Oil States International, Inc (NYSE: OIS)

Sector: Energy Industry: Oil & Gas Equipment & Services CIK: 0001121484
Market Cap 578.94 Mn
P/B 0.84
P/E 25.14
P/S 0.88
ROIC (Qtr) 2.37
Div Yield % 0.00
Rev 1y % (Qtr) -5.26
Total Debt (Qtr) 126.22 Mn
Debt/Equity (Qtr) 0.18
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About

Investment thesis

Bull case

  • Strong operating cash flow of 73.19M provides robust 0.58x coverage of total debt 126.22M, indicating excellent debt servicing capability and financial flexibility.
  • Strong tangible asset base of 827.16M provides 6.55x coverage of total debt 126.22M, indicating robust asset backing and low credit risk.
  • Tangible assets of 827.16M provide exceptional 11.30x coverage of deferred revenue 73.20M, showing strong service capability backing.
  • Retained earnings of 281.53M provide full 17.84x coverage of long-term debt 15.78M, indicating strong internal capital position.
  • Robust tangible asset base of 827.16M provides 3.60x coverage of working capital 230.03M, indicating strong operational backing.

Bear case

  • Operating cash flow of 73.19M barely covers its investment activities of (3.43M), with a coverage ratio of -21.34, indicating heavy reliance on external financing for growth which may not be sustainable in a tighter credit environment.
  • Operating cash flow of 73.19M provides insufficient coverage of deferred revenue obligations of 73.20M, which is 1x, raising concerns about future service delivery capabilities.
  • Operating earnings of 36.61M show weak coverage of depreciation charges of 48.23M, with a 0.76 ratio indicating high capital intensity and potential reinvestment needs.
  • Free cash flow of 26.40M represents just -1.26x of debt issuance (20.97M), suggesting concerning reliance on leverage rather than internal cash generation for growth.
  • High depreciation of 48.23M relative to operating cash flow of 73.19M, which is 0.66x suggests significant maintenance capital requirements affecting free cash flow.

Segments Breakdown of Revenue (2024)

Product and Service Breakdown of Revenue (2024)

Peer comparison

Companies in the Oil & Gas Equipment & Services
S.No. Ticker Company Market Cap P/E P/S Total Debt (Qtr)
1 SLB Slb Limited/Nv 59.56 Bn 20.77 2.67 11.64 Bn
2 BKR Baker Hughes Co 59.13 Bn 22.85 2.13 6.09 Bn
3 FTI TechnipFMC plc 28.99 Bn 127.65 1.96 1.34 Bn
4 HAL Halliburton Co 28.83 Bn 22.47 1.30 8.13 Bn
5 WFRD Weatherford International plc 7.39 Bn 17.15 1.50 1.64 Bn
6 NOV NOV Inc. 7.09 Bn 48.90 0.81 2.34 Bn
7 VAL Valaris Ltd 6.32 Bn 15.83 2.61 1.09 Bn
8 KGS Kodiak Gas Services, Inc. 4.56 Bn 91.00 3.58 2.66 Bn

Industry comparisons

Current Valuation Value Ind Avg Percentile
EV to Assets EV to Assets 0.65 1.17
EV to Cash from Ops. EV/CFO 9.01 -3.30
EV to Debt EV to Debt 5.22 10.99
EV to EBIT EV/EBIT 18.01 4.49
EV to EBITDA EV/EBITDA 8.00 6.54
EV to Free Cash Flow [EV/FCF] EV/FCF 24.97 31.31
EV to Market Cap EV to Market Cap 1.14 1.36
EV to Revenue EV/Rev 1.01 2.02
Price to Book Value [P/B] P/B 0.84 1.73
Price to Earnings [P/E] P/E 25.14 20.20
Dividend Metrics Value Ind Avg Percentile
Dividend Coverage Ratio Dividend Coverage Ratio 0.00 0.42
Dividend Payout Ratio % Div Payout % (Qtr) 0.00 5.49
Dividend per Basic Share Div per Share (Qtr) 0.00 0.26
FCF Dividend Payout Ratio % FCF Div Payout % (Qtr) 0.00 6.68
Interest Coverage Int. cover (Qtr) 4.66 -10.19
Growth Metrics Value Ind Avg Percentile
Capex Growth (1y) % Capex 1y % (Qtr) -90.33 -37.90
Cash and Equivalents Growth (1y) % Cash & Equiv 1y % (Qtr) 45.82 1,334.16
Dividend Growth (1y) % Dividend Growth (1y) % 0.00 4.06
EBIAT Growth (1y) % EBIAT 1y % (Qtr) 382.22 -12.71
EBITDA Growth (1y) % EBITDA 1y % (Qtr) 84.07 19.66
EBIT Growth (1y) % EBIT 1y % (Qtr) 486.44 -26.68
EBT Growth (1y) % EBT 1y % (Qtr) 254.16 39.97
EPS Growth (1y) % EPS 1y % (Qtr) 212.12 27.30
FCF Growth (1y) % FCF 1y % (Qtr) 261.58 -867.31
Gross Profit Growth (1y) % Gross Profit 1y % (Qtr) -5.66 5.49
Liquidity Ratios Value Ind Avg Percentile
Asset Utilization Ratio Asset Util Ratio (Qtr) 0.65 0.74
Cash Payout Ratio Cash Payout (Qtr) 0.00 0.10
Cash Ratio Cash Ratio (Qtr) 0.24 0.62
Current Ratio Curr Ratio (Qtr) 1.82 2.25
Debt to Equity Ratio Debt/Equity (Qtr) 0.18 0.88
Interest Cover Ratio Int Coverage (Qtr) 4.66 -10.19
Times Interest Earned Times Interest Earned (Qtr) 4.66 -10.19
Profitability Value Ind Avg Percentile
EBITDA Margin % EBITDA Margin % (Qtr) 13.00 16.47
EBIT Margin % EBIT Margin % (Qtr) 5.59 -0.62
EBT Margin % EBT Margin % (Qtr) 4.39 4.39
Gross Margin % Gross Margin % (Qtr) 23.30 30.41
Net Profit Margin % Net Margin % (Qtr) 3.50 2.67