Orbit Garant Drill (OGD) AI Stock Analysis

• Market Cap: C$66.32M
• Dividend Yield: N/A
• Average Volume (3M): 42.83K
• Price to Earnings (P/E): 13.8
• Beta (1Y): 0.46
• Revenue Growth: 1.04%
• EPS Growth: 107.55%
• Country: CA
• Employees: 1,000
• Sector: Basic Materials
• Sector Strength: 58
• Industry: Industrial Materials
• EPS (TTM): <0.01
• Shares Outstanding: 37,899,840
• 10 Day Avg. Volume: 52,775
• 30 Day Avg. Volume: 42,829
• PEG Ratio: -0.01
• Price to Book (P/B): 0.89
• Price to Sales (P/S): 0.32
• P/FCF Ratio: 8.28
• 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): N/A
• Revenue Forecast (FY): N/A

• Rating: 67 Neutral
• Price Target: C$2.00 ▲(41.84% Upside)

The score is driven by mixed financial performance (pressure on revenue growth, low net margins, and weaker free cash flow) balanced by clearly improving technical momentum. Valuation appears reasonable on P/E, while the latest earnings call tempers optimism with near-term revenue/margin weakness and higher debt despite a better demand outlook and a share buyback.

Positive Factors

Balance sheet strength

A D/E of 0.48 with a TTM ROE of 11.49% indicates a balanced capital structure and competent use of equity. This financial flexibility supports equipment financing and geographic operations through cycles, reducing the risk of forced asset sales or capital rationing over coming quarters.

Scalable operational capacity

Management states existing operational capacity and a modern fleet allow higher utilization without heavy incremental capex. That structural advantage enables margin expansion as bid wins convert, letting the company scale revenue more efficiently than competitors requiring heavy capital outlays.

Favourable commodity-driven demand

Sustained high gold and copper prices structurally boost mining exploration and development budgets, which increases multi-quarter drilling demand. This commodity tailwind supports a deeper project pipeline and higher utilization rates, improving medium-term revenue visibility for drilling contractors.

Negative Factors

Weak profitability / low margins

Thin net margins (under 4%) and only moderate gross margins limit retained earnings and reinvestment capacity. Persistently low profitability reduces the firm's ability to absorb cost shocks, finance growth internally, or improve returns, making earnings sensitive to project mix and pricing pressure.

Revenue volatility from project timing

Reliance on project timing and customer scheduling creates recurring revenue volatility, as seen with project completions and client delays. Structural exposure to lumpy contracts can compress utilization and extend recovery times, complicating predictable cash flows and planning over several quarters.

Cash generation pressure and higher leverage

Negative FCF growth and an OCF-to-net-income of 0.58 point to weak cash conversion, while long-term debt increased to fund equipment shipments. Structurally weak cash generation plus rising leverage can limit reinvestment, constrain liquidity buffers, and raise financing costs in a tighter credit environment.

Orbit Garant Drill Business Overview & Revenue Model

Company Description

Orbit 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 Money

Orbit Garant Drill generates revenue primarily through its drilling services, which are billed on a per-project basis or through long-term contracts with mining companies and exploration firms. Key revenue streams include surface and underground drilling operations, geotechnical services, and environmental drilling projects. The company benefits from significant partnerships with major mining companies, which provide a steady stream of contracts. Additionally, OGD's focus on maintaining a modern fleet of drilling equipment and investing in technology enhances its operational efficiency and service offerings, further contributing to its earnings.

Orbit Garant Drill Financial Statement Overview

Summary

Mixed fundamentals: stable gross margin (~14.8%) and a reasonably strong balance sheet (D/E 0.48, ROE 11.49%), but profitability is thin (net margin 3.99%), TTM revenue growth is negative, and cash flow is a concern with negative free cash flow growth and only moderate cash conversion (OCF/NI 0.58).

