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Relative valuation derived from Industrials sector median benchmarks. Model weights: EV/EBITDA (40%), P/B (35%), P/S (25%). Multiples adjusted for extreme outliers and non-recurring volatility.
Auditing capital efficiency...
Quality Profile Audit
Score: 38.6GRADE D
Composite assessment of profitability, capital efficiency, and financial strength. Top-tier entities demonstrate sustainable cash flow generation.
Return on Equity
Profit generated per dollar of shareholder equity
-1.1%
Sector: 8.9%
Dividend Analysis audit
No Dividend
This company does not currently pay a dividend.
Analyst Projections
Analyst Consensus
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Based on our 6-factor quantitative model, OIL STATES INTERNATIONAL, INC (OIS) receives a "Hold" rating with a composite score of 45.2/100, ranked #1675 out of 4446 stocks. Key factor scores: Quality 39/100, Value 23/100, Momentum 75/100. This is quantitative analysis only — not investment advice.
OIL STATES INTERNATIONAL, INC (OIS) Stock Analysis — April 2026 Rating, Price, and Forecast
Company Overview — What Does OIL STATES INTERNATIONAL, INC Do?
Oil States International, Inc., through its subsidiaries, provides oilfield products and services for the drilling, completion, subsea, production, and infrastructure sectors of the oil and gas industry worldwide. The company operates through three segments: Well Site Services, Downhole Technologies, and Offshore/Manufactured Products. The Well Site Services segment offers a range of equipment and services that are used to drill for, establish, and maintain the flow of oil and natural gas from a well throughout its lifecycle. It also provides wellhead isolation, frac valve, wireline and coiled tubing support, flowback and well testing, pipe recovery systems, gravel pack and sand control, blowout preventer, and drilling services. The Downhole Technologies segment provides oil and gas perforation systems, and downhole tools in support of completion, intervention, wireline, and well abandonment operations. This segment also designs, manufactures, and markets its consumable engineered products to oilfield service, and exploration and production companies. The Offshore/Manufactured Products segment designs, manufactures, and markets capital equipment utilized on floating production systems, subsea pipeline infrastructure, and offshore drilling rigs and vessels; and short-cycle and other products. Its products include flexible bearings, advanced connector systems, high-pressure riser systems, deepwater mooring systems, cranes, subsea pipeline products, and blow-out preventer stack integration products. This segment also provides short-cycle products, such as valves, elastomers, and other specialty products that are used in the land-based drilling and completion markets; and other products for use in industrial, military, and other applications. In addition, it offers specialty welding, fabrication, cladding and machining, offshore installation, and inspection and repair services. The company was incorporated in 1995 and is headquartered in Houston, Texas. OIL STATES INTERNATIONAL, INC (OIS) is classified as a small-cap stock in the Industrials sector, specifically within the Machinery industry. The company is led by CEO Cynthia B. Taylor and employs approximately 2,740 people, headquartered in Houston, Texas. With a market capitalization of $668M, OIS is one of the notable companies in the Industrials sector.
OIL STATES INTERNATIONAL, INC (OIS) Stock Rating — Hold (April 2026)
As of April 2026, OIL STATES INTERNATIONAL, INC receives a Hold rating with a composite score of 45.2/100 and 3 out of 5 stars from the Blank Capital Research quantitative model.OIS ranks #1,675 out of 4,446 stocks in our coverage universe. Within the Industrials sector, OIL STATES INTERNATIONAL, INC ranks #262 of 752 stocks, placing it in the upper half of its Industrials peers. The rating is generated by a multi-factor model that weighs quality (30%), momentum (25%), value (15%), investment (10%), stability (10%), and short interest (10%).
OIS Stock Price and 52-Week Range
OIL STATES INTERNATIONAL, INC (OIS) currently trades at $11.55. The stock gained $0.05 (0.4%) in the most recent trading session. The 52-week high for OIS is $14.50, which means the stock is currently trading -20.3% from its annual peak. The 52-week low is $3.08, putting the stock 275.6% above its annual trough. Recent trading volume was 518K shares, suggesting relatively thin trading activity.
