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Gulf Island Fabrication (GIFI)
NASDAQ:GIFI
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Gulf Island Fabrication
(NASDAQ:GIFI)
65Neutral
Gulf Island Fabrication (GIFI) vs. S&P 500 (SPY)
Market Cap
$98.40M
Dividend YieldN/A
Average Volume (3M)57.23K
Price to Earnings (P/E)6.8
Beta (1Y)0.65
Revenue Growth5.38%
EPS GrowthN/A
CountryUS
Employees751
SectorIndustrials
Sector Strength69
IndustryManufacturing - Metal Fabrication
Share Statistics
EPS (TTM)0.88
Shares Outstanding16,346,252
10 Day Avg. Volume53,704
30 Day Avg. Volume57,233
Financial Highlights & Ratios
PEG RatioN/A
Price to Book (P/B)N/A
Price to Sales (P/S)0.68
Price to Cash Flow (P/CF)11.80
P/FCF Ratio14.80
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price TargetN/A
Price Target UpsideN/A
Rating ConsensusN/A
Number of Analyst Covering0
Gulf Island Fabrication Business Overview & Revenue Model
Company DescriptionGulf Island Fabrication, Inc. (GIFI) is a leading fabricator of complex steel structures, modules, and marine vessels primarily serving the energy sector. The company operates through various segments, including fabrication, shipbuilding, and services, delivering a range of products such as offshore platforms, specialty steel structures, and marine vessels. Gulf Island Fabrication is known for its expertise in heavy fabrication, precision engineering, and delivering large-scale projects for oil and gas, industrial, and marine industries.
How the Company Makes MoneyGulf Island Fabrication generates revenue primarily through its fabrication and shipbuilding contracts. The company secures projects from clients in the energy, industrial, and marine sectors, focusing on custom-built structures and vessels. Key revenue streams include the construction of offshore oil and gas platforms, specialty steel fabrication for industrial applications, and the building of marine vessels such as tugboats and barges. Additionally, Gulf Island Fabrication provides maintenance and repair services, which contribute to its earnings. The company's financial performance is influenced by factors such as oil and gas industry trends, government contracts, and strategic partnerships with major energy firms.
Gulf Island Fabrication Financial Statement Overview
Summary
Gulf Island Fabrication demonstrates a solid recovery with improved profitability and cash flow generation. The company's balance sheet is strong, characterized by low leverage and high equity. While recent improvements are promising, historical volatility and industry cyclicality pose potential risks.Income Statement
Gulf Island Fabrication has shown significant improvement in profitability, with a TTM (Trailing-Twelve-Months) net profit margin of 9.26% compared to losses in previous years. Revenue growth is modest at 5.38% from 2023 to 2024. Gross profit margin improved to 13.98% in TTM. These improvements suggest a positive trajectory, though historical volatility in earnings remains a concern.65
Positive
Balance Sheet
The balance sheet is strong with a low debt-to-equity ratio of 0.012 and a robust equity ratio of 69.88%. The return on equity (ROE) has improved to 15.83% in the TTM. High liquidity and low leverage indicate financial stability, although past fluctuations in equity levels suggest potential risks.70
Positive
Cash Flow
Free cash flow has grown significantly by 198.61% from 2023 to 2024, indicating improved cash generation. The operating cash flow to net income ratio is 1.24, reflecting efficient cash management. Overall, cash flow stability has improved, supporting operational resilience.75
Positive
| Breakdown | ||||
| Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|
| Income Statement | Total Revenue | |||
| 159.20M | 151.07M | 142.32M | 93.45M | 250.96M | Gross Profit |
| 22.25M | -11.90M | 7.89M | 1.66M | -17.75M | EBIT |
| 12.28M | -25.88M | -3.42M | -13.48M | -27.16M | EBITDA |
| 13.60M | -21.92M | -5.13M | -8.10M | -5.29M | Net Income Common Stockholders |
| 14.74M | -24.40M | -3.35M | -4.80M | -27.38M |
| Balance Sheet | Cash, Cash Equivalents and Short-Term Investments | |||
| 66.07M | 46.41M | 43.13M | 52.89M | 51.16M | Total Assets |
| 133.22M | 128.43M | 134.87M | 135.27M | 231.34M | Total Debt |
| 1.12M | 20.00M | 2.10M | 2.00M | 10.00M | Net Debt |
| -26.17M | -18.18M | -31.12M | -50.89M | -33.16M | Total Liabilities |
| 40.11M | 49.46M | 32.24M | 31.36M | 104.98M | Stockholders Equity |
| 93.10M | 78.97M | 102.62M | 103.91M | 126.36M |
| Cash Flow | Free Cash Flow | |||
| 12.90M | 4.32M | -12.01M | -26.30M | -30.22M | Operating Cash Flow |
| 18.25M | 7.20M | -8.92M | -24.81M | -19.01M | Investing Cash Flow |
| -25.96M | -503.00K | -8.87M | 37.40M | 2.61M | Financing Cash Flow |
| -3.46M | -1.87M | -1.97M | -1.16M | 9.86M |
Gulf Island Fabrication Technical Analysis
Negative
6.02
Price Trends
6.53
Negative
6.78
Negative
6.31
Negative
Market Momentum
-0.02
Negative
55.32
Neutral
54.34
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For GIFI, the sentiment is Negative. The current price of 6.02 is below the 20-day moving average (MA) of 6.37, below the 50-day MA of 6.53, and below the 200-day MA of 6.31, indicating a bearish trend. The MACD of -0.02 indicates Negative momentum. The RSI at 55.32 is Neutral, neither overbought nor oversold. The STOCH value of 54.34 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for GIFI.
