Capital Drilling (CAPD) AI Stock Analysis

• Market Cap: £168.39M
• Dividend Yield: 1.68%
• Average Volume (3M): 129.52K
• Price to Earnings (P/E): 13.0
• Beta (1Y): 0.48
• Revenue Growth: 6.32%
• EPS Growth: -54.82%
• Country: UK
• Employees: 2,854
• Sector: Basic Materials
• Sector Strength: 63
• Industry: Industrial Materials
• EPS (TTM): <0.01
• Shares Outstanding: 196,722,270
• 10 Day Avg. Volume: 144,587
• 30 Day Avg. Volume: 129,524
• PEG Ratio: -0.15
• Price to Book (P/B): 0.95
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 29.94
• Enterprise Value/Market Cap: 1.69
• Enterprise Value/Revenue: 0.22
• Enterprise Value/Gross Profit: 1.90
• Enterprise Value/Ebitda: 0.78
• 1Y Price Target: £60.00
• Price Target Upside: -33.33% Downside
• Rating Consensus: Hold
• Number of Analyst Covering: 1

• Rating: 79 Outperform
• Price Target: 98.00p ▲(8.89%Upside)

The stock's strong financial performance, coupled with positive technical indicators and recent corporate achievements, positions it well for growth. Valuation metrics further support its attractiveness, highlighting its potential for both income and capital appreciation.

Positive Factors

Contracts and Projects

Capital announced the signing of a mining services contract at the world-class Reko Diq copper-gold project, which is operated by Barrick.

Revenue Growth

Awarded significant mining services contracts at Reko Diq, the contracts are expected to generate over $60M of annual revenue once fully operational.

Negative Factors

Cost and Margin Concerns

Performance was impacted by ramp-up delays and lower margins at the Nevada Gold Mines contract, with revenue not yet supporting the cost base put in place to deliver the project.

Performance Issues

The drilling segment continues to be affected by performance at Nevada Gold Mines, with full-year revenue lower than guidance.

Capital Drilling Business Overview & Revenue Model

Company Description

Capital Drilling (CAPD) is a leading provider of exploration and production drilling services to the minerals and metals industry. The company operates in various emerging and developing markets, offering a comprehensive range of drilling solutions, including exploration, production, and blast hole drilling. Capital Drilling is known for its commitment to safety, innovation, and delivering high-quality services to its clients across multiple geographies.

How the Company Makes Money

Capital Drilling makes money primarily through contracts for drilling services provided to mining companies. The company's revenue streams include fees for exploration drilling, production drilling, and blast hole drilling services. Additionally, Capital Drilling may also generate income through equipment rental and maintenance services offered to its clients. The company builds long-term partnerships with major mining firms, which helps secure recurring revenue streams. Factors contributing to its earnings include the demand for minerals and metals, the expansion of mining operations in emerging markets, and the company's ability to maintain a high standard of operational efficiency and safety.

Capital Drilling Financial Statement Overview

Summary

Capital Drilling exhibits strong revenue growth and operational efficiency, albeit with declining net profit margins. The balance sheet reflects moderate leverage and a healthy equity position, supporting financial stability. Cash flow generation is robust, with significant improvements in free cash flow. Overall, the company shows solid financial health with room for improvement in profitability margins.

Income Statement

Capital Drilling's revenue grew steadily from 2019 to 2024, with a 9.3% increase from 2023 to 2024. The gross profit margin for 2024 was 41.57%, reflecting strong profitability despite a decrease from previous years. However, the net profit margin decreased significantly to 4.98% in 2024, down from 11.53% in 2023, indicating increased expenses or reduced efficiency. The EBIT margin in 2024 was 11.28%, and EBITDA margin was 27.08%, showing solid operational performance but declining from prior years.

