New Value Analysis of Gulf Marine Services Plc (LSE:GMS)

New Value Analysis of Gulf Marine Services Plc (LSE:GMS)

A new value analysis of Gulf Marine Services Plc (LSE:GMS), a company listed on the London Stock Exchange, has been added to our research pages here.  Gulf Marine Services is a global provider of offshore services to the petroleum and renewable energy industries.

Gulf Marine Services was founded in Abu Dhabi, UAE, in 1977 and has become the largest provider of self-propelled, self-elevating accommodation jackup barges in the world.  GMS constructs and maintains its vessels at its yard in Abu Dhabi and has a new build and replacement programme of self elevating support vessels.   GMS operates its fleet from its offices in Abu Dhabi, Saudi Arabia and the United Kingdom.

The GMS fleet of self-propelled jackup barges is capable of working in harsh weather environments.

GMS has borrowed money to build some new ships.  The debt, which is in the form of bank borrowing, creates risk for common stock holders.  The price of the common stock has declined about 80% since the initial public offering in 2014.

The opportunity for value investors comes thanks to the low price, which is now well below the value of the assets.  Value investors will also appreciate that the assets are mostly big metal items that have resale and scrap value.

GMS has also demonstrated an ability to grow earnings.  The current price is also cheap in comparison to earnings even based on the July 2016 earnings update from the company.

To find out the exactly how cheap GMS is in comparison to its assets and its earnings  click here to download the new analysis.

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