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Civeo Corp (CVEO)
NYSE:CVEO
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Civeo
(NYSE:CVEO)
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Rating:52Neutral
Price Target:
$23.50
▲(4.07% Upside)
Civeo's overall stock score reflects a company with moderate financial health and mixed performance across its operations. The financial performance is the most significant factor, with revenue decline and increased leverage posing risks. Technical analysis and valuation present a neutral to slightly negative outlook, while the earnings call highlights growth potential in Australia but challenges in Canada. The attractive dividend yield offers some compensation for the risks.
Civeo (CVEO) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$283.42M
Dividend Yield4.42%
Average Volume (3M)65.65K
Price to Earnings (P/E)19.4
Beta (1Y)0.15
Revenue Growth-10.60%
EPS Growth-201.64%
CountryUS
Employees2,600
SectorConsumer Cyclical
Sector Strength84
IndustrySpecialty Business Services
Share Statistics
EPS (TTM)-0.25
Shares Outstanding12,551,769
10 Day Avg. Volume67,852
30 Day Avg. Volume65,651
Financial Highlights & Ratios
PEG RatioN/A
Price to Book (P/B)N/A
Price to Sales (P/S)N/A
P/FCF RatioN/A
Enterprise Value/Market Cap1.66
Enterprise Value/Revenue0.74
Enterprise Value/Gross Profit3.96
Enterprise Value/Ebitda8.38
Forecast
1Y Price Target
$27.00Price Target Upside19.57% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering1
Civeo Business Overview & Revenue Model
Company DescriptionCiveo Corporation provides hospitality services to the natural resource industry in Canada, Australia, and the United States. The company develops lodges and villages; and mobile accommodations, including modular, skid-mounted accommodation, and central facilities that provide long-term and temporary work force accommodations. It also offers food, housekeeping, and maintenance services, as well as laundry, facility management and maintenance, water and wastewater treatment, power generation, communication systems, security, and logistics services; and camp management services. In addition, the company provides development activities for workforce accommodation facilities, including site selection, permitting, engineering and design, manufacturing management, and site construction services, as well as catering and managed services. It owns and operates 27 lodges and villages with approximately 28,000 rooms; and a fleet of mobile accommodation assets. The company serves oil, mining, engineering, and oilfield and mining service companies. Civeo Corporation is headquartered in Houston, Texas.
How the Company Makes MoneyCiveo generates revenue primarily through the provision of accommodation and related services to clients in the resource sector. Its revenue model consists of long-term contracts and service agreements with major companies in the oil and gas and mining industries, which provide a steady income stream. Key revenue streams include room rentals, catering services, and facility management fees. Additionally, Civeo benefits from economies of scale and operational efficiencies, allowing it to maintain competitive pricing. Strategic partnerships with industry players and engagement in large-scale projects also contribute significantly to its earnings, particularly during periods of increased demand for workforce accommodations.
Civeo Earnings Call Summary
Earnings Call Date:Jul 29, 2025
(Q2-2025)
| % Change Since: |
Next Earnings Date:Oct 24, 2025
Earnings Call Sentiment Neutral
The earnings call revealed strong performance in the Australian segment with notable contract wins and effective share repurchase strategies, offset by significant challenges in the Canadian market leading to decreased revenue and occupancy. While the Australian operations show promising growth, the Canadian difficulties and overall financial results indicate mixed performance.Q2-2025 Updates
Positive Updates
Share Repurchase Progress
Civeo repurchased 883,000 common shares, approximately 7% of common shares outstanding, representing 30% of the new buyback authorization by June 30, 2025.
Australian Segment Growth
Revenue in Australia increased 4% year-over-year, or 7% on a constant currency basis, with adjusted EBITDA growing by 10% or 12% on a constant currency basis, driven by recent acquisitions and strong integrated services business.
Strong Contract Wins in Australia
Announced two significant contracts: a 4-year take-or-pay agreement worth AUD 250 million, and a 3-year integrated services contract worth approximately AUD 64 million.
Australian Acquisition Impact
The acquisition of 4 villages in May contributed positively to the Q2 2025 results, with a 10% increase in billed rooms.
Negative Updates
Canadian Market Challenges
Canada faced macroeconomic headwinds, lower occupancy in the oil sands region, and a decrease in billed rooms from 752,000 in Q2 2024 to 450,000 in Q2 2025.
Decreased Revenue and EBITDA in Canada
Canadian segment revenues fell to $50 million from $79.5 million in Q2 2024, with adjusted EBITDA at $7.5 million, down from $17.3 million in Q2 2024.
Net Loss and Cash Flow Challenges
Reported a net loss of $3.3 million or $0.25 per diluted share, with negative operating cash flow of $2.3 million.
