Geodrill (GEO) AI Stock Analysis

• Market Cap: C$169.32M
• Dividend Yield: N/A
• Average Volume (3M): 42.81K
• Price to Earnings (P/E): 9.5
• Beta (1Y): 0.25
• Revenue Growth: 27.28%
• EPS Growth: N/A
• Country: CA
• Employees: 52
• Sector: Basic Materials
• Sector Strength: 63
• Industry: Industrial Materials
• EPS (TTM): 0.17
• Shares Outstanding: 47,163,170
• 10 Day Avg. Volume: 22,707
• 30 Day Avg. Volume: 42,813
• PEG Ratio: 0.87
• Price to Book (P/B): 0.79
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 253.72
• 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: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0

• Rating: 78 Outperform
• Price Target: C$4.00 ▲(11.42%Upside)

Geodrill is well-positioned in the mining industry, demonstrating strong financial growth, strategic market expansion, and an attractive valuation. The financial performance is the strongest component, bolstered by positive earnings call results and recent corporate actions. While technical indicators suggest caution due to potential overbought conditions, the overall outlook remains optimistic with opportunities for growth and value creation.

Geodrill Business Overview & Revenue Model

Company Description

Geodrill Limited, together with its subsidiaries, provides mineral exploration drilling services to mining companies in West Africa, Zambia, and Peru. It offers reverse circulation, core, air-core, deep directional, reverse circulation grade control, water borehole, underground, mine blast hole, and horizontal drilling services. The company operates a fleet of multi-purpose, core, air-core, grade control, and underground drill rigs; boosters and auxiliary compressors; and various support vehicles, such as pick-up, MAN, and other trucks, as well as purpose-built crawler-mounted support vehicles and bell tractors. As of December 31, 2021, it operated a fleet of 71 drill rigs. Geodrill Limited was incorporated in 1998 and is headquartered in Douglas, Isle of Man.

How the Company Makes Money

Geodrill makes money by offering specialized drilling services to mining companies, which constitute its primary revenue stream. The company charges clients for its drilling services based on the type and complexity of the drilling operation, the duration of the project, and the logistical requirements of the exploration site. Key partnerships with major mining companies and a consistent track record of successful projects contribute significantly to its earnings. Geodrill's advanced technology and skilled workforce enable it to undertake complex drilling operations efficiently, thereby attracting repeat business and long-term contracts, which are crucial revenue drivers for the company.

Geodrill Financial Statement Overview

Summary

Geodrill's strong financial performance is highlighted by significant revenue growth and improved profit margins. The company maintains a healthy balance sheet with low leverage and a solid equity base. While cash flow management has improved, high capital expenditures indicate the need for careful capital allocation. Overall, Geodrill exhibits robust growth prospects in the mining sector.

Income Statement

Geodrill has demonstrated strong revenue growth, increasing from $130.5M in 2023 to $143.1M in 2024, a growth rate of 9.6%. The gross profit margin improved to 24.2% in 2024 from 23.4% in 2023. EBIT and EBITDA margins were noteworthy at 12.8% and 21.8%, respectively, indicating efficient operations. Net profit margin also improved to 6.5% in 2024 from 3.0% in 2023. Overall, the company shows robust profitability and growth in the mining sector.

Balance Sheet

The company maintains a healthy balance sheet with a debt-to-equity ratio of 0.03, reflecting low leverage and financial prudence. The equity ratio stands at 74.2%, indicating a strong equity base. Return on equity is modest at 7.7%, showing room for improvement in profitability relative to equity. Geodrill's financial stability is supported by a solid asset base and limited liabilities.

Cash Flow

Geodrill's free cash flow turned positive in 2024 at $372K after a negative $4.3M in 2023, indicating improved cash management. The operating cash flow to net income ratio is 2.27, reflecting strong cash generation relative to net income. However, the free cash flow to net income ratio remains low due to significant capital expenditures, suggesting a need for careful capital allocation.

Breakdown	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	143.05M	130.54M	138.63M	115.21M	82.44M
Gross Profit	34.68M	30.59M	40.58M	30.10M	20.91M
EBITDA	31.16M	20.56M	38.35M	27.86M	18.95M
Net Income	9.26M	3.90M	18.92M	14.14M	7.52M
Balance Sheet
Total Assets	161.49M	148.61M	141.23M	116.56M	98.34M
Cash, Cash Equivalents and Short-Term Investments	19.52M	15.81M	15.11M	13.53M	8.63M
Total Debt	3.45M	978.29K	5.82M	7.61M	3.75M
Total Liabilities	41.97M	38.65M	34.17M	29.03M	25.28M
Stockholders Equity	119.88M	110.12M	107.07M	87.55M	73.06M
Cash Flow
Free Cash Flow	372.49K	-4.28M	8.40M	150.12K	-2.69M
Operating Cash Flow	21.05M	11.00M	25.29M	14.78M	4.84M
Investing Cash Flow	-20.68M	-15.28M	-16.88M	-14.63M	-7.52M
Financing Cash Flow	-2.35M	5.39M	-2.85M	2.83M	-1.11M

Geodrill Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 3.59
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For TSE:GEO, the sentiment is Positive. The current price of 3.59 is above the 20-day moving average (MA) of 3.49, above the 50-day MA of 3.33, and above the 200-day MA of 3.01, indicating a bullish trend. The MACD of 0.05 indicates Positive momentum. The RSI at 55.79 is Neutral, neither overbought nor oversold. The STOCH value of 63.33 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for TSE:GEO.

Geodrill Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
GEO	78 Outperform	C$169.32M	9.49	10.72%	―	27.28%	―
FAR	71 Outperform	C$181.48M	6.46	24.45%	3.24%	-22.18%	-32.05%
OGD	69 Neutral	C$57.84M	9.28	9.73%	―	2.55%	―
CVV	45 Neutral	C$164.49M	―	-55.96%	―	―	19.32%
Sector *	43 Neutral	AU$1.35B	-6.08	-40.62%	4.25%	-4.78%	-43.21%
UCU	37 Underperform	C$96.96M	―	-33.11%	―	―	-112.17%
AZMCF		$130.58M	―	-86.24%	―	―	―

Geodrill Corporate Events

Geodrill Announces Shareholder Meeting Results and Strategic Resolutions

Geodrill Limited announced the results of its Annual and Special Meeting of Shareholders, where all nominated directors were elected, and PricewaterhouseCoopers LLP was re-appointed as the company’s auditors. Additionally, a special resolution was passed allowing the company to purchase its own shares, which could impact its financial strategy and shareholder value. These decisions reflect Geodrill’s ongoing commitment to strengthening its governance and financial position.

Geodrill Achieves Record Q1 2025 Financial Results Amid Strong Commodity Demand

Geodrill Limited reported record financial results for the first quarter of 2025, driven by strong commodity prices and robust demand for its drilling services. The company achieved a 41% increase in revenue to $48.8 million and a 104% rise in EBITDA to $13.6 million compared to the same period in 2024. With an expanded rig fleet and increased utilization, Geodrill strengthened its operations in West Africa and Egypt while expanding its presence in South America. The company is well-positioned for continued growth, focusing on long-term success and shareholder value amidst strong gold and copper prices.

Geodrill Announces Annual Meeting and Q1 2025 Financial Results Release

Geodrill Limited has announced its Annual and Special Meeting of Shareholders scheduled for May 12, 2025, in the Isle of Man, with provisions for teleconference participation. The company will also release its first quarter financial results for 2025 on the same day, followed by a management-hosted conference call to discuss the results. This announcement highlights Geodrill’s ongoing commitment to transparency and stakeholder engagement, potentially impacting its market perception and investor relations.