Expro Group Holdings NV (XPRO, Financial), a prominent player in the oil and gas industry, has demonstrated a notable performance in the stock market recently. With a current market capitalization of $2.48 billion, the company's stock price stands at $21.18. Over the past week, Expro has seen a modest gain of 0.44%, and a more significant increase of 13.69% over the last three months. According to GuruFocus, the GF Value of the stock is currently $22.89, indicating that it is fairly valued. This valuation comes after a period where the GF Value was previously not applicable.
Overview of Expro Group Holdings NV
Expro Group Holdings NV specializes in a range of services and products that cover the entire well life cycle, including well construction, flow management, intervention, and subsea access. The company, which merged with Frank's International in 2021, has a strong focus on offshore and international markets, which constitute about 80% and 70% of its revenue, respectively. This global presence underscores its significant role in the oil and gas sector, particularly in offshore production solutions.
Assessing Profitability
Despite its industry standing, Expro's Profitability Rank is low at 1/10. The company's operating margin is 3.15%, which is better than 37.94% of its peers in the industry. However, its Return on Equity (ROE) and Return on Assets (ROA) stand at -1.53% and -1.00% respectively, indicating challenges in profitability. Additionally, its Return on Invested Capital (ROIC) is -2.10%, better than 28.65% of industry counterparts. These figures suggest that while Expro is performing better than some, there is room for improvement in financial efficiency.
Growth Trajectory
Expro has shown promising growth metrics. The company's 3-Year Revenue Growth Rate per Share is an impressive 30.80%, ranking better than 74.53% of 856 companies in the same industry. Looking ahead, the estimated Total Revenue Growth Rate for the next 3 to 5 years is 11.00%, which is superior to 82.01% of 328 industry peers. These growth rates highlight Expro's potential for sustained revenue expansion and market share increase.
Significant Shareholders
Expro's stock is held by notable investors, including HOTCHKIS & WILEY, which owns 1,672,735 shares, representing 1.51% of the company. Steven Cohen (Trades, Portfolio) holds 581,024 shares, accounting for 0.53%, and Mario Gabelli (Trades, Portfolio) owns 61,765 shares, or 0.06%. These holdings reflect confidence from significant market players, underscoring the company's potential despite its current challenges.
Competitive Landscape
Expro operates in a competitive environment with key players such as RPC Inc (RES, Financial) with a market cap of $1.39 billion, Helix Energy Solutions Group Inc (HLX, Financial) at $1.63 billion, and ProFrac Holding Corp (ACDC, Financial) at $1.41 billion. These companies, with similar market capitalizations, highlight the competitive nature of the oil and gas industry, particularly in the services sector.
Conclusion
In conclusion, Expro Group Holdings NV shows a mixed financial picture. While the company has demonstrated significant growth and is fairly valued according to the GF Value, its profitability metrics suggest areas for improvement. The strong growth rates and strategic market position provide a solid foundation for future performance, but it will be crucial for Expro to enhance its profitability to maximize shareholder value. The competitive landscape and the backing by notable investors also play essential roles in shaping its market stance and potential for future success.
This article, generated by GuruFocus, is designed to provide general insights and is not tailored financial advice. Our commentary is rooted in historical data and analyst projections, utilizing an impartial methodology, and is not intended to serve as specific investment guidance. It does not formulate a recommendation to purchase or divest any stock and does not consider individual investment objectives or financial circumstances. Our objective is to deliver long-term, fundamental data-driven analysis. Be aware that our analysis might not incorporate the most recent, price-sensitive company announcements or qualitative information. GuruFocus holds no position in the stocks mentioned herein.
