Gulf Marine Services (GMS) AI Stock Analysis

• Market Cap: £193.10M
• Dividend Yield: N/A
• Average Volume (3M): 3.11M
• Price to Earnings (P/E): 6.7
• Beta (1Y): 1.31
• Revenue Growth: 7.05%
• EPS Growth: -19.81%
• Country: UK
• Employees: 727
• Sector: Energy
• Sector Strength: 52
• Industry: Oil & Gas Equipment & Services
• EPS (TTM): <0.01
• Shares Outstanding: 1,152,166,000
• 10 Day Avg. Volume: 2,043,588
• 30 Day Avg. Volume: 3,111,596
• PEG Ratio: -0.46
• Price to Book (P/B): 0.52
• Price to Sales (P/S): 1.19
• P/FCF Ratio: 2.10
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 72 Outperform
• Price Target: 18.50p ▲(16.50% Upside)

Gulf Marine Services' overall stock score is driven by its strong financial performance and attractive valuation. The technical analysis suggests caution due to bearish trends, but the company's financial stability and growth prospects provide a solid foundation.

Gulf Marine Services Business Overview & Revenue Model

Company Description

Gulf Marine Services PLC, together with its subsidiaries, operates self-propelled self-elevating support vessels (SESVs) in the United Arab Emirates, Saudi Arabia, Qatar, the United Kingdom, and rest of Europe. It operates through K-Class Vessels, S-Class Vessels, E-Class Vessels, and Other Vessels segments. The company offers offshore construction and heavy lifting, accommodation and hotel, well intervention and work over operations, and manpower services for oil and gas industry; and platform maintenance and commissioning, turbine maintenance and commissioning, hotel, crane, and offshore crew transfer services to renewables industry. It operates a fleet of 13 SESVs. The company was founded in 1977 and is headquartered in Abu Dhabi, the United Arab Emirates.

How the Company Makes Money

Gulf Marine Services generates revenue through the chartering of its self-elevating support vessels to clients in the offshore oil and gas, renewable energy, and marine construction sectors. The primary revenue stream comes from long-term and short-term contracts for vessel rentals, which often include additional services such as crew provision and maintenance. GMS also benefits from strategic partnerships with major energy companies and contractors, which enhance its market reach and operational capabilities. Furthermore, the company may earn revenue from ancillary services and the sale of specialized equipment, contributing to its overall earnings.

Gulf Marine Services Financial Statement Overview

Summary

Gulf Marine Services exhibits a solid financial performance with strong revenue growth and profitability. Despite slight margin declines, the company has reduced leverage and improved equity, supported by robust cash generation.

Income Statement

Gulf Marine Services has demonstrated strong revenue growth with a 10.48% increase in 2024, following an 13.86% increase in 2023. The company has maintained a healthy gross profit margin of 53.50% in 2024, improving from 67.84% in 2023. The EBIT margin has shown positive performance at 43.36% in 2024, although slightly lower than the previous year's 58.16%. The EBITDA margin remains robust at 60.55%. Overall, the income statement shows a positive trend in profitability and revenue growth, despite a slight decline in margins.

Balance Sheet

The company's debt-to-equity ratio has improved to 0.63 in 2024 from 0.85 in 2023, indicating a positive trend in leverage reduction. The return on equity stands at 10.00% in 2024, reflecting consistent profitability. The equity ratio has increased to 55.58% in 2024, showcasing a stronger equity position. Overall, the balance sheet indicates an improved financial position with reduced leverage and enhanced equity stability.

Cash Flow

Free cash flow has shown significant growth, with a 16.32% increase in 2024 following a 6.74% rise in 2023. The operating cash flow to net income ratio remains strong at 2.73, indicating efficient cash generation relative to net income. The free cash flow to net income ratio of 2.49 further highlights robust cash flow performance. Overall, the cash flow statement reflects strong cash generation and growth, supporting the company's financial stability.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	173.84M	167.49M	151.60M	133.16M	115.13M	102.49M
Gross Profit	86.10M	89.64M	69.62M	60.53M	60.63M	-55.53M
EBITDA	100.63M	101.41M	106.80M	76.47M	81.35M	44.83M
Net Income	34.80M	37.98M	41.34M	25.33M	31.00M	-124.30M
Balance Sheet
Total Assets	670.00M	683.14M	668.33M	658.82M	674.40M	654.44M
Cash, Cash Equivalents and Short-Term Investments	14.96M	40.01M	8.71M	12.71M	8.64M	3.80M
Total Debt	198.83M	240.38M	279.30M	331.61M	382.45M	415.73M
Total Liabilities	263.39M	300.44M	338.05M	371.25M	411.69M	447.58M
Stockholders Equity	403.52M	379.70M	327.57M	285.59M	260.80M	205.17M
Cash Flow
Free Cash Flow	84.14M	94.70M	81.39M	76.25M	29.00M	31.05M
Operating Cash Flow	99.13M	103.56M	94.40M	82.56M	40.51M	44.27M
Investing Cash Flow	-15.43M	-8.77M	-12.79M	-6.30M	-11.50M	-12.35M
Financing Cash Flow	-76.18M	-63.45M	-85.22M	-72.26M	-24.54M	-36.52M