Balance Sheet

The company's debt-to-equity ratio in 2024 was 0.55, showing a moderate leverage level. With a return on equity of 6.38% for the same year, Capital Drilling demonstrates stable yet modest profitability on shareholder equity. The equity ratio was 53.06%, indicating a healthy proportion of equity financing and overall financial stability.

Cash Flow

Capital Drilling's free cash flow improved substantially in 2024, growing by 48.62% from the previous year. The operating cash flow to net income ratio was robust at 3.68, suggesting strong cash generation relative to net earnings. However, the free cash flow to net income ratio was 1.22, indicating that while cash flow is healthy, it could be more aligned with net income.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	333.59M	348.00M	318.42M	290.28M	226.79M	134.96M
Gross Profit	150.43M	144.77M	146.90M	134.43M	106.30M	54.90M
EBITDA	90.16M	94.24M	101.42M	91.15M	71.18M	32.22M
Net Income	29.00M	17.32M	36.74M	20.99M	70.17M	24.57M
Balance Sheet
Total Assets	514.18M	511.73M	467.75M	386.80M	351.50M	226.35M
Cash, Cash Equivalents and Short-Term Investments	87.69M	70.83M	81.52M	67.11M	90.73M	62.87M
Total Debt	157.54M	148.97M	132.02M	91.17M	72.05M	31.37M
Total Liabilities	235.86M	228.34M	194.60M	147.91M	128.56M	78.27M
Stockholders Equity	267.87M	271.57M	263.88M	233.32M	219.17M	146.69M
Cash Flow
Free Cash Flow	34.52M	21.11M	14.20M	7.43M	-20.46M	-31.88M
Operating Cash Flow	85.15M	63.73M	69.17M	56.58M	30.40M	28.33M
Investing Cash Flow	-63.99M	-20.21M	-59.49M	-47.50M	-50.06M	-60.72M
Financing Cash Flow	-12.45M	-36.23M	-3.94M	-9.91M	15.45M	50.09M

Capital Drilling Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 90.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Negative
• 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 90 is above the 20-day moving average (MA) of 85.08, above the 50-day MA of 77.40, and above the 200-day MA of 76.13, indicating a bullish trend. The MACD of 2.86 indicates Positive momentum. The RSI at 74.59 is Negative, neither overbought nor oversold. The STOCH value of 76.03 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	79 Outperform	£168.39M	12.97	6.40%	1.68%	6.32%	-54.82%
ECOR	66 Neutral	£159.38M	9.71	-2.05%	1.84%	-5.97%	-1292.31%
JLP	64 Neutral	£102.25M	7.04	1.86%	―	―	―
Sector *	62 Neutral	$10.14B	9.96	0.09%	2.90%	2.26%	-33.42%
KOD	48 Neutral	£64.90M	2.29	47.34%	―	―	―
ALL	47 Neutral	£53.79M	―	-21.55%	―	―	41.32%
SOLG	41 Neutral	$205.58M	―	-13.52%	―	―	6.41%

Capital Drilling Corporate Events

Capital Limited Reports Strong Q2 2025 Performance and Raises Revenue Guidance

Capital Limited has reported a strong second quarter for 2025, with a 21.7% increase in revenue compared to the previous quarter, driven by improvements across all business divisions. The company has raised its revenue guidance for the year, reflecting confidence in continued growth and operational momentum. The drilling division saw increased utilization and productivity, while the mining division began a promising ramp-up at Reko Diq. MSALABS achieved record quarterly revenue, bolstered by new laboratory commissions and increased utilization. Despite suppressed margins, the company remains focused on securing new contracts and improving existing operations to sustain momentum and recover margins.

The most recent analyst rating on (GB:CAPD) stock is a Buy with a £145.00 price target. To see the full list of analyst forecasts on Capital Drilling stock, see the GB:CAPD Stock Forecast page.

