GIFI  Gulf Island Fabrication Inc.

Exchange

NASDAQ

Sector

Capital Goods

Industry

Metal Fabrications

Market Cap.

168.12M

Vuru Grade

18.00/100

Current Price

$11.35
-1.70 (-13.03%)

Growth Price

$2.00
Overvalued by 82.40%

Company Metrics

  • P/E 47.29
  • P/S 0.68
  • P/B 0.73
  • EPS 0.24
  • Cash ROIC 196.04%
  • Cash Ratio 0.92
  • Dividend 0.04 / 0.31 %
  • Avg. Vol. 58,536.00
  • Shares 14.81M
  • Market Cap. 168.12M

Company Description

Gulf Island Fabrication, Inc. operates as a fabricator of offshore drilling and production platforms, hull and deck sections of floating production platforms, and other specialized structures used in the development and production of offshore oil and gas reserves. It fabricates jackets and deck sections of fixed production platforms; hull, tendon, and/or deck sections of floating production platfo... more


Download 10 Years of Financial Statements:
Income Statement   Balance Sheet   Cash Flow

News

Gulf Island Fabrication Reports Fourth Quarter Earnings
Yahoo Finance - Feb 23, 2017
Gulf Island Fabrication, Inc. (GIFI) today reported a net loss of $3.6 million ($0.24 diluted loss per share) on revenue of $55.5 million for its fourth quarter ended December 31, 2016, compared to a net loss of $14.7 million ($1.01 diluted loss per ...
GULF ISLAND FABRICATION, INC. (NASDAQ:GIFI) Files An 8-K Results of Operations ... - Market Exclusive
Gulf Island Fabrication Inc. GIFI (US: Nasdaq)
Wall Street Journal - Feb 11, 2011
Gulf Island Fabrication Inc. GIFI (U.S.: Nasdaq). search. View All companies. AT CLOSE 4:00 PM EST 01/20/17. $13.50 USD; 0.40 3.05%. Volume 42,970. AFTER HOURS 4:00 PM EST 01/20/17. $13.50 0.00 0.00%. AFTER HOURS Vol 159. Volume 42,970.
Gulf Island Fabrication Inc.
MarketWatch - Feb 27, 2011
Gulf Island Fabrication Inc. NASDAQ: GIFI. GO. Set Alerts · Find a Broker · Join TD Ameritrade · Market Index · Overview Profile News Charts Financials Historical Quotes Analyst Estimates Options SEC Filings Insiders.
Gulf Island Fabrication, Inc. (NASDAQ:GIFI) Files An 8-K Departure of ...
Market Exclusive - Dec 2, 2016
On November 28, 2016, Gulf Island Fabrication, Inc. (the “Company”) appointed David S. Schorlemer, age 49, as its new Executive Vice President of Finance, Chief Financial Officer and Treasurer, effective January 3, 2017.
Covington's LeeVac Shipyards sells assets to Gulf Island Fabrication for $20 ...
NOLA.com - Jan 5, 2016
LeeVac Shipyards, a Covington-based marine fabrication firm, has sold its interest in two Louisiana shipyards along with the majority of its machinery and equipment to Gulf Island Fabrication for $20 million, the companies said Monday (Jan. 4). The ...
Gulf Island Fabrication Subsidiary Will Acquire LEEVAC Shipyard Assets
E&P - Dec 29, 2015
A subsidiary of Gulf Island Fabrication Inc. will acquire all assets, including leasehold interest at Louisiana marine fabrication facilities, of LEEVAC Shipyards LLC through an asset purchase agreement, Gulf Island said Dec. 23.
Gulf Island Fabrication, Inc. Announces Agreement to Acquire LEEVAC Shipyards ...
Business Wire (press release) - Dec 23, 2015
HOUSTON--(BUSINESS WIRE)--Gulf Island Fabrication, Inc. (NASDAQ: GIFI) today announced that Gulf Island has executed an asset purchase agreement with LEEVAC Shipyards, LLC and its related affiliates (collectively, “LEEVAC”) under which LEEVAC ...
Gulf Island Fabrication bracing for layoffs at Texas subsidiary, newspaper reports
NOLA.com - Jun 2, 2015
Gulf Marine Fabricators, a subsidiary of Gulf Island Fabrication, notified Texas officials it is readying to lay off 554 employees at its Aransas Pass shipyard as low crude oil prices cut the amount of work available, the San Antonio Business Journal ...
Gulf Island Fabrication, Inc. Announces the Completion of the Acquisition of ...
Business Wire (press release) - Jan 4, 2016
HOUSTON--(BUSINESS WIRE)--Gulf Island Fabrication, Inc. (NASDAQ: GIFI) today announced that pursuant to the asset purchase agreement dated December 23, 2015, between LEEVAC Shipyards, LLC and its related affiliates (collectively, “LEEVAC”), ...
Gulf Island Fabrication's (GIFI) CEO Kirk Meche on Q3 2016 Results - Earnings ...
Seeking Alpha - Oct 28, 2016
Good morning and welcome ladies and gentlemen to the Q3 2016 Gulf Island Fabrication Inc. Earnings Conference Call. All participants will be in a listen-only mode for the duration of today's conference.
Growth Rate Assumed by Market

