Geospace Technologies (GEOS) AI Stock Analysis

• Market Cap: $260.26M
• Dividend Yield: N/A
• Average Volume (3M): 193.40K
• Price to Earnings (P/E): ―
• Beta (1Y): 1.34
• Revenue Growth: -18.29%
• EPS Growth: -43.05%
• Country: US
• Employees: 450
• Sector: Energy
• Sector Strength: 52
• Industry: Oil & Gas Equipment & Services
• EPS (TTM): -0.71
• Shares Outstanding: 12,820,702
• 10 Day Avg. Volume: 147,878
• 30 Day Avg. Volume: 193,401
• PEG Ratio: 0.13
• Price to Book (P/B): 1.01
• Price to Sales (P/S): 1.00
• P/FCF Ratio: -10.51
• Enterprise Value/Market Cap: 0.61
• Enterprise Value/Revenue: 1.38
• Enterprise Value/Gross Profit: 3.51
• Enterprise Value/Ebitda: -69.52
• 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: 61 Neutral
• Price Target: $25.00 ▲(124.82% Upside)

Geospace Technologies' overall stock score is primarily influenced by its financial performance challenges, particularly in profitability and cash flow. Technical analysis provides a positive outlook with strong momentum, but valuation concerns due to a negative P/E ratio and lack of dividends weigh down the score. The earnings call offered a balanced view with both strategic wins and operational challenges.

Positive Factors

Major Contract with Petrobras

This significant contract with Petrobras provides a stable revenue stream over the next 16 to 18 months, enhancing financial visibility and supporting long-term growth in the Energy Solutions segment.

Smart Water Segment Growth

Growth in the Smart Water segment, driven by higher demand for Hydroconn connectors, indicates successful diversification and potential for sustained revenue increases in non-oil sectors.

Acquisition of Heartbeat Detector

This acquisition supports strategic diversification into security technology, potentially increasing recurring revenue and reducing reliance on cyclical oil and gas markets.

Negative Factors

Overall Revenue Decline

A significant revenue decline over nine months indicates challenges in maintaining sales momentum, impacting profitability and highlighting the need for operational improvements.

Increased Operating Expenses

Rising operating expenses, driven by higher personnel and marketing costs, could pressure margins and limit profitability unless offset by revenue growth or cost efficiencies.

Decline in Energy Solutions Revenue

The decline in Energy Solutions revenue reflects challenges in core markets, potentially affecting overall financial performance and necessitating strategic adjustments.

Geospace Technologies Business Overview & Revenue Model

Company Description

Geospace Technologies Corporation designs and manufactures instruments and equipment used in the oil and gas industry to acquire seismic data in order to locate, characterize, and monitor hydrocarbon producing reservoirs. The company operates through three segments: Oil and Gas Markets, Adjacent Markets, and Emerging Markets. The Oil and Gas Markets segment offers wireless seismic data acquisition systems and reservoir characterization products and services, as well as traditional seismic exploration products, such as geophones, hydrophones, leader wires, connectors, cables, marine streamer retrieval and steering devices, and other seismic products. The Adjacent Markets segment provides industrial products, including imaging equipment, water meter products, remote shut-off valves and Internet of Things platform, and offshore cables, as well as seismic sensors for vibration monitoring and geotechnical applications, such as mine safety and earthquake detection applications; and electronic pre-press products that employ direct thermal imaging, direct-to-screen printing systems, and digital inkjet printing technologies targeted at the commercial and industrial graphics, textile, and flexographic printing industries. The Emerging Markets segment designs and sells products used for border and perimeter security surveillance, cross-border tunneling detection, and other products targeted at movement monitoring, intrusion detection, and situational awareness. This segment serves customers that include various agencies of the United States government, including the Department of Defense, Department of Energy, Department of Homeland Security, and other agencies. The company operates in Asia, Canada, Europe, the United States, and internationally. Geospace Technologies Corporation was founded in 1980 and is headquartered in Houston, Texas.

