Investment Thesis
Civeo Corp is in financial distress with negative profitability, deteriorating cash generation, and unsustainable leverage. The company is burning cash (-$13.9M FCF) while carrying $212.3M in debt with minimal interest coverage (1.3x), creating acute insolvency risk without immediate operational improvement or capital restructuring.
Strengths
- Gross margin of 23.3% indicates acceptable product-level economics despite operational struggles
- Current ratio of 1.88x and quick ratio of 1.81x provide near-term liquidity cushion
- Significant asset base of $491.6M maintains operational capacity
Risks
- Negative net income (-$3.8M) and deteriorating earnings (-17.6% YoY) signal fundamental business problems
- Negative free cash flow (-$13.9M) and operating cash burn (-$9.7M) are unsustainable
- Excessive debt/equity ratio of 1.32x with dangerously low interest coverage of 1.3x creates refinancing and solvency risk
- Revenue decline of 6.3% YoY paired with negative margins suggests structural weakness in the lodging business model
- Minimal cash reserves ($16.5M) relative to debt ($212.3M) limits financial flexibility
Key Metrics to Watch
- Operating cash flow trend—must turn positive to verify business viability
- Interest coverage ratio—further deterioration below 1.0x signals distress
- Debt reduction progress—management's ability to delever is critical for survival
- Revenue stabilization and margin improvement—required to achieve profitability
Financial Metrics
Revenue
172.7M
Net Income
-3.8M
EPS (Diluted)
$-0.34
Free Cash Flow
-13.9M
Total Assets
491.6M
Cash
16.5M
Profitability Ratios
Gross Margin
23.3%
Operating Margin
1.8%
Net Margin
-2.2%
ROE
-2.4%
ROA
-0.8%
FCF Margin
-8.0%
Balance Sheet & Liquidity
Current Ratio
1.88x
Quick Ratio
1.81x
Debt/Equity
1.32x
Debt/Assets
67.3%
Interest Coverage
1.32x
Long-term Debt
212.3M
Disclaimer: This analysis is generated by AI based on publicly available SEC EDGAR filings.
It does not include stock price data and should not be considered financial advice.
All fundamental data is sourced from SEC public domain filings.
Always conduct your own research before making investment decisions.
Data Source: SEC EDGAR |
Analysis Date: 2026-05-06T14:53:53.076146 |
Data as of: 2026-03-31 |
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