Expro Group Holdings (XPRO) AI Stock Analysis

• Market Cap: $961.21M
• Dividend Yield: N/A
• Average Volume (3M): 1.48M
• Price to Earnings (P/E): 18.9
• Beta (1Y): 1.32
• Revenue Growth: 13.22%
• EPS Growth: N/A
• Country: US
• Employees: 8,500
• Sector: Energy
• Sector Strength: 47
• Industry: Oil & Gas Equipment & Services
• EPS (TTM): 0.44
• Shares Outstanding: 115,390,890
• 10 Day Avg. Volume: 1,243,037
• 30 Day Avg. Volume: 1,478,829
• PEG Ratio: 0.15
• Price to Book (P/B): N/A
• Price to Sales (P/S): 0.00
• Price to Cash Flow (P/CF): 0.00
• P/FCF Ratio: 0.00
• Enterprise Value/Market Cap: 1.55
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: 6.91
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: $14.00
• Price Target Upside: 68.07% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 1

Expro Group Holdings' overall score reflects its strong financial performance and strategic initiatives, which position it well for long-term growth. However, technical indicators suggest bearish momentum, and market uncertainties present challenges. Valuation is reasonable, but the lack of a dividend yield may deter income-focused investors. The company is well-positioned within its sector, but operational efficiency and market conditions should be watched closely.

Positive Factors

Market Position

XPRO operates a formidable niche of proprietary technology, with strong moats in well test services and tubular running services that represent strategic assets within the broader OFS ecosystem.

Valuation

Despite the challenging 3Q results, the stock is now trading at just ~3.8x below-consensus '25 EBITDA forecast, which is considered too low for a company with differentiated businesses in offshore TRS and well testing.

Negative Factors

Investor Sentiment

Investors appear to be losing patience with XPRO after its 3Q EBITDA miss, FY24 EBITDA guide-down, and more subdued outlook for next year.

Revenue Target

White space concerns may limit the ability to drive similar pricing improvements in 2025, which will likely lead to the company falling short of reaching its $2bn mid-term revenue target on a run-rate basis.

Expro Group Holdings Business Overview & Revenue Model

Company Description

Expro Group Holdings N.V. engages in the provision of energy services in North and Latin America, Europe and Sub-Saharan Africa, the Middle East and North Africa, and the Asia-Pacific. The company provides well construction services, such as technology solutions in drilling, tubular running services, and cementing and tubulars; and well management services, including well flow management, subsea well access, and well intervention and integrity services. It serves exploration and production companies in onshore and offshore environments in approximately 60 countries with approximately 100 locations. The company was founded in 1938 and is based in Houston, Texas.

How the Company Makes Money

Expro Group Holdings generates revenue primarily through the provision of specialized energy services to oil and gas companies. The company's key revenue streams include contracts for well construction services, where they assist in the drilling and completion of wells, and well flow management, which involves optimizing the production and flow of oil and gas from reservoirs. Additionally, Expro provides subsea well access services, ensuring safe and efficient intervention in offshore wells, and production services, which include data collection and analysis to optimize production operations. Significant partnerships with major oil and gas operators and technological innovation also play a crucial role in driving Expro's earnings by enhancing service effectiveness and expanding their client base.

Expro Group Holdings Financial Statement Overview

Summary

Expro Group Holdings shows strong revenue and profit growth, supported by effective financial management and a solid balance sheet. While cash flow generation is improving, high capital expenditures remain a challenge. The company is positioned well within its industry, but operational efficiency and cash flow management should be monitored closely.

Income Statement

Expro Group Holdings has demonstrated strong revenue growth over the past few years, with a significant increase from $675M in 2020 to $1.7B in 2024. The gross profit margin improved substantially, reflecting effective cost management. The net profit margin turned positive in 2024, indicating improved profitability. However, the negative EBITDA in 2024 is a concern, suggesting potential operational inefficiencies.

Balance Sheet

The company's balance sheet shows a healthy equity ratio with equity representing a significant portion of total assets. The debt-to-equity ratio is low, indicating strong leverage management. Return on equity has improved, reflecting better profitability. The overall asset base has grown steadily, supporting the company's expansion.

Cash Flow

Operating cash flow has increased, showcasing improved cash generation capabilities. Free cash flow growth has been positive, although still modest, indicating room for improvement. The operating cash flow to net income ratio is robust, demonstrating the company's ability to convert earnings into cash. However, the capital expenditure remains high, which could pressure free cash flow in the long term.

