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Civeo Corp (CVEO)
NYSE:CVEO
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Civeo
(NYSE:CVEO)
52Neutral
Civeo (CVEO) vs. S&P 500 (SPY)
Market Cap
$272.21M
Dividend Yield4.96%
Average Volume (3M)77.02K
Price to Earnings (P/E)19.4
Beta (1Y)0.15
Revenue Growth-2.67%
EPS Growth-160.35%
CountryUS
Employees2,600
SectorIndustrials
Sector Strength75
IndustrySpecialty Business Services
Share Statistics
EPS (TTM)-1.24
Shares Outstanding13,549,417
10 Day Avg. Volume57,800
30 Day Avg. Volume77,016
Financial Highlights & Ratios
PEG RatioN/A
Price to Book (P/B)N/A
Price to Sales (P/S)0.00
Price to Cash Flow (P/CF)0.00
P/FCF Ratio0.00
Enterprise Value/Market Cap1.33
Enterprise Value/RevenueN/A
Enterprise Value/Gross Profit2.42
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
$28.00Price Target Upside39.37% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering1
Civeo Business Overview & Revenue Model
Company DescriptionCiveo Corporation is a leading provider of workforce accommodations, catering, and facility management services, primarily serving the natural resources industry in regions such as Canada, Australia, and the United States. The company specializes in delivering cost-effective and scalable solutions for remote workforces, ensuring comfortable living conditions, quality dining experiences, and comprehensive services that support productivity and employee well-being.
How the Company Makes MoneyCiveo makes money through the provision of accommodation and related services for workers in remote locations, primarily in the oil, mining, and natural resources sectors. The company's revenue model is based on long-term contracts and service agreements with major resource development companies, where it provides lodging, food services, and facility management to support large-scale projects. Key revenue streams include room revenues, catering services, and facility management fees. Civeo also benefits from strategic partnerships and maintains a focus on operational efficiency to enhance its profitability in competitive markets.
Civeo Financial Statement Overview
Summary
Civeo's financial performance reflects stability with low leverage and solid cash flow generation. However, challenges exist in revenue growth and profitability, as evidenced by declining revenues and net losses. The balance sheet's low debt levels and strong cash flow metrics are positive, but profitability needs improvement.Income Statement
Civeo's income statement reveals a mixed performance. The company shows a decline in Total Revenue over the past year, decreasing from $700.805 million to $682.122 million, resulting in a negative Revenue Growth Rate. The Gross Profit Margin remains high at 100% due to the nature of the reporting, but the company has faced a significant drop in Net Income, leading to a negative Net Profit Margin. Despite a strong EBITDA Margin of 4.47%, the EBIT Margin is quite low at 0.20%, indicating high operating expenses relative to revenue.55
Neutral
Balance Sheet
Civeo's balance sheet reflects a solid equity position with a Debt-to-Equity Ratio of 0.03, indicating low leverage. However, the Return on Equity is negative due to the net loss, which is a concern. The Equity Ratio stands at 58.37%, suggesting a strong equity base relative to total assets. Overall, the balance sheet shows good stability with low debt levels, but profitability challenges remain.60
Neutral
Cash Flow
The cash flow statement highlights strong operational cash flow of $83.51 million, which is healthy compared to the net loss. Free Cash Flow is robust at $57.372 million, though it has decreased from the previous year. The Operating Cash Flow to Net Income Ratio is positive, indicating efficient cash generation relative to earnings. The Free Cash Flow to Net Income Ratio is also strong, showcasing good cash conversion despite profitability issues.65
Positive
| Breakdown | ||||
| Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|
| Income Statement | Total Revenue | |||
| 682.12M | 700.80M | 697.05M | 594.46M | 529.73M | Gross Profit |
| 149.46M | 170.52M | 179.99M | 158.00M | 147.64M | EBIT |
| 1.33M | 39.49M | 27.93M | 27.19M | 17.77M | EBITDA |
| 70.07M | 128.68M | 109.95M | 97.09M | -30.18M | Net Income Common Stockholders |
| -17.07M | 30.16M | 6.33M | 2.50M | -132.78M |
| Balance Sheet | Cash, Cash Equivalents and Short-Term Investments | |||
| 5.20M | 3.32M | 7.95M | 6.28M | 6.16M | Total Assets |
| 405.07M | 548.06M | 566.18M | 672.73M | 740.85M | Total Debt |
| 6.66M | 79.19M | 143.72M | 188.61M | 268.42M | Net Debt |
| 1.45M | 75.87M | 135.77M | 182.32M | 262.26M | Total Liabilities |
| 168.07M | 225.02M | 262.48M | 309.62M | 365.50M | Stockholders Equity |
| 236.37M | 320.17M | 300.14M | 361.50M | 374.69M |
| Cash Flow | Free Cash Flow | |||
| 57.37M | 64.93M | 66.35M | 72.96M | 107.28M | Operating Cash Flow |
| 83.51M | 96.56M | 91.77M | 88.53M | 117.36M | Investing Cash Flow |
| -14.94M | -14.52M | -8.95M | -706.00K | -1.77M | Financing Cash Flow |
| -65.20M | -86.80M | -79.66M | -86.51M | -114.21M |
Civeo Technical Analysis
Negative
20.09
Price Trends
21.93
Negative
22.52
Negative
24.26
Negative
Market Momentum
-0.60
Negative
44.66
Neutral
70.56
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For CVEO, the sentiment is Negative. The current price of 20.09 is below the 20-day moving average (MA) of 20.50, below the 50-day MA of 21.93, and below the 200-day MA of 24.26, indicating a bearish trend. The MACD of -0.60 indicates Negative momentum. The RSI at 44.66 is Neutral, neither overbought nor oversold. The STOCH value of 70.56 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for CVEO.
