Tidewater (TDW) AI Stock Analysis

• Market Cap: $2.80B
• Dividend Yield: N/A
• Average Volume (3M): 599.61K
• Price to Earnings (P/E): 19.3
• Beta (1Y): 1.31
• Revenue Growth: 4.42%
• EPS Growth: -13.55%
• Country: US
• Employees: 7,700
• Sector: Energy
• Sector Strength: 52
• Industry: Oil & Gas Equipment & Services
• EPS (TTM): -0.02
• Shares Outstanding: 49,563,156
• 10 Day Avg. Volume: 533,156
• 30 Day Avg. Volume: 599,610
• PEG Ratio: 0.19
• Price to Book (P/B): 2.58
• Price to Sales (P/S): 2.13
• P/FCF Ratio: 11.65
• Enterprise Value/Market Cap: 1.03
• Enterprise Value/Revenue: 2.12
• Enterprise Value/Gross Profit: 6.95
• Enterprise Value/Ebitda: 6.17
• 1Y Price Target: $65.00
• Price Target Upside: 13.54% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 1
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 78 Outperform
• Price Target: $62.00 ▲(8.30% Upside)

Tidewater's strong financial performance and positive earnings call guidance are the primary drivers of its score. Technical indicators suggest positive momentum, though caution is advised due to potential overbought conditions. Valuation is reasonable, but the lack of a dividend yield may deter some investors. Overall, Tidewater is well-positioned in its industry, with a solid outlook despite some short-term challenges.

Positive Factors

Revenue Growth

Consistent revenue growth indicates strong market demand and effective service delivery, supporting long-term business sustainability.

Cash Flow Generation

Strong cash flow generation enhances financial flexibility, enabling strategic investments and debt management, crucial for long-term growth.

Market Position

A positive market outlook with rising demand for services strengthens Tidewater's competitive position in the offshore energy sector.

Negative Factors

Debt Charges

Debt charges impact net income and may constrain financial resources, affecting the company's ability to invest in growth opportunities.

Day Rate Pressure

Pressure on day rates can reduce revenue potential and profitability, challenging Tidewater's ability to maintain margins in key regions.

Decline in Average Day Rates

A decline in average day rates indicates potential pricing power challenges, which could affect revenue and margin sustainability.

Tidewater Business Overview & Revenue Model

Company Description

Tidewater Inc., together with its subsidiaries, provides offshore marine support and transportation services to the offshore energy industry through the operation of a fleet of marine service vessels worldwide. It provides services in support of offshore oil and natural gas exploration, field development, and production, as well as windfarm development and maintenance, including towing of and anchor handling for mobile offshore drilling units; transporting supplies and personnel necessary to sustain drilling, workover, and production activities; offshore construction, and seismic and subsea support; geotechnical survey support for windfarm construction; and various specialized services, such as pipe and cable laying. The company operates and charters deepwater vessels, including platform supply and horsepower anchor handling tug supply vessels for use in transporting supplies and equipment from shore bases to deepwater and intermediate water depth offshore drilling rigs and production platforms; towing-supply vessels for use in intermediate and shallow waters; and crew boats, utility vessels, and offshore tugs to transport personnel and supplies from shore bases to offshore drilling rigs, platforms, and other installations. It also operates offshore tugs for use in tow floating drilling rigs and barges; and assisting in the docking of tankers, as well as in pipe and cable laying, and construction barges. The company serves oil and natural gas exploration, field development, and production companies; mid-sized and smaller independent exploration and production companies; foreign government-owned or government-controlled organizations, and other related companies; drilling contractors; and other companies, such as offshore construction, windfarm development, diving, and well stimulation companies. As of December 31, 2021, it owned 135 vessels. Tidewater Inc. was incorporated in 1956 and is headquartered in Houston, Texas.

