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Oil States International (OIS)
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Oil States International (OIS) AI Stock Analysis

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OIS

Oil States International

(NYSE:OIS)

Rating:54Neutral
Price Target:
$5.00
▼(-1.57% Downside)
Oil States International's stock score is driven by mixed financial performance and a bearish technical outlook. Positive guidance from the earnings call and strong offshore performance are offset by high valuation concerns and declining U.S. land-based activity.

Oil States International (OIS) vs. SPDR S&P 500 ETF (SPY)

Oil States International Business Overview & Revenue Model

Company DescriptionOil States International, Inc., through its subsidiaries, provides oilfield products and services for the drilling, completion, subsea, production, and infrastructure sectors of the oil and gas industry worldwide. The company operates through three segments: Well Site Services, Downhole Technologies, and Offshore/Manufactured Products. The Well Site Services segment offers a range of equipment and services that are used to drill for, establish, and maintain the flow of oil and natural gas from a well throughout its lifecycle. It also provides wellhead isolation, frac valve, wireline and coiled tubing support, flowback and well testing, pipe recovery systems, gravel pack and sand control, blowout preventer, and drilling services. The Downhole Technologies segment provides oil and gas perforation systems, and downhole tools in support of completion, intervention, wireline, and well abandonment operations. This segment also designs, manufactures, and markets its consumable engineered products to oilfield service, and exploration and production companies. The Offshore/Manufactured Products segment designs, manufactures, and markets capital equipment utilized on floating production systems, subsea pipeline infrastructure, and offshore drilling rigs and vessels; and short-cycle and other products. Its products include flexible bearings, advanced connector systems, high-pressure riser systems, deepwater mooring systems, cranes, subsea pipeline products, and blow-out preventer stack integration products. This segment also provides short-cycle products, such as valves, elastomers, and other specialty products that are used in the land-based drilling and completion markets; and other products for use in industrial, military, and other applications. In addition, it offers specialty welding, fabrication, cladding and machining, offshore installation, and inspection and repair services. The company was incorporated in 1995 and is headquartered in Houston, Texas.
How the Company Makes MoneyOil States International generates revenue through its diverse portfolio of products and services tailored for the oil and gas industry. In the Offshore/Manufactured Products segment, the company earns money by designing and manufacturing highly engineered capital equipment, such as subsea pipeline products, blowout preventers, and offshore rig equipment. This segment also includes the sale of consumable elastomer products and solutions for offshore oil companies. The Well Site Services segment contributes to revenue through the provision of completion services, including hydraulic fracturing and well intervention services, as well as the rental of land drilling equipment and tools. Key revenue streams include long-term contracts with major oil and gas companies, as well as partnerships with drilling contractors and other energy services companies. Market demand for oil and gas exploration and production activities significantly influences the company's financial performance.

Oil States International Earnings Call Summary

Earnings Call Date:Jul 31, 2025
(Q2-2025)
|
% Change Since: -9.77%|
Next Earnings Date:Oct 29, 2025
Earnings Call Sentiment Positive
The earnings call reflects a strong performance in offshore and international markets, bolstered by strategic growth and robust backlog. However, significant challenges in U.S. land-based activities and associated costs offset some positive outcomes. Overall, the company demonstrates resilience and strategic adaptation to market conditions.
Q2-2025 Updates
Positive Updates
Strong Offshore and International Performance
72% of consolidated revenues were generated from offshore and international projects, reflecting strategic growth. Offshore/Manufactured Products segment delivered strong performance with a 15% sequential revenue increase and an 18% rise in adjusted segment EBITDA. Backlog increased to $363 million, highest since September 2015.
Positive Cash Flow and Deleveraging
Cash flow from operations grew by 61% sequentially, and the company generated $8 million in free cash flow. Used $7 million to repurchase common stock and $15 million to repurchase convertible senior notes, approaching net debt zero.
Meritorious Engineering Award
Received the 2025 Meritorious Engineering Award from Hart Energy for a low-impact workover package, enhancing subsea plug and abandonment operations.
Improved Financial Guidance and Strong Bookings
Maintained full-year EBITDA guidance of $88 million to $93 million. Strong projected cash flow from operations expected between $65 million to $75 million. Book-to-bill ratio north of 1 for the year, indicating continued strong bookings.
Negative Updates
Decline in U.S. Land-Based Activity
U.S. land drilling and completion activity declined significantly, with an 8% decrease in rig count and a 14% decrease in frac spread count due to weaker crude oil prices and macroeconomic uncertainty.
Revenue Declines in Certain Segments
Completion and Production Services and Downhole Technologies segments experienced sequential quarter revenue declines of 15% and 10%, respectively, due to industry-wide reduction in U.S. land-based activity.
Strategic Exit and Restructuring Costs
Exited 3 additional land-based facilities and reduced U.S. land-focused workforce, incurring facility exit, severance, and other charges totaling $3 million.
Company Guidance
During the Oil States' Second Quarter 2025 Earnings Call, the company provided guidance for the remainder of the year, emphasizing its strategic focus on offshore and international markets. The company reported a revenue mix where 72% was generated from offshore and international projects, a significant increase compared to previous periods. For the full year, Oil States maintained its EBITDA guidance between $88 million to $93 million and updated its revenue guidance to a range of $685 million to $700 million due to the streamlining of U.S. land operations. The company anticipates third-quarter revenues of $165 million to $170 million and EBITDA of $21 million to $23 million. Oil States highlighted strong backlog growth, with a current backlog of $363 million, and noted a robust book-to-bill ratio of 1.1x for the quarter. The company achieved a 61% sequential increase in cash flow from operations and generated $8 million in free cash flow, which was used to repurchase $7 million of common stock and $15 million of convertible senior notes. Looking forward, Oil States expressed confidence in its offshore project execution and anticipated continued strength in future bookings, positioning the company well for incremental revenue and earnings growth over the balance of 2025.

