Mitchell Services Limited (MSV) AI Stock Analysis

• Market Cap: AU$83.73M
• Dividend Yield: N/A
• Average Volume (3M): 337.09K
• Price to Earnings (P/E): 162.0
• Beta (1Y): 0.34
• 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$0.50
• Price Target Upside: 47.06% 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$0.40 ▲(17.94% 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

Service-based business model

Mitchell's core contracting model delivers drilling and associated services to exploration and mining clients, creating recurring, utilization-driven revenue. Over 2-6 months this service orientation supports steady demand exposure to long-term resources investment and differentiated operational revenue streams.

Improved leverage

A debt-to-equity of 0.18 materially reduces financial leverage, lowering interest and refinancing risk. This stronger balance-sheet position provides durable flexibility to fund maintenance, preserve capacity and survive cyclicality without heavy borrowing, supporting operational continuity.

Stable gross margins

A stable gross margin near 36.6% indicates sustained control over direct drilling costs and pricing relative to input expenses. This margin resilience preserves contribution per metre drilled, aiding recovery of profitability as utilisation improves and fixed-cost absorption increases over time.

Negative Factors

Severe free cash flow decline

Free cash flow plunging -120.83% signals material cash generation deterioration. Persistently negative FCF forces reliance on external funding or asset sales, constrains fleet maintenance and crew deployment, and reduces ability to invest in equipment needed to capture future drilling demand.

Very low net profitability

A net margin of 0.27% leaves almost no cushion for cost shocks or pricing pressure. Over months this thin profitability limits internal funding for capex and working capital, increases sensitivity to cyclical downturns, and impairs the firm's ability to compete on longer-term contracts.

Low return on equity

ROE of 0.88% reflects weak returns on shareholder capital and potential capital allocation or operational efficiency issues. Sustained low ROE undermines investor confidence, makes equity financing costly, and limits the company's ability to fund growth or modernise its drilling fleet over time.

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: Negative
• 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 below the 20-day moving average (MA) of 0.36, above the 50-day MA of 0.34, and above the 200-day MA of 0.30, indicating a bullish trend. The MACD of 0.02 indicates Negative momentum. The RSI at 76.56 is Negative, neither overbought nor oversold. The STOCH value of 76.19 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	50 Neutral	AU$368.74M	-37.10	-27.95%	―	―	-43.08%
GBR	49 Neutral	AU$100.81M	-19.38	-12.09%	―	―	81.03%
MSV	48 Neutral	AU$83.73M	162.00	0.85%	―	-16.97%	-94.15%
E25	48 Neutral	AU$101.00M	-14.23	-10.46%	―	-85.84%	73.66%
CZR	48 Neutral	AU$81.41M	-4.59	-103.22%	―	―	-278.88%
MHK	40 Underperform	AU$12.34M	-1.05	-121.65%	―	―	-100.21%

Mitchell Services Limited Corporate Events

Mitchell Services Swings to Strong H1 Profit and Net Cash on Improved Drilling Conditions

Mitchell Services Limited reported a sharp turnaround in profitability for the quarter and half year to 31 December 2025, driven by improved weather, the absence of client-driven delays and scope reductions, and the normalisation of projects that had incurred ramp-up costs in FY25. Quarterly EBITDA rose 71% to $9.6m, EBT swung to a $4.1m profit from a loss a year earlier, and operating cash flow surged 129% to $11.0m, pushing the balance sheet into a net cash position of $7.2m. For the first half, revenue grew modestly to $102.4m, but EBITDA jumped 69% to $21.4m and EBT climbed to $10.2m from a loss in the prior period, with margins and return on invested capital improving markedly. The company also booked a non-cash $1.4m impairment after a bushfire destroyed a rig in Western Australia, with insurance proceeds expected to more than offset that charge in the next quarter. Operating an average of 62 rigs from a fleet of 90 and having reduced capital expenditure, Mitchell highlights the potential upside leverage should rising commodity prices for metals such as copper and gold translate into stronger drilling demand, even as coal-related activity remains weak.

The most recent analyst rating on (AU:MSV) stock is a Hold with a A$0.35 price target. To see the full list of analyst forecasts on Mitchell Services Limited stock, see the AU:MSV Stock Forecast page.

Mitchell Services Sets Date for FY26 Q2 Investor Update and Webinar

Mitchell Services Limited has announced it will release its FY26 second-quarter investor update on Wednesday, 28 January 2026, and will host an analyst webinar the same day at 11:00am AEDT to discuss the results. The scheduled briefing underscores the company’s ongoing engagement with investors and analysts, offering stakeholders timely insight into quarterly performance and operational trends that may influence perceptions of its outlook and positioning within the mining services industry.

The most recent analyst rating on (AU:MSV) stock is a Hold with a A$0.35 price target. To see the full list of analyst forecasts on Mitchell Services Limited stock, see the AU:MSV Stock Forecast page.