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Dawson Geophysical Company (DWSN)
NASDAQ:DWSN

Dawson Geophysical Company (DWSN) AI Stock Analysis

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Dawson Geophysical Company

(NASDAQ:DWSN)

46Neutral
Dawson Geophysical Company is struggling with financial performance due to declining revenues and net losses. Technical indicators suggest a bearish trend, and valuation metrics indicate profitability issues. The neutral earnings call results offer no new catalysts for improvement. Overall, the stock reflects significant challenges and risks.

Dawson Geophysical Company (DWSN) vs. S&P 500 (SPY)

Dawson Geophysical Company Business Overview & Revenue Model

Company DescriptionDawson Geophysical Company provides onshore seismic data acquisition and processing services in the United States and Canada. The company acquires and processes 2-D, 3-D, and multi-component seismic data for its clients, including oil and gas companies, and independent oil and gas operators, as well as providers of multi-client data libraries. Its seismic crews supply seismic data primarily to companies engaged in the exploration and development of oil and natural gas on land and in land-to-water transition areas. The company also serves the potash mining industry. Dawson Geophysical Company was founded in 1952 and is headquartered in Midland, Texas. Dawson Geophysical Company is a subsidiary of Wilks Brothers, LLC.
How the Company Makes MoneyDawson Geophysical Company generates revenue by providing seismic data acquisition services to oil and gas companies. Its key revenue streams include fees charged for the collection, processing, and interpretation of seismic data. The company employs sophisticated technology and equipment to gather seismic information, which is critical for clients in the exploration and development of oil and gas reserves. Dawson Geophysical often enters into service contracts with major energy companies, which are a significant factor in its earnings. Additionally, the company may also engage in partnerships or collaborations with other firms in the industry to enhance its service offerings and expand its market reach.

Dawson Geophysical Company Financial Statement Overview

Summary
Dawson Geophysical Company faces financial challenges with declining revenues and persistent net losses, affecting profitability metrics. Improvements in operating cash flow are encouraging, but overall financial health remains weak, necessitating strategic initiatives to enhance profitability and growth.
Income Statement
45
Neutral
Dawson Geophysical Company has shown a declining trend in revenue with a significant drop in total revenue from 2019 to 2024. The gross profit margin is low, indicating cost challenges. The company has consistently reported net losses, leading to negative net profit margins. Despite some improvement in EBITDA from negative to positive in TTM, the EBIT margin remains negative, highlighting ongoing operational inefficiencies.
Balance Sheet
55
Neutral
The company's debt-to-equity ratio is moderate, suggesting manageable leverage levels. However, the return on equity is negative due to consistent net losses, impacting shareholder returns. The equity ratio is relatively healthy, indicating a substantial portion of the company is financed by equity, which is a positive sign of stability.
Cash Flow
50
Neutral
The operating cash flow has improved in recent periods, transitioning from negative to positive, which is a positive sign. However, the free cash flow remains low with minimal growth, suggesting limited capacity to fund operations or investments without external financing. The operating cash flow to net income ratio is favorable, indicating better cash conversion from operations.
Breakdown
TTMDec 2023Dec 2022Dec 2021Dec 2020Dec 2019
Income StatementTotal Revenue
82.78M96.85M37.48M24.70M86.10M145.77M
Gross Profit
6.58M8.80M27.68M11.83M68.93M123.95M
EBIT
-3.96M-13.33M-24.01M-29.23M-13.99M-16.25M
EBITDA
2.72M-3.66M-5.68M-16.27M3.92M8.01M
Net Income Common Stockholders
-5.42M-12.15M-20.45M-29.09M-13.20M-15.21M
Balance SheetCash, Cash Equivalents and Short-Term Investments
16.73M11.04M14.18M25.64M41.54M28.62M
Total Assets
57.78M57.52M60.54M74.04M103.38M127.61M
Total Debt
5.89M6.23M4.93M5.21M6.15M11.30M
Net Debt
-10.57M-4.54M-8.98M-20.16M-34.81M-14.97M
Total Liabilities
30.52M26.09M19.43M11.56M12.40M24.44M
Stockholders Equity
27.26M31.43M41.11M62.48M90.97M103.17M
Cash FlowFree Cash Flow
596.00K-2.91M-9.86M-16.55M16.79M5.08M
Operating Cash Flow
1.91M814.00K-8.96M-16.05M19.64M9.48M
Investing Cash Flow
-1.96M-4.50M-669.00K264.00K-512.00K4.18M
Financing Cash Flow
-11.83M-4.20M-2.15M95.00K-4.53M-11.26M

Dawson Geophysical Company Technical Analysis

Technical Analysis Sentiment
Negative
Last Price1.23
Price Trends
50DMA
1.39
Negative
100DMA
1.43
Negative
200DMA
1.58
Negative
Market Momentum
MACD
-0.03
Positive
RSI
38.15
Neutral
STOCH
6.37
Positive
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For DWSN, the sentiment is Negative. The current price of 1.23 is below the 20-day moving average (MA) of 1.37, below the 50-day MA of 1.39, and below the 200-day MA of 1.58, indicating a bearish trend. The MACD of -0.03 indicates Positive momentum. The RSI at 38.15 is Neutral, neither overbought nor oversold. The STOCH value of 6.37 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for DWSN.

Dawson Geophysical Company Peers Comparison

Overall Rating
UnderperformOutperform
Sector (58)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
BKBKR
81
Outperform
$43.52B14.7718.47%2.00%9.10%55.56%
NONOV
78
Outperform
$5.71B9.3510.12%1.83%3.42%-35.98%
SLSLB
77
Outperform
$56.95B13.4821.59%2.65%9.58%6.53%
HAHAL
75
Outperform
$22.02B8.9625.14%2.71%-0.32%-3.41%
OIOII
65
Neutral
$2.17B15.1421.97%9.75%50.93%
58
Neutral
$9.08B5.25-7.99%7.51%0.47%-64.07%
46
Neutral
$38.11M-16.91%-5.13%65.56%
* Energy Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
DWSN
Dawson Geophysical Company
1.23
-0.24
-16.33%
BKR
Baker Hughes Company
43.95
11.13
33.91%
HAL
Halliburton
25.37
-13.63
-34.95%
NOV
NOV
15.22
-4.42
-22.51%
OII
Oceaneering International
21.81
-2.98
-12.02%
SLB
Schlumberger
41.80
-11.47
-21.53%
Glossary
OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.
NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.
UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.