Tidewater vs SM Energy
This page compares the business models, financial performance, and market context of Tidewater Inc. and SM Energy Company, presenting neutral, accessible information about how each company operates, performs, and fits within the wider energy landscape. Educational content, not financial advice.
This page compares the business models, financial performance, and market context of Tidewater Inc. and SM Energy Company, presenting neutral, accessible information about how each company operates, p...
Which Baskets Do They Appear In?
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
Explore BasketWhich Baskets Do They Appear In?
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
Explore BasketInvestment Analysis
Tidewater
TDW
Pros
- Tidewater significantly exceeded Q2 2025 EPS expectations with $1.46 versus a forecast of $0.52, indicating strong profitability.
- The company maintains robust liquidity with a current ratio of 2.07 and a healthy gross margin around 50%, reflecting effective cost management.
- Continued investments in vessel maintenance and IT infrastructure show commitment to operational excellence and long-term asset sustainability.
Considerations
- Despite recent margin strength, Tidewater’s return on equity (ROE) at 17.74% is lower than several peers in the offshore energy and marine services sector.
- Active vessel utilization slightly declined from 78.4% to 76.4%, potentially indicating pressure on operational capacity or market demand.
- Tidewater’s stock valuation and market cap suggest it may be riskier than it appears, with uncertainty around sustaining growth in a stabilizing offshore vessel market.
Pros
- SM Energy has a relatively low P/E ratio around 3.83x for 2025 and 5.16x for 2026, indicating it may be undervalued compared to sector averages.
- The company maintains a strong market presence in oil and gas exploration, acquisition, development, and production with a market capitalization around $2.39 billion.
- SM Energy offers a dividend yield of about 3.8%, providing some income potential alongside capital appreciation possibilities.
Considerations
- SM Energy’s stock price has declined more than 4.5% year-to-date and recently by over 3%, reflecting sector volatility and potential headwinds.
- The company’s enterprise value to sales ratio above 1.3x suggests it may face pressure on sales growth or margins in a competitive energy sector.
- Exposure to cyclicality and commodity price fluctuations, alongside the energy sector’s regulatory and environmental risks, can impact long-term profitability.
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