How the Company Makes Money

Geospace Technologies generates revenue through the sale of its geophysical equipment, including seismic sensors and data acquisition systems, to customers in the oil and gas sector. Additionally, the company offers software solutions for seismic data processing, which further contributes to its revenue. A significant portion of its earnings is derived from service contracts that involve data acquisition and processing for clients conducting subsurface exploration. The company also engages in partnerships and collaborations with industry players, which can provide additional revenue opportunities and enhance its market presence. Key factors contributing to its earnings include the demand for energy resources, advancements in technology, and the company's ability to innovate and deliver high-quality products and services.

Geospace Technologies Financial Statement Overview

Summary

Geospace Technologies faces significant profitability and cash flow challenges, despite a strong equity position. The company needs to address operational inefficiencies and improve its ability to generate positive cash flow to enhance its financial health.

Income Statement

The company's revenue growth has been inconsistent, with a notable decline in the most recent TTM period. Gross profit margin is improving, but net profit margin remains negative, indicating profitability challenges. EBIT and EBITDA margins have also shown volatility, reflecting operational inefficiencies.

Balance Sheet

The balance sheet shows a strong equity position with a low debt-to-equity ratio, indicating financial stability. Return on equity is negative, highlighting profitability issues, but the equity ratio is high, suggesting a solid asset base.

Cash Flow

Cash flow performance is weak, with negative operating cash flow and declining free cash flow, indicating liquidity issues. The operating cash flow to net income ratio is negative, further emphasizing the company's struggle to generate cash from operations.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	115.53M	135.60M	124.51M	89.25M	94.86M	87.83M
Gross Profit	45.37M	52.57M	51.69M	18.04M	16.29M	23.43M
EBITDA	-2.29M	8.49M	26.25M	-3.06M	7.30M	7.14M
Net Income	-13.52M	-6.58M	12.21M	-22.86M	-14.06M	-19.24M
Balance Sheet
Total Assets	149.83M	152.19M	153.04M	135.06M	163.93M	186.84M
Cash, Cash Equivalents and Short-Term Investments	25.56M	37.12M	33.72M	17.00M	23.56M	32.69M
Total Debt	368.00K	512.00K	769.00K	1.01M	1.23M	0.00
Total Liabilities	15.54M	17.57M	20.33M	13.41M	21.47M	25.88M
Stockholders Equity	134.29M	134.62M	132.72M	121.65M	142.46M	160.97M
Cash Flow
Free Cash Flow	-25.94M	-12.94M	1.67M	-16.00M	-12.48M	9.72M
Operating Cash Flow	-19.68M	-9.08M	15.56M	-10.04M	-7.17M	18.12M
Investing Cash Flow	35.32M	3.82M	-11.88M	14.15M	-3.32M	-4.05M
Financing Cash Flow	-4.00M	-6.38M	-525.00K	-1.71M	-8.23M	-78.00K

Geospace Technologies Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 11.12
• 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 GEOS, the sentiment is Positive. The current price of 11.12 is below the 20-day moving average (MA) of 16.73, below the 50-day MA of 18.86, and below the 200-day MA of 14.58, indicating a bullish trend. The MACD of 0.46 indicates Negative momentum. The RSI at 65.15 is Neutral, neither overbought nor oversold. The STOCH value of 77.85 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for GEOS.

Geospace Technologies Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
NGS	78 Outperform	$432.25M	23.25	7.15%	0.63%	9.53%	15.48%
OIS	71 Outperform	$473.78M	21.15	3.31%	―	-11.02%	―
NCSM	71 Outperform	$97.04M	8.41	11.89%	―	16.61%	-72.29%
SND	70 Outperform	$167.21M	39.26	1.61%	―	18.98%	―
Sector *	65 Neutral	$15.17B	7.61	4.09%	5.20%	3.87%	-62.32%
GEOS	61 Neutral	$260.26M	-26.61	-7.48%	―	-18.29%	-43.05%
FET	61 Neutral	$449.54M	-4.17	-31.11%	―	-1.29%	-123.25%