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Civeo Corporation: Building Up To A 300% Upside
Summary
- Civeo Corporation deserves a 'Buy' rating due to its unique position as a provider of workforce accommodations and hospitality, healthy outlook and cheap valuation of 5.9x EV/FCF.
- The company has a proven track record of producing free cash flow and has massively deleveraged over the last ten years.
- Management increased the share buybacks from 10% to 20% of outstanding shares.
- Shareholder structure and management are aligned after activist investors asked the board to favor stock repurchases over dividends.
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Analyst’s Disclosure:I/we have a beneficial long position in the shares of CVEO either through stock ownership, options, or other derivatives. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.
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