📊 DWSN Key Takeaways
Is Dawson Geophysical Co (DWSN) a Good Investment?
Dawson Geophysical exhibits strong operating margins (22.2%) but is severely hampered by negative operating cash flow (-$465K) and negative free cash flow (-$1.9M). With only $1.4M in cash against $41.1M in liabilities and a critically tight current ratio of 1.01x, the company faces imminent liquidity risk that outweighs its profitability.
Dawson Geophysical’s fundamentals are weak: revenue is contracting sharply, profitability remains negative, and returns on assets and equity are poor. While the company is still generating positive operating cash flow and free cash flow, that cash generation is being offset by weak liquidity and loss-making operations, which raises concern about the durability and quality of the recovery.
Dawson Geophysical Co Key Strengths (DWSN)
- Exceptional operating margin of 22.2% and net margin of 20.9% demonstrates strong pricing power and cost control in Oil & Gas services
- Excellent interest coverage of 177.0x and manageable debt-to-equity of 0.50x indicate low default risk on debt obligations
- High returns on equity (32.8%) and assets (11.9%) show capital efficiency where capital is actually being converted to cash
- Positive operating cash flow of $11.89M and free cash flow of $5.77M provide near-term financial support
- Debt/equity of 0.43x suggests leverage is not excessive relative to equity
- EPS improved year over year, indicating some operating stabilization despite continued losses
DWSN Stock Risks: Dawson Geophysical Co Investment Risks
- Negative operating cash flow (-$465K) signals the company is consuming rather than generating cash from core operations, contradicting reported profitability
- Precarious liquidity position with only $1.4M cash reserves, current ratio of 1.01x, and $41.1M liabilities creates immediate solvency vulnerability
- Negative free cash flow (-$1.9M, -5.2% margin) is structurally unsustainable and suggests reported earnings lack cash backing; requires immediate resolution
- Revenue declined 23.4% YoY, signaling weak demand and poor top-line momentum
- Operating and net margins are negative, with ROE of -16.5% and ROA of -6.2%, showing persistent fundamental weakness
- Current and quick ratios of 0.80x indicate tight liquidity, while negative interest coverage highlights earnings-based debt-servicing risk
Key Metrics to Watch
- Operating cash flow trend - must achieve positive territory to validate business sustainability
- Cash balance and days sales outstanding - working capital deterioration is the core issue
- Revenue growth acceleration - 2.0% YoY growth is insufficient to offset cash burn rate
- Revenue growth and operating margin trend
- Operating cash flow sustainability versus capital expenditures
Dawson Geophysical Co (DWSN) Financial Metrics & Key Ratios
💡 AI Analyst Insight
Dawson Geophysical Co presents a mixed fundamental picture. Review the detailed metrics above to form your own investment thesis.
DWSN Profit Margin, ROE & Profitability Analysis
DWSN vs Energy Sector: How Dawson Geophysical Co Compares
How Dawson Geophysical Co compares to Energy sector averages
Sector benchmarks are approximate industry averages. Actual sector performance may vary.
Is Dawson Geophysical Co Stock Overvalued? DWSN Valuation Analysis 2026
Based on fundamental analysis, Dawson Geophysical Co appears fundamentally strong relative to the Energy sector in 2026.
Note: This is a fundamental analysis based on SEC filings. For P/E ratio, price targets, and market-based valuation, consult financial data providers. This is not investment advice.
Dawson Geophysical Co Balance Sheet: DWSN Debt, Cash & Liquidity
DWSN Revenue & Earnings Growth: 5-Year Financial Trend
5-Year Trend Summary: Dawson Geophysical Co's revenue has declined by 12% over the 5-year period, indicating business contraction. The most recent EPS of $-0.13 indicates the company is currently unprofitable.