Income Statement

The income statement shows a mixed performance. Gross profit margin is stable around 14.8% in TTM, indicating decent cost management. However, the net profit margin is low at 3.99%, suggesting limited profitability. Revenue growth is negative in TTM, reflecting a decline in sales. EBIT and EBITDA margins are moderate, showing some operational efficiency but room for improvement.

Balance Sheet

The balance sheet is relatively strong with a debt-to-equity ratio of 0.48, indicating a balanced capital structure. Return on equity is 11.49% in TTM, showing effective use of equity to generate profits. The equity ratio is healthy, suggesting financial stability. However, there is a need to monitor debt levels to maintain this balance.

Cash Flow

Cash flow analysis reveals challenges, with a negative free cash flow growth rate in TTM, indicating cash outflows. The operating cash flow to net income ratio is 0.58, showing moderate cash generation from operations. Free cash flow to net income ratio is positive, but overall cash flow management needs improvement to support growth.

Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	187.28M	189.05M	181.24M	200.98M	195.47M	163.29M
Gross Profit	26.31M	28.28M	20.37M	16.82M	13.74M	20.29M
EBITDA	22.20M	20.47M	9.16M	14.87M	9.97M	17.58M
Net Income	4.72M	7.54M	-1.32M	-669.00K	-6.65M	2.29M
Balance Sheet
Total Assets	138.55M	130.64M	119.88M	127.56M	137.06M	138.14M
Cash, Cash Equivalents and Short-Term Investments	1.42M	3.54M	332.00K	2.18M	1.02M	3.26M
Total Debt	37.66M	32.66M	34.12M	37.01M	40.31M	37.30M
Total Liabilities	69.60M	62.22M	59.65M	65.92M	74.55M	67.79M
Stockholders Equity	68.95M	68.42M	60.23M	61.64M	62.51M	70.35M
Cash Flow
Free Cash Flow	-813.00K	7.32M	481.00K	4.92M	-6.14M	1.93M
Operating Cash Flow	12.09M	18.52M	9.22M	14.35M	5.86M	9.79M
Investing Cash Flow	-10.33M	-8.57M	-5.98M	-8.44M	-10.78M	-6.70M
Financing Cash Flow	-1.16M	-6.67M	-5.56M	-4.43M	2.71M	-3.79M

Orbit Garant Drill Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 1.41
• 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 TSE:OGD, the sentiment is Positive. The current price of 1.41 is below the 20-day moving average (MA) of 1.65, below the 50-day MA of 1.47, and below the 200-day MA of 1.55, indicating a bullish trend. The MACD of 0.08 indicates Negative momentum. The RSI at 60.89 is Neutral, neither overbought nor oversold. The STOCH value of 63.10 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for TSE:OGD.

Orbit Garant Drill Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
OGD	67 Neutral	C$66.32M	13.84	7.13%	―	1.04%	107.55%
Sector *	61 Neutral	$10.43B	7.12	-0.05%	2.87%	2.86%	-36.73%
TK	51 Neutral	C$59.48M	-33.46	-1.53%	―	―	5.26%
ESK	50 Neutral	C$106.34M	-46.34	-50.65%	―	―	62.70%
CNRI	46 Neutral	C$45.73M	-63.49	-1.60%	―	―	88.42%
PX	41 Neutral	C$56.03M	-53.49	―	―	―	47.56%

Orbit Garant Drill Corporate Events

Orbit Garant Reports Decline in Q1 2026 Earnings Amid Project Delays

Orbit Garant Drilling Inc. reported a decrease in revenue and net earnings for the first quarter of fiscal 2026, attributed to the completion of certain projects and temporary delays in Canada and South America. Despite the current financial results, the company remains optimistic about future growth due to increasing demand for drilling services, supported by high gold and copper prices, and anticipates benefiting from the resumption of delayed projects and new contract bids.

The most recent analyst rating on (TSE:OGD) stock is a Buy with a C$2.00 price target. To see the full list of analyst forecasts on Orbit Garant Drill stock, see the TSE:OGD Stock Forecast page.