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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: 50GRADE C+
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
10.1%
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, TIDEWATER INC (TDW) receives a "Hold" rating with a composite score of 53.2/100, ranked #234 out of 4446 stocks. Key factor scores: Quality 50/100, Value 68/100, Momentum 71/100. This is quantitative analysis only — not investment advice.
TIDEWATER INC (TDW) Stock Analysis — April 2026 Rating, Price, and Forecast
Company Overview — What Does TIDEWATER INC Do?
Tidewater Inc., together with its subsidiaries, provides offshore marine support and transportation services to the offshore energy industry through the operation of a fleet of marine service vessels worldwide. It provides services in support of offshore oil and natural gas exploration, field development, and production, as well as windfarm development and maintenance, including towing of and anchor handling for mobile offshore drilling units; transporting supplies and personnel necessary to sustain drilling, workover, and production activities; offshore construction, and seismic and subsea support; geotechnical survey support for windfarm construction; and various specialized services, such as pipe and cable laying. The company operates and charters deepwater vessels, including platform supply and horsepower anchor handling tug supply vessels for use in transporting supplies and equipment from shore bases to deepwater and intermediate water depth offshore drilling rigs and production platforms; towing-supply vessels for use in intermediate and shallow waters; and crew boats, utility vessels, and offshore tugs to transport personnel and supplies from shore bases to offshore drilling rigs, platforms, and other installations. It also operates offshore tugs for use in tow floating drilling rigs and barges; and assisting in the docking of tankers, as well as in pipe and cable laying, and construction barges. The company serves oil and natural gas exploration, field development, and production companies; mid-sized and smaller independent exploration and production companies; foreign government-owned or government-controlled organizations, and other related companies; drilling contractors; and other companies, such as offshore construction, windfarm development, diving, and well stimulation companies. As of December 31, 2021, it owned 135 vessels. Tidewater Inc. was incorporated in 1956 and is headquartered in Houston, Texas. TIDEWATER INC (TDW) is classified as a mid-cap stock in the Industrials sector, specifically within the Transportation industry. The company is led by CEO Quintin V. Kneen and employs approximately 6,300 people, headquartered in Columbia, Texas. With a market capitalization of $4.4B, TDW is one of the notable companies in the Industrials sector.
TIDEWATER INC (TDW) Stock Rating — Hold (April 2026)
As of April 2026, TIDEWATER INC receives a Hold rating with a composite score of 53.2/100 and 3 out of 5 stars from the Blank Capital Research quantitative model.TDW ranks #234 out of 4,446 stocks in our coverage universe. Within the Industrials sector, TIDEWATER INC ranks #32 of 754 stocks, placing it in the top 10% 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%).
TDW Stock Price and 52-Week Range
TIDEWATER INC (TDW) currently trades at $83.29. The stock lost $0.99 (1.2%) in the most recent trading session. The 52-week high for TDW is $88.99, which means the stock is currently trading -6.4% from its annual peak. The 52-week low is $31.17, putting the stock 167.2% above its annual trough. Recent trading volume was 284K shares, suggesting relatively thin trading activity.
Is TDW Overvalued or Undervalued? — Valuation Analysis
TIDEWATER INC (TDW) carries a value factor score of 68/100 in the Blank Capital model, indicating fair valuation relative to historical norms. The trailing price-to-earnings ratio is 31.11x, compared to the Industrials sector average of 30.21x — a premium of 3%. The price-to-book ratio stands at 3.14x, versus the sector average of 2.25x. The price-to-sales ratio is 3.15x, compared to 0.51x for the average Industrials stock. On an enterprise value basis, TDW trades at 9.15x EV/EBITDA, versus 5.94x for the sector.
Overall, TDW's valuation appears roughly in line with sector benchmarks, suggesting the market is pricing the stock fairly given its current fundamentals and growth trajectory. Neither deep value nor significantly overpriced, the stock occupies a middle ground on valuation.
TIDEWATER INC Profitability — ROE, Margins, and Quality Score
TIDEWATER INC (TDW) earns a quality factor score of 50/100, indicating solid business quality with consistent operational execution. The return on equity (ROE) is 10.1%, compared to the Industrials sector average of 8.9%, which is within a healthy range. Return on assets (ROA) comes in at 5.8% versus the sector average of 3.3%.
On a margin basis, TIDEWATER INC reports gross margins of 48.6%, compared to 35.8% for the sector. The operating margin is 21.1% (sector: 6.2%). Net profit margin stands at 10.2%, versus 3.7% for the average Industrials stock. Revenue growth is running at 6.2% on a trailing basis, compared to 6.4% for the sector. The overall profitability profile is adequate, though there may be room for margin expansion.
