Geodrill (GEO) AI Stock Analysis

• Market Cap: C$175.45M
• Dividend Yield: N/A
• Average Volume (3M): 55.48K
• Price to Earnings (P/E): 13.3
• Beta (1Y): 1.48
• Revenue Growth: 25.76%
• EPS Growth: 15.68%
• Country: CA
• Employees: 52
• Sector: Basic Materials
• Sector Strength: 58
• Industry: Industrial Materials
• EPS (TTM): -0.04
• Shares Outstanding: 47,163,170
• 10 Day Avg. Volume: 79,693
• 30 Day Avg. Volume: 55,477
• PEG Ratio: 0.07
• Price to Book (P/B): 0.84
• Price to Sales (P/S): 0.70
• P/FCF Ratio: 269.63
• 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
• EPS Forecast (FY): 0.39
• Revenue Forecast (FY): C$242.43M

• Rating: 76 Outperform
• Price Target: C$4.00 ▲(6.67% Upside)

Geodrill's overall score reflects strong financial performance and attractive valuation, tempered by challenges highlighted in the earnings call. The positive technical indicators support a stable outlook, but immediate financial hurdles need to be addressed.

Positive Factors

Revenue Growth

The consistent revenue growth, driven by strategic expansion in South America, indicates robust market demand and enhances long-term financial stability.

Strategic Expansion

The expansion in South America positions Geodrill for sustained growth by capturing new market opportunities and diversifying its geographical footprint.

Operational Safety

Strong safety standards enhance operational reliability and client trust, supporting long-term client relationships and reducing operational risks.

Negative Factors

Decline in Gross Profit Margin

A significant decline in gross profit margin due to regional challenges could pressure profitability and affect long-term financial performance if not addressed.

Net Loss Reported

Reporting a net loss highlights financial challenges that may impact investor confidence and require strategic adjustments to restore profitability.

Operational Challenges in South America

Operational issues in new markets can strain resources and delay expected returns, potentially affecting the company's ability to capitalize on growth opportunities.

Geodrill Business Overview & Revenue Model

Company Description

Geodrill (GEO) is a leading exploration drilling company primarily serving the mining and mineral exploration sectors. Headquartered in Ghana, Geodrill specializes in providing high-quality drilling services, including core drilling, reverse circulation drilling, and air core drilling. The company operates in several key mining regions across West Africa and has built a reputation for its safety standards, technological innovation, and commitment to sustainable practices.

How the Company Makes Money

Geodrill generates revenue primarily through its drilling services, which are contracted by mining companies for exploration and resource definition projects. The company's key revenue streams come from various types of drilling contracts, including fixed-price contracts and time-and-materials contracts, depending on the specific needs of their clients. Additionally, Geodrill maintains significant partnerships with major mining companies, which helps secure ongoing projects and stabilize revenue. The company also benefits from a diverse client base across multiple countries, mitigating risks associated with economic fluctuations in any single market. Investments in advanced drilling technology and equipment enhance operational efficiency and service quality, further contributing to its profitability.

Geodrill Financial Statement Overview

Summary

Geodrill demonstrates strong financial health with consistent revenue growth, robust profitability margins, and a solid balance sheet with low leverage. While cash flow metrics show positive trends, there is potential for enhancing free cash flow conversion.

Income Statement

Geodrill's income statement shows strong performance with a consistent revenue growth rate of 5.84% in the TTM period. The company maintains healthy margins, with a gross profit margin of 25.95% and a net profit margin of 8.13%. EBIT and EBITDA margins are also robust at 15.30% and 24.23%, respectively, indicating efficient cost management and operational effectiveness.

Balance Sheet

The balance sheet reflects a solid financial position with a low debt-to-equity ratio of 0.025, suggesting minimal leverage and financial risk. Return on equity stands at 10.58%, demonstrating effective use of shareholder funds. The equity ratio is strong, indicating a stable capital structure.

Cash Flow

Cash flow analysis reveals a significant improvement in free cash flow growth at 36.27% in the TTM period. The operating cash flow to net income ratio is 0.45, showing adequate cash generation relative to net income. However, the free cash flow to net income ratio is lower at 0.13, suggesting room for improvement in converting income into free cash flow.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	166.31M	143.05M	130.54M	138.63M	115.21M	82.44M
Gross Profit	40.01M	34.68M	30.59M	40.58M	30.10M	20.91M
EBITDA	41.35M	31.16M	20.56M	38.35M	29.45M	18.95M
Net Income	13.33M	9.26M	3.90M	18.92M	14.14M	7.52M
Balance Sheet
Total Assets	189.63M	161.49M	148.61M	141.23M	116.56M	98.34M
Cash, Cash Equivalents and Short-Term Investments	25.42M	19.52M	15.81M	15.11M	13.53M	8.63M
Total Debt	4.50M	3.45M	978.29K	5.82M	7.61M	3.75M
Total Liabilities	59.31M	41.97M	38.65M	34.17M	29.03M	25.28M
Stockholders Equity	130.82M	119.88M	110.12M	107.07M	87.55M	73.06M
Cash Flow
Free Cash Flow	3.97M	372.49K	-4.28M	8.40M	150.12K	-2.69M
Operating Cash Flow	24.68M	21.05M	11.00M	25.29M	14.78M	4.84M
Investing Cash Flow	-20.71M	-20.68M	-15.28M	-16.88M	-14.63M	-7.52M
Financing Cash Flow	5.15M	-2.35M	5.39M	-2.85M	2.83M	-1.11M

Geodrill Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 3.75
• 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 3.75 is below the 20-day moving average (MA) of 3.78, above the 50-day MA of 3.65, and above the 200-day MA of 3.39, indicating a neutral trend. The MACD of 0.04 indicates Positive momentum. The RSI at 52.34 is Neutral, neither overbought nor oversold. The STOCH value of 42.37 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	76 Outperform	C$175.45M	13.34	7.68%	―	25.76%	15.68%
FAR	73 Outperform	C$195.29M	0.40	18.35%	―	-17.73%	-36.29%
Sector *	61 Neutral	$10.43B	7.12	-0.05%	2.87%	2.86%	-36.73%
OGD	60 Neutral	C$61.02M	7.98	7.13%	―	1.04%	107.55%
AGX	58 Neutral	C$99.85M	-18.64	-6.09%	―	8.28%	87.46%
GMX	55 Neutral	C$93.12M	212.82	15.11%	―	-73.34%	16.21%
LIS	35 Underperform	C$48.19M	―	-32.98%	―	―	31.55%

Geodrill Corporate Events

Geodrill Reports Q3 2025 Financial Results Amid Strategic Expansion

Geodrill Limited reported a 14% increase in revenue for Q3 2025 compared to the same period in 2024, despite facing operational challenges that resulted in a net loss of $1.5 million. The company is focusing on strategic expansion, particularly in South America, where it has doubled its rig count to support new contracts. This expansion is part of Geodrill’s strategy to build a resilient and geographically diversified platform, aiming for sustained operational excellence and long-term shareholder value. The company remains optimistic about future growth opportunities, driven by strong demand for drilling services and high commodity prices.

Geodrill to Announce Q3 2025 Financial Results

Geodrill Limited announced it will release its financial results for the third quarter of 2025 on November 13, 2025, before the market opens. The company will also host a conference call to discuss these results, which could provide insights into its operational performance and strategic positioning in the drilling industry.