Breakdown
Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement		Total Revenue
1.71B	1.51B	1.28B	825.76M	675.03M
	Gross Profit
215.97M	99.21M	82.30M	731.00K	-5.54M
	EBIT
94.17M	10.80M	45.35M	-18.73M	-322.29M
	EBITDA
-94.44M	197.15M	166.41M	17.04M	88.12M
	Net Income Common Stockholders
51.92M	-23.36M	-20.14M	-131.89M	-307.05M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
183.04M	151.74M	214.79M	235.39M	116.92M
	Total Assets
2.33B	2.01B	1.94B	1.85B	1.04B
	Total Debt
81.98M	110.88M	94.72M	110.30M	90.84M
	Net Debt
-101.06M	-40.86M	-120.06M	-125.09M	-26.09M
	Total Liabilities
842.06M	717.13M	651.26M	557.07M	427.77M
	Stockholders Equity
1.49B	1.30B	1.29B	1.30B	611.98M
Cash Flow		Free Cash Flow
25.90M	16.20M	-9.70M	-65.37M	-42.00M
	Operating Cash Flow
169.48M	138.31M	80.17M	16.14M	70.39M
	Investing Cash Flow
-165.14M	-148.23M	-71.21M	112.05M	-96.77M
	Financing Cash Flow
29.57M	-49.34M	-25.61M	-7.18M	-625.00K

Expro Group Holdings Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 8.33
• 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 XPRO, the sentiment is Neutral. The current price of 8.33 is above the 20-day moving average (MA) of 8.20, below the 50-day MA of 9.92, and below the 200-day MA of 14.53, indicating a neutral trend. The MACD of -0.51 indicates Negative momentum. The RSI at 42.94 is Neutral, neither overbought nor oversold. The STOCH value of 27.41 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for XPRO.

Expro Group Holdings Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
RES	73 Outperform	$1.07B	13.80	7.06%	3.38%	-9.78%	-49.45%
OII	69 Neutral	$1.79B	9.93	26.17%	―	10.04%	68.14%
XPRO	68 Neutral	$961.21M	18.88	3.73%	―	13.22%	―
MRC	68 Neutral	$1.00B	39.29	10.01%	―	-9.17%	-71.36%
HLX	66 Neutral	$950.10M	11.42	5.64%	―	0.34%	―
WTTR	63 Neutral	$1.04B	28.95	3.91%	3.05%	-8.41%	-58.49%
Sector *	56 Neutral	$6.92B	3.31	-4.49%	6.03%	-0.35%	-47.83%

Expro Group Holdings Corporate Events

Expro Group Reports Strong Q1 2025 Financials

Expro Group Holdings N.V. reported a solid financial performance for the first quarter of 2025, with revenue of $391 million and an adjusted EBITDA of $76 million, marking the highest first quarter adjusted EBITDA since its merger with Frank’s in 2021. Despite a decrease in revenue due to lower activity in several regions, the company achieved a net income of $14 million and continued to expand its adjusted EBITDA margin. Expro secured significant contracts, including a $50 million TRS contract in the Gulf of America and a $15 million intervention services contract in Indonesia, underscoring its commitment to delivering cost-effective, technology-driven solutions. The company remains optimistic about its medium- to long-term prospects, despite near-term uncertainties in the energy services industry.

Spark’s Take on XPRO Stock

According to Spark, TipRanks’ AI Analyst, XPRO is a Neutral.

Expro Group Holdings demonstrates robust financial growth and a strong balance sheet. The earnings call highlighted strategic initiatives and contract wins, boosting sentiment. However, technical indicators suggest a bearish trend, and high capital expenditures may pressure cash flows. Valuation is reasonable, but the lack of a dividend yield is a consideration for income-focused investors. Overall, Expro is positioned for growth but faces challenges in operational efficiency and market conditions.

To see Spark’s full report on XPRO stock, click here.

Expro Group Holdings Reports Strong 2024 Financial Performance

Expro Group Holdings reported a strong financial performance for the fourth quarter and full year 2024, with a 13% increase in annual revenue to $1,713 million and a 40% rise in adjusted EBITDA to $347 million. The company achieved significant contract wins, including projects in the Gulf of Mexico and the Norwegian Continental Shelf, and resolved issues related to its Congo production solutions project, contributing to improved margins and positioning for future growth. Expro also extended its $100 million stock repurchase program and anticipates stable to modestly increasing revenues in 2025, with a focus on operational efficiency and margin expansion.