TDW Debt, Balance Sheet, and Financial Health
TIDEWATER INC has a debt-to-equity ratio of 49.0%, 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 2.90x, indicating strong short-term liquidity. Total debt on the balance sheet is $670M.
TDW has a beta of 1.10, meaning it is roughly in line with the broader market in terms of price volatility. The stability factor score for TIDEWATER INC is 51/100, reflecting average volatility within the normal range for its sector.
TIDEWATER INC Revenue and Earnings History — Quarterly Trend
In TTM 2026, TIDEWATER INC reported revenue of $1.35B and earnings per share (EPS) of $6.69. Net income for the quarter was $137M. Gross margin was 48.6%. Operating income came in at $286M.
In FY 2025, TIDEWATER INC reported revenue of $1.35B and earnings per share (EPS) of $6.69. Net income for the quarter was $333M. Gross margin was 49.7%. Revenue grew 0.5% year-over-year compared to FY 2024. Operating income came in at $283M.
In Q3 2025, TIDEWATER INC reported revenue of $341M and earnings per share (EPS) of $-0.02. Net income for the quarter was $-1M. Gross margin was 48.4%. Revenue grew 0.2% year-over-year compared to Q3 2024. Operating income came in at $63M.
In Q1 2025, TIDEWATER INC reported revenue of $333M and earnings per share (EPS) of $0.83. Net income for the quarter was $42M. Gross margin was 50.5%. Revenue grew 3.8% year-over-year compared to Q1 2024. Operating income came in at $75M.
Over the past 8 quarters, TIDEWATER INC has demonstrated a growth trajectory, with revenue expanding from $321M to $1.35B. Investors analyzing TDW stock should weigh these quarterly trends alongside the valuation and quality metrics discussed above.
TDW Dividend Yield and Income Analysis
TIDEWATER INC (TDW) does not currently pay a dividend. This is common among smaller companies in the Transportation 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.
TDW Momentum and Technical Analysis Profile
TIDEWATER INC (TDW) has a momentum factor score of 71/100, 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 31/100, which measures capital allocation efficiency and asset growth patterns. The short interest score of 20/100 signals elevated short interest, which can indicate bearish sentiment among institutional investors.
TDW vs Competitors — Industrials Sector Ranking and Peer Comparison
Comparing TDW against the S&P 500 benchmark is also instructive for understanding relative performance. Investors can view the full TDW vs S&P 500 (SPY) comparison to assess how TIDEWATER INC stacks up against the broader market across all factor dimensions.
TDW Next Earnings Date
No upcoming earnings date has been announced for TIDEWATER INC (TDW) at this time. Check the earnings calendar for the latest scheduling updates across all stocks in our coverage universe.
Should You Buy TDW? — Investment Thesis Summary
TIDEWATER INC presents a balanced picture with arguments on both sides. The value score of 68/100 suggests attractive pricing relative to fundamentals. Price momentum is positive at 71/100, suggesting the trend favors buyers.
In summary, TIDEWATER INC (TDW) earns a Hold rating with a composite score of 53.2/100 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 TDW stock.
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Institutional Research Dossier
TIDEWATER INC (TDW) Deep Dive Analysis
Published on March 24, 2026
Action RatingHold
Sections
Executive Summary
We maintain a Hold rating on Tidewater Inc. (TDW). While the company benefits from a cyclical upswing in offshore energy activity and demonstrates strong profitability metrics relative to its sector, its high dependence on the volatile oil and gas industry, coupled with a recent quarterly net loss, tempers our enthusiasm. The current valuation appears fair, reflecting both the company's improved financial performance and the inherent risks associated with its business model.
Tidewater's strategic focus on modernizing its fleet and expanding its service offerings positions it well to capitalize on increased offshore activity. However, the company's future performance is inextricably linked to the capital expenditure decisions of oil and gas companies, which are subject to commodity price fluctuations and geopolitical instability. Investors should carefully weigh the potential upside from continued industry recovery against the downside risks associated with cyclical downturns and the long-term transition towards renewable energy sources.
Business Strategy & Overview
Tidewater Inc. operates as a provider of offshore marine support and transportation services, primarily serving the oil and gas industry. The company's core business revolves around operating a fleet of marine service vessels that support various stages of offshore energy activities, including exploration, field development, production, and decommissioning. Additionally, Tidewater is expanding its services to support the growing offshore windfarm sector, providing geotechnical survey support and vessel services for construction and maintenance.
