2/02/2016

Oversold Deep Value Niche Candidate



Bristow Group, Inc. (BRS) :“is a provider of helicopter services to the offshore energy industry based on the number of aircraft operated and one of two helicopter service providers to the offshore energy industry with global operations.” Morningstar




















Positives: Mean reversion candidate down -65.23% over prior 52 weeks; share price depressed due to the obvious (cost to recover fuel offshore);  founded 1955 the long term outlook for oil likely to revert to higher,  niche market with little competition, access to expanding emerging markets, share count reduced over TTM, shares outstanding 8 quarters prior was 36.40M reduced to the current quarter balance of 34.92M.

Materially improved valuation for revenue and book value. EV/Rev TTM = .88 versus the average EV/Rev from 2013 to 2015 at 1.80.  P/TB TTM = .47 versus average P/TB from 2013 to 2015 at P/TB=1.45
Trailing Annual Dividend Yield:  5.70%


Insider Buying








Aggressive share purchases at higher prices by micro cap deep value investors John Rogers(Areil), John Buckingham, and CALEDONIA INVESTMENTS


Negatives: growing long term debt, poor track record of buying back shares, high short position as a percentage of float at 15.46%; uncertain performance in the short / mid term for the Oil and Gas Equipment services ; 5 straight quarters of missed earnings estimates,


Summary of current value:
Market Cap: 703.38M , Enterprise Value: 1.91B
Price/Sales (ttm): 0.48 , Price/Book (mrq): 0.53
Enterprise Value/EBITDA (ttm): 7.28
Qtrly Revenue Growth (yoy): -4.90%
Gross Profit (ttm): 559.11M , EBITDA (ttm): 262.11M

Total Cash (mrq): 139.34M , Total Cash Per Share (mrq): 3.99
Total Debt (mrq): 1.00B , Total Debt/Equity (mrq): 63.60
Current Ratio (mrq): 1.66 , Book Value Per Share (mrq): 44.06
Operating Cash Flow (ttm): 210.32M , Levered Free Cash Flow (ttm): -287.14M
52-Week Change:  -65.23%
52-Week High (Apr 16, 2015) $64.64 , 52-Week Low (Jan 20, 2016): $16.40
% Held by Insiders:    19.80%

Short % of Float (as of Jan 15, 2016): 15.46%
Trailing Annual Dividend Yield:   5.70%

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