When it comes to equipment and services in the energy space, “strong market share” is usually pretty relative. In many markets, a company is doing very well if it can get 25% or one-third of a market to themselves, which makes Oceaneering International's (NYSE:OII) nearly 60% share of the deepwater rig support market pretty significant.
What's more, this is not just a “market share at any cost” story, as the company has a pretty remarkable record of consistent operating margin and ROIC performance despite the vagaries of the deepwater energy market. The problem for investors is in figuring out what constitutes a fair multiple for all of these positives.
For the full article, please follow this link:
http://www.investopedia.com/stock-analysis/071113/oceaneering-great-business-how-much-are-you-willing-pay-oii-hlx-ge-fti-rig.aspx
Investopedia: Oceaneering Is A Great Business, But How Much Are You Willing To Pay?
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