One-glance verdict
Undervalued
$21.91 our estimate vs market $8.47
Wall Street consensus: $11.00 (-49.8% lower than our fair-value estimate)
61% below our estimate, below the bear case
Fundamentals snapshot
Oil States International, Inc.
OIS · NYQ · Energy · Oil & Gas Equipment & Services
Current price
$8.47
52-week range
$5.50 - $14.50
Market cap
$510.93M
Balance sheet
Distressed
0.30x Concerning
Net debt $16.42M. Interest coverage shows how many times profit covers the interest bill.
What stands out
1 Reward
1 Risk
1 rewards · 1 risks
- Reward Free cash flow was positive in 9/10 years.
- Risk Return on equity was -17.0% last year — the company lost money on shareholders' equity.
What this company does
Oil States International, Inc.
Oil States International is like a specialized hardware store for the energy industry, selling the complex equipment and services needed to get oil and gas out of the ground. Most of its revenue (the total money a company brings in from sales) comes from building large systems for offshore drilling rigs and selling tools for wells on land. This means the company's success is closely tied to how much money energy companies are willing to spend on new drilling and production projects.
How the company got here
Founded in 1937 as an oilfield supply store, the company started by selling rubber parts to oil producers in Texas. Over the decades, it expanded to serve the needs of oil and gas companies with equipment for underwater pipelines and other specialized services. Through various acquisitions and a focus on engineering, it grew into a global provider of equipment and services for the energy industry. A key event was spinning off its employee housing business in 2014 to focus purely on its core energy equipment and services operations.
What it actually does
Think of Oil States International as a highly specialized hardware store and on-call expert team for the oil and gas industry. The company doesn't drill for or sell oil itself, but provides the critical tools, components, and services that energy companies need to get oil and gas out of the ground, both on land and deep offshore. This includes everything from giant flexible joints for offshore platforms to tiny, consumable tools used deep inside a well. They also serve industrial and military customers with some of their specialized manufacturing capabilities.
Offshore Manufactured Products
This is the company's largest business, focused on big, heavy-duty equipment for drilling and production in the ocean. They design and build things like the massive flexible bearings that connect a floating platform to its foundation, systems for underwater pipelines, and large cranes used on offshore rigs. Customers are major energy companies and drilling contractors who are developing long-term, complex deepwater projects. This part of the business involves long-lead-time projects and highly engineered, custom solutions.
Completion and Production Services
This segment is all about getting a new well ready to produce oil and gas and then keeping it flowing. Once a hole is drilled, this team comes in with specialized rental equipment and trained crews to perform the final steps, a process called 'completion'. They provide services like wellhead isolation (safely managing pressure at the surface) and support for hydraulic fracturing operations. Oil and gas producers pay them day-rates for their equipment and people to help maximize the output of a well throughout its life.
Downhole Technologies
This division makes the highly technical, often single-use tools that go deep inside the well itself, or 'downhole'. A key product is their perforation systems, which are like specialized charges that create pathways for oil and gas to flow from the rock into the well. Their customers are oilfield service companies and the energy producers themselves, who buy these consumable products for the critical stages of well completion and intervention (maintenance or repairs inside the well). This business is driven by technology and product performance deep underground.
What management is betting on now
The company's leadership is focusing on growing its business in international and offshore markets, where the specialized, high-tech products from its Offshore Manufactured Products segment are in demand. This is a strategic shift to focus on projects that have higher margins (the profit made on each dollar of sales) compared to more competitive land-based work in the U.S. They are also emphasizing financial discipline, meaning they are carefully managing their costs and working capital (the cash needed for daily operations) to stay resilient through the industry's ups and downs. The goal is to be a go-to provider for complex energy projects that require deep engineering expertise.
How the company got here
Founded in 1937 as an oilfield supply store, the company started by selling rubber parts to oil producers in Texas. Over the decades, it expanded to serve the needs of oil and gas companies with equipment for underwater pipelines and other specialized services. Through various acquisitions and a focus on engineering, it grew into a global provider of equipment and services for the energy industry. A key event was spinning off its employee housing business in 2014 to focus purely on its core energy equipment and services operations.
What it actually does
Think of Oil States International as a highly specialized hardware store and on-call expert team for the oil and gas industry. The company doesn't drill for or sell oil itself, but provides the critical tools, components, and services that energy companies need to get oil and gas out of the ground, both on land and deep offshore. This includes everything from giant flexible joints for offshore platforms to tiny, consumable tools used deep inside a well. They also serve industrial and military customers with some of their specialized manufacturing capabilities.
Offshore Manufactured Products
This is the company's largest business, focused on big, heavy-duty equipment for drilling and production in the ocean. They design and build things like the massive flexible bearings that connect a floating platform to its foundation, systems for underwater pipelines, and large cranes used on offshore rigs. Customers are major energy companies and drilling contractors who are developing long-term, complex deepwater projects. This part of the business involves long-lead-time projects and highly engineered, custom solutions.
Completion and Production Services
This segment is all about getting a new well ready to produce oil and gas and then keeping it flowing. Once a hole is drilled, this team comes in with specialized rental equipment and trained crews to perform the final steps, a process called 'completion'. They provide services like wellhead isolation (safely managing pressure at the surface) and support for hydraulic fracturing operations. Oil and gas producers pay them day-rates for their equipment and people to help maximize the output of a well throughout its life.