The company generates revenue through vessel charters and service contracts with oil and gas companies, drilling contractors, and other related entities. Tidewater's strategic focus is on maintaining a modern and versatile fleet capable of meeting the evolving needs of its customers. This includes investing in newer, more fuel-efficient vessels and expanding its service offerings to include specialized services such as pipe and cable laying, subsea support, and geotechnical surveys. The company also actively manages its fleet utilization rates and day rates to optimize revenue generation.
Tidewater's strategic positioning involves operating in key offshore energy regions worldwide, including the Gulf of Mexico, North Sea, West Africa, and Asia Pacific. This geographic diversification helps mitigate the impact of regional downturns in offshore activity. The company also focuses on building strong relationships with its customers and providing reliable, high-quality services to maintain its competitive edge. The expansion into the offshore windfarm sector represents a strategic diversification effort to reduce reliance on the oil and gas industry and capitalize on the growing demand for renewable energy.
The industry context for Tidewater is characterized by cyclical fluctuations in offshore energy activity, driven by commodity prices and capital expenditure decisions of oil and gas companies. The company's performance is closely correlated with the level of offshore drilling and production activity. The industry is also facing increasing pressure to reduce its environmental impact and transition towards cleaner energy sources. Tidewater's strategic investments in newer, more fuel-efficient vessels and its expansion into the offshore windfarm sector reflect its efforts to adapt to these changing industry dynamics.
Execution Benchmarks audit
Revenue Growth
YOY expansion rate
6.2%
Sector: 6.4%
IN LINE
Economic Moat Analysis
Tidewater's economic moat is best characterized as Narrow. While the company benefits from certain advantages, they are not substantial enough to create a wide and sustainable competitive advantage. The primary source of Tidewater's moat stems from its established reputation and operational expertise in the offshore marine support industry. Decades of experience and a global presence provide a degree of incumbency advantage, making it challenging for new entrants to quickly replicate its scale and operational capabilities.
However, the offshore marine support industry is inherently competitive, with numerous players vying for contracts. The commoditized nature of many of the services offered limits pricing power and reduces the potential for significant differentiation. While Tidewater's modern fleet provides a competitive edge in terms of fuel efficiency and operational capabilities, these advantages can be eroded over time as competitors invest in similar upgrades.
Switching costs for customers are relatively low, as oil and gas companies can easily switch between different marine support providers based on price and availability. This lack of customer stickiness limits Tidewater's ability to command premium pricing or secure long-term contracts. The company's intangible assets, such as its brand reputation and operational expertise, provide some degree of differentiation, but they are not strong enough to create a significant barrier to entry.
Efficient scale is not a major factor in this industry, as the market is fragmented and there is no single dominant player. While Tidewater is one of the largest offshore marine support companies, it does not possess a cost advantage or scale advantage that would prevent competitors from effectively competing. The company's cost structure is largely dependent on fuel prices and vessel maintenance costs, which are subject to external factors and can fluctuate significantly.
Network effects are not present in this industry, as the value of Tidewater's services does not increase as more customers use them. The company's competitive advantage is primarily based on its operational capabilities and its ability to provide reliable and cost-effective services. Overall, Tidewater's narrow moat provides some degree of protection against competition, but it is not a wide or sustainable moat that would guarantee long-term profitability and market leadership.
Financial Health & Profitability
Tidewater's financial health has improved significantly in recent years, driven by the recovery in offshore energy activity and the company's strategic initiatives to modernize its fleet and optimize its operations. The company's revenue has increased substantially, from $647.68 million in FY2022 to $1.35 billion in FY2025, reflecting the increased demand for its services. Net income has also turned positive, from a loss of $22.19 million in FY2022 to a profit of $333.45 million in FY2025, demonstrating the company's improved profitability.
The company's gross margin has consistently improved, from 38.7% in FY2022 to 49.7% in FY2025, indicating its ability to command higher prices and control its costs. Operating margin has also increased significantly, from 4.1% in FY2022 to 20.9% in FY2025, reflecting the company's improved operational efficiency. However, the Q3 FY2025 results show a net loss of $1.02 million, which is a cause for concern and warrants further investigation.
Tidewater's ROE of 10.1% is slightly above the sector average of 9.2%, indicating its ability to generate profits from its equity. The company's debt-to-equity ratio of 49.00 is lower than the sector average of 70.00, suggesting a more conservative capital structure. The current ratio of 2.90 indicates strong liquidity and the ability to meet its short-term obligations.
The absence of free cash flow data makes it difficult to assess the company's cash flow generation capabilities. However, the significant improvement in net income and EBITDA suggests that the company is generating positive cash flow from its operations. Overall, Tidewater's financial health has improved significantly in recent years, but the recent quarterly net loss and the lack of free cash flow data warrant caution.
