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Tidewater Inc. (TDW)
NYSE:TDW
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Tidewater
(NYSE:TDW)
73Outperform
Tidewater (TDW) vs. S&P 500 (SPY)
Market Cap
$1.99B
Dividend YieldN/A
Average Volume (3M)1.19M
Price to Earnings (P/E)12.0
Beta (1Y)1.13
Revenue Growth19.34%
EPS Growth31.76%
CountryUS
Employees7,700
SectorEnergy
Sector Strength51
IndustryOil & Gas Equipment & Services
Share Statistics
EPS (TTM)0.83
Shares Outstanding49,476,300
10 Day Avg. Volume991,060
30 Day Avg. Volume1,193,227
Financial Highlights & Ratios
PEG Ratio-5.97
Price to Book (P/B)1.92
Price to Sales (P/S)0.00
P/FCF Ratio7.37
Enterprise Value/Market Cap1.18
Enterprise Value/Revenue0.45
Enterprise Value/Gross Profit3.32
Enterprise Value/Ebitda1.13
Forecast
1Y Price Target
$61.00Price Target Upside47.17% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering3
Tidewater Business Overview & Revenue Model
Company DescriptionTidewater (TDW) is a leading provider of offshore marine support and transportation services to the global energy industry. The company operates a large fleet of vessels that support various offshore activities, including drilling, production, and subsea construction. Tidewater serves oil and gas companies worldwide, offering services that are essential for the exploration and development of offshore energy resources.
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 demonstrates strong financial health with impressive revenue growth and operational efficiency, supported by robust cash flow generation. While the balance sheet remains stable, the leverage level requires close monitoring. Overall, the company is well-positioned for continued growth in the oil & gas equipment & services industry.Income Statement
Tidewater has shown a robust revenue growth trajectory, with a significant increase from $647.7M in 2022 to $1.36B in TTM 2025. Gross profit margin improved to 51.98% in TTM, reflecting strong operational efficiency. The net profit margin also increased to 12.98%, indicating enhanced profitability. However, a slight decline in EBIT margin to 22.27% from 23.14% suggests some operational cost pressures despite overall strong performance.85
Very Positive
Balance Sheet
The balance sheet reveals a healthy equity ratio of 53.89% in TTM, indicating solid financial stability. Debt-to-equity ratio stands at 0.57, reflecting a manageable leverage level for the industry. ROE is at 15.83%, showcasing effective use of equity to generate profits. The company maintains a strong asset base, but the relatively high debt level warrants cautious monitoring.75
Positive
Cash Flow
Tidewater's cash flow position is robust, with a notable increase in operating cash flow to $305M in TTM. Free cash flow to net income ratio is well-positioned at 1.58, indicating strong cash generation capabilities. However, free cash flow growth rate slowed due to recent capital expenditures, reflecting ongoing investments in business expansion.78
Positive
| 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 |
| 706.09M | 406.40M | 268.80M | 129.09M | -7.56M | 8.14M | EBIT |
| 302.50M | 311.35M | 174.60M | 26.71M | -95.02M | -186.80M | EBITDA |
| 520.66M | 458.62M | 367.73M | 134.04M | 6.34M | -56.80M | Net Income Common Stockholders |
| 176.28M | 180.66M | 97.19M | -21.75M | -128.97M | -196.24M |
| Balance Sheet | Cash, Cash Equivalents and Short-Term Investments | ||||
| 287.33M | 324.92M | 274.44M | 164.19M | 149.04M | 149.93M | Total Assets |
| 2.08B | 2.07B | 2.06B | 1.30B | 1.10B | 1.25B | Total Debt |
| 723.34M | 637.10M | 734.44M | 169.04M | 167.88M | 192.73M | Net Debt |
| 436.01M | 312.18M | 460.00M | 4.84M | 18.85M | 42.80M | Total Liabilities |
| 1.02B | 963.72M | 1.03B | 431.67M | 394.01M | 427.90M | Stockholders Equity |
| 1.06B | 1.11B | 1.04B | 865.97M | 701.30M | 822.12M |
| Cash Flow | Free Cash Flow | ||||
| 278.15M | 246.27M | 73.12M | 23.59M | 6.05M | -10.91M | Operating Cash Flow |
| 305.06M | 273.85M | 104.70M | 40.23M | 15.01M | 3.99M | Investing Cash Flow |
| -7.56M | -188.00K | -610.27M | -23.81M | 25.06M | 23.40M | Financing Cash Flow |
| -237.24M | -222.59M | 615.56M | -2.72M | -41.01M | -99.77M |
Tidewater Technical Analysis
Positive
41.45
Price Trends
39.05
Positive
46.14
Negative
58.24
Negative
Market Momentum
0.40
Negative
60.15
Neutral
58.87
Neutral
