Geospace Technologies Corp (NASDAQ: GEOS)

Sector: Energy Industry: Oil & Gas Equipment & Services CIK: 0001001115
Market Cap 119.77 Mn
P/B 1.03
P/E -4.30
P/S 1.21
ROIC (Qtr) -24.13
Div Yield % 0.00
Rev 1y % (Qtr) -31.26
Total Debt (Qtr) 873,000.00
Debt/Equity (Qtr) 0.01
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About

Geospace Technologies Corporation, or GEOSPACE, is a company that operates in the oil and gas industry, with its ticker symbol being GEOS. The company's main business activities involve the development, manufacturing, and sale of seismic products and services. These offerings include wireless seismic data acquisition systems, reservoir characterization products, and traditional seismic exploration products. GEOSPACE generates revenue through the sale of its products and services to customers in the oil and gas industry, as well as to customers in...

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Investment thesis

Bull case

  • Healthy cash reserves of 10.58M provide 24.49x coverage of short-term debt 432000, demonstrating strong liquidity position and minimal refinancing risk.
  • Strong tangible asset base of 138.35M provides 158.47x coverage of total debt 873000, indicating robust asset backing and low credit risk.
  • Long-term investments of 11.92M provide solid 27.02x coverage of long-term debt 441000, indicating strategic financial planning.
  • Retained earnings of 35.79M provide full 81.16x coverage of long-term debt 441000, indicating strong internal capital position.
  • Strong free cash flow of (9.05M) provides 6.15x coverage of acquisition spending (1.47M), indicating disciplined M&A strategy.

Bear case

  • Operating cash flow of (25.79M) barely covers its investment activities of 36.02M, with a coverage ratio of -0.72, indicating heavy reliance on external financing for growth which may not be sustainable in a tighter credit environment.
  • With cash reserves of 10.58M against inventory of 51.15M, the 0.21 cash-to-inventory ratio suggests potential liquidity risks if inventory turnover slows, particularly concerning given current supply chain volatilities.
  • Cash reserves of 10.58M provide limited coverage of acquisition spending of (1.47M), which is -7.19x, suggesting aggressive expansion might strain liquidity if market conditions deteriorate.
  • The company's operating cash flow of (25.79M) shows concerning coverage of stock compensation expenses of 1.57M, with a -16.38 ratio indicating potential earnings quality issues.
  • Operating cash flow of (25.79M) provides minimal -72.46x coverage of tax expenses of 356000, suggesting potential tax planning inefficiencies or unsustainable tax positions.

Legal Entity Breakdown of Revenue (2025)

Segments Breakdown of Revenue (2025)

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 0.65 1.17
EV to Cash from Ops. EV/CFO -3.66 -3.30
EV to Debt EV to Debt 108.14 10.99
EV to EBIT EV/EBIT -3.45 4.49
EV to EBITDA EV/EBITDA -4.92 6.54
EV to Free Cash Flow [EV/FCF] EV/FCF -10.43 31.31
EV to Market Cap EV to Market Cap 0.79 1.36
EV to Revenue EV/Rev 0.95 2.02
Price to Book Value [P/B] P/B 1.03 1.73
Price to Earnings [P/E] P/E -4.30 20.20
Dividend Metrics Value Ind Avg Percentile
Dividend Coverage Ratio Dividend Coverage Ratio 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) -168.81 -10.19
Growth Metrics Value Ind Avg Percentile
Capex Growth (1y) % Capex 1y % (Qtr) -12.43 -37.90
Cash and Equivalents Growth (1y) % Cash & Equiv 1y % (Qtr) 650.28 1,334.16
Dividend Growth (1y) % Dividend Growth (1y) % 0.00 4.06
EBIAT Growth (1y) % EBIAT 1y % (Qtr) -158.79 -12.71
EBITDA Growth (1y) % EBITDA 1y % (Qtr) -225.07 19.66
EBIT Growth (1y) % EBIT 1y % (Qtr) -158.50 -26.68
EBT Growth (1y) % EBT 1y % (Qtr) -155.80 39.97
EPS Growth (1y) % EPS 1y % (Qtr) -175.95 27.30
FCF Growth (1y) % FCF 1y % (Qtr) -119.38 -867.31
Gross Profit Growth (1y) % Gross Profit 1y % (Qtr) -69.41 5.49
Liquidity Ratios Value Ind Avg Percentile
Asset Utilization Ratio Asset Util Ratio (Qtr) 0.69 0.74
Cash Payout Ratio Cash Payout (Qtr) 0.00 0.10
Cash Ratio Cash Ratio (Qtr) 0.41 0.62
Current Ratio Curr Ratio (Qtr) 3.04 2.25
Debt to Equity Ratio Debt/Equity (Qtr) 0.01 0.88
Interest Cover Ratio Int Coverage (Qtr) -168.81 -10.19
Times Interest Earned Times Interest Earned (Qtr) -168.81 -10.19
Profitability Value Ind Avg Percentile
EBITDA Margin % EBITDA Margin % (Qtr) -17.60 16.47
EBIT Margin % EBIT Margin % (Qtr) -27.58 -0.62
EBT Margin % EBT Margin % (Qtr) -27.74 4.39
Gross Margin % Gross Margin % (Qtr) 15.60 30.41
Net Profit Margin % Net Margin % (Qtr) -28.10 2.67