Thursday, July 11, 2013

Investopedia: Oceaneering Is A Great Business, But How Much Are You Willing To Pay?

When it comes to equipment and services in the energy space, “strong market share” is usually pretty relative. In many markets, a company is doing very well if it can get 25% or one-third of a market to themselves, which makes Oceaneering International's (NYSE:OII) nearly 60% share of the deepwater rig support market pretty significant.

What's more, this is not just a “market share at any cost” story, as the company has a pretty remarkable record of consistent operating margin and ROIC performance despite the vagaries of the deepwater energy market. The problem for investors is in figuring out what constitutes a fair multiple for all of these positives.

For the full article, please follow this link:
http://www.investopedia.com/stock-analysis/071113/oceaneering-great-business-how-much-are-you-willing-pay-oii-hlx-ge-fti-rig.aspx

No comments: