Oil States International (OIS) AI Stock Analysis

• Market Cap: $470.20M
• Dividend Yield: N/A
• Average Volume (3M): 685.59K
• Price to Earnings (P/E): 21.6
• Beta (1Y): 1.34
• Revenue Growth: -11.02%
• EPS Growth: N/A
• Country: US
• Employees: 2,439
• Sector: Energy
• Sector Strength: 52
• Industry: Oil & Gas Equipment & Services
• EPS (TTM): 0.08
• Shares Outstanding: 59,745,564
• 10 Day Avg. Volume: 716,260
• 30 Day Avg. Volume: 685,594
• PEG Ratio: 0.15
• Price to Book (P/B): 0.46
• Price to Sales (P/S): 0.45
• P/FCF Ratio: 37.41
• Enterprise Value/Market Cap: 0.87
• Enterprise Value/Revenue: 0.63
• Enterprise Value/Gross Profit: 3.79
• Enterprise Value/Ebitda: 4.87
• 1Y Price Target: $9.00
• Price Target Upside: 14.36% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 2
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 67 Neutral
• Price Target: $8.50 ▲(8.01% Upside)

The score is driven by improving profitability and a strong, low-leverage balance sheet, supported by a positive earnings call featuring higher backlog, stronger operating cash flow, and constructive near-term guidance. These positives are tempered by declining TTM revenue, only moderate cash flow quality in the financial statements, overbought technical readings, and a valuation profile with a 21.15 P/E and no dividend yield.

Positive Factors

Strong Order Backlog

A strong order backlog indicates sustained demand for the company's products and services, providing revenue visibility and stability over the coming months.

Offshore and International Revenue Growth

The shift towards offshore and international markets diversifies revenue streams and reduces dependency on the volatile US land market, enhancing long-term growth prospects.

Increased Cash Flow from Operations

Improved cash flow from operations strengthens the company's financial flexibility, enabling investment in growth opportunities and debt reduction.

Negative Factors

US Land Activity Decline

A decline in US land activity poses a risk to revenue from domestic operations, potentially impacting overall growth if not offset by international gains.

Downhole Technologies Segment Struggles

Losses in the Downhole Technologies segment highlight operational challenges, which could affect profitability if not addressed through cost management or strategic adjustments.

Impact of Tariffs

Increased tariffs on materials raise costs, potentially squeezing margins and requiring price adjustments or cost-cutting measures to maintain profitability.

Oil States International Business Overview & Revenue Model

Company Description

Oil 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 Money

Oil States International generates revenue through several key streams within its operational segments. The Offshore Products segment earns significant income from the sale and rental of subsea systems and equipment, which are critical for offshore drilling operations. The Onshore Products segment contributes to revenue through the sale of tubular products and related services, catering to the needs of onshore oil and gas producers. The Tubular Services segment enhances earnings by providing inspection, threading, and repair services for tubular goods. Additionally, OIS benefits from strategic partnerships with major oil and gas companies, which can provide long-term contracts and project-based engagements, contributing to consistent revenue flow. Fluctuations in oil prices and global demand for energy services also play a significant role in influencing the company's financial performance.

Oil States International Financial Statement Overview

Summary

Oil States International shows signs of recovery with improved profitability and cash flow generation. The balance sheet is stable with manageable leverage and improving returns on equity. However, challenges in revenue growth and negative gross profit margin remain concerns.

Income Statement

Oil States International's income statement shows mixed results. The company has improved its net profit margin to 5.29% in the TTM, a significant recovery from previous losses, indicating enhanced profitability. However, revenue has declined by 3.06% in the TTM, reflecting challenges in maintaining growth. The gross profit margin remains negative, which is concerning, though EBIT and EBITDA margins have improved, suggesting better operational efficiency.

Balance Sheet

The balance sheet reflects a stable financial position with a manageable debt-to-equity ratio of 0.18 in the TTM, showing prudent leverage management. Return on equity has improved to 3.78%, indicating better utilization of equity. The equity ratio remains healthy, suggesting a strong capital structure. However, the company needs to continue improving its asset utilization to enhance returns.

Cash Flow

Cash flow analysis reveals a strong improvement in free cash flow growth, with a 73.4% increase in the TTM, indicating robust cash generation capabilities. The operating cash flow to net income ratio is healthy, reflecting efficient cash conversion. However, the free cash flow to net income ratio suggests room for improvement in translating profits into cash.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	655.35M	692.59M	782.28M	737.71M	573.16M	638.08M
Gross Profit	108.36M	106.88M	119.12M	95.32M	26.42M	-22.27M
EBITDA	84.34M	55.66M	86.17M	73.84M	17.73M	-421.53M
Net Income	23.94M	-11.26M	12.89M	-9.54M	-63.99M	-468.38M
Balance Sheet
Total Assets	1.01B	1.01B	1.05B	1.06B	1.09B	1.15B
Cash, Cash Equivalents and Short-Term Investments	67.05M	65.36M	47.11M	42.02M	52.85M	72.01M
Total Debt	126.22M	150.56M	161.35M	179.70M	208.68M	220.32M
Total Liabilities	323.35M	324.45M	336.94M	374.83M	389.92M	394.63M
Stockholders Equity	688.97M	680.65M	709.54M	689.56M	695.83M	757.63M
Cash Flow
Free Cash Flow	30.80M	8.39M	25.92M	12.60M	-10.32M	120.01M
Operating Cash Flow	73.19M	45.89M	56.58M	32.86M	7.19M	132.75M
Investing Cash Flow	-3.43M	2.70M	-25.59M	-22.73M	-6.63M	-3.73M
Financing Cash Flow	-48.68M	-29.48M	-26.71M	-20.29M	-19.57M	-65.02M

Oil States International Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 7.87
• 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 OIS, the sentiment is Positive. The current price of 7.87 is above the 20-day moving average (MA) of 7.18, above the 50-day MA of 6.71, and above the 200-day MA of 5.54, indicating a bullish trend. The MACD of 0.35 indicates Negative momentum. The RSI at 73.54 is Negative, neither overbought nor oversold. The STOCH value of 91.64 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for OIS.

Oil States International Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
NGS	74 Outperform	$432.25M	23.25	7.15%	0.63%	9.53%	15.48%
CLB	72 Outperform	$874.46M	27.51	12.31%	0.24%	-1.02%	6.34%
RNGR	70 Neutral	$308.43M	22.89	5.54%	1.71%	-5.47%	2.24%
OIS	67 Neutral	$470.20M	21.55	3.31%	―	-11.02%	―
Sector *	65 Neutral	$15.17B	7.61	4.09%	5.20%	3.87%	-62.32%
FET	62 Neutral	$448.29M	-4.30	-31.11%	―	-1.29%	-123.25%
PUMP	50 Neutral	$979.51M	-60.90	-2.05%	―	-11.65%	87.57%