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Orbit Garant Drill (TSE:OGD)
TSX:OGD
Canadian Market
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Orbit Garant Drill (OGD) AI Stock Analysis

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TSE:OGD

Orbit Garant Drill

(TSX:OGD)

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Outperform 70 (OpenAI - 4o)
Rating:70Outperform
Price Target:
C$2.00
▲(15.61% Upside)
Orbit Garant Drill's strong financial recovery and undervaluation are the most significant factors contributing to its score. The technical analysis supports a cautiously optimistic outlook, though the absence of a dividend yield and neutral RSI temper enthusiasm. Continued operational improvements and debt reduction could enhance future performance.

Orbit Garant Drill (OGD) vs. iShares MSCI Canada ETF (EWC)

Orbit Garant Drill Business Overview & Revenue Model

Company DescriptionOrbit Garant Drilling Inc. provides mineral drilling services in Canada, the United States, South America, and West Africa. It provides underground and surface diamond drilling services to mining companies through various stages of mineral exploration, mine development, and production. The company also offers geotechnical and water drilling services to mining or mineral exploration companies, engineering and environmental consultant firms, and government agencies. In addition, it manufactures and sells conventional and specialized drill rigs. As of June 30, 2021, the company operated 223 drill rigs, including 101 underground drills and 122 drill rigs. Orbit Garant Drilling Inc. was founded in 1965 and is headquartered in Val-d'Or, Canada.
How the Company Makes MoneyOrbit Garant Drill generates revenue primarily through contracts with mining companies for its drilling services. The company's revenue streams include fees for surface and underground drilling services, with rates typically based on meters drilled, project complexity, and duration. Significant partnerships with major mining corporations enhance its revenue by securing long-term contracts and recurring business. Additionally, Orbit Garant's investment in advanced drilling technologies and equipment increases operational efficiency, allowing the company to offer competitive pricing and maintain profitability. The company may also benefit from fluctuations in mineral prices, as increased exploration activities during high commodity price periods can lead to higher demand for its services.

Orbit Garant Drill Earnings Call Summary

Earnings Call Date:Sep 24, 2025
(Q1-2025)
|
% Change Since: |
Next Earnings Date:Nov 12, 2025
Earnings Call Sentiment Positive
The earnings call reflected a strong positive performance with record net earnings and revenue growth driven by strategic decisions and favorable market conditions. However, challenges in the junior mining sector and seasonality impacts present ongoing concerns.
Q1-2025 Updates
Positive Updates
Record Net Earnings
The company generated the strongest quarterly net earnings in 4 years, with net earnings of $3.2 million or $0.08 per share, compared to a net loss of $0.4 million or $0.01 per share in Q1 last year.
Revenue Growth
Total revenue for the quarter was $48.4 million, an increase of 9.3% compared to Q1 last year.
Improved Gross Margin
Adjusted gross margin increased to 19.7% from 15.2% last year, reflecting increased drilling activity and cessation of unprofitable operations in West Africa.
Strong Performance in International Operations
International revenue increased by 14.8% compared to Q1 last year, driven by increased drilling activity in Chile and Guyana.
Successful Strategic Shift
The exit from West Africa has positively impacted margins, with significant year-over-year growth in profitability in each of the last 3 quarters.
Strong Metal Prices
Gold prices at record highs above USD 2,700 per ounce and copper prices above USD 4 per pound are supporting strong demand from senior mining companies.
Negative Updates
Junior Mining Sector Challenges
Demand from junior mining companies remains constrained due to low levels of financing, affecting exploration spending.
Seasonality Impact
The company experiences lower revenue in Canada during Q2 and Q3 due to winter and holiday seasons, while Chile is affected by snow in the mountains during Q1.
Share Price Not Reflecting Performance
Despite stronger financial performance, the company believes this is not fully reflected in its share price.
Company Guidance
During the Orbit Garant Drilling Q1 2025 earnings call, the company reported a significant increase in financial performance, with total revenue reaching $48.4 million, up by 9.3% compared to Q1 last year. The adjusted gross margin improved to 19.7% from 15.2%, reflecting a higher proportion of specialized drilling activities, particularly in Canada, and increased operations in Chile and Guyana. Net earnings soared to $3.2 million, marking the strongest quarterly net earnings in four years, compared to a net loss of $0.4 million the previous year. The company's adjusted EBITDA for the quarter was $6.5 million, more than double compared to $3 million in Q1 last year. The improvement was attributed to stronger operating earnings in both Canadian and international operations, as well as the strategic cessation of unprofitable operations in West Africa. Despite the positive financial results and strong demand from senior mining customers due to high gold and copper prices, the company noted that its improved performance was not fully reflected in its share price, prompting the announcement of a normal course issuer bid to buy back and cancel approximately 5% of its outstanding shares.

