus Research: What worked in the market from 1998-2008? Part I: Introduction of Predictability Rank, we will show that the businesses that have predictable and proven earnings are usually also simple businesses that an average person could understand.

GuruFocus conducted a back test study of Warren Buffett's strategy of "buying good companies at fair prices" for the years from 1998-2008.

Oceaneering International Predictability Rank Calculation

In our database there are 2403 stocks that have been traded from Jan. 2, 1998 to Aug. 31, 2008. We have the complete 10-year financial data and trading prices of these companies for this period. We rank the predictability of these companies based on the consistency of their revenue per share and EBITDA (earning before interest, tax, depreciation and amortization) per share over the past ten fiscal years, and study the correlation between the stock performances and the predictability of the business.

Our study may be subject to these biases and assumptions:

Dividend yields are not counted for investment returns
Effects of price changes due to spin-offs may not be fully adjusted
Study is subjected to survivorship bias due to de-listing, bankruptcy, LBO, M&A, etc.

The correlation between business predictability and investment returns of a company is showed below.

Correlation Between Business Predictability and Investment Returns

	Predictables	Non-Predictable	All stocks
Total Number of stocks	570	1833	2403
Total Lost Money	61	830	891
Total Lost More Than 50%	18	412	430
Total Lost More Than 90%	4	86	90
Average Gain	260.6%	100.0%	138.1%
Median Gain	150.0%	13.0%	39.0%
Maximum Gain	2852.0%	11483.0%	11483.0%
Maximum Loss	-100.0%	-100.0%	-100.0%
Annualized Average Gain	12.7%	6.7%	8.4%
Annualized Median Gain	8.9%	1.1%	3.1%

For the 570 predictable companies, we have seen strong correlation between the predictability of businesses and the stock performances over the past 10 years, regardless of the valuation of business at 1998. Accordingly, we have ranked the business predictability from 5-star to 1-star, as shown in this table.

Predictability Rank	5-Star	4.5-Star	4-Star	3.5-Star	3-Star	2.5-Star	2-Star	1-Star (non-predictable)	Average among all
% Out of All 2403 Stocks	3.3%	2.9%	3.7%	3.3%	3.3%	3.7%	3.3%	76.3%	100%
% that are in Loss (10y)	3%	10%	8%	9%	11%	18%	16%	45%	37%
Average Gain (10y)	364.6%	330.9%	278.0%	235.1%	243.5%	227.8%	154.8%	100.0%	138.1%
Median Gain (10y)	238.5%	193.5%	171.0%	159.0%	132.5%	113.5%	87.0%	13.0%	39.0%
Maximum Gainer	2228.0%	2547.0%	2452.0%	2852.0%	2432.0%	1892.0%	1807.0%	11483.0%	11483.0%
Maximum Loser	-82.0%	-53.0%	-67.0%	-100.0%	-83.0%	-100.0%	-78.0%	-100.0%	-100.0%
Annualized Average Gain	15.4%	14.6%	13.2%	12.0%	12.2%	11.7%	9.1%	6.7%	8.4%
Annualized Median Gain	12.1%	10.6%	9.8%	9.3%	8.2%	7.3%	6.0%	1.1%	3.1%

For detailed information about each predictability rank, please go to GuruFocus Research: What worked in the market from 1998-2008? Part I: Introduction of Predictability Rank

Oceaneering International Predictability Rank Related Terms

Thank you for viewing the detailed overview of Oceaneering International's Predictability Rank provided by GuruFocus.com. Please click on the following links to see related term pages.

Oceaneering International (Oceaneering International) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Energy » Oil & Gas » Oceaneering International Inc (NYSE:OII) » Definitions » Predictability Rank

Comparable Companies

Traded in Other Exchanges

OII:Germany

Address

5875 North Sam Houston Parkway, Suite 400, Houston, TX, USA, 77086

Website

https://www.oceaneering.com

Oceaneering International Inc is a global provider of engineered services and products robotic solutions to the offshore energy, defense, aerospace, manufacturing and entertainment industries. Most of Oceaneering's products are produced for the offshore oil and gas market. It had a 2020 segment realignment to promote synergies and cost efficiency. The five segments are subsea robotics; manufactured products; offshore projects group; integrity management and digital solutions; and aerospace and defense technologies. Within the segments are two businesses - services and products provided primarily to the oil and gas industry. The firm is also involved in the offshore renewables and mobility solutions industries.

Executives

Shaun Roedel	officer: SVP, Mfd. Prods.	11911 FM 529, HOUSTON TX 77041
Alan R Curtis	officer: SVP and CFO	11911 FM 529, HOUSTON TX 77041
Earl Childress	officer: SVP, Chief Commercial Ofc.	11911 FM 529, HOUSTON TX 77041
Christopher J Dyer	officer: SVP, OPGroup	5875 N. SAM HOUSTON PARKWAY W., SUITE 400, HOUSTON TX 77086
Deanna L Goodwin	director	11911 FM 529, HOUSTON TX 77041
Karen H Beachy	director	PO BOX 1400, RAPID CITY SD 57709
Martin J Mcdonald	officer: SVP, Subsea Robotics	11911 FM 529, HOUSTON TX 77041
Murphy Paul B Jr	director	OCEANEERING INTERNATIONAL, INC., 11911 FM 529, HOUSTON TX 77041
Leonardo P Granato	officer: SVP, IMDS	5875 N. SAM HOUSTON PARKWAY W., SUITE 400, HOUSTON TX 77086
Jennifer Fremont Simons	officer: SVP, CLO and Secretary	5875 N. SAM HOUSTON PKWY. W., SUITE 400, HOUSTON TX 77086
M Kevin Mcevoy	director	C/O OCEANEERING INTERNATIONAL INC, 11911 FM 529, HOUSTON TX 77041-3011
Jon Erik Reinhardsen	director	1333 WEST LOOP SOUTH, SUITE 1700, HOUSTON TX 77027
William B Berry	director	C/O WILBROS USA, INC., 4400 POST OAK PARKWAY, STE. 1000, HOUSTON TX 77027
Steven A Webster	director	500 DALLAS STREET, SUITE 2300, HOUSTON TX 77002
Leblanc Witland J Jr.	officer: VP & CAO	11911 FM 529, HOUSTON TX 77041