Civeo Risk Analysis
Civeo disclosed 36 risk factors in its most recent earnings report. Civeo reported the most risks in the “Finance & Corporate” category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
Civeo Peers Comparison
Overall Rating
UnderperformOutperform
Sector (63)
Financial Indicators
Performance Comparison
CVEO
Civeo
20.09
-3.07
-13.26%
PRSU
Pursuit Attractions and Hospitality
29.73
-4.53
-13.22%
TH
Target Hospitality
6.67
-4.43
-39.91%
Civeo Earnings Call Summary
Earnings Call Date:Feb 27, 2025
(Q4-2024)
| % Change Since: -25.51%|
Next Earnings Date:Apr 30, 2025
Earnings Call Sentiment Neutral
The earnings call reflects strong growth and strategic acquisitions in Australia, which are positive developments. However, these are counterbalanced by significant challenges and restructuring in the Canadian segment, resulting in an overall financial loss for the year.Q4-2024 Updates
Positive Updates
Strong Performance in Australia
Revenues in the Australian segment increased 23% compared to the fourth quarter of 2023, driven by strong occupancy levels and increased activity in the integrated services business from a $1.4 billion contract.
Successful Acquisition in Australia
Acquisition of four villages in the Australian Bowen Basin expected to be immediately accretive to cash flow, with contracts backed by two and three-year take-or-pay agreements.
Significant Shareholder Returns
Returned approximately $44 million of capital to shareholders through dividends and share repurchases, representing 65% of 2024's free cash flow.
Deleveraging and Revenue Diversification
Reduced debt significantly from $775 million at the time of spin to a much lower debt profile, with a diversified revenue mix more weighted towards commodities in Australia.
Negative Updates
Challenges in Canada
Lower billed rooms in Canada due to reduced capital spending by customers, influenced by economic and political uncertainty, which is expected to continue in 2025.
Restructuring Costs in Canada
Initiated a rightsizing plan in response to challenges in Canada, incurring one-time restructuring costs of approximately $3 million in Q1 2025.
Decreased Canadian Segment Performance
Canadian segment revenues decreased from $72.7 million in Q4 2023 to $40.7 million in Q4 2024, with adjusted EBITDA turning negative at $4.7 million.
Overall Financial Loss
Reported a net loss of $17.1 million for the full year 2024, with a decrease in adjusted EBITDA from $106.5 million in 2023 to $79.9 million in 2024.
Company Guidance
During the Civeo Corporation fourth quarter 2024 earnings call, the company provided guidance for 2025, projecting revenues between $630 million and $660 million, and adjusted EBITDA ranging from $80 million to $90 million. The call highlighted strong occupancy levels in Australia, with a 23% increase in revenues compared to the fourth quarter of 2023, driven by a $1.4 billion contract and the acquisition of four villages in the Bowen Basin. In contrast, the Canadian segment faced challenges due to reduced customer capital spending and economic uncertainties, leading to lower billed rooms and anticipated one-time restructuring costs of approximately $3 million in Q1 2025. Civeo's 2024 revenue was $682 million with a net loss of $17.1 million, while adjusted EBITDA was $79.9 million, primarily impacted by the sale of McClelland Lake Lodge and a wind-down in LNG-related activity. Despite these challenges, Civeo returned $44 million of capital to shareholders, representing 65% of 2024's free cash flow, and plans to continue focusing on high bidding activity in diversified end markets and integrated services growth in Australia.Glossary
OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.
NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.
UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.