Bristow Group, Inc. (NYSE:BRS)

CAPS Rating: 5 out of 5

The Company provides helicopter transportation services to the offshore oil and gas industry with major operations in the Gulf of Mexico and the North Sea and also has operations in most of the other major offshore oil and gas producing regions.


Player Avatar redfex (< 20) Submitted: 10/16/2007 5:51:38 AM : Underperform Start Price: $46.30 BRS Score: -1.83

while the industry has attractive demand characteristics, this company is planning to spend over $1B in the next 4 years to totally upgrade its fleet of helis. the returns they will get from these helis make increasing ROIC a difficult task as the new helis are 10-20X more expensive than the amount they have on the books re their current fleet. this company needs to increase ROIC and if they don't they are fairly to slightly over-valued. they have a new CEO that is committed to this task, and i wish him good luck, yet it will be a hard road to follow.

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