DWSN Revenue Growth, EPS Growth & YoY Performance
DWSN Quarterly Earnings & Performance
| Quarter | Revenue | Net Income | EPS |
|---|---|---|---|
| Q1 2026 | $16.1M | $992.0K | $0.03 |
| Q3 2025 | $14.4M | $992.0K | $-0.04 |
| Q2 2025 | $9.9M | $992.0K | $-0.04 |
| Q1 2025 | $16.1M | $992.0K | $0.03 |
| Q3 2024 | $14.4M | -$413.0K | $-0.11 |
| Q2 2024 | $12.5M | -$413.0K | $0.07 |
| Q1 2024 | $29.4M | -$413.0K | $-0.02 |
| Q3 2023 | $7.4M | -$413.0K | $-0.20 |
Data sourced from SEC EDGAR 10-Q quarterly filings. Figures may represent quarterly or cumulative values.
Dawson Geophysical Co Dividends, Buybacks & Capital Allocation
DWSN SEC Filings: Latest 10-K & 10-Q Analysis
Access official SEC EDGAR filings for Dawson Geophysical Co (CIK: 0000799165)
📋 Recent SEC Filings
❓ Frequently Asked Questions about DWSN
What is the AI rating for DWSN?
Dawson Geophysical Co (DWSN) has a Combined AI Grade of C from Claude (C) and ChatGPT (C) with 76% combined confidence, based on fundamental analysis of SEC EDGAR filings.
What are DWSN's key strengths?
Claude: Exceptional operating margin of 22.2% and net margin of 20.9% demonstrates strong pricing power and cost control in Oil & Gas services. Excellent interest coverage of 177.0x and manageable debt-to-equity of 0.50x indicate low default risk on debt obligations. ChatGPT: Positive operating cash flow of $11.89M and free cash flow of $5.77M provide near-term financial support. Debt/equity of 0.43x suggests leverage is not excessive relative to equity.
What are the risks of investing in DWSN?
Claude: Negative operating cash flow (-$465K) signals the company is consuming rather than generating cash from core operations, contradicting reported profitability. Precarious liquidity position with only $1.4M cash reserves, current ratio of 1.01x, and $41.1M liabilities creates immediate solvency vulnerability. ChatGPT: Revenue declined 23.4% YoY, signaling weak demand and poor top-line momentum. Operating and net margins are negative, with ROE of -16.5% and ROA of -6.2%, showing persistent fundamental weakness.
What is DWSN's revenue and growth?
Dawson Geophysical Co reported revenue of $36.7M.
Does DWSN pay dividends?
Dawson Geophysical Co pays dividends, with $9.9M distributed to shareholders in the trailing twelve months.
Where can I find DWSN SEC filings?
Official SEC filings for Dawson Geophysical Co (CIK: 0000799165) including 10-K, 10-Q, and 8-K reports are available on SEC EDGAR.
What is DWSN's EPS?
Dawson Geophysical Co has a diluted EPS of $0.25.
How is the AI analysis conducted?
Two independent AI systems — Claude (Anthropic) and ChatGPT (OpenAI) — analyze SEC EDGAR filings including 10-K annual reports and 10-Q quarterly reports. Each AI evaluates financial health, profitability ratios, balance sheet strength, and growth metrics. The combined grade reflects both perspectives for balanced insights.
What is DWSN's fundamental grade?
Based on our AI fundamental analysis in June 2026, Dawson Geophysical Co has a C grade with 76% confidence. Review the strengths and risks sections above for full context. This is not investment advice.
Is DWSN stock overvalued or undervalued?
Valuation metrics for DWSN: ROE of 32.8% (sector avg: 14%), net margin of 20.9% (sector avg: 12%). Higher ROE suggests strong returns relative to peers.
What is DWSN's AI grade for 2026?
Our dual AI analysis gives Dawson Geophysical Co a combined C grade for 2026. Revenue is data pending, with profitability above sector average. Always conduct your own research.
What is DWSN's free cash flow?
Dawson Geophysical Co's operating cash flow is $-465.0K, with capital expenditures of $1.4M. FCF margin is -5.2%.
How does DWSN compare to other Energy stocks?
Vs Energy sector averages: Net margin 20.9% (avg: 12%), ROE 32.8% (avg: 14%), current ratio 1.01 (avg: 1.3).
Why is DWSN's return on equity (ROE) so high?
Dawson Geophysical Co has a return on equity of 32.8%, significantly above the Energy sector average of 14%. A high ROE indicates the company is efficient at generating profits from shareholder equity. This is supported by a 20.9% net margin.