One-glance verdict
Undervalued
$190.45 our estimate vs market $71.06
Wall Street consensus: $96.75 (-49.2% lower than our fair-value estimate)
63% below our estimate, below the bear case
Fundamentals snapshot
Tidewater Inc.
TDW · NYQ · Energy · Oil & Gas Equipment & Services
Current price
$71.06
52-week range
$49.54 - $101.58
Market cap
$3.54B
Balance sheet
Watch
4.20x Stretched
Net debt $471.42M. Interest coverage shows how many times profit covers the interest bill.
What stands out
3 Rewards
2 Risks
3 rewards · 2 risks
- Reward Revenue grew 1.0% last year.
- Reward Returns 20.8% on equity, ahead of 83% of its peers.
- Risk Net debt grew 1974.8% over 3 years.
- Risk Insider ownership is only 1.7% (peer median: 9.2%).
What this company does
Tidewater Inc.
Tidewater Inc. is a company that rents out boats and provides marine services to oil and gas companies working in the ocean, helping them with everything from drilling to building windfarms. Most of their money comes from these boat rentals and services, which is important because it shows how much demand there is for their specific kind of help in the energy industry.
How the company got here
Tidewater Inc. has been a key player in supporting the offshore energy industry since its founding in 1956. Over the decades, it has built and operated a large fleet of specialized vessels. The company's history is tied to the cycles of oil and gas exploration and production, adapting its services as the industry evolved. A significant turning point was the consolidation of its operations and fleet to focus on efficiency and modern vessel types, positioning it for current market demands.
What it actually does
Tidewater provides essential services to companies involved in finding and extracting oil and gas from beneath the ocean floor, as well as supporting offshore wind farm projects. Think of them as the "trucks and tugboats" of the sea for energy companies. They operate a fleet of vessels that transport supplies, equipment, and personnel to offshore locations. They also help move large structures like drilling rigs and lay cables for energy infrastructure.
Americas
This segment covers Tidewater's operations in North and South America, serving the offshore oil and gas activities in regions like the Gulf of Mexico and off the coasts of South America. The vessels here support everything from the initial exploration for new oil and gas fields to the ongoing production and maintenance of existing ones. This is a significant part of Tidewater's business, reflecting the active energy exploration in these waters.
Asia Pacific
Operating in the vast Asia Pacific region, this segment supports offshore energy projects across countries with significant coastlines and offshore resources. The services provided are similar to other regions, including transporting vital supplies and personnel, and assisting with the movement and setup of drilling and production equipment. This area represents a substantial portion of Tidewater's global reach and revenue generation.
Middle East
Tidewater's Middle East segment caters to the robust oil and gas industry in this strategically important region. The company's vessels are crucial for supporting the exploration, development, and production phases of offshore energy projects. This business line is a core contributor to Tidewater's overall financial performance, given the high level of activity in the Middle Eastern offshore energy sector.
Europe/Mediterranean
This segment encompasses Tidewater's operations supporting offshore energy activities in European waters and the Mediterranean Sea. The company's fleet provides essential marine services, such as towing drilling rigs and supplying offshore platforms. It also plays a role in supporting the development and maintenance of offshore wind farms in this region, showcasing a diversification of services.
West Africa
In West Africa, Tidewater's services are vital for the offshore oil and gas sector, which is a major economic driver for many countries in the region. The company's vessels are used for a variety of tasks, including towing drilling units, supplying offshore facilities, and supporting construction and maintenance operations. This segment is an important piece of Tidewater's global network, contributing to its overall revenue.
What management is betting on now
Tidewater's management is focused on modernizing its fleet with more efficient and environmentally friendly vessels, which can command higher rates (the price charged for services). They are also prioritizing operational efficiency to improve profitability, meaning they aim to make more money from each dollar of sales (improving their margins). The company is also strategically expanding its services to support the growing offshore wind energy sector, diversifying its revenue streams beyond traditional oil and gas.
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 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
FY2026 Q3
$65.84M
Revenue
$360.42M
Net income
$17.51M
Diluted EPS
0.35
Operating cash flow
$75.22M
Free cash flow
$65.84M
Fetching…
Sources
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
Is it cheap or expensive?
Fair value $190.45 vs current price $71.06
Wall Street consensus is the average analyst price target: $96.75 (-49.2% lower than our fair-value estimate).
Our most-likely fair value is $190.45 a share — about 168.0% above today's price of $71.06, so the stock currently looks cheap (undervalued).
Is it drowning in debt?
Watch
Net debt $471.4M. Interest coverage 4.2x.
Net debt
$471.42M
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 $862.26M Interest coverage 4.20x This is the baseline the peer rows are being compared against.
Total debt $736.16M 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 $5.02B Interest coverage 1.27x -70% vs TDW Carries about 3.3x less debt cushion than TDW.
Total debt $975.72M Interest coverage 3.60x -14% vs TDW Has roughly the same debt cushion as TDW.
Total debt $314.03M 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
-
Revenue grew 1.0% last year.
-
Returns 20.8% on equity, ahead of 83% of its peers.
-
Free cash flow was positive in 6/10 years.
Risks
-
Net debt grew 1974.8% over 3 years.
-
Insider ownership is only 1.7% (peer median: 9.2%).
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)
14.47x
Forward P/E
11.90x
P/B
2.51x
P/S
2.59x
EV/EBITDA
10.06x
PEG ratio
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Profitability
How much profit each dollar creates
Gross margin
47.8%
Operating margin
14.0%
Net margin
19.4%
ROE
20.8%
ROA
6.1%
Health
Liquidity and balance-sheet strength
Debt / equity
0.62x
Current ratio
2.23x
Quick ratio
2.04x
Total debt
$862.26M
Total cash
$390.84M
Growth
How the business has been compounding
Revenue TTM
$1.37B
Revenue 5Y CAGR
38.2%
EPS TTM
4.91
EPS 5Y CAGR
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Cash flow
How much cash the business throws off
Operating CF TTM
$314.40M
Free CF TTM
$353.35M
FCF margin
25.9%
Dividend
Shareholder payout
Yield
0.0%
Payout ratio
0.0%
Last ex-div date
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