We did a reverse valuation to calculate the growth rate the market is assuming for GIFI to be considered fairly valued at its current market price. It's useful to compare this to the growth rate we're assuming for the Growth Price.

Future Free Cash Flow Growth Rate

This is the annual growth rate we've applied to calculate GIFI's Free Cash Flow for the next 10 years. To calculate it, we looked at several time periods of the last 10 years. Feel free to adjust it, but we limit the initial growth rate to 20% and slow it down over the years. Otherwise, long-term sustainability issues come into play.

Discount Rate

The discount rate is the annual rate of return an investor requires to take the risk of investing in a single stock. To account for that risk, this should be above 8-10%, as this is the avg. annual rate of return for the S&P500 over the past 100 years.

$11.35 Current Price

$2.00 Growth Price (DCF)

Overvalued by 82.40%


Growth Rate Assumed by Market: 41.81%


Future Free Cash Flow Growth Rate: 0.0%


Discount Rate: 15.0%


Show Free Cash Flow numbers

$3.79 NCA Price

Overvalued by 66.61%


Varying Cash Return on Invested Capital over the past 5 years

GIFI has efficiently invested its financial resources in buildings, projects, and equipment, resulting in strong returns. However, there is a substantial variation in their Cash ROIC from year-to-year. This company may have unreliable free cash flow or operates in a business where invested capital costs increase substantially on a sporadic basis. Look at reasons for this inconsistency to determine the likelihood of future sustainability.

GIFI has created $196.04 of cash for every $100 invested.
Figures in USD. Fiscal year ends in December
20112012201320142015
Free Cash Flow -29.61M -24.85M 16.65M 4.45M 4.60M
divided by
Invested Capital -18.14M 12.83M 1.83M 3.30M -13.00M
Cash ROIC 163.26% -193.66% 910.83% 135.11% -35.35%

Poor Return on Equity over the past 5 years

GIFI has shown an inability to deliver strong results for shareholders. This could be due to poor management, GIFI operating in a highly competitive industry, or having a weak business in general.

GIFI has only generated $- of Earnings for every $100 of Shareholders' Equity.
Figures in USD. Fiscal year ends in December
20112012201320142015
Net Income - - - - -
divided by
Stockholders' Equity - - - - -
Return on Equity - - - - -

Mediocre Business Performance over the past 10 years

GIFI isn't a strong business and might be consistently attempting to fuel growth with debt or has trouble staying profitable. The lack of predictability in free cash flow should be concerning for the reliability of future earnings.

GIFI has been unable to consistently create value for shareholders.
Figures in USD. Fiscal year ends in December
2006200720082009201020112012201320142015
Free Cash Flow -26.06M 17.94M -6.57M -4.26M 79.68M -29.61M -24.85M 16.65M 4.45M 4.60M

Good Balance Sheet

GIFI's Total Assets double Total Liabilities. Its financial position is adequate. Remember to check Shareholders' Equity to see if it's stable or growing. It's one of the best measures of whether a company is creating value for shareholders.
Figures in USD. Fiscal year ends in December
2006200720082009201020112012201320142015
Cash 10.30M 24.64M 13.84M 8.75M 88.07M 55.29M 24.89M 36.57M 36.09M 34.83M
Current Assets 94.77M 135.75M 136.38M 114.13M 130.62M 177.91M 173.60M 202.00M 172.50M 115.87M
Total Assets 251.45M 325.21M 350.89M 333.43M 334.86M 395.94M 403.50M 426.23M 397.94M 316.92M
Current Liabilities 40.21M 78.36M 74.94M 33.63M 18.51M 75.99M 92.27M 112.28M 72.77M 37.90M
Total Liabilities 50.69M 96.30M 96.68M 59.63M 47.66M 113.14M 130.00M 150.67M 112.15M 59.73M
Stockholder' Equity 200.76M 228.91M 254.21M 273.80M 287.19M - - - - -
Current Ratio 2.36 1.73 1.82 3.39 7.06 2.34 1.88 1.80 2.37 3.06
TL-to-TA 0.20 0.30 0.28 0.18 0.14 0.29 0.32 0.35 0.28 0.19

