Oil States International, Inc. (OIS) Stock Analysis

Why this analysis is different

• A sector-relative MoonshotScore — five pillars (business quality, financial safety, valuation, growth durability, momentum) re-ranked nightly against the full universe of US-listed common stocks.
• An AI Council read across up to eight perspectives — value, macro, quantitative, and momentum lenses — that shows where they disagree instead of averaging the tension away.
• Figures come straight from FMP and Yahoo Finance filings data. The AI writes the narrative around the numbers — it never edits the numbers.

Oil States International, Inc. (OIS) Energy Operations & Outlook

Oil States International, Inc. delivers specialized oilfield products and services across the well lifecycle, focusing on drilling, completion, and subsea infrastructure. With a global presence and three core segments, the company addresses critical needs in the oil and gas sector, though it currently faces challenges with profitability.

What Is the Investment Thesis for OIS?

Oil States International, Inc. presents a mixed investment case. The company's diverse service offerings across the oil and gas value chain, including well site services, downhole technologies, and offshore products, position it to capitalize on increased drilling and production activity. A market capitalization of $519M indicates moderate size within the sector. However, a negative profit margin of -16.2% raises concerns about profitability. The company's beta of 1.27 suggests higher volatility compared to the market. Growth catalysts include increased offshore drilling activity and demand for well completion services. Investors should closely monitor the company's ability to improve profitability and manage its debt levels. No dividend yield is currently offered.

Based on FMP financials and quantitative analysis

OIS Key Highlights

Market Cap of $519M reflects its position as a mid-sized player in the oilfield services sector.

• Negative Profit Margin of -16.2% indicates current challenges in achieving profitability.
• Gross Margin of 13.7% suggests potential for improvement in operational efficiency.
• Beta of 1.27 indicates higher volatility compared to the broader market.
• No Dividend Yield reflects a focus on reinvesting earnings for growth.

Who Are OIS's Competitors?

OIS is benchmarked below against 8 industry peers on price, market cap, and our AI MoonshotScore.

AI Score by Stock Expert AI · Price data: FMP / Yahoo Finance

What Are OIS's Key Strengths?

Diverse product and service offerings across the oil and gas value chain.

• Global presence with operations in key oil and gas producing regions.
• Strong technical expertise and engineering capabilities.
• Established relationships with major oil and gas companies.

What Are OIS's Weaknesses?

Negative profit margin indicating profitability challenges.

• High dependence on commodity prices and drilling activity.
• Exposure to cyclical downturns in the oil and gas industry.
• Limited dividend yield compared to some competitors.

What Could Drive OIS Stock Higher?

Increased offshore drilling activity driving demand for subsea products and services.

• Rising demand for well completion and intervention services boosting the Downhole Technologies segment.
• Potential new contracts for offshore projects in emerging markets.
• Development and deployment of innovative technologies enhancing competitiveness.

What Are the Key Risks for OIS?

Negative return on equity (-17.5%) — the business is not currently generating profit on shareholder capital.

• Fluctuations in oil and gas prices impacting drilling activity and demand for services.
• Intense competition from larger and more established players in the oilfield services industry.
• Regulatory changes and environmental concerns affecting offshore drilling and production.
• Cyclical downturns in the oil and gas industry impacting revenue and profitability.

What Are the Growth Opportunities for OIS?

• Expansion in Offshore Drilling: The increasing demand for offshore drilling, particularly in deepwater and ultra-deepwater environments, presents a significant growth opportunity for Oil States' Offshore/Manufactured Products segment. This segment provides critical capital equipment such as high-pressure riser systems and deepwater mooring systems. The global offshore drilling market is projected to reach $118 billion by 2028, growing at a CAGR of 6.8%. Oil States can capitalize on this trend by securing contracts for new offshore projects and expanding its product offerings to meet evolving industry needs.
• Increased Well Completion Activity: The Downhole Technologies segment can benefit from increased well completion activity, driven by the need to enhance production from existing wells. This segment provides perforation systems and downhole tools crucial for completion and intervention operations. The well completion market is expected to grow as operators focus on improving well productivity. Oil States can leverage its expertise in engineered products to capture a larger share of this market by offering innovative and cost-effective solutions.
• Growth in Well Site Services: The Well Site Services segment can expand by offering comprehensive solutions for well lifecycle management. This includes services such as wellhead isolation, flowback and well testing, and pipe recovery systems. As oil and gas companies seek to optimize well performance and reduce operational costs, the demand for these services is expected to increase. Oil States can strengthen its market position by providing integrated service packages and leveraging its expertise to deliver superior results.
• Geographic Expansion: Oil States can pursue growth by expanding its geographic presence, particularly in emerging markets with growing oil and gas production. Regions such as South America, Africa, and Asia offer significant opportunities for the company to deploy its products and services. By establishing strategic partnerships and investing in local infrastructure, Oil States can gain access to new markets and diversify its revenue streams. This expansion can mitigate risks associated with regional economic downturns and fluctuations in drilling activity.
• Technological Innovation: Investing in research and development to develop innovative technologies can provide Oil States with a competitive edge. This includes developing advanced materials, automation solutions, and digital technologies to improve the efficiency and reliability of its products and services. By offering cutting-edge solutions, Oil States can attract new customers and strengthen its relationships with existing clients. This focus on innovation can also drive cost reductions and improve profitability over the long term.