How the Company Makes Money

Tidewater generates revenue through several key streams, primarily from the chartering of its fleet to oil and gas companies for offshore support operations. This includes day rates charged for vessel usage, which can vary based on the type of vessel, the duration of the contract, and market demand. Additional revenue is derived from specialized services such as crew management, maintenance, and logistical support, which are often bundled with vessel charters. Tidewater also engages in long-term contracts with major energy companies, providing a stable income stream. Strategic partnerships with industry players enhance its market presence and may lead to additional revenue opportunities through collaborative projects. The company's earnings can also be influenced by the overall health of the oil and gas industry, global oil prices, and technological advancements that improve operational efficiency.

Tidewater Financial Statement Overview

Summary

Tidewater exhibits strong financial health with consistent revenue growth, robust profitability margins, and effective cash flow management. The balance sheet is stable, though the industry’s inherent leverage risks should be monitored.

Income Statement

Tidewater has demonstrated strong revenue growth with a 5.6% increase in TTM, following a significant 33.3% growth in the previous year. The company maintains healthy margins, with a gross profit margin of 35.4% and a net profit margin of 11.1% in TTM. EBIT and EBITDA margins are also robust at 22.9% and 36.2%, respectively. These figures indicate strong operational efficiency and profitability.

Balance Sheet

The balance sheet reflects a stable financial position with a manageable debt-to-equity ratio of 0.57. Return on equity is solid at 13.4%, indicating effective use of equity to generate profits. The equity ratio stands at 53.7%, showcasing a strong equity base relative to total assets. However, the industry typically faces high leverage, which could pose risks if not managed carefully.

Cash Flow

Tidewater's cash flow performance is commendable, with an 8.2% growth in free cash flow in TTM. The operating cash flow to net income ratio is 1.21, indicating strong cash generation relative to net income. The free cash flow to net income ratio is also high at 0.92, reflecting efficient cash management. These metrics highlight the company's ability to generate and manage cash effectively.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	1.36B	1.35B	1.01B	647.68M	371.03M	397.04M
Gross Profit	414.98M	406.40M	268.80M	129.09M	-7.56M	8.14M
EBITDA	467.58M	458.62M	316.18M	98.40M	-34.98M	-100.47M
Net Income	151.68M	180.66M	97.19M	-21.75M	-128.97M	-196.24M
Balance Sheet
Total Assets	2.13B	2.07B	2.06B	1.30B	1.10B	1.25B
Cash, Cash Equivalents and Short-Term Investments	428.23M	324.92M	274.44M	164.19M	149.04M	149.93M
Total Debt	675.52M	637.10M	734.44M	169.04M	167.88M	192.73M
Total Liabilities	989.86M	963.72M	1.03B	431.67M	394.01M	427.90M
Stockholders Equity	1.14B	1.11B	1.04B	865.97M	701.30M	822.12M
Cash Flow
Free Cash Flow	292.30M	246.27M	73.12M	23.59M	6.05M	-10.91M
Operating Cash Flow	317.45M	273.85M	104.70M	40.23M	15.01M	3.99M
Investing Cash Flow	-1.88M	-188.00K	-610.27M	-23.81M	25.06M	23.40M
Financing Cash Flow	-190.60M	-222.59M	615.56M	-2.72M	-41.01M	-99.77M

Tidewater Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 57.25
• 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 TDW, the sentiment is Positive. The current price of 57.25 is above the 20-day moving average (MA) of 52.75, above the 50-day MA of 54.06, and above the 200-day MA of 49.55, indicating a bullish trend. The MACD of 0.35 indicates Negative momentum. The RSI at 62.87 is Neutral, neither overbought nor oversold. The STOCH value of 86.98 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for TDW.

Tidewater Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
TDW	78 Outperform	$2.80B	19.30	13.43%	―	4.42%	-13.55%
XPRO	77 Outperform	$1.65B	24.41	4.60%	―	-1.24%	337.41%
VAL	76 Outperform	$3.66B	9.40	17.49%	―	6.81%	-61.94%
NOV	72 Outperform	$6.39B	17.51	5.93%	3.24%	-1.43%	-63.13%
OII	69 Neutral	$2.67B	11.50	28.92%	―	8.71%	72.09%
Sector *	65 Neutral	$15.17B	7.61	4.09%	5.20%	3.87%	-62.32%