Mitchell Services Limited (MSV) AI Stock Analysis

• Market Cap: AU$74.19M
• Dividend Yield: N/A
• Average Volume (3M): 337.09K
• Price to Earnings (P/E): 140.0
• Beta (1Y): 0.37
• 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): N/A
• Revenue Forecast (FY): N/A

• Rating: 48 Neutral
• Price Target: AU$0.35 ▲(2.06% 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

Market position & service breadth

A leading provider across exploration, production and underground drilling supports durable demand exposure to mining operators. Broad service capability and experienced personnel help secure multi-phase contracts and repeat business, reducing revenue volatility over cycles.

Long-term contract revenue base

A business model anchored in long-term contracts creates predictable revenue streams and higher contract renewal value. This structural contract profile supports planning for fleet deployment and capex, improving cash visibility through mining investment cycles.

Low financial leverage

Very low leverage provides financial flexibility for capital-intensive drilling operations. Reduced debt burden lowers refinancing and interest risks, enabling the firm to fund equipment, bid competitive tenders, or weather weaker commodity-driven demand without immediate capital raises.

Negative Factors

Declining revenue trend

Sustained revenue contraction erodes scale, limits fixed-cost absorption and weakens negotiating leverage with suppliers. If mining activity doesn't recover, continued top-line decline risks margin compression and reduced utilization of crews and equipment over the medium term.

Weak cash generation

Severely negative free cash flow growth undermines the firm's ability to self-fund maintenance capex, fleet upgrades and working capital. Poor cash conversion reduces resilience to project timing swings and limits capacity to pursue strategic investments or return capital to shareholders.

Very low profitability metrics

Extremely low ROE and net margins indicate limited ability to convert revenue into shareholder returns. This reflects operational inefficiencies or pricing pressure and suggests constrained capacity for reinvestment or dividends without a sustained improvement in margins or volumes.

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: Neutral

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 0.34, 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 62.69 is Neutral, neither overbought nor oversold. The STOCH value of 48.15 is Neutral, 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$189.96M	-18.28	-27.95%	―	―	-43.08%
CZR	51 Neutral	AU$104.00M	-5.46	-103.22%	―	―	-278.88%
GBR	49 Neutral	AU$105.21M	-20.83	-12.09%	―	―	81.03%
MSV	48 Neutral	AU$74.19M	140.00	0.85%	―	-16.97%	-94.15%
E25	47 Neutral	AU$111.63M	-16.15	-10.46%	―	-85.84%	73.66%
MHK	45 Neutral	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.

The most recent analyst rating on (AU:MSV) stock is a Hold with a A$0.50 price target. To see the full list of analyst forecasts on Mitchell Services Limited stock, see the AU:MSV Stock Forecast page.

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.

The most recent analyst rating on (AU:MSV) stock is a Hold with a A$0.50 price target. To see the full list of analyst forecasts on Mitchell Services Limited stock, see the AU:MSV Stock Forecast page.