Is OIS Overvalued or Undervalued? — Valuation Analysis
OIL STATES INTERNATIONAL, INC (OIS) carries a value factor score of 23/100 in the Blank Capital model, signaling premium valuation that prices in significant future growth. The trailing price-to-earnings ratio is 402.67x, compared to the Industrials sector average of 28.33x — a premium of 1321%. The price-to-book ratio stands at 1.18x, versus the sector average of 2.23x. The price-to-sales ratio is 1.01x, compared to 0.50x for the average Industrials stock. On an enterprise value basis, OIS trades at 12.45x EV/EBITDA, versus 5.70x for the sector.
At current multiples, OIL STATES INTERNATIONAL, INC trades at a premium to most Industrials peers. This elevated valuation may be justified if the company can sustain above-average growth rates and profitability, but it also creates downside risk if earnings disappoint expectations.
OIL STATES INTERNATIONAL, INC Profitability — ROE, Margins, and Quality Score
OIL STATES INTERNATIONAL, INC (OIS) earns a quality factor score of 39/100, signaling below-average profitability metrics relative to the broader market. The return on equity (ROE) is -1.1%, compared to the Industrials sector average of 8.9%, which is below typical expectations for high-quality companies. Return on assets (ROA) comes in at -0.7% versus the sector average of 3.3%.
On a margin basis, OIL STATES INTERNATIONAL, INC reports gross margins of 22.8%, compared to 35.8% for the sector. The operating margin is 0.8% (sector: 6.2%). Net profit margin stands at -0.9%, versus 3.9% for the average Industrials stock. Revenue growth is running at -11.4% on a trailing basis, compared to 6.4% for the sector. Profitability is below benchmark levels, which may reflect industry headwinds, elevated reinvestment, or structural challenges.
OIS Debt, Balance Sheet, and Financial Health
OIL STATES INTERNATIONAL, INC has a debt-to-equity ratio of 0.0%, compared to the Industrials sector average of 70.0%. The low leverage indicates a conservative balance sheet with significant financial flexibility. The current ratio is 1.86x, suggesting adequate working capital coverage. Total debt on the balance sheet is $2M. Cash and equivalents stand at $67M.
OIS has a beta of 1.31, meaning it is more volatile than the broader market — a $10,000 investment in OIS would be expected to move 31.3% more than the S&P 500 on any given day. The stability factor score for OIL STATES INTERNATIONAL, INC is 37/100, suggesting elevated price swings that may be unsuitable for conservative portfolios.
OIL STATES INTERNATIONAL, INC Revenue and Earnings History — Quarterly Trend
In TTM 2026, OIL STATES INTERNATIONAL, INC reported revenue of $665M and earnings per share (EPS) of $-1.86. Net income for the quarter was $-6M. Gross margin was 22.8%. Operating income came in at $5M.
In FY 2025, OIL STATES INTERNATIONAL, INC reported revenue of $669M and earnings per share (EPS) of $-1.86. Net income for the quarter was $-109M. Gross margin was 19.9%. Revenue grew -3.4% year-over-year compared to FY 2024. Operating income came in at $-98M.
In Q3 2025, OIL STATES INTERNATIONAL, INC reported revenue of $165M and earnings per share (EPS) of $0.03. Net income for the quarter was $2M. Gross margin was 22.1%. Revenue grew -5.3% year-over-year compared to Q3 2024. Operating income came in at $5M.
In Q2 2025, OIL STATES INTERNATIONAL, INC reported revenue of $165M and earnings per share (EPS) of $0.05. Net income for the quarter was $3M. Gross margin was 24.2%. Revenue grew -11.3% year-over-year compared to Q2 2024. Operating income came in at $5M.
Over the past 8 quarters, OIL STATES INTERNATIONAL, INC has demonstrated a growth trajectory, with revenue expanding from $186M to $665M. Investors analyzing OIS stock should weigh these quarterly trends alongside the valuation and quality metrics discussed above.
OIS Dividend Yield and Income Analysis
OIL STATES INTERNATIONAL, INC (OIS) does not currently pay a dividend. This is common among smaller companies in the Machinery industry that prefer to reinvest cash flows into business expansion rather than returning capital to shareholders. Income-focused investors looking for Industrials dividend stocks may want to explore other Industrials stocks or use the stock screener to filter by dividend yield.