Capital Limited Secures Major Contract Awards and Expands Global Operations

Capital Limited has announced significant new contract awards, including a three-year borehole drilling services contract at the Reko Diq copper-gold project, which marks a new revenue stream and strengthens its partnership with Barrick. Additionally, the company has secured multiple exploration drilling contracts in regions such as Côte d’Ivoire, Mali, and Gabon, reflecting increased demand driven by high gold prices. MSALABS, a division of Capital, has also expanded its operations with a new laboratory in Nevada and secured contract extensions and new awards in Mauritania and Namibia, highlighting the company’s growing footprint in the mining services sector.

The most recent analyst rating on (GB:CAPD) stock is a Buy with a £145.00 price target. To see the full list of analyst forecasts on Capital Drilling stock, see the GB:CAPD Stock Forecast page.

Capital Limited’s Director Joins Gold Fields Board

Capital Limited announced that Michael Rawlinson, its Senior Independent Non-Executive Director, will join Gold Fields as a Non-Executive Director starting August 1, 2025. This move aligns with the company’s compliance obligations under UK regulations, potentially enhancing its strategic connections within the mining industry.

The most recent analyst rating on (GB:CAPD) stock is a Buy with a £145.00 price target. To see the full list of analyst forecasts on Capital Drilling stock, see the GB:CAPD Stock Forecast page.

Premier Miton Group Increases Stake in Capital Limited

Capital Limited, a company involved in the acquisition or disposal of voting rights, has reported a change in its major holdings. Premier Miton Group plc, based in Guildford, UK, has increased its voting rights in Capital Limited from 4.943105% to 5.212932%, crossing a significant threshold. This adjustment in holdings could influence the company’s decision-making processes and potentially impact its market positioning.

The most recent analyst rating on (GB:CAPD) stock is a Buy with a £145.00 price target. To see the full list of analyst forecasts on Capital Drilling stock, see the GB:CAPD Stock Forecast page.

Capital Limited Secures Shareholder Approval for AGM Resolutions

Capital Limited, a company involved in the drilling industry, announced that all resolutions proposed at its Annual General Meeting were approved by the necessary majorities. The meeting saw a significant shareholder turnout, with 73% of the company’s issued share capital being voted. The resolutions included the adoption of the annual report, approval of directors’ remuneration, re-election of board members, and authorization for the directors to agree on the auditor’s remuneration. This successful AGM reflects strong shareholder support and positions the company well for future strategic initiatives.

The most recent analyst rating on (GB:CAPD) stock is a Buy with a £145.00 price target. To see the full list of analyst forecasts on Capital Drilling stock, see the GB:CAPD Stock Forecast page.

Capital Limited Publishes 2024 Sustainability Report Emphasizing Ethical Practices

Capital Limited has released its 2024 Sustainability Report, highlighting its ongoing commitment to ethical practices and transparency in its operations. The report underscores the company’s dedication to sustainable socioeconomic development and environmental responsibility, which are crucial for its long-term value creation and industry positioning.

Capital Limited Announces Details for Upcoming AGM

Capital Limited has announced the details of its upcoming Annual General Meeting (AGM) scheduled for May 21, 2025, in London. Shareholders are encouraged to participate either in person or by proxy, with the company emphasizing the importance of voting on resolutions. A webcast will be available for those unable to attend in person, although online voting will not be possible. The company invites shareholders to submit questions in advance or during the meeting, highlighting its commitment to transparency and shareholder engagement.

Capital Limited Reports Q1 2025 Revenue Decline Amid Strategic Shifts

Capital Limited reported a 10.5% decrease in revenue for Q1 2025 compared to the same period last year, primarily due to the conclusion of mining contracts at Sukari and Belinga. However, the company has made significant progress in its operations at the Reko Diq project in Pakistan, with the commencement of revenue generation in Q2 2025. The company also saw a strong performance from its MSALABS division, with a notable increase in revenue driven by increased utilization at Nevada Gold Mines and its new laboratory in Fairbanks, Alaska. The company remains optimistic about its revenue guidance for 2025, expecting positive momentum through the year.