Gulf Marine Services PLC

LSE:GMS Stock Report

Market Cap: UK£221.6m

Gulf Marine Services Valuation

Is GMS undervalued compared to its fair value, analyst forecasts and its price relative to the market?

Valuation Score

4/6

Valuation Score 4/6

  • Below Fair Value

  • Significantly Below Fair Value

  • Price-To-Earnings vs Peers

  • Price-To-Earnings vs Industry

  • Price-To-Earnings vs Fair Ratio

  • Analyst Forecast

Share Price vs Fair Value

What is the Fair Price of GMS when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: GMS (£0.22) is trading below our estimate of fair value (£0.47)

Significantly Below Fair Value: GMS is trading below fair value by more than 20%.


Key Valuation Metric

Which metric is best to use when looking at relative valuation for GMS?

Other financial metrics that can be useful for relative valuation.

GMS key valuation metrics and ratios. From Price to Earnings, Price to Sales and Price to Book to Price to Earnings Growth Ratio, Enterprise Value and EBITDA.
Key Statistics
Enterprise Value/Revenue3.6x
Enterprise Value/EBITDA6.9x
PEG Ratio0.9x

Price to Earnings Ratio vs Peers

How does GMS's PE Ratio compare to its peers?

The above table shows the PE ratio for GMS vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyForward PEEstimated GrowthMarket Cap
Peer Average21.3x
HTG Hunting
6x-17.1%UK£567.1m
POS Plexus Holdings
56.1xn/aUK£15.5m
HSP Hargreaves Services
14.8xn/aUK£187.7m
NWF NWF Group
8.4x-0.2%UK£108.8m
GMS Gulf Marine Services
6.7x7.5%UK£221.6m

Price-To-Earnings vs Peers: GMS is good value based on its Price-To-Earnings Ratio (6.7x) compared to the peer average (21.3x).


Price to Earnings Ratio vs Industry

How does GMS's PE Ratio compare vs other companies in the European Energy Services Industry?

0 CompaniesPrice / EarningsEstimated GrowthMarket Cap
Industry Avg.n/a9.4%
n/an/an/a
No. of CompaniesPE048121620

Fetching data

0 CompaniesPrice / EarningsEstimated GrowthMarket Cap
Industry Avg.n/a9.4%
n/an/an/a
No more companies

Price-To-Earnings vs Industry: GMS is good value based on its Price-To-Earnings Ratio (6.7x) compared to the European Energy Services industry average (11.4x).


Price to Earnings Ratio vs Fair Ratio

What is GMS's PE Ratio compared to its Fair PE Ratio? This is the expected PE Ratio taking into account the company's forecast earnings growth, profit margins and other risk factors.

GMS PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio6.7x
Fair PE Ratio6.2x

Price-To-Earnings vs Fair Ratio: GMS is expensive based on its Price-To-Earnings Ratio (6.7x) compared to the estimated Fair Price-To-Earnings Ratio (6.2x).


Analyst Price Targets

What is the analyst 12-month forecast and do we have any statistical confidence in the consensus price target?

The above table shows the analyst GMS forecast and predictions for the stock price in 12 month’s time.
DateShare PriceAverage 1Y Price TargetDispersionHighLow1Y Actual priceAnalysts
CurrentUK£0.22
UK£0.26
+19.1%
7.8%UK£0.28UK£0.24n/a2
Apr ’25UK£0.20
UK£0.23
+18.4%
1.3%UK£0.24UK£0.23n/a2
Mar ’25UK£0.17
UK£0.23
+35.6%
1.8%UK£0.24UK£0.23n/a2
Feb ’25UK£0.16
UK£0.23
+44.4%
1.8%UK£0.24UK£0.23n/a2
Jan ’25UK£0.14
UK£0.23
+59.8%
3.3%UK£0.24UK£0.22n/a2
Jun ’24UK£0.049
UK£0.20
+307.7%
0.1%UK£0.20UK£0.20n/a2
May ’24UK£0.048
UK£0.20
+316.2%
0.1%UK£0.20UK£0.20UK£0.222
Apr ’24UK£0.046
UK£0.19
+312.7%
6.0%UK£0.20UK£0.18UK£0.202
Mar ’24UK£0.045
UK£0.19
+313.6%
6.3%UK£0.20UK£0.18UK£0.172
Feb ’24UK£0.045
UK£0.19
+318.2%
6.3%UK£0.20UK£0.18UK£0.162
Jan ’24UK£0.046
UK£0.19
+302.7%
7.1%UK£0.20UK£0.17UK£0.142
Dec ’23UK£0.056
UK£0.19
+243.8%
5.0%UK£0.20UK£0.18UK£0.142
Nov ’23UK£0.058
UK£0.20
+236.9%
1.8%UK£0.20UK£0.19UK£0.122
Oct ’23UK£0.058
UK£0.20
+241.0%
1.8%UK£0.20UK£0.19UK£0.112
Sep ’23UK£0.058
UK£0.19
+228.5%
5.3%UK£0.20UK£0.18UK£0.0872

Analyst Forecast: Target price is less than 20% higher than the current share price.


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