Mitchell Services Limited (MSV) AI Stock Analysis

• Market Cap: AU$71.01M
• Dividend Yield: N/A
• Average Volume (3M): 337.09K
• Price to Earnings (P/E): 134.0
• Beta (1Y): 0.46
• Revenue Growth: -16.97%
• EPS Growth: -94.15%
• Country: AU
• Employees: 663
• Sector: Basic Materials
• Sector Strength: 58
• Industry: Industrial Materials
• EPS (TTM): <0.01
• Shares Outstanding: 211,962,400
• 10 Day Avg. Volume: 117,130
• 30 Day Avg. Volume: 337,091
• PEG Ratio: -0.97
• Price to Book (P/B): 0.80
• Price to Sales (P/S): 0.25
• P/FCF Ratio: -23.83
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: AU$0.45
• Price Target Upside: 32.35% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 1
• EPS Forecast (FY): 0.05
• Revenue Forecast (FY): AU$347.07M

• Rating: 48 Neutral
• Price Target: AU$0.50 ▲(47.06% Upside)

Mitchell Services Limited's overall stock score is primarily impacted by its financial performance, which shows significant challenges in revenue, profitability, and cash flow. Technical analysis provides a mixed view, with some short-term bearish signals but potential longer-term support. The high P/E ratio suggests overvaluation, further weighing down the overall score.

Positive Factors

Business Model Strength

The company's focus on long-term contracts and partnerships with major mining firms provides a stable income base, enhancing revenue predictability and business model resilience.

Operational Efficiency

Operational efficiency and a strong safety record help in reducing costs and securing repeat business, contributing to sustainable competitive advantages in the industry.

Leverage Improvement

Improved leverage with a lower debt-to-equity ratio enhances financial stability and reduces risk, providing more flexibility for future investments and growth.

Negative Factors

Revenue Decline

Declining revenue growth indicates challenges in maintaining market share or pricing power, potentially impacting long-term business sustainability and profitability.

Profitability Challenges

Low net profit margins suggest difficulties in converting revenue into profit, which can hinder the company's ability to reinvest in growth and innovation.

Cash Flow Issues

Negative free cash flow growth highlights cash management challenges, potentially affecting the company's ability to fund operations and invest in future growth opportunities.

Mitchell Services Limited Business Overview & Revenue Model

Company Description

Mitchell Services Limited, together with its subsidiaries, provides exploration and mine site drilling services to the exploration, mining, and energy industries in Australia. The company's drilling services include greenfield exploration, project feasibility, mine site exploration and resource definition, development, and production. It also provides coal exploration, mineral exploration, mine services, underground coal drilling, and drill and blast services. The company was formerly known as Drill Torque Limited and changed its name to Mitchell Services Limited in December 2013. Mitchell Services Limited was founded in 1969 and is headquartered in Seventeen Mile Rocks, Australia.

How the Company Makes Money

Mitchell Services Limited generates revenue through its core services in the drilling sector, with key revenue streams derived from contracts for exploration and production drilling services. The company typically enters into long-term contracts with mining companies, which provides a stable income base. Additionally, MSV may engage in short-term projects that can enhance revenue flexibility. Significant partnerships with major mining firms and a strong reputation in the industry also contribute to its earnings, as clients prefer established service providers for their drilling needs. The company's focus on operational efficiency and safety not only helps in maintaining low operational costs but also in securing repeat business and long-term contracts, further solidifying its revenue model.

Mitchell Services Limited Financial Statement Overview

Summary

Mitchell Services Limited is facing financial challenges, with declining revenue and profitability. The balance sheet shows improved leverage, but the low return on equity indicates inefficiencies. Cash flow issues are evident, with negative free cash flow growth. The company needs to address these areas to improve its financial health.

Income Statement

Mitchell Services Limited has experienced a decline in revenue over the past year, with a negative revenue growth rate of -8.42%. The gross profit margin remains stable at 36.56%, but the net profit margin is very low at 0.27%, indicating minimal profitability. The EBIT and EBITDA margins have also decreased, reflecting operational challenges.

Balance Sheet

The company's debt-to-equity ratio has improved to 0.18, indicating a reduction in leverage. However, the return on equity is low at 0.88%, suggesting limited efficiency in generating returns from equity. The equity ratio stands at 54.84%, showing a moderate level of equity financing.

Cash Flow

The cash flow situation is concerning, with a significant decline in free cash flow growth at -120.83%. The operating cash flow to net income ratio is 46.39%, indicating some operational cash generation, but the negative free cash flow to net income ratio highlights cash flow challenges.

Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	196.84M	196.84M	236.83M	243.14M	213.37M	191.38M
Gross Profit	71.96M	71.96M	85.59M	44.06M	27.89M	32.11M
EBITDA	23.97M	23.97M	40.54M	41.17M	32.01M	25.87M
Net Income	536.87K	536.87K	9.17M	7.61M	15.56K	-5.90M
Balance Sheet
Total Assets	111.27M	111.27M	127.41M	134.60M	143.29M	126.75M
Cash, Cash Equivalents and Short-Term Investments	1.40M	1.40M	16.03M	11.11M	3.74M	4.24M
Total Debt	10.77M	10.77M	19.66M	32.28M	47.28M	39.59M
Total Liabilities	50.24M	50.24M	61.78M	67.50M	81.54M	75.14M
Stockholders Equity	61.04M	61.04M	65.63M	67.10M	61.75M	51.61M
Cash Flow
Free Cash Flow	-2.05M	-2.05M	29.28M	24.11M	2.48M	3.91M
Operating Cash Flow	17.92M	17.92M	43.12M	35.63M	22.22M	30.06M
Investing Cash Flow	-18.02M	-18.02M	-10.26M	-8.06M	-19.43M	-24.48M
Financing Cash Flow	-14.60M	-14.60M	-27.93M	-20.20M	-3.28M	-13.25M

Mitchell Services Limited Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 0.34
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For AU:MSV, the sentiment is Positive. The current price of 0.34 is above the 20-day moving average (MA) of 0.32, above the 50-day MA of 0.32, and above the 200-day MA of 0.29, indicating a bullish trend. The MACD of <0.01 indicates Negative momentum. The RSI at 64.20 is Neutral, neither overbought nor oversold. The STOCH value of 120.00 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for AU:MSV.

Mitchell Services Limited Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
Sector *	61 Neutral	$10.43B	7.12	-0.05%	2.87%	2.86%	-36.73%
TGN	54 Neutral	AU$257.00M	-24.73	-27.95%	―	―	-43.08%
MSV	48 Neutral	AU$71.01M	134.00	0.85%	―	-16.97%	-94.15%
GBR	46 Neutral	AU$83.25M	-16.67	-12.09%	―	―	81.03%
E25	44 Neutral	AU$75.75M	-10.96	-10.46%	―	-85.84%	73.66%
CZR	43 Neutral	AU$98.03M	-5.15	-103.22%	―	―	-278.88%
MHK	35 Underperform	AU$12.96M	-1.10	-121.65%	―	―	-100.21%

Mitchell Services Limited Corporate Events

Mitchell Services Limited 2025 AGM Resolutions Passed

Mitchell Services Limited announced the results of its 2025 Annual General Meeting, where all resolutions were passed by a poll. Key resolutions included the adoption of the remuneration report, re-election of directors, approval of additional placement capacity, and the approval of the employee share option plan. These outcomes reflect strong shareholder support and are expected to positively impact the company’s governance and strategic flexibility.

Mitchell Services Limited: Strategic Shift and Resilience Amidst Market Challenges

Mitchell Services Limited faced a challenging FY25 due to adverse weather, temporary mine shutdowns, and a subdued coal market. Despite these challenges, the company successfully secured new contracts in other commodities and invested in innovation, leading to a stronger foundation for long-term growth. The company has strategically pivoted towards the minerals sector and decarbonisation opportunities, with approximately half of its revenue now coming from gold. The emergence of Loop Decarbonisation Solutions Pty Ltd marks a strategic expansion into the decarbonisation sector, validated by a partnership with Sumitomo Corporation. FY26 has started strongly, with improved financial performance and reduced net debt, positioning the company well for sustainable growth.

Mitchell Services Reports Strong Q1 FY26 Performance and Strategic Growth Opportunities

Mitchell Services Limited reported a significant improvement in its financial performance for Q1 FY26, with a 68% increase in EBITDA and a 93% reduction in net debt. The company’s strong cash flow and reduced debt position provide a solid foundation for future growth and capital management flexibility, while the investment by Sumitomo Corporation in the Loop Decarbonisation joint venture highlights potential for further expansion.

Mitchell Services Limited Announces FY26 Q1 Investor Update and Webinar

Mitchell Services Limited has announced the release of its FY26 Q1 quarterly investor update, scheduled for 14 October 2025. An analyst briefing in the form of a webinar will follow on 21 October 2025, allowing stakeholders to gain deeper insights into the company’s performance and strategic direction.

Mitchell Services Limited Announces 2025 Annual General Meeting

Mitchell Services Limited has announced its upcoming Annual General Meeting (AGM) scheduled for October 15, 2025, in Brisbane. The meeting will cover the financial statements for the year ended June 30, 2025, and include resolutions on the adoption of the remuneration report and the re-election of directors. Shareholders are encouraged to participate either in person or by proxy, with online voting options available. This AGM is a significant event for the company as it addresses key governance issues and provides a platform for shareholder engagement.