Dawson Geophysical Company (DWSN) AI Stock Analysis

• Market Cap: $55.27M
• Dividend Yield: N/A
• Average Volume (3M): 58.16K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.02
• Revenue Growth: -22.31%
• EPS Growth: 39.11%
• Country: US
• Employees: 233
• Sector: Energy
• Sector Strength: 52
• Industry: Oil & Gas Equipment & Services
• EPS (TTM): -0.04
• Shares Outstanding: 31,047,800
• 10 Day Avg. Volume: 28,069
• 30 Day Avg. Volume: 58,160
• PEG Ratio: 0.14
• Price to Book (P/B): 2.39
• Price to Sales (P/S): 0.56
• P/FCF Ratio: -18.83
• Enterprise Value/Market Cap: 1.14
• Enterprise Value/Revenue: 0.98
• Enterprise Value/Gross Profit: -2.59
• Enterprise Value/Ebitda: 27.14
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 45 Neutral
• Price Target: $2.00 ▲(17.65% Upside)

The score is primarily held down by weak financial performance (sharp revenue contraction and negative margins) and a loss-making valuation profile (negative P/E, no dividend data). Technicals provide partial support, with the stock trading above major moving averages, though momentum is mixed with a slightly negative MACD.

Positive Factors

Diversified service offering & client partnerships

Dawson's mix of onshore and marine seismic acquisition plus processing services and major-operator partnerships creates multiple revenue channels and sticky project contracts. This structural diversity supports steadier demand across geographies and project types over 2-6 months.

Cash-generation alignment with earnings

Despite revenue stress, operating cash flow tracks net income and free cash flow aligns closely with earnings. That cash-generation capability improves resilience, funds working capital and selective capex, and provides a durable buffer versus short-term liquidity shocks.

Improving operational EBITDA margin

A near-15% EBITDA margin improvement signals operational leverage and cost control in project delivery. If maintained, higher service-level margins help the company absorb cyclic demand swings and support reinvestment or deleveraging over the medium term.

Negative Factors

Severe revenue decline

A 72% TTM revenue drop materially reduces scale and utilization, eroding fixed-cost absorption and pricing leverage. Such a structural decline undermines sustainable cash flow, client relationships and reinvestment capacity unless demand recovery or new contract wins occur.

Negative gross and net margins

Negative gross margins imply revenues do not cover direct project costs, a structural profitability issue. Persistently negative margins force deeper cost restructuring or pricing shifts to restore viability, threatening long-term competitiveness if unaddressed.

Higher leverage and negative ROE

Rising leverage with a 0.89 D/E and negative ROE constrains financial flexibility and raises refinancing risk, especially in a cyclical oilfield-services industry. This combination limits capacity for investment and heightens vulnerability to prolonged sector downturns.

Dawson Geophysical Company Business Overview & Revenue Model

Company Description

Dawson Geophysical Company provides onshore seismic data acquisition and processing services in the United States and Canada. The company acquires and processes 2-D, 3-D, and multi-component seismic data for its clients, including oil and gas companies, and independent oil and gas operators, as well as providers of multi-client data libraries. Its seismic crews supply seismic data primarily to companies engaged in the exploration and development of oil and natural gas on land and in land-to-water transition areas. The company also serves the potash mining industry. Dawson Geophysical Company was founded in 1952 and is headquartered in Midland, Texas. Dawson Geophysical Company is a subsidiary of Wilks Brothers, LLC.

How the Company Makes Money

Dawson Geophysical generates revenue primarily through the provision of seismic data acquisition services, which includes both onshore and offshore seismic surveys. The company's revenue model is largely project-based, where it contracts with oil and gas companies to conduct surveys and process seismic data. Key revenue streams include fees for data acquisition, processing services, and specialized geophysical services. Additionally, significant partnerships with major oil and gas operators enhance their market presence and contribute to stable revenue flow. The cyclical nature of the energy market, along with demand for exploration and production services, also plays a critical role in the company's financial performance.

