Capital Drilling (CAPD) AI Stock Analysis

• Market Cap: £229.18M
• Dividend Yield: 1.45%
• Average Volume (3M): 307.45K
• Price to Earnings (P/E): 12.9
• Beta (1Y): 0.40
• Revenue Growth: -1.46%
• EPS Growth: -24.05%
• Country: UK
• Employees: 2,854
• Sector: Basic Materials
• Sector Strength: 58
• Industry: Industrial Materials
• EPS (TTM): <0.01
• Shares Outstanding: 196,722,270
• 10 Day Avg. Volume: 472,490
• 30 Day Avg. Volume: 307,449
• PEG Ratio: -0.21
• Price to Book (P/B): 0.73
• Price to Sales (P/S): 0.57
• P/FCF Ratio: 9.37
• 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: £120.00
• Price Target Upside: 2.56% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 1
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 78 Outperform
• Price Target: 133.00p ▲(13.68% Upside)

Capital Drilling's strong cash flow generation and positive technical indicators are significant strengths, supporting a favorable outlook. The recent equity raise further enhances growth potential. However, concerns about declining revenue growth and operational margins, along with moderate valuation metrics, slightly temper the overall score.

Positive Factors

Cash Flow Generation

Robust free cash flow growth at 19.7% indicates strong cash generation, enhancing financial flexibility and supporting future investments.

Profitability

Improved net profit margin reflects better cost management, enhancing profitability and potentially leading to higher returns for shareholders.

Market Presence

Strategic partnerships with major mining companies strengthen market presence, securing long-term contracts and enhancing revenue stability.

Negative Factors

Revenue Growth Decline

Negative revenue growth indicates declining sales, which could impact future profitability and market competitiveness if not addressed.

Operational Margins Pressure

Decreasing operational margins signal efficiency challenges, potentially affecting profitability if cost controls are not improved.

Increasing Leverage

Rising leverage could strain financial resources, limiting flexibility and increasing risk if debt levels continue to grow unchecked.

Capital Drilling Business Overview & Revenue Model

Company Description

Capital Limited, together with its subsidiaries, provides various drilling solutions to customers in the minerals industry. It offers exploration drilling services, including air core, reverse circulation, diamond core, deep hole diamond, directional, and underground diamond drilling; mineral geochemical analysis laboratory services; and grade control drilling services, such as advanced/deep grade control, shallow grade control, reverse circulation, and underground diamond drilling. The company also provides blast hole drilling services that include pre-splits, down the hole, and rotary top hammer services; load and haul, rehandling, equipment hire and maintenance, and management services; and hydraulic, general maintenance and fabrication, mining supplies, asset rentals, and asset and component rebuild services. In addition, it offers de-watering, reverse circulation, core orientation, rig alignment, borehole management, geophysical logging, and equipment rental and IT support services. As of December 31, 2021, it operated a fleet of 109 rings, including 30 diamond core rigs,4 air core rigs,2 weep hole rigs, 8 multi-purpose rigs, 9 grade control rigs, 9 reverse circulation rigs, 31 blast hole rigs, and 16 underground rigs. The company was formerly known as Capital Drilling Limited and changed its name to Capital Limited in June 2020. Capital Limited was founded in 2004 and is headquartered in Ebene, Mauritius.

How the Company Makes Money

Capital Drilling generates revenue primarily through its drilling services, which include both surface and underground drilling operations. The company operates on a contract basis, providing its services to various mining companies, which form its key customer base. Revenue is derived from long-term contracts and short-term project agreements, where clients pay for the drilling operations performed. Additionally, CAPD benefits from ancillary services such as equipment maintenance and support, which further contribute to its earnings. The company's revenue model is bolstered by strategic partnerships with major mining firms, ensuring a steady demand for their services. Factors such as the global demand for minerals, the company's operational efficiency, and its commitment to safety and sustainability also play significant roles in enhancing its profitability.

Capital Drilling Financial Statement Overview

Summary

Capital Drilling demonstrates a solid financial position with strengths in cash flow generation and profitability. However, the decline in revenue growth and operational margins in the TTM poses a concern. The company maintains a balanced capital structure, but increasing leverage could be a potential risk if not managed carefully.

Income Statement

Capital Drilling's income statement shows a mixed performance. The company has maintained a healthy gross profit margin of approximately 40% in the TTM, although it has decreased from previous years. The net profit margin has improved to 6.8% in the TTM from 4.9% in 2024, indicating better cost management. However, the revenue growth rate has turned negative at -1.49% in the TTM, reflecting a decline in sales. The EBIT and EBITDA margins have also decreased, suggesting pressure on operational efficiency.

Balance Sheet

The balance sheet of Capital Drilling indicates moderate financial stability. The debt-to-equity ratio is at 0.53 in the TTM, which is manageable but has slightly increased from previous years, indicating a rise in leverage. The return on equity (ROE) has improved to 8.2% in the TTM, showing better profitability from shareholders' equity. The equity ratio remains stable, reflecting a balanced capital structure.

