Dawson Geophysical Company (DWSN) AI Stock Analysis

• Market Cap: $67.99M
• Dividend Yield: N/A
• Average Volume (3M): 58.16K
• Price to Earnings (P/E): ―
• Beta (1Y): -0.03
• 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: -11.09
• Enterprise Value/Market Cap: 1.17
• Enterprise Value/Revenue: 1.23
• Enterprise Value/Gross Profit: -3.26
• Enterprise Value/Ebitda: 34.09
• 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

Integrated land and marine seismic services

Dawson's capability across land and marine seismic work and advanced geophysical tech provides durable revenue diversification and technical differentiation. This cross-domain service offering helps capture a broader set of exploration budgets and supports long-term contract wins with major E&P clients.

Project-based revenue model with major operator partnerships

A project-oriented contracting model plus relationships with major operators gives multi-period revenue visibility and higher-probability backlog renewal. Durable partnerships with large E&P firms reduce go-to-market friction, support repeat work, and help stabilize cash flow across industry cycles.

Cash generation roughly tracking earnings

Despite top-line weakness, FCF tracking net income and a positive operating cash flow-to-net-income ratio indicate reasonable cash conversion. This persistent cash generation capacity supports operational continuity and gives management optionality for deleveraging or reinvesting when demand recovers.

Negative Factors

Severe revenue contraction

A 72% TTM revenue decline materially reduces scale and undermines fixed-cost absorption in a capital-intensive business. Sustained lower volumes can erode market share, weaken bargaining leverage with customers and suppliers, and make restoring prior margins and utilization rates difficult over a multi-quarter horizon.

Negative gross and net margins

Persistent negative gross and net margins mean core operations are not covering direct costs or delivering profit. Without structural cost reductions or higher utilization/pricing, the company will struggle to fund capital needs, reinvest in technology, or competitively bid on profitable contracts over the medium term.

Elevated leverage and negative ROE

Higher leverage approaching 0.9x combined with negative ROE raises financial risk and limits strategic flexibility. Interest and principal obligations constrain capital allocation, increase refinancing risk in tougher markets, and reduce the ability to fund growth or withstand protracted 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

Weak fundamentals: revenue down 72.07% TTM and negative profitability (negative gross and net margins). Balance sheet leverage is higher (debt-to-equity 0.89) with negative ROE, partly offset by moderate cash-flow resilience (free cash flow roughly tracking net income and positive operating cash flow to net income ratio).

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 below the 20-day moving average (MA) of 2.04, below the 50-day MA of 1.88, and above the 200-day MA of 1.66, indicating a bullish trend. The MACD of 0.12 indicates Negative momentum. The RSI at 61.79 is Neutral, neither overbought nor oversold. The STOCH value of 50.32 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	69 Neutral	$205.53M	50.20	1.61%	―	18.98%	―
Sector *	65 Neutral	$15.17B	7.61	4.09%	5.20%	3.87%	-62.32%
DTI	52 Neutral	$135.87M	-21.87	-5.18%	―	7.46%	-165.76%
KLXE	50 Neutral	$43.35M	-0.51	―	―	-12.57%	-45.75%
RCON	46 Neutral	$15.14M	-0.61	-8.78%	―	-3.41%	-50.85%
DWSN	45 Neutral	$67.99M	-21.33	-19.81%	―	-22.31%	39.11%
NINE	40 Underperform	$25.42M	-0.01	―	―	2.59%	16.02%