OIS Momentum and Technical Analysis Profile
OIL STATES INTERNATIONAL, INC (OIS) has a momentum factor score of 75/100, indicating strong price momentum with the stock outperforming the majority of the market over recent periods. Stocks with high momentum scores have historically tended to continue their outperformance in the near term. The investment factor score is 36/100, which measures capital allocation efficiency and asset growth patterns. The short interest score of 42/100 reflects moderate short selling activity.
OIS vs Competitors — Industrials Sector Ranking and Peer Comparison
Comparing OIS against the S&P 500 benchmark is also instructive for understanding relative performance. Investors can view the full OIS vs S&P 500 (SPY) comparison to assess how OIL STATES INTERNATIONAL, INC stacks up against the broader market across all factor dimensions.
OIS Next Earnings Date
No upcoming earnings date has been announced for OIL STATES INTERNATIONAL, INC (OIS) at this time. Check the earnings calendar for the latest scheduling updates across all stocks in our coverage universe.
Should You Buy OIS? — Investment Thesis Summary
OIL STATES INTERNATIONAL, INC presents a balanced picture with arguments on both sides. The quality score of 39/100 flags below-average profitability. The value score of 23/100 indicates premium valuation. Price momentum is positive at 75/100, suggesting the trend favors buyers. High volatility (stability score 37/100) increases portfolio risk.
In summary, OIL STATES INTERNATIONAL, INC (OIS) earns a Hold rating with a composite score of 45.2/100 as of April 2026. The rating is derived from the Blank Capital Research methodology, which combines six factor dimensions into a single quantitative ranking. Investors should consider these quantitative signals alongside their own fundamental research, risk tolerance, and investment time horizon before making buy or sell decisions on OIS stock.
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Institutional Research Dossier
OIL STATES INTERNATIONAL, INC (OIS) Deep Dive Analysis
Published on March 24, 2026
Action RatingHold
Sections
Executive Summary
We maintain a Hold rating on Oil States International (OIS). While the company operates in a cyclical industry poised for potential growth, its recent financial performance, particularly negative net income and EBITDA, raises concerns about its ability to capitalize on favorable market conditions. The current valuation, as indicated by high P/E and EV/EBITDA ratios compared to the sector, suggests limited upside potential in the near term.
OIS's strategic focus on providing diverse oilfield products and services across the well lifecycle offers some resilience, but the company's profitability lags its peers. A turnaround hinges on improved operational efficiency and a sustained recovery in oil and gas activity. Investors should closely monitor OIS's ability to generate positive earnings and free cash flow to justify a more optimistic outlook.
Business Strategy & Overview
Oil States International operates through three segments: Well Site Services, Downhole Technologies, and Offshore/Manufactured Products. This diversification allows OIS to capture revenue across various stages of the oil and gas value chain, from drilling and completion to subsea infrastructure and production. The Well Site Services segment provides essential equipment and services for well establishment and maintenance, including wellhead isolation, flowback, and blowout preventer services. This segment is highly dependent on drilling activity and completion rates, making it sensitive to fluctuations in oil prices and capital expenditure by exploration and production (E&P) companies.
The Downhole Technologies segment focuses on perforation systems and downhole tools, catering to completion, intervention, and well abandonment operations. This segment benefits from the increasing complexity of well designs and the need for specialized tools to optimize production and extend well lifecycles. OIS's ability to innovate and develop proprietary technologies in this area is crucial for maintaining a competitive edge. The Offshore/Manufactured Products segment designs and manufactures capital equipment for floating production systems, subsea pipelines, and offshore drilling rigs. This segment is characterized by long lead times and large project sizes, requiring significant upfront investment and strong relationships with major offshore operators.
OIS's strategic positioning involves targeting both onshore and offshore markets, offering a comprehensive suite of products and services to a diverse customer base. The company's focus on engineered solutions and specialized applications differentiates it from commodity-based service providers. However, this strategy also requires significant investment in research and development, as well as a highly skilled workforce. The company's success depends on its ability to adapt to changing market conditions, anticipate customer needs, and maintain a strong reputation for quality and reliability.
The company's product pipeline is not explicitly detailed in the provided data, but given its business segments, it likely includes advancements in downhole tool technology, subsea connector systems, and well site service equipment. The industry context is characterized by cyclical demand, technological advancements, and increasing environmental concerns. OIS must navigate these challenges by investing in sustainable solutions, improving operational efficiency, and maintaining a strong financial position.
