Dawson Geophysical Company Fundamental Analysis (NASDAQ: DWSN)
Dawson Geophysical Company Fundamental Analysis (NASDAQ: DWSN)
Dawson Geophysical Company (NASDAQ: DWSN) shows weak financial fundamentals with a PE ratio of 22.28, profit margin of 3.49%, and ROE of 19.56%. The company generates $0.1B in annual revenue with weak year-over-year growth of 1.98%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 38.3/100 based on profitability, valuation, growth, and balance sheet metrics. The F grade reflects weak fundamentals and significant financial concerns.
Fundamental Health Score
We analyze DWSN's fundamental strength across five key dimensions:
Efficiency Score
WeakDWSN struggles to generate sufficient returns from assets.
Valuation Score
ExcellentDWSN trades at attractive valuation levels.
Growth Score
ModerateDWSN shows steady but slowing expansion.
Financial Health Score
WeakDWSN carries high financial risk with limited liquidity.
Profitability Score
WeakDWSN struggles to sustain strong margins.
Key Financial Metrics
Is DWSN Expensive or Cheap?
P/E Ratio
DWSN trades at 22.28 times earnings. This indicates a fair valuation.
PEG Ratio
When adjusting for growth, DWSN's PEG of 0.03 indicates potential undervaluation.
Price to Book
The market values Dawson Geophysical Company at 4.22 times its book value. This suggests the stock is fully valued or overvalued on an asset basis.
EV/EBITDA
Enterprise value stands at 6.86 times EBITDA. This is generally considered low.
How Well Does DWSN Make Money?
Net Profit Margin
For every $100 in sales, Dawson Geophysical Company keeps $3.49 as profit after all expenses.
Operating Margin
Core operations generate 5.25 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $19.56 in profit for every $100 of shareholder equity.
ROA
Dawson Geophysical Company generates $6.57 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
Dawson Geophysical Company generates limited operating cash flow of $3.35M, signaling weaker underlying cash strength.
Free Cash Flow
Dawson Geophysical Company generates weak or negative free cash flow of $-4.45M, restricting financial flexibility.
FCF Per Share
Each share generates $-0.14 in free cash annually.
FCF Yield
DWSN converts -5.29% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
22.28
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
0.03
vs 25 benchmark
P/B Ratio
Price to book value ratio
4.22
vs 25 benchmark
P/S Ratio
Price to sales ratio
0.81
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
1.000
vs 25 benchmark
Current Ratio
Current assets to current liabilities
0.87
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.20
vs 25 benchmark
ROA
Return on assets percentage
0.07
vs 25 benchmark
ROCE
Return on capital employed
0.17
vs 25 benchmark
How DWSN Stacks Against Its Sector Peers
| Metric | DWSN Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 22.28 | 21.54 | Neutral |
| ROE | 19.56% | 1255.00% | Weak |
| Net Margin | 3.49% | 1263.00% | Weak |
| Debt/Equity | 1.00 | -1.82 (disorted) | Distorted |
| Current Ratio | 0.87 | 2.24 | Weak Liquidity |
| ROA | 6.57% | 4414.00% | Weak |
DWSN outperforms its industry in 0 out of 6 key metrics, but lagging in ROE.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews Dawson Geophysical Company's 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
-33.79%
Industry Style: Cyclical, Value, Commodity
DecliningEPS CAGR
88.91%
Industry Style: Cyclical, Value, Commodity
High GrowthFCF CAGR
-46.35%
Industry Style: Cyclical, Value, Commodity
Declining