Based on the aggregated intelligence of 165,000-plus investors participating in Motley Fool CAPS, the Fool's free investing community, Bristow Group (NYSE: BRS ) , which provides helicopter service to the offshore oil industry, has earned a coveted five-star ranking.
With that in mind, let's take a closer look at Bristow's business and see what CAPS investors are saying about the stock right now.
Bristow facts
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Headquarters (Founded)
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Houston (1969)
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Market Cap
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$1.3 billion
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Industry
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Oil and gas equipment services
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Trailing-12-Month Revenue
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$1.2 billion
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Management
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CEO William Chiles (since 2004)
Senior VP Operations Richard Burman (since 2009)
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Return on Equity (Average, Past 3 Years)
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9.5%
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Compound Annual Revenue and Net Income Growth (Over the Past 3 Years)
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11.1% and 11.1%
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Cash/Debt
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$74 million / $711 million
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Competitors
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GulfMark Offshore (NYSE: GLF )
Tidewater (NYSE: TDW )
SEACOR Holdings (NYSE: CKH )
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Sources: Capital IQ (a division of Standard & Poor's) and Motley Fool CAPS.
On CAPS, 97.5% of the 241 members who have rated Bristow believe the stock will outperform the S&P 500 going forward. These bulls include All-Star latimerburned, who is ranked in the top 10% of our community, and TMF42.
A couple of months ago, latimerburned tapped Bristow as a particularly slick pick: "Current sell off is overdone as their gulf exposure is limited. Selling for less than replacement value. Demand for offshore drilling will only increase as onshore resources are depleted."
In fact, Bristow's recent contracts with BP (NYSE: BP ) , supporting its well control and cleanup efforts, have helped make up for the moratorium-induced drop in the North American segment. Of course, our community is so confident in a turnaround because the company operates a large, worldwide commercial helicopter fleet and has plenty of geographic diversification. More than 80% of its business comes from outside of North America, with the heaviest exposure in Europe and West Africa.
While shares of Bristow have outperformed those of main rivals GulfMark, Tidewater, and SEACOR over the past year, CAPS member TMF42 explains why the stock remains a tempting book value bargain:
Bristow is a well run company with long-tenured management. Their business is not tethered to oil prices -- in fact, they can pass through higher costs on a lagged basis. Management is focused on building its fleet for the long term. It has been thrown out with the bath water even though its exposure to the Gulf of Mexico and related rigs is minimal. If that weren't enough, the stock is trading below book value and below replacement costs (or liquidation cost) of its assets.
What do you think about Bristow, or any other stock for that matter? If you want to retire rich, you need to put together the best portfolio you can. Owning exceptional stocks is a surefire way to secure your financial future, and on Motley Fool CAPS, thousands of investors are working every day to find them. CAPS is 100% free, so get started!
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