Low or No Reinvestment of Profits over the past 10 years

GIFI has either been retaining a small amount of their earnings or has done so inconsistently. A lack of consistency could be due to GIFI operating at a loss or them having such a strong economic moat they feel comfortable spending profits on growth. Be wary of future prospects and if applicable, inspect the moat's sustainability.
Figures in USD. Fiscal year ends in December
2006200720082009201020112012201320142015
Retained Earnings 106.02M 131.50M 154.79M 173.72M 186.23M 180.95M 171.03M 172.43M 181.88M 150.65M
Retained Earnings Growth - 24.03% 17.71% 12.23% 7.20% -2.84% -5.48% 0.81% 5.48% -17.17%

Highly Competitive Industry over the past 10 years

It's likely that GIFI is in an industry with low barriers to entry, spurring high competition. If Gross Margins are at least satisfactory, it's likely GIFI invests heavily in R&D and Sales, General & Administrative expenses.

Only $3.23 of every $100 of Revenue have been profit, on average over the past 10 years.
Figures in USD. Fiscal year ends in December
2006200720082009201020112012201320142015
Net Income 21.33M 31.17M 29.02M 20.80M 13.09M - - - - -
divided by
Revenue 312.18M 472.74M 420.51M 311.53M 248.29M 307.83M 521.34M 608.33M 506.64M 306.12M
Net Profit Margin 6.83% 6.59% 6.90% 6.68% 5.27% - - - - -

Weak Pricing Power over the past 10 years

GIFI is likely in a highly competitive industry, due to low barriers to entry. It's because of this, that GIFI has been unable to raise prices and increase their profitability. This puts them in a poor position if inflation becomes an issue, as they would struggle to pass higher costs onto consumers.

Only $16.73 of every $100 worth of sales have been Gross Profit, on average over the past 10 years.
Figures in USD. Fiscal year ends in December
2006200720082009201020112012201320142015
Gross Profit 38.41M 56.84M 52.30M 39.47M 23.27M 307.83M 3.84M 23.66M 44.56M -15.16M
divided by
Revenue 312.18M 472.74M 420.51M 311.53M 248.29M 307.83M 521.34M 608.33M 506.64M 306.12M
Gross Margin 12.30% 12.02% 12.44% 12.67% 9.37% 100.00% 0.74% 3.89% 8.79% -4.95%

High Capital Intensity over the past 10 years

GIFI spends large amounts of capital buying new equipment or investing in new facilities to stay competitive. Over the long term, those costs may have to be fuelled by debt. Look at the growth of Shareholders' Equity to see if this strategy is having a positive or negative impact.

157.77% of Profits are being spent on Capital Expenditures, like Property, Plant, & Equipment, required to run the business.
Figures in USD. Fiscal year ends in December
2006200720082009201020112012201320142015
Capital Expenditure 69.11M 46.91M 33.42M 15.25M 16.48M 41.55M 35.89M 21.35M 27.66M 6.02M
divided by
Net Income 21.33M 31.17M 29.02M 20.80M 13.09M - - - - -
Capital Expenditure Ratio 324.09% 150.50% 115.15% 73.30% 125.83% - - - - -

Inconsistent Dividend History over the past 10 years

GIFI has started distributing dividends in the past couple years or has recently suspended their dividend distribution. The reliability of future distributions is unclear.
Figures in USD. Fiscal year ends in December
2006200720082009201020112012201320142015
Dividend Paid 4.19M - 5.74M - - - - - - -
divided by
Shares Outstanding 13.94M 14.30M 14.31M 14.30M 14.33M 14.35M 14.40M 14.47M 14.51M 14.55M
Dividend Paid Per Share 0.30 - 0.40 - - - - - - -
Price at Year End 34.95 30.33 13.04 21.02 28.82 29.21 22.96 22.98 19.49 9.89
Dividend Yield 0.86% - 3.07% - - - - - - -

History of Stock Buybacks over the past 10 years

GIFI has some history of delivering increased value for shareholders in the form of stock buybacks. These have helped improve financial metrics and increase each shareholders' relative ownership stake in the company, due to fewer shares outstanding and holding the same number of shares.
Figures in USD. Fiscal year ends in December
2006200720082009201020112012201320142015
Shares Outstanding 13.94M 14.30M 14.31M 14.30M 14.33M 14.35M 14.40M 14.47M 14.51M 14.55M
Stock Bought Back - -2.51% -0.07% 0.08% -0.24% -0.15% -0.34% -0.48% -0.25% -0.28%
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