Perilous Reversal Watch: Bristow Group (BRS)

Trade-Ideas LLC identified Bristow Group ( BRS) as a "perilous reversal" (up big yesterday but down big today) candidate. In addition to specific proprietary factors, Trade-Ideas identified Bristow Group as such a stock due to the following factors:

  • BRS has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $21.4 million.
  • BRS has traded 240,489 shares today.
  • BRS is down 3.1% today.
  • BRS was up 15.9% yesterday.

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More details on BRS:

Bristow Group Inc. provides industrial aviation services to the offshore energy industry in Africa, the Americas, the Asia Pacific, and Europe Caspian. The stock currently has a dividend yield of 2.6%. Currently there are 3 analysts that rate Bristow Group a buy, no analysts rate it a sell, and 1 rates it a hold.

The average volume for Bristow Group has been 1.1 million shares per day over the past 30 days. Bristow Group has a market cap of $380.6 million and is part of the basic materials sector and energy industry. The stock has a beta of 2.84 and a short float of 30.7% with 3.72 days to cover. Shares are down 58.3% year-to-date as of the close of trading on Friday.

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TheStreetRatings.com Analysis:

TheStreet Quant Ratings rates Bristow Group as a sell. The company's weaknesses can be seen in multiple areas, such as its poor profit margins, weak operating cash flow, generally disappointing historical performance in the stock itself, disappointing return on equity and feeble growth in its earnings per share.

Highlights from the ratings report include:
  • The gross profit margin for BRISTOW GROUP INC is rather low; currently it is at 19.84%. It has decreased significantly from the same period last year.
  • Net operating cash flow has decreased to $60.34 million or 33.55% when compared to the same quarter last year. Despite a decrease in cash flow of 33.55%, BRISTOW GROUP INC is in line with the industry average cash flow growth rate of -43.35%.
  • Return on equity has greatly decreased when compared to its ROE from the same quarter one year prior. This is a signal of major weakness within the corporation. Compared to other companies in the Energy Equipment & Services industry and the overall market on the basis of return on equity, BRISTOW GROUP INC has outperformed in comparison with the industry average, but has underperformed when compared to that of the S&P 500.
  • Despite any intermediate fluctuations, we have only bad news to report on this stock's performance over the last year: it has tumbled by 76.01%, worse than the S&P 500's performance. Consistent with the plunge in the stock price, the company's earnings per share are down 267.44% compared to the year-earlier quarter. Naturally, the overall market trend is bound to be a significant factor. However, in one sense, the stock's sharp decline last year is a positive for future investors, making it cheaper (in proportion to its earnings over the past year) than most other stocks in its industry. But due to other concerns, we feel the stock is still not a good buy right now.
  • BRISTOW GROUP INC has experienced a steep decline in earnings per share in the most recent quarter in comparison to its performance from the same quarter a year ago. The company has reported a trend of declining earnings per share over the past two years. However, the consensus estimate suggests that this trend should reverse in the coming year. During the past fiscal year, BRISTOW GROUP INC swung to a loss, reporting -$2.11 versus $2.36 in the prior year. This year, the market expects an improvement in earnings (-$0.55 versus -$2.11).

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