The case for & against
Bull & Bear analysis
Bearish
McDermott International, Inc. (Ticker: MDR) is an engineering, procurement, construction, and installation (EPCI) company specializing in serving the energy sector. The company has historically been a significant player in providing engineering solutions for offshore and onshore energy projects. However, following its Chapter 11 bankruptcy filing in January 2020 and subsequent delisting from the New York Stock Exchange, the company is currently undergoing significant restructuring, which raises concerns about its future viability and operational capability in a rapidly evolving energy market.
Bull says
- ↑Chapter 11 restructuring plan aims to reduce debt and raise fresh capital.
- ↑Engineering track record could secure offshore renewable energy contracts.
- ↑Rising energy infrastructure spending may increase EPCI project opportunities.
- ↑Recovery-focused investors could drive speculative upside post-restructuring.
- ↑Valuation reset expected; current equity value remains speculative.
Bear says
- ↓Chapter 11 proceedings erode equity value and limit operational capacity.
- ↓NYSE delisting removes liquidity and hinders price discovery.
- ↓No recent revenue or earnings reported, obscuring performance outlook.
- ↓Shift to renewables increases risk for traditional EPCI service providers.
- ↓High leverage and weak balance sheet amplify downside risk.
- ↓Profitability and cash flow factors remain weak until operations resume.