Orbit Garant Drill Financial Statement Overview

Summary
Orbit Garant Drill has shown a strong financial recovery with significant improvements in profitability and cash flow generation. The income statement indicates robust revenue growth and improved margins. The balance sheet reflects reduced leverage and better returns on equity, while cash flow metrics highlight efficient cash management.
Income Statement
75
Positive
Orbit Garant Drill has shown a strong recovery in its income statement metrics over the past year. The gross profit margin improved to 14.96% from 11.24% in the previous year, indicating better cost management. The net profit margin turned positive at 3.99%, a significant improvement from the negative margins in prior years. Revenue growth was robust at 94%, showcasing a strong rebound. However, the EBIT and EBITDA margins, while positive, remain relatively low, suggesting room for operational efficiency improvements.
Balance Sheet
68
Positive
The company's balance sheet reflects moderate financial stability. The debt-to-equity ratio decreased to 0.48, indicating a reduction in leverage, which is a positive sign. Return on equity improved to 11.01%, reflecting better profitability. However, the equity ratio remains stable, suggesting a balanced asset structure. Continued focus on reducing debt and improving equity returns could enhance financial stability further.
Cash Flow
80
Positive
Cash flow metrics are strong, with a significant increase in free cash flow growth at 291.24%, indicating improved cash generation capabilities. The operating cash flow to net income ratio is healthy at 0.57, suggesting efficient cash conversion. The free cash flow to net income ratio of 0.40 indicates that a substantial portion of earnings is being converted into free cash flow, supporting future investments and debt reduction.
BreakdownTTMDec 2025Dec 2024Dec 2023Dec 2022Dec 2021
Income Statement
Total Revenue189.05M189.05M181.24M200.98M195.47M163.29M
Gross Profit28.03M28.28M20.37M16.82M13.74M20.29M
EBITDA25.19M20.47M9.16M14.87M9.97M17.58M
Net Income7.54M7.54M-1.32M-669.00K-6.65M2.29M
Balance Sheet
Total Assets130.64M130.64M119.88M127.56M137.06M138.14M
Cash, Cash Equivalents and Short-Term Investments3.54M3.54M332.00K2.18M1.02M3.26M
Total Debt32.66M32.66M34.12M37.01M40.31M37.30M
Total Liabilities62.22M62.22M59.65M65.92M74.55M67.79M
Stockholders Equity68.42M68.42M60.23M61.64M62.51M70.35M
Cash Flow
Free Cash Flow7.48M7.32M481.00K4.92M-6.14M1.93M
Operating Cash Flow18.93M18.52M9.22M14.35M5.86M9.79M
Investing Cash Flow-8.99M-8.57M-5.98M-8.44M-10.78M-6.70M
Financing Cash Flow-6.67M-6.67M-5.56M-4.43M2.71M-3.79M

Orbit Garant Drill Technical Analysis

Technical Analysis Sentiment
Neutral
Last Price1.73
Price Trends
50DMA
1.64
Positive
100DMA
1.58
Positive
200DMA
1.37
Positive
Market Momentum
MACD
0.02
Positive
RSI
51.29
Neutral
STOCH
43.60
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For TSE:OGD, the sentiment is Neutral. The current price of 1.73 is below the 20-day moving average (MA) of 1.77, above the 50-day MA of 1.64, and above the 200-day MA of 1.37, indicating a neutral trend. The MACD of 0.02 indicates Positive momentum. The RSI at 51.29 is Neutral, neither overbought nor oversold. The STOCH value of 43.60 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for TSE:OGD.

Orbit Garant Drill Peers Comparison

Overall Rating
UnderperformOutperform
Sector (61)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
70
Outperform
C$65.28M8.5811.72%4.31%
61
Neutral
$10.43B7.12-0.05%2.87%2.86%-36.73%
59
Neutral
C$238.19M-122.83%80.31%
40
Underperform
C$50.41M-4.45%25.24%
39
Underperform
C$131.98M-3.01%16.83%
33
Underperform
C$103.41M700.000.37%
32
Underperform
C$78.99M-162.80%0.42%
* Basic Materials Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
TSE:OGD
Orbit Garant Drill
1.72
1.09
173.02%
TSE:CDB
Cordoba Minerals
0.87
0.41
89.13%
TSE:LCE
Century Lithium
0.34
-0.02
-5.56%
TSE:FPC
Falco Resources
0.36
0.00
0.00%
TSE:NIM
Nicola Mining
1.12
0.80
250.00%
TSE:WM
Wallbridge Mng Co
0.10
0.03
42.86%

Orbit Garant Drill Corporate Events

Business Operations and StrategyFinancial Disclosures
Orbit Garant Reports Increased Earnings in Q3 Fiscal 2025
Positive
May 7, 2025

Orbit Garant Drilling Inc. reported a 3.9% increase in revenue for the third quarter of fiscal 2025, driven by increased drilling activity in South America despite slower activity in Canada. The company’s net earnings rose to $2.7 million, supported by a favorable foreign exchange gain and strategic focus on well-financed intermediate customers, although challenges in the Canadian market impacted overall margins.

Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.Date of analysis: Oct 02, 2025