Gulf Marine Services Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 15.88
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For GB:GMS, the sentiment is Negative. The current price of 15.88 is below the 20-day moving average (MA) of 16.12, below the 50-day MA of 16.42, and below the 200-day MA of 18.14, indicating a bearish trend. The MACD of 0.07 indicates Negative momentum. The RSI at 44.88 is Neutral, neither overbought nor oversold. The STOCH value of 27.46 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for GB:GMS.

Gulf Marine Services Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
GMS	72 Outperform	£193.10M	6.68	9.45%	―	7.05%	-19.81%
Sector *	65 Neutral	$15.17B	7.61	4.09%	5.20%	3.87%	-62.32%
HTG	56 Neutral	£553.79M	-21.26	-3.70%	2.29%	11.60%	-126.25%
CNE	52 Neutral	£135.11M	-8.48	-6.29%	―	-32.66%	72.67%
GENL	50 Neutral	$176.21M	-4.19	-11.54%	―	-0.20%	-25.68%
TLW	45 Neutral	£137.62M	-0.87	―	―	-32.47%	-1490.91%

Gulf Marine Services Corporate Events

Gulf Marine Services Reports Revenue Growth and Debt Reduction in 2025

Gulf Marine Services PLC announced a 10% increase in revenue to $138.3 million for the first nine months of 2025, driven by improved fleet day rates and the operation of an additional leased vessel. Despite a slight decrease in vessel utilization due to maintenance and geopolitical disruptions, the company reduced its net debt by 22% and improved its net leverage ratio. The company remains confident in achieving its adjusted EBITDA guidance for 2025 and plans to continue its shareholder reward program, positioning itself well for future opportunities despite challenges such as geopolitical conflicts and tax judgments.

The most recent analyst rating on (GB:GMS) stock is a Hold with a £20.50 price target. To see the full list of analyst forecasts on Gulf Marine Services stock, see the GB:GMS Stock Forecast page.

Gulf Marine Services Chairman Increases Shareholding

Gulf Marine Services PLC announced that its Executive Chairman, Mansour Al Alami, has purchased 129,000 ordinary shares of the company, increasing his total holdings to 2,700,000 shares, which represents 0.23% of the company’s issued share capital. This transaction, conducted on the London Stock Exchange, underscores a significant vote of confidence in the company’s future prospects and could positively influence stakeholder perception and market positioning.

The most recent analyst rating on (GB:GMS) stock is a Hold with a £20.50 price target. To see the full list of analyst forecasts on Gulf Marine Services stock, see the GB:GMS Stock Forecast page.

Gulf Marine Services Reports Revenue Growth Amidst Challenges in H1 2025

Gulf Marine Services PLC reported an 8% increase in revenue for the first half of 2025, reaching US$ 87.1 million, driven by higher fleet average day rates and the operation of an additional leased vessel. Despite a decrease in fleet utilization due to maintenance and geopolitical tensions, the company improved its adjusted EBITDA by 6% to US$ 50.8 million. However, net profit fell by 47% to US$ 3.9 million, impacted by higher tax expenses and depreciation. The company successfully reduced its net leverage ratio and net bank debt, reflecting improved financial health. Looking ahead, GMS expects adjusted EBITDA for 2025 to be in the range of USD 101-109 million, with a secured backlog of US$ 517.4 million, indicating strong demand for its services. The company remains committed to delivering shareholder returns through dividends and share buybacks, despite challenges in the market.

The most recent analyst rating on (GB:GMS) stock is a Hold with a £20.50 price target. To see the full list of analyst forecasts on Gulf Marine Services stock, see the GB:GMS Stock Forecast page.