Horizon Kinetics leader Murray Stahl (Trades, Portfolio) disclosed this week he added to his firm’s position in Civeo Corp. (CVEO, Financial) on Feb. 28.
The New York City-based firm, which was co-founded by Stahl in 1994, says on its website it utilizes a long-term, contrarian, fundamental value investment approach to achieve superior absolute returns.
According to GuruFocus real-time picks, Stahl boosted the holding by 27.62%, adding 6.8 million shares for an average price of $3.55 per share. He now holds over 31 million shares of Civeo, which represents 3.31% of his overall portfolio.
GuruFocus data shows he has made a total estimated gain of 37% on the investment since the first quarter of 2017.
The Houston-based business services company, which was spun off of Oil States International Inc. (OIS, Financial) in 2014, provides global workforce accommodations to employees of oil and gas companies. With a market cap of $509.22 million, its shares were trading around $3.78 on Thursday with a price-book ratio of 1.07 and a price-sales ratio of 1.29.
According to the Peter Lynch chart below, the stock is undervalued as it is trading well below its fair value.
Its median price-sales chart, however, shows it is trading above its historical value.
GuruFocus rated Civeo’s financial strength 4 out of 10 as its Altman Z-Score of 0.01 indicates it is under severe financial distress, with the possibility of filing for bankruptcy in the near future. In addition, GuruFocus warning signs found its revenue per share has been declining over the past five years.
Civeo’s profitability and growth was rated 3 out of 10 by GuruFocus. While its Piotroski F-Score is a moderate 5, its operating margin has been negative for the past several years, as illustrated in the chart below.
With 23.51% of its outstanding shares, Stahl is the company’s largest guru shareholder. Jim Simons (Trades, Portfolio), Paul Tudor Jones (Trades, Portfolio) and Chuck Royce (Trades, Portfolio) are also invested in Civeo.
Stahl’s current portfolio of 491 holdings is largely composed of securities in the real estate sector. Additional business services companies the firm is invested in include Altisource Portfolio Solutions SA (ASPS, Financial), CoreLogic Inc. (CLGX, Financial), Deluxe Corp. (DLX, Financial), TTEC Holdings Inc. (TTEC, Financial) and Conduent Inc. (CNDT, Financial), among others.
Disclosure: No positions.
