One-glance verdict
Undervalued
$214.32 our estimate vs market $84.74
Wall Street consensus: $94.88 (-55.7% lower than our fair-value estimate)
60% below our estimate, below the bear case
Fundamentals snapshot
Tidewater Inc.
TDW · NYQ · Energy · Oil & Gas Equipment & Services
Current price
$84.74
52-week range
$46.65 - $101.58
Market cap
$4.22B
Balance sheet
Watch
4.20x Stretched
Net debt $39.66M. Interest coverage shows how many times profit covers the interest bill.
What stands out
3 Rewards
2 Risks
3 rewards · 2 risks
- Reward Returns 19.4% on equity, ahead of 80% of its peers.
- Reward Free cash flow was positive in 6/10 years.
- Risk Net debt grew 1974.8% over 3 years.
- Risk Insider ownership is only 1.8% (peer median: 9.7%).
What this company does
Tidewater Inc.
Tidewater owns and operates a large fleet of specialized work boats that support the offshore energy industry. The company makes money by chartering these vessels and their crews to oil, gas, and windfarm companies for essential tasks like towing drilling rigs and transporting supplies. This makes Tidewater a key part of the global energy supply chain (the entire network of companies involved in producing and delivering energy to consumers).
How the company got here
Founded in 1956, Tidewater pioneered the 'work boat' industry with the world's first vessel built specifically to support the offshore oil and gas industry. The company grew by following its energy customers into new waters around the globe, expanding its fleet of specialized ships. After a period of financial difficulty that led to bankruptcy in 2017, the company has focused on strengthening its leadership position. A key turning point was the 2022 acquisition of Swire Pacific Offshore, which significantly grew its fleet and created the world's leading operator of offshore support vessels.
What it actually does
Tidewater operates a large fleet of ships that essentially act as the workhorses for the offshore energy industry. Think of them as a combination of a taxi, a delivery truck, and a tow truck for offshore operations. Their vessels transport crews and supplies to drilling rigs and production platforms, tow large drilling units into position, and assist with underwater construction projects. They serve major oil and gas companies, drilling contractors, and are also involved in supporting the construction and maintenance of offshore wind farms.
Americas
This segment operates the company's vessel fleet in the waters of North and South America, including the Gulf of Mexico and Brazil. Customers here hire Tidewater's vessels to support all stages of offshore energy projects, from initial exploration to ongoing production. The Americas region represents a significant portion of the company's business, making up about a fifth of its total revenue. A recent major acquisition of a Brazilian company significantly increased Tidewater's presence and vessel count in this key offshore market.
Europe/Mediterranean
This division manages the company's fleet in the North Sea and the Mediterranean Sea, providing marine support for both oil and gas and offshore wind projects. The work is similar to other regions: moving supplies, handling anchors for rigs, and supporting construction activities. This is one of the company's largest segments, contributing roughly a quarter of Tidewater's total revenue.
West Africa
Operating along the western coast of Africa, this is Tidewater's largest geographical segment. It provides a wide range of vessel services to the numerous offshore oil and gas projects in the area. This region is a major driver of the company's business, accounting for over a quarter of its total revenue. The acquisition of Swire Pacific Offshore in 2022 particularly strengthened Tidewater's operational footprint in this key market.
Middle East
In this segment, Tidewater's vessels support the extensive offshore oil and gas production activities in the Persian Gulf and surrounding waters. The services provided are essential for the day-to-day operations of the many energy companies active in this region. While not the largest segment, it is a substantial and growing part of the company's global operations.
Asia Pacific
This division covers a vast area from Southeast Asia to Australia, serving the offshore energy industry's needs in the region. The company's vessels perform crucial transportation and support roles for exploration, development, and production activities. The Asia Pacific segment is a significant contributor to Tidewater's overall business.
What management is betting on now
Management is focused on capitalizing on the recovery and growth in the offshore energy market. A key part of their strategy involves strategic acquisitions, like the recent purchase of WSUT in Brazil, to expand their fleet and strengthen their presence in critical regions. They are also focused on maintaining a strong balance sheet (a company's financial health, showing what it owns and what it owes) to provide the flexibility to grow. By operating the world's largest fleet, they aim to drive higher vessel utilization (the amount of time a vessel is working and earning money) and better daily rental rates.
Price history
How the share price has moved
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Earnings history
Last 8 quarters — what happened
Click any quarter to read the call summary and what the numbers say.