Valuation Assessment
Tidewater's valuation appears fair based on its current financial performance and sector comparisons. The company's P/E ratio of 10.8x is significantly lower than the sector average of 27.7x, suggesting that the stock is undervalued relative to its earnings. However, the P/E ratio should be interpreted with caution, as it is based on trailing earnings and may not accurately reflect the company's future growth prospects.
The company's EV/EBITDA ratio of 2.0x is also significantly lower than the sector average of 5.7x, indicating that the stock is undervalued relative to its enterprise value and operating cash flow. This suggests that the market is not fully recognizing the company's improved financial performance and its potential for future growth. However, the EV/EBITDA ratio should also be interpreted with caution, as it does not take into account the company's debt levels and capital expenditure requirements.
The absence of free cash flow data makes it difficult to assess the company's valuation based on its cash flow generation capabilities. However, the significant improvement in net income and EBITDA suggests that the company is generating positive free cash flow. Overall, Tidewater's valuation appears fair based on its current financial performance and sector comparisons. The company's low P/E and EV/EBITDA ratios suggest that the stock is undervalued, but the lack of free cash flow data and the recent quarterly net loss warrant caution.
Considering the cyclical nature of the offshore energy industry and the inherent risks associated with Tidewater's business model, the current valuation appears reasonable. The market is likely discounting the stock to reflect the potential for future downturns in offshore activity and the long-term transition towards renewable energy sources. While the company's improved financial performance and strategic initiatives provide some upside potential, the valuation is unlikely to increase significantly unless the company can demonstrate consistent profitability and free cash flow generation.
Risk & Uncertainty
Tidewater faces several specific, idiosyncratic risks that could negatively impact its business and financial performance. The most significant risk is its high dependence on the volatile oil and gas industry. A decline in oil prices or a reduction in offshore drilling activity could significantly reduce demand for Tidewater's services and negatively impact its revenue and profitability. The company's performance is also subject to geopolitical risks, such as political instability in key offshore energy regions, which could disrupt its operations and reduce demand for its services.
Competition is another significant risk for Tidewater. The offshore marine support industry is highly competitive, with numerous players vying for contracts. Increased competition could lead to lower day rates and reduced utilization rates, negatively impacting the company's revenue and profitability. The company also faces the risk of technological obsolescence, as newer, more efficient vessels and technologies could render its existing fleet less competitive.
Tidewater's debt levels also pose a risk to its financial health. While the company's debt-to-equity ratio is lower than the sector average, it still has a significant amount of debt outstanding. This debt could limit the company's financial flexibility and make it more vulnerable to economic downturns. The company also faces the risk of rising interest rates, which could increase its borrowing costs and reduce its profitability.
The transition towards renewable energy sources also poses a long-term risk to Tidewater's business. As the world shifts away from fossil fuels, demand for offshore oil and gas exploration and production is likely to decline, reducing demand for Tidewater's services. While the company is expanding its services to support the offshore windfarm sector, this diversification may not be sufficient to offset the decline in demand from the oil and gas industry.
Bulls Say / Bears Say
The Bull Case
BULL VIEWThe offshore energy market is in a multi-year upcycle, driving increased demand and higher day rates for Tidewater's vessels, leading to substantial revenue and profit growth.
BULL VIEWTidewater's strategic investments in modern, fuel-efficient vessels and its expansion into the offshore windfarm sector position it to capitalize on both traditional energy and renewable energy opportunities.
BULL VIEWTidewater's strong balance sheet and experienced management team provide a solid foundation for continued growth and value creation, making it an attractive investment in the energy sector.
The Bear Case
BEAR VIEWTidewater's reliance on the cyclical and volatile oil and gas industry exposes it to significant downside risk if commodity prices decline or offshore drilling activity slows down.
BEAR VIEWThe transition towards renewable energy sources will inevitably reduce demand for Tidewater's services in the long term, making its current valuation unsustainable.
BEAR VIEWIncreased competition in the offshore marine support industry could lead to lower day rates and reduced utilization rates, negatively impacting Tidewater's 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 TDW and 4,400+ other equities.
TIDEWATER INC exhibits a 154% valuation premium relative to institutional benchmarks. This represents a potential valuation overextension based on current multiples.
Return on Assets
Efficiency of asset utilization
5.8%
Sector: 3.3%
Gross Margin
Pricing power and cost efficiency
48.6%
Sector: 35.8%
Operating Margin
Core business profitability
21.1%
Sector: 6.2%
Net Margin
Bottom-line profitability
10.2%
Sector: 3.7%
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.
