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Tidewater Inc (TDW)
:TDW
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Tidewater
(NYSE:TDW)
70Outperform
Tidewater (TDW) vs. S&P 500 (SPY)
Market Cap
$1.90B
Dividend YieldN/A
Average Volume (3M)1.24M
Price to Earnings (P/E)11.0
Beta (1Y)1.11
Revenue Growth33.25%
EPS Growth83.81%
CountryUS
Employees7,700
SectorEnergy
Sector Strength47
IndustryOil & Gas Equipment & Services
Share Statistics
EPS (TTM)3.40
Shares Outstanding50,853,374
10 Day Avg. Volume932,376
30 Day Avg. Volume1,240,448
Financial Highlights & Ratios
PEG Ratio0.13
Price to Book (P/B)N/A
Price to Sales (P/S)0.00
Price to Cash Flow (P/CF)0.00
P/FCF Ratio0.00
Enterprise Value/Market Cap1.69
Enterprise Value/RevenueN/A
Enterprise Value/Gross Profit7.89
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
$63.00Price Target Upside68.58% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering2
Tidewater Business Overview & Revenue Model
Company DescriptionTidewater 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 MoneyTidewater makes money primarily through the chartering of its offshore support vessels to oil and gas companies. These vessels are rented out to clients for specific operations, generating revenue through daily charter rates. The company's fleet includes platform supply vessels, anchor handling tug supply vessels, and other specialized ships that support offshore exploration and production activities. Tidewater's earnings are influenced by factors such as the demand for offshore drilling, oil price trends, and the global energy market. Additionally, strategic partnerships and long-term contracts with major oil companies contribute to stable revenue streams.
Tidewater Financial Statement Overview
Summary
Tidewater's financial performance is robust, with strong revenue growth and improved profitability. The company has effectively managed its balance sheet with moderate leverage and demonstrated strong cash flow generation. However, attention to asset management and sustaining equity ratios will be important for future stability.Income Statement
Tidewater's income statement shows strong revenue growth, with a significant increase from $647.68M in 2022 to $1.35B in 2024. The company has improved its gross profit margin to 100% in 2024, indicating effective cost control. The net profit margin has also increased to 13.4% in 2024, reflecting enhanced profitability. EBIT and EBITDA margins have improved considerably, showcasing operational efficiency.85
Very Positive
Balance Sheet
The balance sheet demonstrates a healthy equity position with a rising stockholders' equity amounting to $1.11B in 2024. The debt-to-equity ratio is well-managed at 0.57, indicating moderate leverage. Return on equity has improved significantly to 16.21% in 2024, suggesting strong shareholder returns. However, the equity ratio has slightly decreased, requiring attention to asset management.75
Positive
Cash Flow
Cash flow analysis reveals robust free cash flow growth, rising to $273.85M in 2024 from $23.59M in 2022. The operating cash flow to net income ratio is healthy, indicating effective conversion of income to cash. The free cash flow to net income ratio is favorable, reflecting strong cash generation relative to net income.80
Positive
| Breakdown | ||||
| Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|
| Income Statement | Total Revenue | |||
| 1.35B | 1.01B | 647.68M | 371.03M | 397.04M | Gross Profit |
| 406.40M | 268.80M | 129.09M | -7.56M | 8.14M | EBIT |
| 311.35M | 174.60M | 26.71M | -95.02M | -186.80M | EBITDA |
| 458.62M | 367.73M | 134.04M | 6.34M | -56.80M | Net Income Common Stockholders |
| 180.66M | 97.19M | -21.75M | -128.97M | -196.24M |
| Balance Sheet | Cash, Cash Equivalents and Short-Term Investments | |||
| 324.92M | 274.44M | 164.19M | 149.04M | 149.93M | Total Assets |
| 2.07B | 2.06B | 1.30B | 1.10B | 1.25B | Total Debt |
| 637.10M | 734.44M | 169.04M | 167.88M | 192.73M | Net Debt |
| 312.18M | 460.00M | 4.84M | 18.85M | 42.80M | Total Liabilities |
| 963.72M | 1.03B | 431.67M | 394.01M | 427.90M | Stockholders Equity |
| 1.11B | 1.04B | 865.97M | 701.30M | 822.12M |
| Cash Flow | Free Cash Flow | |||
| 246.27M | 73.12M | 23.59M | 6.05M | -10.91M | Operating Cash Flow |
| 273.85M | 104.70M | 40.23M | 15.01M | 3.99M | Investing Cash Flow |
| -188.00K | -610.27M | -23.81M | 25.06M | 23.40M | Financing Cash Flow |
| -222.59M | 615.56M | -2.72M | -41.01M | -99.77M |
Tidewater Technical Analysis
Negative
37.37
Price Trends
40.20
Negative
46.64
Negative
60.16
Negative
Market Momentum
-1.17
Negative
50.08
Neutral
86.00
Negative
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For TDW, the sentiment is Negative. The current price of 37.37 is above the 20-day moving average (MA) of 35.02, below the 50-day MA of 40.20, and below the 200-day MA of 60.16, indicating a neutral trend. The MACD of -1.17 indicates Negative momentum. The RSI at 50.08 is Neutral, neither overbought nor oversold. The STOCH value of 86.00 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for TDW.
