Bristow Group (VTOL) AI Stock Analysis

• Market Cap: $766.48M
• Dividend Yield: N/A
• Average Volume (3M): 163.92K
• Price to Earnings (P/E): 8.0
• Beta (1Y): 1.42
• Revenue Growth: 42.03%
• EPS Growth: N/A
• Country: US
• Employees: 3,447
• Sector: Energy
• Sector Strength: 61
• Industry: Oil & Gas Equipment & Services
• EPS (TTM): 3.20
• Shares Outstanding: 28,632,000
• 10 Day Avg. Volume: 161,443
• 30 Day Avg. Volume: 163,916
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): 0.64
• Price to Cash Flow (P/CF): 4.40
• P/FCF Ratio: 4.40
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: $48.50
• Price Target Upside: 81.17% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 2

Bristow Group shows strong revenue growth and positive earnings call sentiment, but faces challenges with high debt levels and negative cash flow, impacting its financial stability. Technical indicators suggest a bearish trend, while the valuation is reasonable. The company's strategic focus on growth and capital allocation provides a cautiously optimistic long-term outlook.

Positive Factors

Contract Wins

The company's Government Search and Rescue (SAR) portfolio is growing with significant contract wins.

Earnings

VTOL reported 4Q24 adj EBITDA of $57.8M well ahead of the Street’s $47.8M estimate.

Shareholder Returns

VTOL announced a new $125M share repurchase authorization as well as a $0.125 quarterly dividend.

Negative Factors

Capital Allocation

VTOL provided a new capital allocation framework prioritizing balance sheet, growth projects, and returning capital to shareholders.

Financial Transition

As the SAR portion of the portfolio accelerates, the company’s financial center will shift to a high value stable government contractor.

Free Cash Flow

Post the investment in SAR assets, VTOL's FCF profile will become very attractive with shareholder-friendly outlets likely.

Bristow Group Business Overview & Revenue Model

Company Description

Bristow Group (VTOL) is a leading global provider of vertical flight solutions, specializing in helicopter transportation services primarily in the offshore energy industry. The company operates a diverse fleet of aircraft, offering transportation and search and rescue services to government and civil organizations worldwide. Bristow Group is recognized for its commitment to safety, efficiency, and reliability in challenging environments.

How the Company Makes Money

Bristow Group generates revenue through service contracts with energy companies, governments, and other entities requiring helicopter transportation and search and rescue operations. The company's key revenue streams include long-term contracts with oil and gas companies to transport personnel and equipment to offshore platforms. Additionally, Bristow provides search and rescue services to government and civil organizations, often under long-term agreements. Partnerships with government agencies and commercial enterprises, along with the strategic positioning near major offshore energy hubs, significantly contribute to the company's earnings by ensuring a steady demand for its specialized aviation services.

Bristow Group Financial Statement Overview

Summary

Bristow Group demonstrates solid revenue growth and improved profitability metrics in the TTM period. While the balance sheet shows a stable structure, the high debt levels could pose a risk if not strategically handled. Cash flow concerns, particularly negative free cash flow, remain a challenge, indicating potential liquidity risks. Overall, the company is on a positive trajectory but must address cash flow sustainability and debt management to strengthen its financial position.

Income Statement

Bristow Group's revenue has shown a consistent upward trend, with a notable revenue growth rate of 7.89% in the TTM (Trailing-Twelve-Months) compared to 2023. The gross profit margin improved significantly to 69.74% in TTM, indicating effective cost management. Net income transitioned from a loss in 2023 to a profit in TTM, resulting in a positive net profit margin of 3.93%. The EBIT and EBITDA margins also improved, showing enhanced operational efficiency. However, past volatility in net income suggests potential risks in sustaining profitability.

Balance Sheet

The company's debt-to-equity ratio stands at 0.92 in TTM, reflecting a relatively balanced capital structure, though slightly high for the fossil fuels industry. The return on equity (ROE) improved to 6.12% in TTM, a positive sign of profitability. The equity ratio is stable at 43.04%, indicating a reasonable level of financial stability. However, the high total debt level poses a risk if not managed carefully.

Cash Flow

Free cash flow remains negative, with a decline in free cash flow growth rate, indicating potential liquidity challenges. The operating cash flow to net income ratio improved to 2.12 in TTM, suggesting better cash generation relative to earnings. However, the persistent negative free cash flow to net income ratio highlights ongoing cash flow management issues that need addressing.

Breakdown
TTM	Dec 2023	Dec 2022	Mar 2022	Mar 2021	Dec 2019
Income Statement		Total Revenue
1.40B	1.30B	1.23B	1.19B	1.18B	226.06M
	Gross Profit
976.28M	749.50M	210.82M	191.81M	218.02M	71.51M
	EBIT
120.38M	60.75M	46.76M	-17.56M	3.50M	-3.28M
	EBITDA
180.16M	145.01M	126.52M	69.67M	93.97M	9.00M
	Net Income Common Stockholders
55.07M	-6.78M	18.04M	-15.71M	-56.28M	-14.02M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
231.90M	180.26M	163.68M	266.01M	231.08M	196.66M
	Total Assets
3.05B	1.94B	1.81B	1.82B	1.99B	1.95B
	Total Debt
900.57M	838.32M	753.64M	651.11M	711.21M	867.20M
	Net Debt
668.68M	658.05M	589.95M	385.10M	480.13M	670.54M
	Total Liabilities
1.43B	1.11B	1.03B	988.91M	1.09B	1.52B
	Stockholders Equity
1.61B	823.69M	787.31M	835.82M	897.61M	426.49M
Cash Flow		Free Cash Flow
-74.41M	-49.47M	-63.70M	92.79M	82.00M	20.99M
	Operating Cash Flow
116.87M	32.04M	-14.13M	123.85M	96.84M	27.55M
	Investing Cash Flow
-186.72M	-47.32M	-44.14M	-17.37M	173.27M	48.62M
	Financing Cash Flow
59.95M	22.04M	-19.91M	-63.48M	-245.62M	-9.43M

Bristow Group Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 26.77
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For VTOL, the sentiment is Negative. The current price of 26.77 is below the 20-day moving average (MA) of 31.30, below the 50-day MA of 33.48, and below the 200-day MA of 35.05, indicating a bearish trend. The MACD of -0.59 indicates Negative momentum. The RSI at 47.94 is Neutral, neither overbought nor oversold. The STOCH value of 47.28 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for VTOL.

Bristow Group Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
PHI	76 Outperform	$4.66B	8.16	29.05%	5.83%	-0.15%	17.96%
TDG	68 Neutral	$69.42B	44.09	-29.16%	―	16.89%	20.33%
HXL	65 Neutral	$3.87B	30.25	8.14%	1.29%	6.31%	28.25%
VTOL	59 Neutral	$766.48M	8.05	11.05%	―	42.03%	―
AIR	57 Neutral	$1.81B	246.75	-1.08%	―	21.07%	-120.95%
Sector *	57 Neutral	$7.71B	4.16	-3.52%	8.32%	0.35%	-64.68%
SPR	40 Underperform	$3.40B	―	81.63%	―	4.44%	-202.63%

Bristow Group Corporate Events

Bristow Group Increases 2024 EBITDA Outlook Amid Growth

Bristow Group reported a solid performance for Q3 2024 with net income of $28.2 million on revenues of $356.4 million. The company raised its full-year Adjusted EBITDA outlook to $220-$230 million, reflecting growth in its government services and offshore energy sectors. Despite higher operating expenses due to personnel costs and maintenance, Bristow remains optimistic about its multi-year growth cycle, citing favorable industry conditions and an opportunity to optimize its contract portfolio.