Downhole Technologies
This division makes the highly technical, often single-use tools that go deep inside the well itself, or 'downhole'. A key product is their perforation systems, which are like specialized charges that create pathways for oil and gas to flow from the rock into the well. Their customers are oilfield service companies and the energy producers themselves, who buy these consumable products for the critical stages of well completion and intervention (maintenance or repairs inside the well). This business is driven by technology and product performance deep underground.
What management is betting on now
The company's leadership is focusing on growing its business in international and offshore markets, where the specialized, high-tech products from its Offshore Manufactured Products segment are in demand. This is a strategic shift to focus on projects that have higher margins (the profit made on each dollar of sales) compared to more competitive land-based work in the U.S. They are also emphasizing financial discipline, meaning they are carefully managing their costs and working capital (the cash needed for daily operations) to stay resilient through the industry's ups and downs. The goal is to be a go-to provider for complex energy projects that require deep engineering expertise.
Price history
How the share price has moved
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Loading price history…
Earnings history
Last 8 quarters — what happened
Click any quarter to read the call summary and what the numbers say.
FY2024 Q3
$21.37M
FY2024 Q4
$4.01M
FY2025 Q1
$137.00K
FY2025 Q2
$4.67M
FY2025 Q3
$21.98M
FY2025 Q4
$47.14M
FY2026 Q1
$-6.11M
FY2026 Q2
$-9.17M
Revenue
$156.66M
Net income
$5.91M
Diluted EPS
0.10
Operating cash flow
$-6.26M
Free cash flow
$-9.17M
Fetching…
Sources
Revenue
$145.36M
Net income
$1.11M
Diluted EPS
0.02
Operating cash flow
$-1.89M
Free cash flow
$-6.11M
Fetching…
Sources
Revenue
$178.46M
Net income
$-117.25M
Diluted EPS
-1.99
Operating cash flow
$50.15M
Free cash flow
$47.14M
Fetching…
Sources
Revenue
$165.18M
Net income
$1.90M
Diluted EPS
0.03
Operating cash flow
$30.68M
Free cash flow
$21.98M
Fetching…
Sources
Revenue
$165.41M
Net income
$2.81M
Diluted EPS
0.05
Operating cash flow
$14.99M
Free cash flow
$4.67M
Fetching…
Sources
Revenue
$159.94M
Net income
$3.16M
Diluted EPS
0.05
Operating cash flow
$9.29M
Free cash flow
$137.00K
Fetching…
Sources
Revenue
$164.59M
Net income
$15.16M
Diluted EPS
0.24
Operating cash flow
$18.21M
Free cash flow
$4.01M
Fetching…
Sources
Revenue
$174.35M
Net income
$-14.35M
Diluted EPS
-0.23
Operating cash flow
$28.80M
Free cash flow
$21.37M
Fetching…
Sources
Is it cheap or expensive?
Fair value $21.91 vs current price $8.47
Wall Street consensus is the average analyst price target: $11.00 (-49.8% lower than our fair-value estimate).
Our most-likely fair value is $21.91 a share — about 158.7% above today's price of $8.47, so the stock currently looks cheap (undervalued).
Is it drowning in debt?
Distressed
Net debt $16.4M. Interest coverage 0.3x.
Net debt
$16.42M
Interest coverage
0.30x
Oil States International, Inc.'s profit covers its interest bill about 0.3 times over. which is weaker than most peers shown here.
Distressed
Worse cushion
Baseline
Better cushion
OIS
BASELINE
Oil States International, Inc.
Total debt $36.22M Interest coverage 0.30x This is the baseline the peer rows are being compared against.
Total debt $227.51M Interest coverage 1.04x +243% vs OIS Carries about 3.4x more debt cushion than OIS.
Total debt $165.12M Interest coverage 4.78x +1,467% vs OIS Carries about 15.7x more debt cushion than OIS.
Total debt $2.33B Interest coverage 6.41x +2,004% vs OIS Carries about 21.0x more debt cushion than OIS.
Total debt $1.24B Interest coverage 17.11x +5,517% vs OIS Carries about 56.2x more debt cushion than OIS.
What you should know
The case for and against OIS
1 Reward
1 Risk
Rewards
-
Free cash flow was positive in 9/10 years.
Risks
-
Return on equity was -17.0% last year — the company lost money on shareholders' equity.
The numbers
All the key metrics, grouped by purpose
Tap any ? icon to learn what it means.
Valuation
How expensive the stock looks
P/E (TTM)
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Forward P/E
11.56x
P/B
0.88x
P/S
0.79x
EV/EBITDA
8.30x
PEG ratio
1.01x
Profitability
How much profit each dollar creates
Gross margin
21.8%
Operating margin
8.4%
Net margin
-16.8%
ROE
-17.0%
ROA
1.7%
Health
Liquidity and balance-sheet strength
Debt / equity
0.06x
Current ratio
2.35x
Quick ratio
1.10x
Total debt
$36.22M
Total cash
$19.80M
Growth
How the business has been compounding
Revenue TTM
$645.67M
Revenue 5Y CAGR
3.9%
EPS TTM
-1.84
EPS 5Y CAGR
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Cash flow
How much cash the business throws off
Operating CF TTM
$72.69M
Free CF TTM
$73.93M
FCF margin
11.5%
Dividend
Shareholder payout
Yield
—
Payout ratio
0.0%
Last ex-div date
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