Mitchell Services Limited (MSV) AI Stock Analysis

• Market Cap: AU$49.81M
• Dividend Yield: 17.02%
• Average Volume (3M): 168.96K
• Price to Earnings (P/E): 10.9
• Beta (1Y): 0.24
• Revenue Growth: -12.27%
• EPS Growth: -59.89%
• Country: AU
• Employees: 663
• Sector: Basic Materials
• Sector Strength: 63
• Industry: Industrial Materials
• EPS (TTM): 0.02
• Shares Outstanding: 211,962,400
• 10 Day Avg. Volume: 316,278
• 30 Day Avg. Volume: 168,956
• PEG Ratio: <0.01
• Price to Book (P/B): 1.27
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 3.54
• 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: 87.50% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 1

• Rating: 67 Neutral
• Price Target: AU$0.50 ▲(108.33%Upside)

Mitchell Services Limited's strong financial performance and attractive valuation are major strengths. However, weak technical indicators and bearish market sentiment significantly lower the overall score.

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 primarily through contracts with mining companies for its drilling services. The company's key revenue streams include exploration drilling, which involves drilling to discover and evaluate mineral resources, and production drilling, which supports the extraction of these resources. Additionally, MSV offers technical drilling services, such as geotechnical and directional drilling, which require specialized equipment and expertise. These services are usually provided on a contractual basis, with pricing determined by factors such as the scope of work, duration of the project, and the complexity of the drilling environment. The company may also engage in strategic partnerships with mining companies to secure long-term contracts or collaborate on specific projects, which can contribute significantly to its earnings.

Mitchell Services Limited Financial Statement Overview

Summary

Mitchell Services Limited exhibits strong financial health with solid profitability, consistent gross profit margins, and efficient cash flow management. Despite a slight recent decrease in revenue, the company maintains a stable balance sheet and robust cash flow metrics, indicating operational efficiency and resilience.

Income Statement

Mitchell Services Limited has demonstrated solid profitability with a consistent gross profit margin and a favorable net profit margin. Revenue growth over the years reflects an upward trend, although recent figures show a slight decrease. The company maintains a healthy EBIT and EBITDA margin, indicating efficient operational management.

Balance Sheet

The company's balance sheet exhibits moderate leverage with a manageable debt-to-equity ratio. Return on equity shows improvement, indicating effective use of shareholder funds. The equity ratio suggests a stable financial position, supported by a healthy proportion of equity in total assets.

Cash Flow

Mitchell Services exhibits strong cash flow management, with significant free cash flow growth. The operating cash flow to net income ratio is robust, highlighting efficient cash generation from operations. The free cash flow to net income ratio further indicates the company's capability to convert income into cash effectively.

Breakdown	TTM	Jun 2024	Jun 2023	Jun 2022	Jun 2021	Jun 2020
Income Statement
Total Revenue	214.93M	236.83M	243.14M	213.37M	191.38M	175.49M
Gross Profit	79.41M	46.01M	44.06M	27.89M	32.11M	34.73M
EBITDA	30.32M	40.54M	41.17M	32.01M	25.31M	34.71M
Net Income	4.60M	9.17M	7.61M	15.56K	-5.90M	7.20M
Balance Sheet
Total Assets	114.31M	127.41M	134.60M	143.29M	126.75M	142.04M
Cash, Cash Equivalents and Short-Term Investments	6.71M	16.03M	11.11M	3.74M	4.24M	11.91M
Total Debt	14.28M	19.66M	32.28M	47.28M	39.59M	48.96M
Total Liabilities	53.55M	61.78M	67.50M	81.54M	75.14M	84.58M
Stockholders Equity	60.76M	65.63M	67.10M	61.75M	51.61M	57.46M
Cash Flow
Free Cash Flow	9.86M	29.28M	24.11M	2.48M	3.91M	13.13M
Operating Cash Flow	29.31M	43.12M	35.63M	22.22M	30.06M	30.75M
Investing Cash Flow	-16.10M	-10.26M	-8.06M	-19.43M	-24.48M	-26.61M
Financing Cash Flow	-23.41M	-27.93M	-20.20M	-3.28M	-13.25M	6.17M

Mitchell Services Limited Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 0.24
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For AU:MSV, the sentiment is Negative. The current price of 0.24 is below the 20-day moving average (MA) of 0.25, below the 50-day MA of 0.26, and below the 200-day MA of 0.32, indicating a bearish trend. The MACD of >-0.01 indicates Positive momentum. The RSI at 42.53 is Neutral, neither overbought nor oversold. The STOCH value of 16.67 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for AU:MSV.

Mitchell Services Limited Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
MSV	67 Neutral	AU$49.81M	10.93	7.31%	17.02%	-12.27%	-59.89%
Sector *	44 Neutral	C$953.01M	-6.70	-13.31%	2.79%	17.55%	-32.28%
AJLGF		$4.50M	―		―	―	―
AUSTF		$133.76M	9.43	19.99%	1.93%	―	―
MALRF		$2.70B	43.31	-33.95%	4.54%	―	―
MCHHF		$398.25M	14.40	7.28%	3.33%	―	―
3NR		€752.03M	10.59	18.01%	4.76%	―	―

Mitchell Services Limited Corporate Events

Mitchell Services Issues Unquoted Equity Securities to Boost Employee Incentives

Mitchell Services Limited announced the issuance of unquoted equity securities, including 488,122 performance rights and 1,624,973 options under an employee incentive scheme. This move is part of the company’s strategy to align employee interests with corporate goals, potentially enhancing operational performance and stakeholder value.

The most recent analyst rating on (AU:MSV) stock is a Buy with a A$0.45 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 Issues New Securities Under Employee Incentive Scheme

Mitchell Services Limited has announced the issuance of 475,249 fully paid ordinary securities, which are to be quoted on the ASX. This move is part of an employee incentive scheme, indicating the company’s commitment to rewarding its workforce and potentially enhancing its operational capabilities.

The most recent analyst rating on (AU:MSV) stock is a Buy with a A$0.45 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 Announces Cessation of Securities

Mitchell Services Limited announced the cessation of certain securities, including the cancellation of 821,000 ordinary fully paid shares through an on-market buy-back and the lapse of 2,841,427 options due to unmet conditions. This move is part of the company’s capital management strategy, potentially impacting its financial structure and shareholder value.

The most recent analyst rating on (AU:MSV) stock is a Buy with a A$0.55 price target. To see the full list of analyst forecasts on Mitchell Services Limited stock, see the AU:MSV Stock Forecast page.

Mitchell Services Reports Strong Q3 Performance and Positive Outlook

Mitchell Services Limited reported strong financial performance for Q3 FY25, with quarterly revenue of $46.8 million and EBITDA of $5.3 million. Despite challenges such as wet weather delays and increased working capital requirements, the company expects continued growth in operating rig count and earnings from new projects. The Loop Decarbonisation business is performing above expectations, indicating positive future prospects.