Execution Benchmarks audit
Revenue Growth
YOY expansion rate
-11.4%
Sector: 6.4%
-279% VS SCTR
Economic Moat Analysis
Oil States International's economic moat is likely Narrow. The company's competitive advantages stem primarily from specialized expertise and established relationships within specific niches of the oilfield services market. While OIS offers a diverse range of products and services, it does not possess overwhelming dominance in any single area. The Offshore/Manufactured Products segment, with its complex engineering requirements and long-term contracts, may exhibit some degree of switching costs for customers, but these are not insurmountable.
The Well Site Services segment, on the other hand, is highly competitive, with numerous players offering similar services. Differentiation in this segment is often based on price and availability, limiting OIS's ability to command premium pricing. The Downhole Technologies segment benefits from proprietary technologies and engineered solutions, providing a degree of differentiation. However, competitors are constantly innovating, and OIS must continually invest in research and development to maintain its technological edge.
Network effects are not a significant factor in OIS's business model. While strong relationships with key customers are important, the value of OIS's products and services is not directly correlated with the size or density of its customer network. Intangible assets, such as patents and proprietary know-how, contribute to OIS's competitive advantage, particularly in the Downhole Technologies segment. However, the oilfield services industry is characterized by rapid technological change, and patents can be circumvented or rendered obsolete by new innovations.
Cost advantages are not a primary driver of OIS's competitive position. The company's gross margins are lower than the sector average, suggesting that it does not possess significant cost efficiencies compared to its peers. Efficient scale is not a relevant factor, as the oilfield services market is fragmented and does not lend itself to natural monopolies. Overall, OIS's narrow moat provides some protection against competition, but it is not a dominant force in the industry.
Financial Health & Profitability
Oil States International's financial health presents a mixed picture. The company's revenue has declined recently, with a TTM revenue of $668.99 million compared to $692.59 million in FY2024 and $782.28 million in FY2023, indicating a concerning downward trend. This revenue decline is further highlighted by the negative revenue growth of -11.4% compared to the sector average of 6.6%. The company's profitability is also a significant concern, with a TTM net income of -$109.38 million and negative EBITDA of -$50.53 million. These figures contrast sharply with the sector's positive net margin of 3.7% and operating margin of 6.2%.
Examining the quarterly financial history reveals some positive signs in recent quarters. Q1, Q2, and Q3 of FY2025 show positive net income, albeit modest, suggesting a potential turnaround in profitability. However, the gross margins, while improving slightly in recent quarters, remain below the sector average. The company's ROE of -1.1% is significantly lower than the sector average of 9.2%, reflecting its poor profitability and inefficient use of equity.
OIS's balance sheet is relatively strong, with total cash of $67.05 million and minimal total debt of $1.67 million, resulting in a debt-to-equity ratio of 0.00, which is significantly lower than the sector average of 70.00. The current ratio of 1.86 indicates adequate liquidity to meet short-term obligations. However, the lack of free cash flow data makes it difficult to assess the company's ability to generate cash from operations.
Overall, OIS's financial health is weak due to declining revenue and negative profitability. While the company's strong balance sheet provides some cushion, a sustained recovery in revenue and earnings is crucial for improving its financial position. The recent positive net income in the first three quarters of FY2025 offers a glimmer of hope, but it remains to be seen whether this trend can be sustained.
Valuation Assessment
Oil States International's valuation appears stretched based on several key metrics. The company's P/E ratio of 402.7x is significantly higher than the sector average of 27.7x, indicating that investors are paying a substantial premium for each dollar of earnings. However, given the recent history of negative earnings, this metric is less meaningful and potentially misleading. The EV/EBITDA ratio of 13.5x is also higher than the sector average of 5.7x, suggesting that the company is overvalued relative to its earnings potential.
The absence of free cash flow data makes it difficult to assess the company's valuation based on cash flow metrics. However, given the negative net income and EBITDA, it is unlikely that OIS is generating significant free cash flow. The company's revenue growth has been negative, further supporting the argument that the stock is overvalued. While the recent positive net income in the first three quarters of FY2025 may justify some premium, the current valuation appears excessive given the company's overall financial performance.
