OIS - Oil States International Will Turn Around Steadily

2024-04-06 02:17:44 ET

Summary

• Oil States International expects revenue and cash flow growth in 2024 due to the commercialization of new technologies and the recovery of natural gas prices.
• The company's book-to-bill ratio deteriorated in Q4, but improved cash flows and low leverage should boost investor confidence.
• OIS's stock is reasonably valued compared to its peers, and I maintain my "buy" rating based on growth and profitability prospects.

OIS Strides Ahead

I discussed Oil States International ( OIS ) in the past, and you can read the latest article here , which was published on January 17. At the start of 2024, I expect the commercialization of new technologies to push its revenues and cash flows higher. Its managed pressure drilling systems and the ActiveHub digital platform should drive growth during the year. I also expect the constraints of lower natural gas prices to dissipate in 2H 2024. This, along with the continuous cost management exercises, will improve its EBITDA in FY2024....

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