Gulf Island Fabrication Risk Analysis
Gulf Island Fabrication disclosed 32 risk factors in its most recent earnings report. Gulf Island Fabrication 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
Gulf Island Fabrication Peers Comparison
Overall Rating
UnderperformOutperform
Sector (62)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
78 Outperform | $4.48B | 7.38 | 10.12% | 2.53% | 3.42% | -35.98% | |
73 Outperform | $986.46M | 18.27 | 3.68% | ― | 5.34% | ― | |
73 Outperform | $6.53B | 18.03 | 26.45% | 1.22% | 11.30% | ― | |
72 Outperform | $5.59B | 2.73 | 72.85% | ― | 5.43% | 2094.12% | |
71 Outperform | $1.72B | 11.80 | 21.97% | ― | 9.75% | 50.93% | |
65 Neutral | $98.40M | 6.84 | 17.13% | ― | 5.38% | ― | |
62 Neutral | $7.62B | 13.01 | 3.19% | 3.32% | 3.77% | -14.28% |
* Industrials Sector Average
Performance Comparison
GIFI
Gulf Island Fabrication
6.02
-0.50
-7.67%
FLR
Fluor
33.28
-7.10
-17.58%
HLX
Helix Energy
6.51
-4.60
-41.40%
KBR
KBR
50.33
-10.70
-17.53%
NOV
NOV
11.84
-6.97
-37.05%
OII
Oceaneering International
17.00
-6.44
-27.47%
Gulf Island Fabrication Earnings Call Summary
Earnings Call Date: Mar 4, 2025 | % Change Since: -7.38% | Next Earnings Date: May 13, 2025
Earnings Call Sentiment Neutral
The earnings call reflects a company with strong financial results and strategic growth opportunities, particularly in diversification and new market entries. However, challenges remain in the form of declining services revenue, uncertainties in large project awards, and an expectation of reduced EBITDA in 2025.Highlights
Strong Financial Performance
Generated revenue of $159 million and nearly $13 million of adjusted EBITDA from small fab and services business in 2024. Free cash flow of approximately $13 million, ending the year with over $67 million in cash and short-term investments.
Diversification and Strategic Growth
Expansion into markets outside of oil and gas such as infrastructure, government, and high-tech manufacturing. Initial bidding in nuclear and data centers showing potential for growth.
Improved Activity in Services Division
Project delays in Spark Safety subsiding and increased volume in cleaning and environmental services (CES) due to decommissioning activity.
Strong Liquidity Position
Ended the year with $67 million in cash and short-term investments, providing financial flexibility for growth and capital allocation opportunities.
Lowlights
Decline in Services Revenue
Services revenue for Q4 2024 decreased by 23% year-over-year, primarily due to lower new project awards and delayed Spark Safety project opportunities.
Challenges in Large Fabrication Projects
Uncertainty in the timing of large project awards, with expected lower capital spending by services customers in the Gulf of America during 2025.
Lower Expected EBITDA for 2025
Anticipation that full-year 2025 consolidated EBITDA will be less than 2024 adjusted consolidated EBITDA of $12.8 million due to market uncertainties.
Company Guidance
During the call, Gulf Island Fabrication, Inc. provided comprehensive guidance for 2025, reflecting on their strong fiscal year 2024 results and strategic positioning. The company reported a revenue of $159 million and an adjusted EBITDA of nearly $13 million for 2024 from its small-scale fabrication and services business, alongside converting this to roughly $13 million of free cash flow. The company ended the year with over $67 million in cash and short-term investments, highlighting their robust financial position. For 2025, they anticipate a high EBITDA to free cash flow conversion rate, despite projecting a lower consolidated EBITDA than the $12.8 million adjusted consolidated EBITDA recorded in 2024. Capital expenditures for 2025 are expected to be between $2 million and $3 million. The company remains focused on expanding its presence in non-oil and gas markets such as infrastructure and high-tech manufacturing, while also exploring opportunities in nuclear and data centers. They have noted a pickup in bid activity for large-scale fabrication projects, particularly in the LNG sector, but expect most large project awards to materialize in the latter half of the year. Additionally, Gulf Island is poised to leverage its strong balance sheet and liquidity to pursue strategic acquisitions, aiming to enhance shareholder value.Gulf Island Fabrication Corporate Events
Executive/Board ChangesBusiness Operations and StrategyFinancial Disclosures
Gulf Island Fabrication Reports Strong Q3 2024 Results
Positive
Nov 5, 2024
Gulf Island Fabrication, Inc. reported solid third-quarter 2024 results with a consolidated revenue of $37.6 million and net income of $2.3 million, showcasing resilience amidst project delays and hurricane impacts. The company plans a board chair transition with CEO Richard W. Heo taking over as chair, aiming to streamline leadership and enhance strategic initiatives. Despite challenges in the Services division, the Fabrication division saw a 14% revenue increase, driven by small-scale fabrication, while the company maintains a strong financial position, poised for future growth and market expansion.
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.