Dawson Geophysical Company (DWSN) AI Stock Analysis

• Market Cap: $42.23M
• Dividend Yield: N/A
• Average Volume (3M): 123.05K
• Price to Earnings (P/E): ―
• Beta (1Y): >-0.01
• Revenue Growth: -38.69%
• EPS Growth: -30.53%
• Country: US
• Employees: 233
• Sector: Energy
• Sector Strength: 49
• Industry: Oil & Gas Equipment & Services
• EPS (TTM): -0.08
• Shares Outstanding: 31,047,800
• 10 Day Avg. Volume: 78,388
• 30 Day Avg. Volume: 123,045
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• Enterprise Value/Market Cap: 0.82
• Enterprise Value/Revenue: 0.62
• Enterprise Value/Gross Profit: -0.97
• Enterprise Value/Ebitda: -14.13
• 1Y Price Target: $1.50
• Price Target Upside: 3.45% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 0

• Rating: 47 Neutral
• Price Target: $1.50 ▲(3.45% Upside)

Dawson Geophysical Company's overall stock score is primarily impacted by its weak financial performance, characterized by declining revenues and negative profitability. While the recent equipment purchase agreement is a positive strategic move, the company's valuation remains unattractive due to its negative P/E ratio and lack of dividend yield. Technical indicators suggest neutral market momentum, offering no strong directional cues.

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 contracts for seismic data acquisition and processing services. The company's revenue model is largely project-based, where it earns fees for services rendered to oil and gas exploration companies. Key revenue streams include land and marine seismic surveys, which are critical for clients in locating and assessing oil and gas reserves. Additionally, Dawson may engage in long-term contracts with major energy companies, providing a steady income stream. The company's earnings are influenced by factors such as oil and gas market conditions, exploration budgets of clients, and technological advancements that enhance service efficiency. Strategic partnerships with industry players and participation in significant projects also contribute to its revenue generation.

Dawson Geophysical Company Financial Statement Overview

Summary

Dawson Geophysical Company faces significant financial challenges, with declining revenues, persistent losses, and negative cash flows. The balance sheet remains moderately leveraged, but decreasing equity levels and negative return on equity highlight financial instability. Addressing these issues will require strategic improvements in cost management, revenue growth, and cash flow generation to ensure long-term sustainability.

Income Statement

Dawson Geophysical Company has experienced a decline in revenue over the recent periods, with the TTM revenue significantly lower than previous years. The gross profit margin is negative in the TTM period, indicating cost challenges. Net profit margins have been consistently negative, reflecting ongoing losses. Revenue growth has been volatile, with significant declines in recent years. Overall, the income statement indicates financial struggles and a need for cost management and revenue enhancement.

Balance Sheet

The company's balance sheet reflects a moderate debt-to-equity ratio, indicating manageable leverage. The equity ratio has decreased over time, suggesting a reduction in asset coverage by equity. Return on equity remains negative due to persistent net losses. While the company maintains some cash reserves, the declining trend in stockholders' equity is a concern, highlighting financial vulnerabilities.

Cash Flow

Cash flow management is a challenge for Dawson Geophysical, with negative operating and free cash flows in the TTM period. The free cash flow to net income ratio is unfavorable, indicating inefficiencies in converting net income to cash. The operating cash flow to net income ratio is also negative, reflecting operational difficulties. These cash flow challenges may impact the company's ability to fund operations and investments.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	55.99M	74.15M	96.85M	37.48M	24.70M	86.10M
Gross Profit	-35.84M	5.40M	8.80M	27.68M	11.83M	68.93M
EBITDA	-2.45M	1.78M	-3.66M	-5.68M	-16.23M	4.08M
Net Income	-7.78M	-4.12M	-12.15M	-18.64M	-29.09M	-13.20M
Balance Sheet
Total Assets	45.68M	30.87M	57.52M	60.54M	74.04M	103.38M
Cash, Cash Equivalents and Short-Term Investments	16.23M	1.39M	11.04M	18.87M	25.64M	41.54M
Total Debt	5.61M	5.78M	6.23M	4.93M	5.21M	6.15M
Total Liabilities	29.27M	13.59M	26.09M	19.43M	11.56M	12.40M
Stockholders Equity	16.41M	17.28M	31.43M	48.80M	62.48M	90.97M
Cash Flow
Free Cash Flow	7.93M	-2.20M	-2.91M	-9.86M	-16.55M	16.79M
Operating Cash Flow	6.97M	-1.87M	814.00K	-8.96M	-16.05M	19.64M
Investing Cash Flow	214.00K	-735.00K	-4.50M	-1.09M	264.00K	-512.00K
Financing Cash Flow	-2.01M	-11.56M	-4.20M	-2.15M	95.00K	-4.53M

Dawson Geophysical Company Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 1.45
• 50DMA: Negative
• 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 1.45 is above the 20-day moving average (MA) of 1.41, below the 50-day MA of 1.51, and above the 200-day MA of 1.41, indicating a neutral trend. The MACD of -0.03 indicates Negative momentum. The RSI at 53.09 is Neutral, neither overbought nor oversold. The STOCH value of 74.47 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
NCSM	78 Outperform	$88.32M	7.68	12.76%	―	19.15%	-71.62%
GEOS	62 Neutral	$218.40M	―	-9.95%	―	-10.77%	-229.81%
RCON	55 Neutral	$80.55M	―	-10.48%	―	-2.48%	83.11%
Sector *	54 Neutral	C$4.15B	0.97	16.40%	5.23%	10.45%	-57.37%
DWSN	47 Neutral	$42.23M	―	-38.69%	―	-38.69%	-30.53%
KLXE	41 Neutral	$31.93M	―	-375.26%	―	-13.29%	-106.14%
NINE	41 Neutral	$25.11M	―	73.91%	―	3.23%	31.76%

Dawson Geophysical Company Corporate Events

Dawson Geophysical Signs $24.2M Equipment Purchase Agreement

On August 8, 2025, Dawson Operating LLC, a subsidiary of Dawson Geophysical Company, entered into a $24.2 million Equipment Purchase Agreement with GTC, a subsidiary of Geospace Technologies Corporation, to acquire Pioneer™ single point node channels. The equipment will be delivered in three shipments starting in August 2025, with the final delivery by January 2026. This purchase is expected to enhance Dawson’s competitive edge in high-resolution seismic surveys, improving operational efficiency with the Pioneer’s lightweight and efficient design.

Dawson Geophysical Holds Annual Stockholders Meeting

On June 17, 2025, Dawson Geophysical Company held its Annual Meeting of Stockholders, where approximately 89% of eligible shares were represented. During the meeting, all director nominees were elected for a one-year term, the appointment of RSM US LLP as the independent accounting firm for 2025 was ratified, and the executive compensation for 2024 was approved on a non-binding basis.