Tidewater currently trades at $73.99 and has been a dream stock for shareholders. It’s returned 431% since June 2021, blowing past the S&P 500’s 70.6% gain. The company has also beaten the index over the past six months as its stock price is up 32.8%.
Is it too late to buy TDW? Find out in our full research report, it’s free.
Why Does TDW Stock Spark Debate?
Operating one of the world's largest fleets with over 200 vessels spanning 30 countries, Tidewater (NYSE: TDW) operates offshore service vessels that transport supplies, equipment, and workers to oil rigs and platforms.
Two Positive Attributes:
1. Skyrocketing Revenue Shows Strong Momentum
Cyclical sectors like Energy often flatter weaker operators during favorable price environments, but a longer-term lens separates those from businesses that can consistently perform across market cycles. Luckily, Tidewater’s sales grew at an incredible 29.9% compounded annual growth rate over the last five years. Its growth beat the average energy upstream and integrated energy company and shows its offerings resonate with customers.
2. EBITDA Margin Rising, Profits Up
Adjusted EBITDA margin captures the true operating profitability of an energy producer by removing accounting noise around depletion and capitalized drilling costs. It reveals how much cash the asset base generates before capital structure and reinvestment requirements shape reported earnings.
Analyzing the trend in its profitability, Tidewater’s EBITDA margin rose by 31.3 percentage points over the last year, as its sales growth gave it immense operating leverage. Its EBITDA margin for the trailing 12 months was 38.8%.
One Reason to Be Careful:
Fewer Distribution Channels Limit Its Ceiling
The scale of a company’s revenue base is an important lens through which to view the topline, as it signals whether a producer has gone from a vulnerable commodity taker into a durable operating platform. Larger producers generate revenue across many wells, pads, takeaway routes, and geographies rather than relying on a single field or drilling program.
Tidewater’s $1.35 billion of revenue in the last year is pretty small for the industry, suggesting the company hasn’t hit a level of diversification where investors can sleep easy at night.
Final Judgment
Tidewater has huge potential even though it has some open questions, and with its shares topping the market in recent months, the stock trades at 16× forward P/E (or $73.99 per share). Is now the time to initiate a position? See for yourself in our comprehensive research report, it’s free.
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