Is Tidewater’s Recent Global Expansion News a Signal for Value Opportunity in 2025?

• Wondering whether Tidewater's current price is a real opportunity or just another headline grabber? You are not alone, as plenty of investors are trying to make sense of the company's value.
• After a strong rebound of 9.0% over the past month, Tidewater’s stock has dipped 8.5% in the last week, keeping its one-year return just above break-even at 0.4%.
• Recent news has focused on the company’s global expansion plans and the ongoing volatility in the energy sector, both of which have influenced sentiment and trading activity. Developments like contract wins in offshore regions and broader shifts in oil demand have been cited as key reasons behind these price swings.
• Tidewater currently scores 3 out of 6 on our valuation checks, landing it right in the middle by conventional measures. However, numbers rarely tell the whole story. Let's dive deeper into how these valuation approaches stack up, and stay tuned for a fresh angle on value at the end.

Tidewater delivered 0.4% returns over the last year. See how this stacks up to the rest of the Energy Services industry.

Approach 1: Tidewater Discounted Cash Flow (DCF) Analysis

A Discounted Cash Flow (DCF) model estimates what a company is worth today based on its expected future cash flows. The model works by projecting how much cash Tidewater will generate in the years ahead and then discounting those cash flows back to their present value.

For Tidewater, the most recent Free Cash Flow over the last twelve months is $285 million. Looking ahead, analysts forecast an increase to $357.5 million in 2027, with further annual growth estimated and extrapolated over the next decade. In 2035, projected Free Cash Flow reaches approximately $532 million, reflecting sustained growth based on both analyst forecasts and Simply Wall St’s own extrapolation.

Using this approach, the DCF model calculates an intrinsic value of $187.92 per share. This suggests Tidewater’s stock is currently trading at a steep 71.4% discount to its intrinsic value, placing it in undervalued territory.

Result: UNDERVALUED

Our Discounted Cash Flow (DCF) analysis suggests Tidewater is undervalued by 71.4%. Track this in your watchlist or portfolio, or discover 928 more undervalued stocks based on cash flows.

Head to the Valuation section of our Company Report for more details on how we arrive at this Fair Value for Tidewater.

Approach 2: Tidewater Price vs Earnings

For profitable companies like Tidewater, the Price-to-Earnings (PE) ratio is a highly relevant way to gauge value. This is because it directly compares the stock price to how much the company is earning, helping investors put the current price tag in perspective relative to profits.

Growth expectations and risk are two major factors that influence what is considered a normal or fair PE ratio. Companies with faster profit growth or lower risk profiles typically justify higher PE ratios, while riskier or slower-growing businesses tend to trade at lower multiples.

Tidewater currently trades at a PE ratio of 17.6x, which is just above the Energy Services industry average of 16.6x and well below the average of its peers at 35.6x. To add more context, Simply Wall St has calculated a “Fair Ratio” of 16.1x for Tidewater, which factors in growth prospects, profit margins, market cap, and industry nuances. This tailored metric provides more detail than a broad industry comparison because it accounts for the company’s unique fundamentals and risk profile.

Comparing Tidewater’s actual PE ratio to its Fair Ratio shows a close alignment. With a difference of just 1.5x, the stock is trading very near its calculated fair value by this measure.

Result: ABOUT RIGHT

PE ratios tell one story, but what if the real opportunity lies elsewhere? Discover 1432 companies where insiders are betting big on explosive growth.

Upgrade Your Decision Making: Choose your Tidewater Narrative

Earlier we mentioned that there is an even better way to understand valuation. Let’s introduce you to Narratives. A Narrative is your unique, forward-looking story about a company. It goes beyond just the numbers, letting you express what you believe about Tidewater's business, including how its revenues, margins, and earnings might change in the future.

Narratives connect your perspective on what is driving the company, your expectations for future results, and your own estimate of fair value. This creates a clear link between the story you believe and the financial outputs that matter. You do not need to be an expert to use Narratives. They are available to everyone on Simply Wall St’s Community page, where millions of investors share and update their own views.

With Narratives, you can easily compare your fair value for Tidewater to the current market price, helping you decide whether you think it’s a buy, hold, or sell. Best of all, Narratives update automatically whenever fresh news, earnings, or analyst forecasts are released, so your story always reflects the latest information.

For example, some investors might have a bullish Narrative, expecting robust margin expansion and setting a fair value of $70 for Tidewater. Others are more cautious and peg fair value as low as $35, showing just how powerful and personal Narratives can be.

Do you think there's more to the story for Tidewater? Head over to our Community to see what others are saying!

This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

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