Cash Flow

Capital Drilling's cash flow statement shows strong cash generation capabilities. The free cash flow growth rate is robust at 19.7% in the TTM, indicating improved cash generation. The operating cash flow to net income ratio is healthy at 0.56, suggesting efficient conversion of income into cash. The free cash flow to net income ratio has also improved, reflecting better cash flow management.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	337.77M	348.00M	318.42M	290.28M	226.79M	134.96M
Gross Profit	135.01M	144.77M	146.90M	134.43M	106.30M	54.90M
EBITDA	65.82M	94.24M	101.42M	86.64M	71.18M	32.22M
Net Income	22.95M	17.32M	36.74M	20.99M	70.17M	24.57M
Balance Sheet
Total Assets	547.38M	511.73M	467.75M	386.80M	351.50M	226.35M
Cash, Cash Equivalents and Short-Term Investments	105.61M	70.83M	81.52M	67.11M	90.73M	62.87M
Total Debt	149.98M	148.97M	132.02M	91.17M	72.05M	31.37M
Total Liabilities	250.37M	228.34M	194.60M	147.91M	128.56M	78.27M
Stockholders Equity	285.58M	271.57M	263.88M	233.32M	219.17M	146.69M
Cash Flow
Free Cash Flow	37.70M	21.11M	14.20M	7.43M	-20.46M	-31.88M
Operating Cash Flow	64.16M	63.73M	69.17M	56.58M	30.40M	28.33M
Investing Cash Flow	1.52M	-20.21M	-59.49M	-47.50M	-50.06M	-60.72M
Financing Cash Flow	-47.95M	-36.23M	-3.94M	-9.10M	15.45M	50.09M

Capital Drilling Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 117.00
• 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 GB:CAPD, the sentiment is Positive. The current price of 117 is above the 20-day moving average (MA) of 114.77, above the 50-day MA of 113.83, and above the 200-day MA of 86.97, indicating a bullish trend. The MACD of 0.47 indicates Negative momentum. The RSI at 55.86 is Neutral, neither overbought nor oversold. The STOCH value of 78.62 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for GB:CAPD.

Capital Drilling Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
CAPD	78 Outperform	£229.18M	12.90	8.44%	1.45%	-1.46%	-24.05%
ECOR	66 Neutral	£267.46M	-11.38	-6.87%	1.78%	-63.09%	-253.25%
Sector *	61 Neutral	$10.43B	7.12	-0.05%	2.87%	2.86%	-36.73%
JLP	61 Neutral	£90.46M	―	―	―	―	―
ALL	58 Neutral	£71.11M	-19.79	-17.14%	―	―	54.72%
KOD	48 Neutral	£49.48M	-4.88	-21.41%	―	―	-133.33%
SOLG	41 Neutral	$531.49M	-19.03	-27.65%	―	―	1.86%

Capital Drilling Corporate Events

Capital Limited Announces Director Dealing in Recent Share Placing

Capital Limited, listed on the London Stock Exchange under the ticker CAPD, has announced a director dealing involving BPM Investments Limited, a related party of its Director and Executive Chair, Jamie Boyton. BPM has subscribed for 399,000 Common Shares as part of a recent placing, increasing Mr. Boyton’s total shareholding to 10.1% of the company’s enlarged share capital. This transaction highlights the ongoing strategic maneuvers within the company, potentially impacting its market positioning and stakeholder interests.

Capital Limited Raises £31 Million to Fuel Growth Amid Favorable Market Conditions

Capital Limited has successfully raised £31 million through a share placing to support its growth strategy amid a favorable demand environment and a tightening equipment market. The company plans to issue the shares in two tranches, with a general meeting scheduled to approve the second tranche, aiming to enhance its market positioning and operational capacity.

Capital Limited Raises £31 Million to Fuel Growth Amid Strong Market Demand

Capital Limited has successfully raised £31 million through a share placement, issuing 28,581,503 new common shares at a price of 107 pence per share. The funds will enhance the company’s balance sheet capacity, supporting its growth strategy amid a favorable demand environment and tightening equipment market. This financial move is expected to enable Capital Limited to seize emerging growth opportunities and continue delivering long-term shareholder value.

Capital Limited Raises £31 Million to Boost Growth Amid Favorable Market Conditions

Capital Limited has successfully raised £31 million through a share placement, enhancing its financial capacity to pursue growth opportunities in a favorable market environment. The proceeds will support the company’s strategy to capitalize on increased demand for mining services, driven by robust commodity prices and heightened exploration budgets, positioning Capital Limited for continued growth and shareholder value.

Capital Limited Announces £31 Million Equity Fundraise to Bolster Growth Strategy

Capital Limited has announced a proposed equity fundraise of approximately £31 million to support its growth strategy amid a favorable demand environment and tightening equipment market. The proceeds will enhance the company’s balance sheet capacity, enabling it to pursue growth opportunities across its drilling, mining, and MSALABS divisions, capitalizing on strong commodity prices and increased exploration budgets from its major customers.

Capital Limited Announces Live Investor Presentation

Capital Limited has announced a live investor presentation scheduled for October 23, 2025, via the Investor Meet Company platform. This event is open to shareholders and analysts, allowing them to engage with the company by submitting questions before and during the presentation. This initiative reflects Capital Limited’s commitment to transparency and stakeholder engagement, potentially strengthening its position in the mining services industry.

Capital Limited Achieves Record Revenue in Q3 2025, Raises Guidance

Capital Limited reported its highest quarterly revenue in Q3 2025, driven by strong performance across its divisions, including record revenues from MSALABS and a successful ramp-up of mining operations at Reko Diq. The company has increased its 2025 revenue guidance to $335 – $350 million, reflecting robust market demand and strategic positioning to capitalize on growth opportunities in the mining and exploration sectors.

Capital Limited’s Executive Director Sells Shares

Capital Limited announced that Executive Director Brian Rudd has sold 1,000,000 Common Shares at £1.03 each, reducing his holding to 11,384,902 shares, which represents 5.79% of the company’s issued share capital. This transaction is part of the company’s regulatory disclosure obligations and may have implications for shareholder perceptions and market dynamics.