Dawson Geophysical Company (DWSN)
Valuation Overview•Is Dawson Geophysical Company Overvalued or Undervalued?
Commands a premium valuation multiple over its peers, likely pricing in superior execution.
Fragile underlying quality score of 42/100; weak margins or elevated debt leverage warrant caution.
Wall Street forecasts a balanced outlook with consensus price targets near the current price.
Verdict: Average quality business weighed down by significant solvency concerns.
Wall Street sentiment is generally neutral. The company currently retains all capital for reinvestment and growth rather than returning it to shareholders.
DWSN demonstrates adequate business quality with stable profitability. However, this is severely offset by a highly leveraged balance sheet (Debt/EBITDA > 4.0x) and elevated financial risk.
The company demonstrates solid revenue growth (13.6% 3Y CAGR) paired with stable bottom-line earnings. Operating efficiency remains adequate with margins around 6.4%.
| Financial Metric | Trend (12Q) | Latest Qtr | 1Y Growth | 3Y CAGR | 5Y CAGR | 10Y CAGR |
|---|---|---|---|---|---|---|
| Revenue | $36.7M | +2.0% | +13.6% | -2.6% | -10.7% | |
| EBITDA | $10.8M | — | — | — | — | |
| Net Income | $7.7M | +52.9% | +53.0% | — | +22.9% | |
| EPS (Diluted) | $0.25 | +51.8% | — | — | +25.6% | |
| Free Cash Flow | -$1.9M | +291.5% | — | -15.7% | — |
| Metric | TTM | 3Y Avg | 5Y Avg | 10Y Avg |
|---|---|---|---|---|
| Gross Margin | 25.1% | 6.2% | 10.7% | 44.1% |
| Operating Margin | 6.4% | -7.3% | -36.6% | -28.8% |
| Net Margin | 4.9% | -6.9% | -34.9% | -26.6% |
| FCF Margin | 3.6% | 0.5% | -14.9% | -6.3% |
| Quarter | EPS Est. | EPS Act. | Surprise | EPS | Rev |
|---|---|---|---|---|---|
| Q2'26Latest | $-0.29 | $0.25 | +186.2% | ||
| Q1'26 | $0.06 | $0.02 | -66.7% | ||
| Q4'25 | — | $-0.04 | — | ||
| Q3'25 | — | $-0.08 | — | ||
| Q2'25 | — | $0.03 | — | ||
| Q1'25 | — | $-0.03 | — | ||
| Q4'24 | — | $-0.18 | — | ||
| Q3'24 | — | $-0.12 | — |
Total return is +137.0% (1Y), outperforming the benchmark by +112.0%
| Period | Total Return | vs S&P 500 (Alpha) | Dividend Contribution |
|---|---|---|---|
| YTD | +164.8% | +155.5% | — |
| 1Y | +137.0% | +112.0% | — |
| 3YCAGR | +34.6% | +19.1% | +16.9% |
| 5YCAGR | +11.7% | +0.8% | +12.1% |
| 10YCAGR | -4.2% | -16.5% | — |
The S&P 500 is at 31.3x trailing P/E — Expensive relative to historical averages.
Quick answers to common questions about Dawson Geophysical Company (DWSN) valuation, health, and returns.
Based on peer relative multiples, Dawson Geophysical Company appears Expensive versus peers compared to industry peers.
Dawson Geophysical Company has multiple valuation anchors: Peer Relative Fair Value: $3.19. A convergence of these signals offers higher conviction.
Dawson Geophysical Company displays fair financial health with a composite quality score of 42/100, supported by a Altman Z-Score of -0.3 (distress zone), Piotroski F-Score of 4/9, Return on Invested Capital (ROIC) of -4.7%.
Dawson Geophysical Company does not return material capital to shareholders via dividends or share repurchases, electing to retain earnings to fund internal growth.
Dawson Geophysical Company's current growth trajectory is Decelerating. The company achieved +2.0% 1Y revenue growth and +51.8% 1Y EPS growth, compared to its 3Y revenue CAGR of +13.6%.
Wall Street consensus is Hold based on 5 analysts, beating EPS expectations in 58% of recent quarters with a 1-quarter streak. The consensus price target represents a N/A change from current levels.
Investment risks for Dawson Geophysical Company include: -54.9% 1-year max drawdown, high beta (1.49x market volatility), elevated distress risk. Volatility risk is characterized by a beta of 1.49x.
No. These computations are purely quantitative model outputs for informational purposes. They do not account for qualitative management shifts or macro events. Always consult a licensed RIA before buying or selling shares.
Disclaimer: This page is for informational purposes only and does not constitute financial advice. All valuation models, scores, and target estimates are automated computations under stated assumptions and should not be relied upon as the sole basis for any investment decision.