GulfMark Offshore Inc. Stock Upgraded (GLF)

NEW YORK ( TheStreet) -- GulfMark Offshore (NYSE: GLF) has been upgraded by TheStreet Ratings from hold to buy. The company's strengths can be seen in multiple areas, such as its increase in net income, revenue growth, largely solid financial position with reasonable debt levels by most measures, good cash flow from operations and growth in earnings per share. We feel these strengths outweigh the fact that the company has had lackluster performance in the stock itself.

Highlights from the ratings report include:
  • The net income growth from the same quarter one year ago has exceeded that of the S&P 500 and the Energy Equipment & Services industry average. The net income increased by 5.8% when compared to the same quarter one year prior, going from $13.29 million to $14.06 million.
  • Despite its growing revenue, the company underperformed as compared with the industry average of 10.3%. Since the same quarter one year prior, revenues slightly increased by 8.2%. This growth in revenue appears to have trickled down to the company's bottom line, improving the earnings per share.
  • The current debt-to-equity ratio, 0.34, is low and is below the industry average, implying that there has been successful management of debt levels.
  • Net operating cash flow has significantly increased by 62.77% to $32.56 million when compared to the same quarter last year. In addition, GULFMARK OFFSHORE INC has also vastly surpassed the industry average cash flow growth rate of -78.34%.
  • GULFMARK OFFSHORE INC's earnings per share improvement from the most recent quarter was slightly positive. The company has demonstrated a pattern of positive earnings per share growth over the past year. We feel that this trend should continue. During the past fiscal year, GULFMARK OFFSHORE INC turned its bottom line around by earning $1.90 versus -$1.39 in the prior year. This year, the market expects an improvement in earnings ($2.52 versus $1.90).

GulfMark Offshore, Inc. provides offshore marine support and transportation services primarily to companies involved in the offshore exploration and production of oil and natural gas. The company has a P/E ratio of 19.8, equal to the average energy industry P/E ratio and above the S&P 500 P/E ratio of 17.7. GulfMark has a market cap of $989.8 million and is part of the basic materials sector and energy industry. Shares are down 14.8% year to date as of the close of trading on Tuesday.

You can view the full GulfMark Ratings Report or get investment ideas from our investment research center.

-- Written by a member of TheStreet Ratings Staff

TheStreet ratings do not represent the views of TheStreet's staff or its contributors. Ratings are established by computer based on metrics for performance (which includes growth, stock performance, efficiency and valuation) and risk (volatility and solvency). Companies with poor cash flow or high debt levels tend to earn lower ratings in our model.
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