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 41.45 is above the 20-day moving average (MA) of 36.40, above the 50-day MA of 39.05, and below the 200-day MA of 58.24, indicating a neutral trend. The MACD of 0.40 indicates Negative momentum. The RSI at 60.15 is Neutral, neither overbought nor oversold. The STOCH value of 58.87 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive 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 | $1.04B | 8.25 | 13.87% | ― | 72.10% | ― | |
76 Outperform | $237.26M | 13.77 | 7.02% | ― | 29.36% | 261.48% | |
73 Outperform | $1.99B | 12.04 | 16.24% | ― | 19.34% | 31.76% | |
71 Outperform | $1.74B | 21.49 | 7.22% | ― | 4.74% | -65.65% | |
69 Neutral | $1.92B | 10.67 | 26.17% | ― | 10.04% | 68.14% | |
66 Neutral | $984.95M | 11.84 | 5.64% | ― | 0.34% | ― | |
56 Neutral | $7.06B | 3.68 | -4.87% | 5.83% | 0.28% | -51.94% |
* Energy Sector Average
Performance Comparison
TDW
Tidewater
41.45
-61.81
-59.86%
INVX
Innovex International
14.85
-4.39
-22.82%
HLX
Helix Energy
6.54
-4.82
-42.43%
NGS
Natural Gas Services Group
20.46
-2.06
-9.15%
OII
Oceaneering International
19.06
-4.24
-18.20%
DNOW
Now
14.61
0.83
6.02%
Tidewater Earnings Call Summary
Earnings Call Date:May 05, 2025
(Q1-2025)
| % Change Since: 9.05%|
Next Earnings Date:Aug 11, 2025
Earnings Call Sentiment Positive
The earnings call highlighted strong revenue and gross margin performance, record day rates, and successful share repurchases, indicating a positive start to the year. However, challenges in the North Sea and Mexico, high drydock expenditures, and receivables issues in Mexico were noted as concerns.Q1-2025 Updates
Positive Updates
Strong Revenue and Gross Margin Performance
First quarter revenue came in at $333.4 million, exceeding expectations due to higher average day rates and better utilization. Gross margin was over 50% for the second consecutive quarter.
Record Day Rates and Utilization
Day rates set a new quarterly record at $22,303, outperforming expectations by more than $500 per day. Utilization improvements contributed to the strong performance.
Significant Free Cash Flow Generation
The first quarter generated about $95 million of free cash flow, the second-highest quarterly figure since the offshore recovery began, despite higher drydock and capital expenditures.
Successful Share Repurchase Program
The company fully utilized the $90 million of share repurchase activity available under existing debt agreements, repurchasing 2.3 million shares at an average price of $39.31.
Positive Market Outlook
The company sees signs of strength in intermediate to long-term plans for customers, with long-term contracts indicating continued conviction by customers.
Negative Updates
Challenges in the North Sea and Mexico
The North Sea and Mexico markets continue to face demand-side challenges, impacting day rates and vessel utilization.
High Drydock and Capital Expenditures
The company incurred more than $30 million of additional drydock and capital expenditures in the first quarter compared to the fourth quarter.
Receivables Collection Issue in Mexico
The company has not received payment for several quarters from its primary customer in Mexico, with an outstanding receivable balance of $35.1 million.
Company Guidance
During the Tidewater Q1 2025 earnings call, the company reported a first quarter revenue of $333.4 million, with gross margins exceeding 50% for the second consecutive quarter. The average day rates set a quarterly record of $22,303, surpassing expectations by over $500 per day. Tidewater generated approximately $95 million in free cash flow, marking the second-highest quarterly figure since the offshore recovery began, despite incurring over $30 million in additional drydock and capital expenditures compared to the previous quarter. The company fully utilized its $90 million share repurchase authorization, reducing the outstanding share count by 2.5 million shares. For 2025, Tidewater reiterated its full-year revenue guidance of $1.32 billion to $1.38 billion and a gross margin range of 48% to 50%. The company expects a sequential revenue decline of about 5% in Q2, with a gross margin of 44%, but anticipates improved utilization and margins in the latter half of the year. The global market outlook remains positive, with strong performance in regions like Brazil and the Middle East, while challenges persist in the North Sea and Mexico.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.