Dawson Geophysical Company Financial Statement Overview

Summary

Dawson Geophysical Company is facing significant financial challenges, with declining revenues and negative profitability margins. The balance sheet shows increased leverage, raising concerns about financial stability. While cash flow generation shows some positive signs, overall financial performance is weak, with potential risks due to high leverage and ongoing profitability issues.

Income Statement

Dawson Geophysical Company has experienced significant revenue decline, with a TTM revenue drop of 72.07%. The company has negative margins across the board, indicating struggles with profitability. The gross profit margin is negative, and the net profit margin is also negative, reflecting ongoing financial challenges. Despite a slight improvement in EBITDA margin to 14.86% TTM, the overall income statement performance is weak.

Balance Sheet

The company's debt-to-equity ratio has increased to 0.89 TTM, indicating higher leverage compared to previous years. The return on equity remains negative, suggesting inefficiencies in generating returns on shareholders' equity. However, the equity ratio is relatively stable, showing some resilience in asset management. Overall, the balance sheet reflects moderate financial stability with increased leverage risk.

Cash Flow

The cash flow statement shows a decline in free cash flow growth by 19.88% TTM, but the company has managed to maintain a positive operating cash flow to net income ratio of 0.39. The free cash flow to net income ratio is close to 1, indicating that the company is generating cash flow in line with its net income, despite the challenges. The cash flow performance is moderate, with some positive aspects in cash generation.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	64.31M	74.15M	96.85M	51.63M	24.70M	86.10M
Gross Profit	-24.32M	5.40M	1.70M	-6.75M	11.83M	68.93M
EBITDA	2.32M	1.78M	-3.65M	-6.68M	-16.23M	4.08M
Net Income	-3.31M	-4.12M	-12.15M	-18.64M	-29.09M	-13.20M
Balance Sheet
Total Assets	40.58M	30.87M	58.19M	68.67M	74.04M	103.38M
Cash, Cash Equivalents and Short-Term Investments	5.08M	1.39M	16.04M	18.87M	25.64M	41.54M
Total Debt	13.51M	5.78M	6.23M	4.93M	5.21M	6.15M
Total Liabilities	25.39M	13.59M	26.76M	19.87M	11.56M	12.40M
Stockholders Equity	15.19M	17.28M	31.43M	48.80M	62.48M	90.97M
Cash Flow
Free Cash Flow	41.00K	-3.73M	-2.91M	-4.70M	-16.55M	16.79M
Operating Cash Flow	6.47M	-1.87M	814.00K	-3.27M	-16.05M	19.64M
Investing Cash Flow	-5.55M	-735.00K	-4.50M	-1.09M	264.00K	-512.00K
Financing Cash Flow	-2.66M	-11.56M	-4.20M	-2.15M	95.00K	-4.53M

Dawson Geophysical Company Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 1.70
• 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 DWSN, the sentiment is Positive. The current price of 1.7 is above the 20-day moving average (MA) of 1.69, below the 50-day MA of 1.85, and above the 200-day MA of 1.59, indicating a bullish trend. The MACD of >-0.01 indicates Negative momentum. The RSI at 63.75 is Neutral, neither overbought nor oversold. The STOCH value of 79.66 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for DWSN.

Dawson Geophysical Company Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
SND	70 Outperform	$165.90M	40.18	1.61%	―	18.98%	―
Sector *	65 Neutral	$15.17B	7.61	4.09%	5.20%	3.87%	-62.32%
DTI	53 Neutral	$106.65M	-17.79	-5.18%	―	7.46%	-165.76%
KLXE	48 Neutral	$41.74M	-0.55	―	―	-12.57%	-45.75%
RCON	46 Neutral	$17.49M	-0.73	-8.78%	―	-3.41%	-50.85%
DWSN	45 Neutral	$55.27M	-18.43	-19.81%	―	-22.31%	39.11%
NINE	43 Neutral	$18.01M	-0.47	―	―	2.59%	16.02%