Capital Drilling (CAPD) AI Stock Analysis

• Market Cap: £188.85M
• Dividend Yield: 1.73%
• Average Volume (3M): 141.58K
• Price to Earnings (P/E): 10.6
• Beta (1Y): 0.52
• 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: 157,772
• 30 Day Avg. Volume: 141,579
• PEG Ratio: N/A
• Price to Book (P/B): 0.00
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 0.00
• 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: £100.00
• Price Target Upside: 4.17% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 1

• Rating: 79 Outperform
• Price Target: 98.00p ▲(2.08% 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

Revenue Growth

The significant revenue growth in Q2 2025 indicates strong operational momentum and effective execution of business strategies, which can enhance long-term financial performance.

Contract Wins

Securing major contracts enhances revenue visibility and strengthens market position, providing a stable foundation for future growth and strategic partnerships.

Cash Flow Generation

Strong cash flow generation supports operational flexibility and investment in growth opportunities, ensuring long-term business sustainability and shareholder value.

Negative Factors

Declining Profit Margins

Declining profit margins may indicate rising costs or inefficiencies, potentially impacting long-term profitability and competitiveness if not addressed.

Revenue Decline

A decline in revenue suggests potential challenges in market demand or operational execution, which could hinder growth prospects if persistent.

EBITDA Decline

A significant drop in EBITDA indicates reduced operational efficiency or increased costs, which could affect the company's ability to generate profits and invest in growth.

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 are contracted by mining and exploration companies. The company's revenue model is based on long-term contracts and service agreements, often structured on a per-meter drilled basis or fixed-price contracts. Key revenue streams include surface and underground drilling operations, maintenance services, and equipment rental. Additionally, Capital Drilling benefits from strategic partnerships with major mining companies, enhancing their market presence and securing contracts. The company also capitalizes on the growing demand for mining services in emerging markets, particularly in resource-rich regions, which contributes positively to its earnings.

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: 96.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Negative

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 96 is above the 20-day moving average (MA) of 92.37, above the 50-day MA of 91.36, and above the 200-day MA of 77.48, indicating a bullish trend. The MACD of 1.64 indicates Negative momentum. The RSI at 63.40 is Neutral, neither overbought nor oversold. The STOCH value of 86.29 is Negative, 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	£188.85M	10.63	8.44%	1.73%	-1.46%	-24.05%
ECOR	63 Neutral	192.50M	-8.19	-2.26%	2.47%	-63.09%	-253.25%
JLP	61 Neutral	95.96M	―	0.00%	―	0.00%	0.00%
KOD	48 Neutral	62.87M	2.21	0.00%	―	0.00%	0.00%
ALL	47 Neutral	67.16M	-19.46	0.00%	―	0.00%	54.72%
SOLG	41 Neutral	492.78M	-18.24	0.00%	―	0.00%	44.10%
Sector *	61 Neutral	$10.43B	7.12	-0.05%	2.87%	2.86%	-36.73%

Capital Drilling Corporate Events

Capital Limited Reports Mixed H1 2025 Results with Optimistic Outlook

Capital Limited reported a mixed financial performance for the first half of 2025, with a 6% decline in revenue to $159.2 million compared to the same period in 2024. Despite a decrease in EBITDA and operating profit, the company saw a significant improvement in net profit after tax, which rose by 54.2% due to investment gains. The company is optimistic about future growth, having increased its full-year revenue guidance and maintained a strong safety record. Capital Limited is also focusing on operational improvements and new contracts, particularly in its drilling and MSALABS divisions, while keeping capital expenditure in check.

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 Reports Mixed H1 2025 Results with Strong Operational Momentum

Capital Limited reported a decrease in revenue and EBITDA for the first half of 2025 compared to the same period in 2024, with revenue down by 6% and EBITDA down by 25.2%. Despite these declines, the company experienced a strong start to its new mining contract at Reko Diq and record performance in its MSALABS division, leading to an increase in full-year revenue guidance. The company also maintained a world-class safety performance and declared an interim dividend, reflecting its commitment to shareholder value.

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 to Present Half Year 2025 Results via LSE Webcast

Capital Limited announced that it will present its Half Year 2025 Results via a live webcast on the London Stock Exchange platform on August 14, 2025. The presentation is accessible to existing and potential shareholders, as well as analysts, allowing them to engage and ask questions during the event, which highlights the company’s commitment to transparency and stakeholder engagement.

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 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.