Based on the aggregated intelligence of 170,000-plus investors participating in Motley Fool CAPS, the Fool's free investing community, offshore energy contractor Helix Energy Solutions (NYSE: HLX ) has earned a respected four-star ranking.
With that in mind, let's take a closer look at Helix's business and see what CAPS investors are saying about the stock right now.
Helix facts
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Headquarters (Founded)
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Houston, Texas (1990)
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Market Cap
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$1.07 billion
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Industry
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Oil and gas equipment and services
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Trailing-12-Month Revenue
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$896.9 million
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Management
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CEO Owen Kratz (since 2008)
COO Bart Heijermans (since 2005)
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Return on Equity (Average, Past 3 Years)
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(8.3%)
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Cash/Debt
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$270 million / $1.36 billion
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Competitors
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Cameron International (NYSE: CAM )
Global Industries (Nasdaq: GLBL )
Oceaneering International (NYSE: OII )
Rowan Companies (NYSE: RDC )
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Sources: Capital IQ (a division of Standard & Poor's) and Motley Fool CAPS.
On CAPS, 96.5% of the 1,036 members who have rated Helix believe the stock will outperform the S&P 500 going forward. These bulls include predmech and All-Star TMFDeej, who is ranked in the top 1% of our community.
Two months ago, predmech brought Helix's spilled shares to our community's attention: "With the overwhelming majority of the energy sector getting beaten down by the Horizon spill, the sector as a whole is primed to come back. Helix is currently down 40% from the 52 week high in the later part of April this year."
Thanks to a scary debt-to-equity ratio of 1, Helix has been beaten down just as much as the embattled BP (NYSE: BP ) has since its explosion. Of course, at a forward P/E of 9.7, a clear discount to rivals Cameron (14.1), Global (12.1), Oceaneering (14.5), and Rowan (13.8), Helix's punishment might be a tad overdone. With the revenue gained from its BP contracts helping offset the negative moratorium impact, CAPS All-Stars like TMFDeej think Helix is at least worth a closer look:
While the Gulf of Mexico disaster has caused investors to flee this stock, in the short run the company is actually profiting some from it. Helix's state-of-the-art Q4000 is actually one of the rigs that BP is using. ...
Another potential catalyst beyond a slowing in the writedown of non-cash earnings is the company is has just or is about to begin producing oil and gas from a new well that it actually owns. The company's new Phoenix field is about to begin producing hundreds of thousands of dollars worth of oil and gas per day.
Is there a lot of uncertainty surrounding a company that supports the drilling for oil offshore today? Absolutely. That's actually a good thing. Mr. Market hates uncertainty and it punishes the share prices of stocks in such situations. Does anyone really think that the entire world is going to stop drilling for oil after this tragic disaster in the Gulf of Mexico? I certainly don't. I don't even think that drilling in the Gulf itself will stop for longer than a couple of months.
What do you think about Helix, 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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