Company Guidance
During Civeo Corporation's Second Quarter 2025 earnings call, substantial guidance was provided regarding the company's strategic direction and financial outlook. The company successfully repurchased 883,000 common shares, representing approximately 7% of its outstanding shares, which equates to 30% of the new buyback authorization as of June 30, 2025. Civeo's net debt increased by $95 million, primarily due to a $65 million acquisition in Australia and $19 million in share buybacks, resulting in a net leverage ratio of 2x. For the full year 2025, the company maintained its guidance for revenue between $640 million and $670 million and adjusted EBITDA ranging from $86 million to $96 million, with capital expenditures projected to be $20 million to $25 million. Regionally, in Australia, revenues increased 4% year-over-year to $112.7 million, with adjusted EBITDA growing by 10% to $23.7 million, driven largely by the acquisition of four villages. In Canada, revenues were $50 million, down from $79.5 million in the second quarter of 2024, with a corresponding drop in adjusted EBITDA to $7.5 million, reflecting lower occupancy levels due to macroeconomic headwinds. The company is committed to using no less than 100% of its annual free cash flow to complete its share repurchase authorization, while also focusing on optimizing its cost structure in Canada and expanding its integrated services business in Australia.Civeo Financial Statement Overview
Summary
Civeo's financials indicate moderate health with challenges. Revenue decline and profitability issues are concerning, but operational efficiency is evident in the EBITDA margin. The balance sheet shows increased leverage, posing potential risks. Cash flow remains a relative strength, with positive free cash flow and strong cash conversion despite declining growth.Income Statement
The income statement shows mixed results. There has been a decline in total revenue from $682M to $634M (TTM), indicating a negative revenue growth trend. The company has been struggling with profitability, as seen in the negative EBIT and net income in the TTM period. However, the EBITDA margin remains positive, suggesting some operational efficiency. Past annual data shows fluctuating net income, with only occasional profitability.45
Neutral
Balance Sheet
The balance sheet reflects moderate financial health. The debt-to-equity ratio has increased significantly in the TTM period, indicating higher leverage. Stockholders' equity has decreased, and the equity ratio stands at about 41%, which is reasonable but declining. The company's assets have decreased, raising concerns about asset management. However, the presence of cash and short-term investments provides some liquidity cushion.55
Neutral
Cash Flow
The cash flow statement indicates stable operational cash flow, although it has decreased from the previous periods. Free cash flow is positive, but the growth rate has slowed down significantly. The operating cash flow to net income ratio is high, showing strong cash conversion despite net losses, but the free cash flow growth rate has decreased, highlighting potential challenges in maintaining cash reserves.60
Neutral
| Breakdown | TTM | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 634.03M | 682.12M | 700.80M | 697.05M | 594.46M | 529.73M |
| Gross Profit | 118.67M | 149.46M | 170.52M | 179.99M | 158.00M | 147.64M |
| EBITDA | 55.98M | 70.07M | 128.68M | 109.95M | 97.09M | -30.18M |
| Net Income | -33.32M | -17.07M | 30.16M | 4.00M | 1.35M | -134.25M |
Balance Sheet | ||||||
| Total Assets | 508.84M | 405.07M | 548.06M | 566.18M | 672.73M | 740.85M |
| Cash, Cash Equivalents and Short-Term Investments | 14.64M | 5.20M | 3.32M | 7.95M | 6.28M | 6.16M |
| Total Debt | 179.74M | 55.75M | 79.19M | 143.72M | 192.85M | 272.86M |
| Total Liabilities | 299.40M | 168.07M | 225.02M | 262.48M | 309.62M | 365.50M |
| Stockholders Equity | 209.44M | 236.37M | 320.17M | 300.14M | 361.50M | 374.69M |
Cash Flow | ||||||
| Free Cash Flow | 9.43M | 57.37M | 64.93M | 66.35M | 72.96M | 107.28M |
| Operating Cash Flow | 34.41M | 83.51M | 96.56M | 91.77M | 88.53M | 117.36M |
| Investing Cash Flow | -89.26M | -14.94M | -14.52M | -8.95M | -706.00K | -1.77M |
| Financing Cash Flow | 61.16M | -65.20M | -86.80M | -79.66M | -86.51M | -114.21M |
Civeo Technical Analysis
Negative
22.58
Price Trends
23.36
Negative
22.76
Negative
22.58
Positive
Market Momentum
-0.18
Positive
42.04
Neutral
24.39
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For CVEO, the sentiment is Negative. The current price of 22.58 is below the 20-day moving average (MA) of 23.07, below the 50-day MA of 23.36, and above the 200-day MA of 22.58, indicating a neutral trend. The MACD of -0.18 indicates Positive momentum. The RSI at 42.04 is Neutral, neither overbought nor oversold. The STOCH value of 24.39 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for CVEO.
Civeo Risk Analysis
Civeo disclosed 36 risk factors in its most recent earnings report. Civeo reported the most risks in the "Finance & Corporate" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
Civeo Peers Comparison
Overall Rating
UnderperformOutperform
Sector (61)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
70 Outperform | 911.98M | 82.77 | 2.77% | ― | -35.28% | -90.34% | |
66 Neutral | 1.04B | 3.16 | 64.13% | ― | -49.92% | 3773.09% | |
52 Neutral | $283.42M | 19.41 | -13.15% | 4.42% | -10.60% | -201.64% | |
61 Neutral | $18.38B | 12.79 | -2.54% | 3.03% | 1.52% | -15.83% |
* Consumer Cyclical Sector Average
Performance Comparison
CVEO
Civeo
22.58
-4.24
-15.81%
PRSU
Pursuit Attractions and Hospitality
36.44
1.13
3.20%
TH
Target Hospitality
8.84
1.42
19.14%
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
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.