Dawson Geophysical Co (NASDAQ: DWSN)

Sector: Energy Industry: Oil & Gas Equipment & Services CIK: 0000799165
Market Cap 76.48 Mn
P/B 5.04
P/E -23.09
P/S 1.19
ROIC (Qtr) -12.62
Div Yield % 0.00
Rev 1y % (Qtr) 57.73
Total Debt (Qtr) 13.51 Mn
Debt/Equity (Qtr) 0.89
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About

Investment thesis

Bull case

  • Strong operating cash flow of 6.47M provides robust 0.48x coverage of total debt 13.51M, indicating excellent debt servicing capability and financial flexibility.
  • Strong tangible asset base of 40.22M provides 2.98x coverage of total debt 13.51M, indicating robust asset backing and low credit risk.
  • Operating cash flow of 6.47M provides exceptional 26.50x coverage of interest expenses 244000, showing strong debt service capability.
  • Operating cash flow of 6.47M provides strong 25.26x coverage of stock compensation 256000, indicating sustainable incentive practices.
  • Tangible assets of 40.22M provide exceptional 10.84x coverage of deferred revenue 3.71M, showing strong service capability backing.

Bear case

  • Operating cash flow of 6.47M barely covers its investment activities of (5.55M), with a coverage ratio of -1.17, indicating heavy reliance on external financing for growth which may not be sustainable in a tighter credit environment.
  • Operating cash flow of 6.47M provides minimal -281.13x coverage of tax expenses of (23000), suggesting potential tax planning inefficiencies or unsustainable tax positions.
  • Free cash flow of 585000 provides weak coverage of capital expenditures of 5.88M, with a 0.10 ratio suggesting additional external financing needs for growth initiatives.
  • Operating earnings of (3.09M) show weak coverage of depreciation charges of 7.02M, with a -0.44 ratio indicating high capital intensity and potential reinvestment needs.
  • Free cash flow of 585000 represents just -0.22x of debt issuance (2.62M), suggesting concerning reliance on leverage rather than internal cash generation for growth.

Segments Breakdown of Revenue (2024)

Segments Breakdown of Revenue (2024)

Peer comparison

Companies in the Oil & Gas Equipment & Services
S.No. Ticker Company Market Cap P/E P/S Total Debt (Qtr)
1 SLB Slb Limited/Nv 59.56 Bn 20.77 2.67 11.64 Bn
2 BKR Baker Hughes Co 59.13 Bn 22.85 2.13 6.09 Bn
3 FTI TechnipFMC plc 28.99 Bn 127.65 1.96 1.34 Bn
4 HAL Halliburton Co 28.83 Bn 22.47 1.30 8.13 Bn
5 WFRD Weatherford International plc 7.39 Bn 17.15 1.50 1.64 Bn
6 NOV NOV Inc. 7.09 Bn 48.90 0.81 2.34 Bn
7 VAL Valaris Ltd 6.32 Bn 15.83 2.61 1.09 Bn
8 KGS Kodiak Gas Services, Inc. 4.56 Bn 91.00 3.58 2.66 Bn

Industry comparisons

Current Valuation Value Ind Avg Percentile
EV to Assets EV to Assets 1.62 1.17
EV to Cash from Ops. EV/CFO 10.19 -3.30
EV to Debt EV to Debt 4.88 10.99
EV to EBIT EV/EBIT -21.31 4.49
EV to EBITDA EV/EBITDA 17.11 6.54
EV to Free Cash Flow [EV/FCF] EV/FCF 112.58 31.31
EV to Market Cap EV to Market Cap 0.86 1.36
EV to Revenue EV/Rev 1.02 2.02
Price to Book Value [P/B] P/B 5.04 1.73
Price to Earnings [P/E] P/E -23.09 20.20
Dividend Metrics Value Ind Avg Percentile
Dividend Coverage Ratio Div Coverage (Qtr) 0.00 0.42
Dividend Payout Ratio % Div Payout % (Qtr) 0.00 5.49
Dividend per Basic Share Div per Share (Qtr) 0.00 0.26
FCF Dividend Payout Ratio % FCF Div Payout % (Qtr) 0.00 6.68
Interest Coverage Int. cover (Qtr) -12.67 -10.19
Growth Metrics Value Ind Avg Percentile
Capex Growth (1y) % Capex 1y % (Qtr) -163.84 -37.90
Cash and Equivalents Growth (1y) % Cash & Equiv 1y % (Qtr) -27.21 1,334.16
Dividend Growth (1y) % Dividend Growth (1y) % 0.00 4.06
EBIAT Growth (1y) % EBIAT 1y % (Qtr) 41.55 -12.71
EBITDA Growth (1y) % EBITDA 1y % (Qtr) 71.07 19.66
EBIT Growth (1y) % EBIT 1y % (Qtr) 40.75 -26.68
EBT Growth (1y) % EBT 1y % (Qtr) 38.09 39.97
EPS Growth (1y) % EPS 1y % (Qtr) 31.25 27.30
FCF Growth (1y) % FCF 1y % (Qtr) 283.96 -867.31
Gross Profit Growth (1y) % Gross Profit 1y % (Qtr) -13.31 5.49
Liquidity Ratios Value Ind Avg Percentile
Asset Utilization Ratio Asset Util Ratio (Qtr) 1.59 0.74
Cash Payout Ratio Cash Payout (Qtr) 0.00 0.10
Cash Ratio Cash Ratio (Qtr) 0.31 0.62
Current Ratio Curr Ratio (Qtr) 0.80 2.25
Debt to Equity Ratio Debt/Equity (Qtr) 0.89 0.88
Interest Cover Ratio Int Coverage (Qtr) -12.67 -10.19
Times Interest Earned Times Interest Earned (Qtr) -12.67 -10.19
Profitability Value Ind Avg Percentile
EBITDA Margin % EBITDA Margin % (Qtr) 6.10 16.47
EBIT Margin % EBIT Margin % (Qtr) -4.81 -0.62
EBT Margin % EBT Margin % (Qtr) -5.19 4.39
Gross Margin % Gross Margin % (Qtr) 18.10 30.41
Net Profit Margin % Net Margin % (Qtr) -5.10 2.67