Tidewater Inc. Common Stock (TDW)

FairStock Score: 75/100 — HIGH CONVICTION

Key Financials

Strengths

• Generates $443 million in annual free cash flow (10.4% yield on market cap)
• High return on equity of 27.0% demonstrating efficient capital deployment
• Conservative balance sheet with debt-to-equity of just 0.45, providing financial flexibility
• Healthy net profit margin of 16.3% showing consistent profitability
• FairStock composite score of 75/100 places it in the top tier across value, quality, and momentum factors

Concerns

• Revenue declining at 2.4% year-over-year signals potential demand weakness or market share loss

AI Analysis

Tidewater Inc. Common Stock is a small-cap energy company valued at $4.3 billion. The business generates $1.4 billion in annual revenue with a 16.3% net margin and $443 million in free cash flow. From a quality standpoint, Tidewater shows solid Piotroski F-Score of 6/9 and Altman Z-Score of 2.9 in the grey zone. On valuation, the stock is attractively valued at 12.9x earnings, with trades above its Graham Number with a negative 35% margin. Growth dynamics show revenue growing at -2.4% and profit growth of 495.8%. Our composite FairStock Score of 75/100 reflects strong fundamentals overall. This combination of reasonable valuation, solid returns, and conservative leverage makes it worth a closer look for value-oriented portfolios.

Bull Case

The market underappreciates Tidewater's consistent 27% ROE at just 13x earnings—a re-rating toward sector peers could unlock 30-50% upside. With $443 million in annual free cash flow (10.4% yield), management has ample capital for buybacks, dividends, or accretive acquisitions.

Bear Case

Macro headwinds or sector-specific disruption could pressure margins, particularly if competitive intensity increases in the energy space. Regulatory changes, input cost inflation, or demand normalization represent underappreciated risks that could materially impact forward estimates.

Data from SEC filings. AI analysis is for educational purposes only — not investment advice. Scoring methodology · Disclaimer