FY2024 Q3
$43.42M
FY2024 Q4
$86.77M
FY2025 Q1
$75.71M
FY2025 Q2
$80.21M
FY2025 Q3
$49.62M
FY2025 Q4
$147.81M
FY2026 Q1
$4.29M
FY2026 Q2
$52.12M
Revenue
$342.29M
Net income
$21.66M
Diluted EPS
0.43
Operating cash flow
$67.04M
Free cash flow
$52.12M
Fetching…
Sources
Revenue
$326.22M
Net income
$6.14M
Diluted EPS
0.12
Operating cash flow
$19.18M
Free cash flow
$4.29M
Fetching…
Sources
Revenue
$336.80M
Net income
$219.88M
Diluted EPS
4.37
Operating cash flow
$152.96M
Free cash flow
$147.81M
Fetching…
Sources
Revenue
$341.11M
Net income
$-806.00K
Diluted EPS
-0.02
Operating cash flow
$54.74M
Free cash flow
$49.62M
Fetching…
Sources
Revenue
$341.43M
Net income
$72.93M
Diluted EPS
1.46
Operating cash flow
$85.43M
Free cash flow
$80.21M
Fetching…
Sources
Revenue
$333.44M
Net income
$42.65M
Diluted EPS
0.83
Operating cash flow
$85.97M
Free cash flow
$75.71M
Fetching…
Sources
Revenue
$345.08M
Net income
$36.91M
Diluted EPS
0.70
Operating cash flow
$91.30M
Free cash flow
$86.77M
Fetching…
Sources
Revenue
$340.36M
Net income
$46.37M
Diluted EPS
0.87
Operating cash flow
$49.14M
Free cash flow
$43.42M
Fetching…
Sources
Is it cheap or expensive?
Fair value $214.32 vs current price $84.74
Wall Street consensus is the average analyst price target: $94.88 (-55.7% lower than our fair-value estimate).
Our most-likely fair value is $214.32 a share — about 152.9% above today's price of $84.74, so the stock currently looks cheap (undervalued).
Is it drowning in debt?
Watch
Net debt $39.7M. Interest coverage 4.2x.
Net debt
$39.66M
Interest coverage
4.20x
Tidewater Inc.'s profit covers its interest bill about 4.2 times over. which is stronger than most peers shown here and 1 peers sit below 1x, which is the danger zone where profit does not fully cover the interest bill.
Watch
Worse cushion
Baseline
Better cushion
TDW
BASELINE
Tidewater Inc.
Total debt $653.20M Interest coverage 4.20x This is the baseline the peer rows are being compared against.
Total debt $480.65M Interest coverage 4.97x +19% vs TDW Carries about 1.2x more debt cushion than TDW.
Total debt $1.91B Interest coverage 3.17x -24% vs TDW Carries about 1.3x less debt cushion than TDW.
Total debt $5.12B Interest coverage 1.27x -70% vs TDW Carries about 3.3x less debt cushion than TDW.
Total debt $969.75M Interest coverage 3.60x -14% vs TDW Has roughly the same debt cushion as TDW.
Total debt $321.32M Interest coverage -1.38x -100% vs TDW This peer has almost no interest-payment cushion compared with TDW.
What you should know
The case for and against TDW
3 Rewards
2 Risks
Rewards
-
Returns 19.4% on equity, ahead of 80% of its peers.
-
Free cash flow was positive in 6/10 years.
-
Trades at 17.2x P/E vs peer median 19.5x (11.9% cheaper).
Risks
-
Net debt grew 1974.8% over 3 years.
-
Insider ownership is only 1.8% (peer median: 9.7%).
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)
17.19x
Forward P/E
14.09x
P/B
3.03x
P/S
3.13x
EV/EBITDA
10.67x
PEG ratio
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Profitability
How much profit each dollar creates
Gross margin
48.1%
Operating margin
17.3%
Net margin
18.3%
ROE
19.4%
ROA
7.0%
Health
Liquidity and balance-sheet strength
Debt / equity
0.47x
Current ratio
3.58x
Quick ratio
3.41x
Total debt
$653.20M
Total cash
$613.54M
Growth
How the business has been compounding
Revenue TTM
$1.35B
Revenue 5Y CAGR
38.2%
EPS TTM
4.93
EPS 5Y CAGR
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Cash flow
How much cash the business throws off
Operating CF TTM
$293.92M
Free CF TTM
$353.35M
FCF margin
26.2%
Dividend
Shareholder payout
Yield
—
Payout ratio
0.0%
Last ex-div date
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