Oil States International is a manufacturer of products for deepwater production facilities and certain drilling equipment, as well as a provider of completion services and land drilling services to the oil and gas industry. The company was founded in 1995 and is based in Houston, Texas.
OIS Price Forecast Based on DCF Valuation
DCF Fair Value Target:
The table below illustrates the output of a discounted cash flow forecast using a variety of scenarios for Oil States International Inc. To summarize, we found that Oil States International Inc ranked in the 36th percentile in terms of potential gain offered. We should note, though, that the most conservative analysis suggests this stock will yield negative results -- and thus may be a potential short opportunity. In terms of the factors that were most noteworthy in this DCF analysis for OIS, they are:
The compound growth rate in the free cash flow of Oil States International Inc over the past 5.44 years is -0.16%; that's higher than only 20.14% of free cash flow generating stocks in the Energy sector.
38% of the company's capital comes from equity, which is greater than just 17.44% of stocks in our cash flow based forecasting set.
Oil States International Inc's interest coverage rate -- a measure of gross earnings relative to interest payments -- comes in at -41.68. This coverage rate is greater than that of just 3.21% of stocks we're observing for the purpose of forecasting via discounted cash flows.
Terminal Growth Rate in Free Cash Flow
Return Relative to Current Share Price
Want more companies with a valuation profile/forecast similar to that of Oil States International Inc? See NOV, TGA, EQNR, FET, and PSXP.
Oil States International, Inc. (OIS) Q2 2020 Results Conference Call July 30, 2020 11:00 AM ET Company Participants Ellen Pennington - Counsel and Assistant Corporate Secretary Cindy Taylor - President and Chief Executive Officer Lloyd Hajdik - EVP and Chief Financial Officer Conference Call Participants Sean Meakim - JP Morgan...
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