Under the Radar Stock: PHI, Inc. (PHII)

This is a new feature at the Common Sense Investor: the Under the Radar stock pick. An under the radar stock is simply a stock that no one on Wall Street is paying attention to yet. Stocks like that can offer you great returns because their true value isn’t yet priced in, so they’re often trading at a significant discount. But just because there’s a lack of interest, that doesn’t automatically mean a stock is a great opportunity. You still have to do your due diligence and find out if they’re ready, willing, and able. If they are a good company and under the radar, well, then they can offer fantastic returns in the long run, especially when Wall Street starts to take notice.

One of those great under the radar stocks is the helicopter services & transport company, PHI, Inc. (PHII). They currently have only one (1) pro-analyst following them and hardly any attention from Wall Street at all. For example, only 46 CAPS members are following the stock, out of a pool of 60,000 members.

But, what do they do, and are they a solid company?
PHI is a transporting company; they transport parts, equipment, and most of all, personnel to, from, and between offshore oil and gas platforms, principally in the Gulf of Mexico and principally with helicopters. They’re a $650 million dollar company and one of the world’s top commercial helicopter operators. They maintain a fleet of about 235 aircraft, mostly helicopters but they also have some fixed-wing aircraft.
It’s quite a large business to be covered by only 1 Wall Street analyst.

As for the financials, their revenues have been consistently up year over year, they have good insider and institutional ownership, and solid 15%+ growth each year over the past 3 years. This is a textbook under-the-radar beauty and I think it’s destined to be a 10 bagger at the very least.