Gulf Island Fabrication (GIFI) AI Stock Analysis

• Market Cap: $120.70M
• Dividend Yield: N/A
• Average Volume (3M): 46.42K
• Price to Earnings (P/E): 8.4
• Beta (1Y): 0.70
• Revenue Growth: 5.38%
• EPS Growth: N/A
• Country: US
• Employees: 751
• Sector: Industrials
• Sector Strength: 78
• Industry: Manufacturing - Metal Fabrication
• EPS (TTM): 0.88
• Shares Outstanding: 16,377,230
• 10 Day Avg. Volume: 44,405
• 30 Day Avg. Volume: 46,419
• PEG Ratio: N/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 Ratio: 0.00
• Enterprise Value/Market Cap: 0.55
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: 2.98
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0

Gulf Island Fabrication's overall score reflects a strong financial foundation with notable improvements in profitability and cash flow. The company is strategically diversifying into new markets, which adds potential growth opportunities. However, technical indicators suggest caution, and the anticipated reduction in EBITDA for 2025 presents a risk factor. Despite these challenges, the stock's undervaluation provides a compelling case for potential investors.

Gulf Island Fabrication Business Overview & Revenue Model

Company Description

Gulf Island Fabrication, Inc., together with its subsidiaries, operates as a fabricator of steel structures and modules in the United States. The company fabricates modules, skids, and piping systems for onshore refining, petrochemical, liquified natural gas (LNG), industrial, and offshore facilities; foundations, secondary steel components, and support structures for alternative energy developments and coastal mooring facilities; offshore production platforms and associated structures, including jacket foundations, piles, and topsides for fixed production and utility platforms, as well as hulls and topsides for floating production and utility platforms; and other complex steel structures and components. It also provides services on offshore platforms, including maintenance, repair, construction, and other services required to connect production equipment and service modules and equipment; on-site construction and maintenance services on inland platforms and structures and industrial facilities; project management and commissioning services; and scaffolding, coatings, industrial staffing, and other specialty services, as well as performs municipal and drainage projects, including pump stations, levee reinforcement, bulkheads, and other public works. The company serves international energy producers; refining, petrochemical, LNG, industrial, and power operators; and engineering, procurement, and construction companies. Gulf Island Fabrication, Inc. was founded in 1947 and is headquartered in Houston, Texas.

How the Company Makes Money

Gulf 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.

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.

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.

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

• Technical Analysis Sentiment: Positive
• Last Price: 7.37
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For GIFI, the sentiment is Positive. The current price of 7.37 is above the 20-day moving average (MA) of 6.53, above the 50-day MA of 6.49, and above the 200-day MA of 6.35, indicating a bullish trend. The MACD of 0.21 indicates Negative momentum. The RSI at 65.07 is Neutral, neither overbought nor oversold. The STOCH value of 84.34 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for GIFI.

Gulf Island Fabrication Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
GIFI	68 Neutral	$120.70M	8.37	17.13%	―	5.38%	―
NWPX	67 Neutral	$393.66M	11.68	9.58%	―	10.81%	63.68%
Sector *	63 Neutral	$4.21B	11.55	5.28%	250.72%	4.13%	-9.42%
MEC	61 Neutral	$268.52M	10.65	10.78%	―	-1.16%	227.49%
AP	52 Neutral	$40.39M	97.57	0.73%	―	-0.96%	―
HIHO	44 Neutral	$7.00M	―	-10.62%	7.55%	11.36%	22.93%
TPCS	43 Neutral	$25.06M	―	-76.24%	―	8.71%	-164.66%

Gulf Island Fabrication Corporate Events

Gulf Island Fabrication Reports Strong Q3 2024 Results

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.