Tidewater Peers Comparison
Overall Rating
UnderperformOutperform
Sector (56)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
77 Outperform | $1.07B | 8.43 | 10.07% | ― | 49.31% | 10605.17% | |
73 Outperform | $229.50M | 13.31 | 7.02% | ― | 29.36% | 261.48% | |
72 Outperform | $1.73B | 21.28 | 7.33% | ― | 2.24% | -66.96% | |
70 Outperform | $1.90B | 10.98 | 16.78% | ― | 33.25% | 83.81% | |
69 Neutral | $1.79B | 9.93 | 26.17% | ― | 10.04% | 68.14% | |
66 Neutral | $950.10M | 11.42 | 5.64% | ― | 0.34% | ― | |
56 Neutral | $6.92B | 3.31 | -4.49% | 6.03% | -0.35% | -47.83% |
* Energy Sector Average
Performance Comparison
TDW
Tidewater
37.37
-69.14
-64.91%
INVX
Innovex International
15.36
-3.24
-17.42%
HLX
Helix Energy
6.27
-4.68
-42.74%
NGS
Natural Gas Services Group
18.34
-4.05
-18.09%
OII
Oceaneering International
18.65
-4.24
-18.52%
DNOW
Now
16.09
1.75
12.20%
Tidewater Earnings Call Summary
Earnings Call Date:Feb 27, 2025
(Q4-2024)
| % Change Since: -23.11%|
Next Earnings Date:May 05, 2025
Earnings Call Sentiment Neutral
Tidewater Inc. had a strong financial performance in 2024 with significant revenue growth, increased day rates, and successful share repurchases. While the long-term outlook remains positive, 2025 is expected to face challenges with muted demand growth, regional performance disparities, and pressure on day rates. The company's strategy remains focused on disciplined capital allocation and opportunistic share repurchases.Q4-2024 Updates
Positive Updates
Significant Financial Improvements in 2024
Revenue grew 33% year over year, average day rates increased by nearly $4,500 per day, net income nearly doubled, adjusted EBITDA grew by nearly 50%, free cash flow tripled, and net debt was lowered by $149 million.
Successful Share Repurchase Program
Tidewater actively returned capital to shareholders for the first time since 2018, repurchasing $91 million of shares in the open market during 2024 and using $119 million of cash to manage down the number of shares outstanding.
Strong Free Cash Flow Generation
Tidewater generated $131 million of free cash flow in 2024 and has plans for substantial free cash flow generation in 2025.
New Share Repurchase Authorization
The Board of Directors authorized an additional $90.3 million of share repurchase capacity as of the call date.
Positive Long-term Outlook for Offshore Vessel Demand
Despite a more muted growth in offshore drilling activity for 2025, demand for offshore vessels is expected to increase beyond 2025, driven by subsea demand and FPSO activity.
Negative Updates
Mixed Regional Performance
Significant improvements in West Africa and the Middle East were offset by a pullback in Asia Pacific and the Americas.
Softening Demand in 2025
The growth in offshore drilling activity appears to be more muted throughout 2025, with fewer offshore rigs anticipated compared to 2024, impacting demand for offshore vessels.
Pressure on Day Rates
There was pressure on leading edge day rates across vessel classes during Q4, particularly in the UK due to regulatory and tax structure adjustments.
Challenges in Financing New Builds
Current day rates and contract terms do not justify newbuild ordering, and there is limited appetite in the financing markets for newbuild projects.
Increased Receivables
Receivables increased in Q4, primarily driven by delays in payments from PEMEX in Mexico.
Company Guidance
During the Tidewater Inc. Q4 and Full Year 2024 Earnings Conference Call, the company provided guidance for 2025, highlighting a revenue range of $1.32 to $1.38 billion and a gross margin of 48% to 50%. Tidewater anticipates a slight improvement in 2025 compared to 2024, with the midpoint of revenue guidance supported by approximately 81% of already secured backlog and options. The company expects a first-quarter revenue decline of about 6% due to seasonal weakness but foresees a material uplift in utilization by the third quarter. In terms of financial performance, 2024 saw a 33% increase in revenue, with net income nearly doubling and adjusted EBITDA growing by nearly 50%. Tidewater also marked the year with significant shareholder returns, repurchasing $91 million of shares and managing down net debt by $149 million, ending the year with $310 million in net debt. For 2025, Tidewater plans to continue its disciplined capital allocation strategy, focusing on value-accretive actions to enhance shareholder value, including a newly authorized $90.3 million share repurchase capacity.Glossary
OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.
NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.
UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.
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.