Oil States International Financial Statement Overview

Summary
Oil States International shows mixed financial performance. Improvements in profitability and cash flow are offset by revenue decline and cost management issues. The balance sheet is stable with manageable leverage, but operational efficiencies could be improved.
Income Statement
45
Neutral
The income statement shows a volatile performance with a negative gross profit margin in TTM, indicating cost challenges. However, there is improvement in EBIT and EBITDA margins compared to the previous year. Net profit margin is positive in TTM, showing recovery from previous losses. Revenue growth rate is negative, highlighting a decline in sales.
Balance Sheet
60
Neutral
The balance sheet is relatively stable with a strong equity position. The debt-to-equity ratio indicates moderate leverage. Return on equity is low due to fluctuating net income, but the equity ratio shows a healthy proportion of equity financing, minimizing financial risk.
Cash Flow
55
Neutral
Cash flow analysis shows positive free cash flow, indicating good cash generation abilities. The free cash flow growth rate is significant, reflecting improved cash management. However, the operating cash flow to net income ratio suggests potential operational inefficiencies.
BreakdownTTMDec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income Statement
Total Revenue498.88M692.59M782.28M737.71M573.16M638.08M
Gross Profit116.34M101.68M119.12M91.82M22.02M-22.27M
EBITDA67.55M55.66M86.17M61.28M17.73M-421.53M
Net Income9.60M-11.26M12.89M-9.54M-63.99M-468.38M
Balance Sheet
Total Assets993.75M1.01B1.05B1.06B1.09B1.15B
Cash, Cash Equivalents and Short-Term Investments53.86M65.36M47.11M42.02M52.85M72.01M
Total Debt134.19M150.56M161.35M179.70M208.68M220.32M
Total Liabilities303.11M324.45M336.94M374.83M389.92M394.63M
Stockholders Equity690.64M680.65M709.54M689.56M695.83M757.63M
Cash Flow
Free Cash Flow30.20M8.39M25.92M12.60M-10.32M120.01M
Operating Cash Flow71.30M45.89M56.58M32.86M7.19M132.75M
Investing Cash Flow-1.02M2.70M-25.59M-22.73M-6.63M-3.73M
Financing Cash Flow-41.36M-29.48M-26.71M-20.29M-19.57M-65.02M

Oil States International Technical Analysis

Technical Analysis Sentiment
Neutral
Last Price5.08
Price Trends
50DMA
5.21
Negative
100DMA
4.79
Positive
200DMA
4.95
Positive
Market Momentum
MACD
-0.04
Positive
RSI
43.89
Neutral
STOCH
16.13
Positive
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For OIS, the sentiment is Neutral. The current price of 5.08 is below the 20-day moving average (MA) of 5.40, below the 50-day MA of 5.21, and above the 200-day MA of 4.95, indicating a neutral trend. The MACD of -0.04 indicates Positive momentum. The RSI at 43.89 is Neutral, neither overbought nor oversold. The STOCH value of 16.13 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for OIS.

Oil States International Peers Comparison

Overall Rating
UnderperformOutperform
Sector (45)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
76
Outperform
$304.60M18.006.77%22.64%78.46%
76
Outperform
$2.21B11.0427.08%8.14%62.72%
71
Outperform
$4.54B10.047.31%4.20%-1.21%-54.44%
61
Neutral
$503.64M16.9611.82%0.37%0.70%5.97%
54
Neutral
$307.81M44.520.95%-12.15%
49
Neutral
$545.83M-16.86%-10.91%-580.59%
45
Neutral
AU$1.32B-8.62-15.56%7.70%2.10%-32.50%
* Energy Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
OIS
Oil States International
5.08
0.17
3.46%
CLB
Core Laboratories
10.74
-9.70
-47.46%
NOV
NOV
12.22
-5.10
-29.45%
NGS
Natural Gas Services Group
24.31
4.91
25.31%
OII
Oceaneering International
22.10
-4.06
-15.52%
PUMP
Propetro Holding
4.91
-3.34
-40.48%

Oil States International Corporate Events

Executive/Board ChangesShareholder Meetings
Oil States International Holds Annual Stockholders Meeting
Neutral
May 13, 2025

On May 13, 2025, Oil States International held its Annual Meeting of Stockholders, where key decisions were made. The stockholders elected three Class III members to the Board of Directors, approved executive compensation, ratified Deloitte & Touche LLP as the independent auditor for 2025, and approved the Second Amended and Restated Equity Participation Plan. These decisions are expected to influence the company’s governance and financial strategies moving forward.

The most recent analyst rating on (OIS) stock is a Buy with a $7.00 price target. To see the full list of analyst forecasts on Oil States International stock, see the OIS Stock Forecast page.

Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

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.Date of analysis: Aug 02, 2025