International SeawaysTidewater

International Seaways vs Tidewater

This page compares International Seaways, Inc. and Tidewater Inc., outlining their business models, financial performance, and market context in a neutral, accessible way. Educational content, not fin...

Which Baskets Do They Appear In?

North Sea Oil Expansion

North Sea Oil Expansion

Tap into companies positioned to benefit from Equinor's massive $1.3 billion investment in the Johan Sverdrup oilfield. Our analysts have carefully selected businesses across drilling, subsea engineering, and marine transport that are essential to this renewed North Sea activity.

Published: July 2, 2025

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Investment Analysis

Pros

  • Reported Q3 2025 earnings beat analyst estimates with strong profitability and strategic fleet upgrades.
  • Demonstrates robust operational performance with adjusted EBITDA of $108 million and net income of $71 million for Q3 2025.
  • Has a relatively low debt-to-equity ratio of 1.4% and a healthy net profit margin of nearly 30%, indicating strong financial health.

Considerations

  • Stock showed muted or slight negative reaction post-earnings, suggesting market concerns or already priced-in positive results.
  • Revenue growth faces challenges as day rates have declined year-over-year despite quarter-over-quarter improvements.
  • Market valuation reflects a moderate price-earnings ratio around 10, limiting upside in a potentially volatile shipping sector.

Pros

  • Latest reported return on equity (ROE) is 17.74%, reflecting improved profitability compared to its historical averages.
  • Has shown a significant positive change in ROE recently, indicating better operational efficiency and capital management.
  • Operates in the marine transportation sector with asset demand tied to offshore and energy-related activities, offering cyclical growth opportunities.

Considerations

  • ROE, while improving, remains below many industry peers, suggesting less efficient use of equity capital.
  • Historical ROE over 5 and 10 years has been negative, indicating past operational challenges and cyclical risks.
  • Exposure to volatile offshore energy markets and oil-related fluctuations can lead to inconsistent earnings and execution risks.

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