Gulf Marine Services (GMS) AI Stock Analysis

• Market Cap: £252.90M
• Dividend Yield: N/A
• Average Volume (3M): 3.11M
• Price to Earnings (P/E): 8.8
• Beta (1Y): 1.14
• Revenue Growth: 7.05%
• EPS Growth: -19.81%
• Country: US
• 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: N/A
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 74 Outperform
• Price Target: 23.50p ▲(24.60% Upside)

The score is driven primarily by solid financial performance (strong revenue growth, high margins, and robust free cash flow) and a relatively low P/E valuation. Technicals are supportive due to a clear uptrend, but the score is tempered by overbought momentum signals (high RSI and Stoch) that increase the risk of a short-term reversal.

Positive Factors

Revenue Growth

Consistent double‑digit top‑line growth across 2023–24 signals durable demand for GMS's SESV charter model. Steady revenue expansion supports utilization, long‑term contract renewals and underpins reinvestment capacity and predictable cash generation over coming quarters.

High Operating Margins

Sustained high EBIT and EBITDA margins reflect structural operating leverage from an efficient SESV fleet and charter economics. Strong margins enhance cash conversion, provide resilience through cycles, and fund maintenance, fleet upgrades and strategic investments without immediate capital strain.

Cash Generation and Balance Sheet Improvement

Robust free cash flow growth and a falling debt/equity ratio point to improving financial flexibility. High OCF relative to net income indicates quality earnings and supports debt reduction, capex funding and potential shareholder returns while lowering refinancing and liquidity risk.

Negative Factors

Earnings Per Share Weakness

A nearly 20% decline in EPS despite revenue growth suggests pressures such as one‑off items, higher interest, tax, or dilution from capital actions. Persistent EPS weakness can undermine per‑share returns and signals risks to long‑term investor value if not reversed by margin or share count improvements.

Margin Erosion

Meaningful year‑over‑year margin declines point to rising operating costs, pricing pressure or lower fleet efficiency. Sustained margin compression would reduce free cash flow and reinvestment capacity, weakening the firm's ability to finance growth and weather prolonged downturns in offshore activity.

Sector and Geographic Concentration

Heavy exposure to offshore oil & gas demand and MENA regional markets creates structural cyclicality and geopolitical sensitivity. While renewables offer diversification, prolonged downturns in regional capex or energy prices could drive utilization volatility and extended revenue weakness for the fleet.

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 primarily through the chartering of its self-elevating support vessels to clients in the offshore oil and gas industry, as well as to the renewable energy sector. The company's revenue model is based on long-term contracts and day-rate agreements, where clients pay for the time the vessels are in service. Key revenue streams include vessel charters, project management services, and maintenance contracts. Additionally, GMS has established partnerships with major oil and gas companies, which provide a steady flow of business and enhance its market presence. The demand for offshore support services, driven by increased exploration and production activities, particularly in the renewable energy sector, further contributes to the company's earnings.

Gulf Marine Services Financial Statement Overview

Summary

Strong overall fundamentals: revenue grew 10.48% in 2024 (after 13.86% in 2023), profitability remains high (EBIT margin 43.36%, EBITDA margin 60.55%), and cash generation is notably robust (FCF up 16.32% with OCF/net income at 2.73). Balance sheet trends are improving with lower leverage (debt-to-equity 0.63) and a higher equity ratio (55.58%).

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: Positive
• Last Price: 18.86
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Negative
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For GB:GMS, the sentiment is Positive. The current price of 18.86 is below the 20-day moving average (MA) of 20.73, above the 50-day MA of 17.90, and above the 200-day MA of 18.11, indicating a bullish trend. The MACD of 1.25 indicates Negative momentum. The RSI at 80.54 is Negative, neither overbought nor oversold. The STOCH value of 95.89 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for GB:GMS.

Gulf Marine Services Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
AT	75 Outperform	£340.23M	11.58	23.59%	0.38%	32.36%	19.01%
GMS	74 Outperform	£252.90M	8.84	9.45%	―	7.05%	-19.81%
HTG	67 Neutral	£656.13M	-26.21	-3.70%	2.22%	11.60%	-126.25%
Sector *	65 Neutral	$15.17B	7.61	4.09%	5.20%	3.87%	-62.32%
CSC	54 Neutral	£18.37M	-52.20	―	―	―	―
THAL	46 Neutral	£3.66M	-1.40	-12.73%	―	―	―
WG	45 Neutral	£180.67M	-0.12	-123.27%	―	-14.33%	-69.80%

Gulf Marine Services Corporate Events

Gulf Marine Services Secures New Two‑Year Extension for GCC Support Vessel

Gulf Marine Services has secured a two‑year extension, comprising one firm year and a one‑year option, to an existing contract for a mid‑size support vessel operating in the Gulf Cooperation Council region, separate from a similar extension announced in late December. The deal further strengthens the company’s order backlog and underscores robust customer confidence and strong demand across its core markets as it enters 2026 with growing operational momentum, reinforcing its competitive position in offshore energy support services.

The most recent analyst rating on (GB:GMS) stock is a Buy with a £18.00 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 Lifts Backlog to $607m with GCC Vessel Contract Extension

Gulf Marine Services has secured a two‑year contract extension, comprising one firm year plus a one‑year option, for one of its mid‑size vessels currently operating in the GCC region, lifting its order backlog to $607 million. The award, described by Executive Chairman Mansour Al Alami as a strong endorsement of the company’s strategy, fleet performance and disciplined execution, underpins revenue visibility and reinforces GMS’s positioning in a supportive offshore energy market, bolstering its capacity to deliver sustainable value to stakeholders.

The most recent analyst rating on (GB:GMS) stock is a Buy with a £18.00 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 Wins New Middle East Contract and Upgrades Backlog Duration

Gulf Marine Services has secured a new contract for one of its Large-class vessels in the Middle East, running for a total of two years including options, underscoring strong ongoing demand for its SESV fleet and further bolstering its contract backlog, which management says has recently grown by 2,354 days of work. The company also corrected a typographical error in a previous disclosure, clarifying that a recently announced contract actually covers 1,624 days rather than 985, a change that materially increases the implied visibility of future vessel utilisation and revenue for stakeholders while leaving all other disclosed terms unchanged.

The most recent analyst rating on (GB:GMS) stock is a Buy with a £18.00 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 Wins European Deal, Lifting Contract Backlog to $540m

Gulf Marine Services has secured a new European contract for two of its Large-class self-elevating support vessels, covering a total of 985 vessel days to support offshore operations in the region. The award lifts the group’s contracted backlog to USD 540 million, underlining robust demand for its specialised fleet across multiple geographies and reinforcing its position in both traditional offshore energy and the growing offshore wind services market, with positive implications for medium-term revenue visibility and asset utilisation.

The most recent analyst rating on (GB:GMS) stock is a Buy with a £18.00 price target. To see the full list of analyst forecasts on Gulf Marine Services stock, see the GB:GMS Stock Forecast page.