What Are OIS's Competitive Advantages?

• Specialized Expertise: Deep technical knowledge and experience in providing engineered solutions for complex oil and gas operations.
• Established Relationships: Long-standing relationships with key customers in the oil and gas industry.
• Diverse Product Portfolio: Broad range of products and services across the well lifecycle.
• Global Presence: Ability to serve customers in key oil and gas producing regions worldwide.

What Does OIS Do?

Oil States International, Inc., incorporated in 1995 and headquartered in Houston, Texas, provides a range of oilfield products and services to the oil and gas industry worldwide. The company operates through three segments: Well Site Services, Downhole Technologies, and Offshore/Manufactured Products. The Well Site Services segment offers equipment and services used to drill for, establish, and maintain the flow of oil and natural gas from a well throughout its lifecycle. This includes wellhead isolation, frac valve, wireline and coiled tubing support, flowback and well testing, pipe recovery systems, gravel pack and sand control, blowout preventer, and drilling services. The Downhole Technologies segment provides oil and gas perforation systems and downhole tools in support of completion, intervention, wireline, and well abandonment operations. This segment designs, manufactures, and markets its consumable engineered products to oilfield service, and exploration and production companies. The Offshore/Manufactured Products segment designs, manufactures, and markets capital equipment utilized on floating production systems, subsea pipeline infrastructure, and offshore drilling rigs and vessels. Its products include flexible bearings, advanced connector systems, high-pressure riser systems, deepwater mooring systems, cranes, subsea pipeline products, and blow-out preventer stack integration products. The company also offers specialty welding, fabrication, cladding and machining, offshore installation, and inspection and repair services, catering to industrial, military, and other applications.

What Products and Services Does OIS Offer?

• Provides equipment and services for drilling and completion of oil and gas wells.
• Offers solutions for subsea production and infrastructure.
• Manufactures capital equipment for floating production systems.
• Supplies downhole tools for well intervention and abandonment.
• Provides well site services, including flowback and well testing.
• Offers specialty welding, fabrication, and machining services.

How Does OIS Make Money?

• Generates revenue by selling and renting equipment used in oil and gas drilling and production.
• Provides services related to well completion, intervention, and abandonment.
• Offers manufacturing and fabrication services for offshore and subsea infrastructure.
• Contracts with oil and gas companies to provide integrated solutions for well lifecycle management.

What Industry Does OIS Operate In?

Oil States International, Inc. operates within the oil and gas equipment and services industry, a sector heavily influenced by commodity prices and drilling activity. The industry is characterized by intense competition and cyclical demand. Companies like Oil States provide essential products and services that support exploration, production, and infrastructure development. Market trends include increasing demand for offshore drilling equipment and services, driven by the need to access deeper and more challenging reserves. The competitive landscape includes major players offering similar services, requiring Oil States to differentiate through technology and service quality.

Who Are OIS's Key Customers?

• Oil and gas exploration and production companies.
• Oilfield service companies.
• Offshore drilling contractors.
• Subsea infrastructure developers.

Oil States International, Inc. (OIS) Valuation Context

Valued at $519M, OIS is classified as a small-cap stock. Analyst price targets span from $11.00 to $14.00, with a consensus of $12.33. At the current price of $8.62, that implies approximately 43% upside potential. Relative to its peer group, OIS's quantitative score of 45/100 is below the peer average of 58/100.

OIS Revenue & Earnings Trend

In Q2 FY2026, OIS generated $132.9M in top-line revenue, marking a sequential decrease of 8.6%. The company recorded net income of $5.9M, with diluted EPS of $0.10. Revenue has contracted over three consecutive quarters, which investors in this small-cap Energy stock should monitor closely. Across the four most recent quarters, OIS averaged $-0.47 in diluted EPS.

Company Profile

Oil States International, Inc. operates in the Oil & Gas Equipment & Services industry within the Energy sector. It is headquartered in Houston, US. The company is led by CEO Lloyd A. Hajdik. OIS has traded publicly since 2001.

Return on equity for Oil States International, Inc. stands at -17.5%, a gauge of how efficiently it converts shareholder capital into profit. Return on assets is -12.8%, showing how much profit it generates from its asset base. Its free cash flow yield is 14.2%, a gauge of the cash the business throws off relative to its market value. A current ratio of 1.94 indicates the company holds enough short-term assets to cover its near-term obligations. Its earnings yield is -24.2%, the inverse of the P/E and a quick read on earnings relative to price.

Oil States International, Inc.'s Piotroski F-Score is 5/9, a 9-point checklist of profitability, leverage and efficiency — a middling fundamental profile. Its Altman Z-Score of 2.20 places it in the grey zone, a middle ground that warrants monitoring.

Oil States International, Inc. has beaten Wall Street's EPS estimate in 5 of its last 8 reported quarters — more hits than misses. Reported results have landed about 11.6% above estimates on average.

Over the past six months, Oil States International, Inc. insiders filed 12 SEC Form 4 transactions — 1 sales and 11 purchases. On net that is roughly 176K shares acquired (about $469K) — insiders putting money in tends to read as conviction.

OIS Financials

OIS Latest News

OIS Analyst Consensus

OIS MoonshotScore

What Investors Ask About Oil States International, Inc. (OIS) — Energy

Disclaimer: This content is for informational purposes only and does not constitute investment advice. Always do your own research and consult a financial advisor.

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