Rating Change #5
(TDW - Get Report)
has been upgraded by TheStreet Ratings from hold to buy. The company's strengths can be seen in multiple areas, such as its revenue growth, largely solid financial position with reasonable debt levels by most measures, increase in net income, good cash flow from operations and expanding profit margins. We feel these strengths outweigh the fact that the company has had lackluster performance in the stock itself.
Highlights from the ratings report include:
- TDW's revenue growth has slightly outpaced the industry average of 12.8%. Since the same quarter one year prior, revenues rose by 15.6%. Growth in the company's revenue appears to have helped boost the earnings per share.
- The current debt-to-equity ratio, 0.38, is low and is below the industry average, implying that there has been successful management of debt levels. To add to this, TDW has a quick ratio of 1.75, which demonstrates the ability of the company to cover short-term liquidity needs.
- The net income growth from the same quarter one year ago has significantly exceeded that of the S&P 500 and the Energy Equipment & Services industry. The net income increased by 33.8% when compared to the same quarter one year prior, rising from $24.56 million to $32.86 million.
- Net operating cash flow has significantly increased by 160.50% to $69.08 million when compared to the same quarter last year. In addition, TIDEWATER INC has also vastly surpassed the industry average cash flow growth rate of -51.27%.
- 42.50% is the gross profit margin for TIDEWATER INC which we consider to be strong. It has increased from the same quarter the previous year. Regardless of the strong results of the gross profit margin, the net profit margin of 11.20% trails the industry average.
Tidewater Inc. provides offshore service vessels and marine support services through the operation of a fleet of marine service vessels. The company has a P/E ratio of 28.7, equal to the average transportation industry P/E ratio and above the S&P 500 P/E ratio of 17.7. Tidewater has a market cap of $2.44 billion and is part of the
industry. Shares are down 0.9% year to date as of the close of trading on Thursday.
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