Civeo Corporation: Incredibly Cheap Even After Its Recent Rally

Summary

• Civeo Corporation, a niche accommodation service provider for remote natural resource extraction, remains a 'strong buy' due to its undervalued stock and significant upside potential.
• Despite challenges in Canada, Civeo's revenue grew 5.5% year-over-year, driven by strong performance in Australia and effective cost management.
• Management's debt reduction efforts are impressive, with net debt falling from $166.9 million in 2021 to $40.1 million in Q2 2024.
• While backlog decline is a concern, the company's low valuation and debt reduction make it a compelling investment, justifying the 'strong buy' rating.