Comparing OIS's valuation to its historical performance is challenging due to the cyclical nature of the oilfield services industry. However, the company's recent struggles with profitability and revenue growth suggest that the current valuation is not justified by its historical performance. The stock's momentum score of 73/100 indicates that the price has been trending upward, potentially driven by speculation about a turnaround in the oil and gas market. However, this momentum may not be sustainable if the company fails to deliver improved financial results.
In conclusion, Oil States International's valuation appears expensive relative to its growth, its history, and its sector. The high P/E and EV/EBITDA ratios suggest that the stock is overvalued, and the lack of free cash flow data further supports this conclusion. Investors should exercise caution and carefully consider the company's financial performance and growth prospects before investing in OIS.
Risk & Uncertainty
Oil States International faces several specific, idiosyncratic risks that could negatively impact its business and financial performance. The primary risk is the cyclical nature of the oil and gas industry. Demand for OIS's products and services is highly correlated with oil prices and capital expenditure by E&P companies. A decline in oil prices or a reduction in drilling activity could significantly reduce OIS's revenue and profitability. This cyclicality is inherent to the industry, but OIS's ability to manage costs and maintain a strong balance sheet during downturns is crucial for its long-term survival.
Competition is another significant risk. The oilfield services industry is highly competitive, with numerous players offering similar products and services. OIS faces competition from both large, established companies and smaller, specialized firms. The company must continually innovate and differentiate its offerings to maintain a competitive edge. Failure to do so could result in loss of market share and reduced profitability.
Concentration risk is also a concern. OIS's revenue may be concentrated among a few key customers, particularly in the Offshore/Manufactured Products segment. The loss of a major customer could significantly impact the company's financial performance. OIS must diversify its customer base to mitigate this risk. Regulatory risk is also present, particularly in the offshore market. Changes in environmental regulations or safety standards could increase OIS's costs and reduce demand for its products and services.
While the company has minimal debt, its ability to generate positive free cash flow is uncertain. A prolonged period of negative cash flow could strain the company's balance sheet and limit its ability to invest in growth opportunities. OIS must improve its operational efficiency and profitability to generate sustainable free cash flow. These risks, combined with the company's recent financial struggles, warrant a cautious approach to investing in OIS.
Bulls Say / Bears Say
The Bull Case
BULL VIEWOil States International is well-positioned to benefit from the anticipated increase in oil and gas activity, particularly in the offshore market, driving revenue growth and improved profitability.
BULL VIEWThe company's strong balance sheet and minimal debt provide financial flexibility to pursue strategic acquisitions and investments, enhancing its competitive position and long-term growth prospects.
BULL VIEWRecent positive net income in the first three quarters of FY2025 signals a successful turnaround strategy, indicating a potential for significant earnings growth and stock price appreciation.
The Bear Case
BEAR VIEWOil States International's negative net income and EBITDA demonstrate fundamental weaknesses in its business model, making it vulnerable to continued losses and potential financial distress.
BEAR VIEWThe company's high valuation multiples, particularly P/E and EV/EBITDA, are unsustainable given its poor profitability and negative revenue growth, suggesting a significant risk of price correction.
BEAR VIEWThe cyclical nature of the oil and gas industry poses a significant threat to Oil States International, as a decline in oil prices or drilling activity could severely impact its revenue and profitability.
About the Author
Marques Blank
Founder & Chief Investment Officer, Blank Capital
Marques brings 15 years of institutional finance and investing experience, having overseen financial planning for a $1.6B defense business unit. He developed the proprietary 6-factor quantitative model used to score OIS and 4,400+ other equities.
OIL STATES INTERNATIONAL, INC exhibits a 374% valuation premium relative to institutional benchmarks. This represents a potential valuation overextension based on current multiples.
Return on Assets
Efficiency of asset utilization
-0.7%
Sector: 3.3%
Gross Margin
Pricing power and cost efficiency
22.8%
Sector: 35.8%
Operating Margin
Core business profitability
0.8%
Sector: 6.2%
Net Margin
Bottom-line profitability
-0.9%
Sector: 3.9%
Factor Methodology
The Quality factor evaluates the persistence and magnitude of cash flows. Companies with scores >70 exhibit superior competitive moats and financial resilience through economic cycles.
