Mitchell Services Limited (AU:MSV)
ASX:MSV
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Mitchell Services Limited
(Sydney:MSV)
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Select Model
Rating:56Neutral
Price Target:
AU$0.50
▲(4.17% Upside)
Action:ReiteratedDate:04/09/26
The score is held back primarily by weak financial performance—declining revenue, very low margins, and significant free cash flow deterioration—despite improved leverage. Technicals are moderately supportive with price above major moving averages, and valuation looks attractive on a very low P/E, but these positives do not fully offset the fundamental and cash flow risks.
Positive Factors
Stable fee-for-service business model
Mitchell Services operates a contractual, fee-for-service drilling model where revenue is tied to metres drilled, crew utilisation and contracted work. This creates predictable revenue when activity is steady, aligns cash inflows with service delivery and scales with utilisation over time.
Negative Factors
Declining revenue
An ongoing revenue decline of roughly 8% signals weakening demand or lost utilisation, which directly erodes fixed-cost absorption in a capital- and crew-intensive drilling business. Sustained top-line contraction undermines capacity to restore margins and fund reinvestment.
Read all positive and negative factors
Positive Factors
Negative Factors
Stable fee-for-service business model
Mitchell Services operates a contractual, fee-for-service drilling model where revenue is tied to metres drilled, crew utilisation and contracted work. This creates predictable revenue when activity is steady, aligns cash inflows with service delivery and scales with utilisation over time.
Read all positive factors
Mitchell Services Limited (MSV) vs. iShares MSCI Australia ETF (EWA)
Market Cap
AU$102.80M
Dividend YieldN/A
Average Volume (3M)337.09K
Price to Earnings (P/E)2.2
Beta (1Y)1.09
Revenue Growth-16.97%
EPS Growth-94.15%
CountryAU
Employees663
SectorBasic Materials
Sector Strength58
IndustryIndustrial Materials
Share Statistics
EPS (TTM)0.04
Shares Outstanding211,962,400
10 Day Avg. Volume117,130
30 Day Avg. Volume337,091
Financial Highlights & Ratios
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 CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
AU$0.50Price Target Upside4.17% Upside
Rating ConsensusHold
Number of Analyst Covering1
EPS Forecast (FY)0.05
Revenue Forecast (FY)AU$201.80M
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...
How the Company Makes Money
MSV makes money by contracting drilling services to resource companies and charging for the delivery of drilling work. Its revenue is primarily generated from drilling contracts (including activities supporting exploration and mining operations), ...
Mitchell Services Limited Financial Statement Overview
Summary
Income Statement
45
Neutral
Balance Sheet
60
Neutral
Cash Flow
40
Negative
| Breakdown | TTM | Jun 2025 | Jun 2024 | Jun 2023 | Jun 2022 | Jun 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 199.70M | 196.84M | 236.83M | 243.14M | 213.37M | 191.38M |
| Gross Profit | 61.48M | 71.96M | 85.59M | 44.06M | 27.89M | 32.11M |
| EBITDA | 33.50M | 23.97M | 40.54M | 41.17M | 32.01M | 25.87M |
| Net Income | 8.94M | 536.87K | 9.17M | 7.61M | 15.56K | -5.90M |
Balance Sheet | ||||||
| Total Assets | 114.26M | 111.27M | 127.41M | 134.60M | 143.29M | 126.75M |
| Cash, Cash Equivalents and Short-Term Investments | 15.47M | 1.40M | 16.03M | 11.11M | 3.74M | 4.24M |
| Total Debt | 11.37M | 10.77M | 19.66M | 32.28M | 47.28M | 39.59M |
| Total Liabilities | 44.95M | 50.24M | 61.78M | 67.50M | 81.54M | 75.14M |
| Stockholders Equity | 69.31M | 61.04M | 65.63M | 67.10M | 61.75M | 51.61M |
Cash Flow | ||||||
| Free Cash Flow | 13.29M | -2.05M | 29.28M | 24.11M | 2.48M | 3.91M |
| Operating Cash Flow | 28.14M | 17.92M | 43.12M | 35.63M | 22.22M | 30.06M |
| Investing Cash Flow | -12.04M | -18.02M | -10.26M | -8.06M | -19.43M | -24.48M |
| Financing Cash Flow | -7.28M | -14.60M | -27.93M | -20.20M | -3.28M | -13.25M |
Mitchell Services Limited Technical Analysis
Positive
0.48
Price Trends
0.45
Positive
0.38
Positive
0.32
Positive
Market Momentum
<0.01
Negative
57.04
Neutral
65.22
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 0.48 is above the 20-day moving average (MA) of 0.45, above the 50-day MA of 0.45, and above the 200-day MA of 0.32, indicating a bullish trend. The MACD of <0.01 indicates Negative momentum. The RSI at 57.04 is Neutral, neither overbought nor oversold. The STOCH value of 65.22 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
UnderperformOutperform
Sector (61)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
61 Neutral | $10.43B | 7.12 | -0.05% | 2.87% | 2.86% | -36.73% | |
56 Neutral | AU$102.80M | 2.16 | 0.85% | ― | -16.97% | -94.15% | |
47 Neutral | AU$86.39M | -11.27 | -9.03% | ― | -85.84% | 73.66% | |
47 Neutral | AU$363.05M | -13.41 | -22.74% | ― | ― | -43.08% | |
45 Neutral | AU$120.91M | -6.69 | -13.64% | ― | ― | 81.03% | |
45 Neutral | AU$11.11M | 1.76 | 12.98% | ― | ― | -100.21% | |
44 Neutral | AU$64.65M | 0.45 | 142.67% | ― | ― | -278.88% |
* Basic Materials Sector Average
AU:MSV
Mitchell Services Limited
0.49
0.26
114.60%
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Element 25 Limited
0.33
0.11
47.73%
AU:TGN
Tungsten Mining NL
0.26
0.17
202.33%
AU:CZR
CZR Resources Ltd
0.27
-0.02
-6.90%
AU:GBR
Great Boulder Resources Ltd
0.11
0.02
29.41%
AU:MHK
Metal Hawk Ltd.
0.09
-0.33
-78.57%
Mitchell Services Limited Corporate Events
Mitchell Services Director Restructures Indirect Shareholdings
Feb 27, 2026
Mitchell Services Limited has disclosed a change in director Scott Tumbridge’s indirect interests in the company’s ordinary shares. Tumbridge, who holds shares through Dream Challenge Pty Ltd and previously through Oceanwave Asset Pty ...
Mitchell Services Swings to Strong H1 Profit and Net Cash on Improved Drilling Conditions
Jan 27, 2026
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 ...
Mitchell Services Sets Date for FY26 Q2 Investor Update and Webinar
Jan 22, 2026
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...
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
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.