Gulf Island Fabrication (GIFI) AI Stock Analysis

• Market Cap: $109.67M
• Dividend Yield: N/A
• Average Volume (3M): 27.90K
• Price to Earnings (P/E): 11.6
• Beta (1Y): 0.71
• Revenue Growth: 18.83%
• EPS Growth: N/A
• Country: US
• Employees: 751
• Sector: Industrials
• Sector Strength: 84
• Industry: Manufacturing - Metal Fabrication
• EPS (TTM): -0.04
• Shares Outstanding: 16,223,560
• 10 Day Avg. Volume: 17,885
• 30 Day Avg. Volume: 27,897
• PEG Ratio: -0.05
• Price to Book (P/B): 1.20
• Price to Sales (P/S): 0.70
• P/FCF Ratio: 8.64
• Enterprise Value/Market Cap: 0.59
• Enterprise Value/Revenue: 0.41
• Enterprise Value/Gross Profit: 2.83
• Enterprise Value/Ebitda: 6.06
• 1Y Price Target: $7.50
• Price Target Upside: 9.97% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 0

• Rating: 68 Neutral
• Price Target: $7.50 ▲(9.97% Upside)

Gulf Island Fabrication's overall score reflects its financial resilience and strategic initiatives, tempered by current revenue challenges and mixed technical indicators. The low P/E ratio and share repurchase program provide additional support, while the earnings call suggests a balanced outlook with both opportunities and challenges.

Gulf Island Fabrication Business Overview & Revenue Model

Company Description

Gulf Island Fabrication, Inc. (GIFI) is a leading provider of fabrication and construction services for the industrial and energy sectors. The company specializes in the fabrication of complex steel structures, modules, and vessels, serving industries such as oil and gas, petrochemical, marine, and renewable energy. Headquartered in Houston, Texas, Gulf Island Fabrication operates state-of-the-art facilities that are strategically located to support the demanding needs of its clients across the Gulf Coast region.

How the Company Makes Money

Gulf Island Fabrication generates revenue primarily through contracts for the fabrication of large steel structures and modules used in various industrial applications, particularly within the energy sector. The company earns money by undertaking large-scale construction projects, which include the design, engineering, and assembly of steel components and facilities. Key revenue streams include contracts with oil and gas companies for offshore platforms and onshore facilities, as well as projects for marine and renewable energy customers. In addition, Gulf Island Fabrication may engage in partnerships or joint ventures with other construction or engineering firms to enhance its service offerings and expand its market reach. The company's earnings are influenced by factors such as the demand for energy infrastructure, global oil prices, and investment trends in renewable energy projects.

Gulf Island Fabrication Financial Statement Overview

Summary

Gulf Island Fabrication shows financial resilience with improvements in profitability and cash flow management. The company has returned to profitability with strong equity positioning, though revenue growth remains a concern.

Income Statement

The income statement shows a positive trend with a significant recovery in net income from the previous losses. The TTM (Trailing-Twelve-Months) gross profit margin is approximately 14.5%, and the net profit margin is about 7.9%. However, revenue has declined slightly from the previous year, indicating potential challenges in sales growth. The EBIT and EBITDA margins are solid at 6.1% and 6.8% respectively, reflecting operational improvements.

Balance Sheet

The balance sheet is strong with an equity ratio of approximately 70%, suggesting financial stability and low leverage with a debt-to-equity ratio of 0.012. This indicates the company’s prudent financial management. The return on equity (ROE) is also respectable at 12.75%, showing efficient use of equity in generating profits.

Cash Flow

The cash flow statement shows a positive operating cash flow and a healthy free cash flow of $10.35 million in the TTM. The free cash flow to net income ratio is approximately 0.84, indicating good cash generation relative to net income. However, the operating cash flow to net income ratio is slightly above 1, which is adequate but suggests room for improvement in cash conversion efficiency.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	156.59M	159.20M	151.07M	142.32M	93.45M	250.96M
Gross Profit	22.74M	22.25M	-11.90M	7.89M	1.66M	-17.75M
EBITDA	10.64M	13.60M	-21.92M	-5.13M	-8.10M	-5.29M
Net Income	12.33M	14.74M	-24.40M	-3.35M	-4.80M	-27.38M
Balance Sheet
Total Assets	138.16M	133.22M	128.43M	134.87M	135.27M	231.34M
Cash, Cash Equivalents and Short-Term Investments	66.28M	66.07M	46.41M	43.13M	52.89M	51.16M
Total Debt	19.00M	19.00M	20.00M	2.10M	2.00M	10.00M
Total Liabilities	41.46M	40.11M	49.46M	32.24M	31.36M	104.98M
Stockholders Equity	96.70M	93.10M	78.97M	102.62M	103.91M	126.36M
Cash Flow
Free Cash Flow	10.35M	12.90M	4.32M	-12.01M	-26.30M	-30.22M
Operating Cash Flow	13.45M	18.25M	7.20M	-8.92M	-24.81M	-19.01M
Investing Cash Flow	-13.80M	-25.96M	-503.00K	-8.87M	37.40M	2.61M
Financing Cash Flow	-3.76M	-3.46M	-1.87M	-1.97M	-1.16M	9.86M

Gulf Island Fabrication Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 6.82
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

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 6.82 is below the 20-day moving average (MA) of 6.94, above the 50-day MA of 6.82, and above the 200-day MA of 6.67, indicating a neutral trend. The MACD of -0.01 indicates Positive momentum. The RSI at 48.22 is Neutral, neither overbought nor oversold. The STOCH value of 41.92 is Neutral, 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
NWPX	78 Outperform	$415.47M	12.83	9.13%	―	8.06%	38.46%
AP	71 Outperform	$68.52M	16.19	7.11%	―	-3.60%	―
GIFI	68 Neutral	$109.67M	11.57	11.00%	―	18.83%	―
MEC	66 Neutral	$342.11M	17.32	7.37%	―	-16.95%	66.04%
Sector *	64 Neutral	$10.64B	16.01	5.48%	2.12%	2.72%	-24.90%
TPCS	53 Neutral	$53.68M	―	-33.22%	―	7.72%	63.07%
HIHO	51 Neutral	$7.48M	67.43	1.64%	7.45%	17.26%	―

Gulf Island Fabrication Corporate Events

Gulf Island Completes Acquisition of ENGlobal Units

Gulf Island Fabrication, Inc. has been involved in a financial arrangement with ENGlobal Corporation, which filed for chapter 11 bankruptcy on March 5, 2025. The company entered into a DIP Credit Agreement to lend ENGlobal up to $3.5 million, facilitating ENGlobal’s restructuring process. On May 12 and June 16, 2025, Gulf Island completed the acquisition of ENGlobal’s automation, engineering, and government services businesses. The acquisition involved a credit bid of the full DIP Loan amount and additional cash payments totaling $5 million.

Gulf Island Fabrication Expands Share Repurchase Program

On June 4, 2025, Gulf Island Fabrication, Inc. announced that its board of directors approved a $5 million increase in its share repurchase program, raising the total authorization to $10 million. The expiration of the program was also extended to December 15, 2026. As of the announcement date, the company has $5.6 million available for repurchases, which can be executed at management’s discretion through various transaction methods.

Gulf Island Fabrication Holds Virtual Shareholders’ Meeting

On May 15, 2025, Gulf Island Fabrication, Inc. held its annual shareholders’ meeting virtually, where shareholders elected five directors, approved executive compensation, and ratified Ernst & Young LLP as the independent auditor for 2025. The meeting saw significant shareholder participation, with over 13 million shares represented, indicating strong engagement in the company’s governance decisions.