Dawson Geophysical Company Common Stock (DWSN)

FairStock Score: 50/100 — MIXED

Key Financials

AI Analysis

AI-generated, general educational analysis — not personal investment advice.

Seismic data acquisition is a cyclical, capital-intensive service business. Dawson's 269 employees sell to oil and gas and carbon-capture customers, but switching costs are modest and pricing depends on demand for seismic crews, so I struggle to identify a durable competitive moat. The recent record is choppy. In fiscal Q1 2026, the quarter ended 2026-03-31, revenue was $36.7M, net income was $7.7M, and diluted EPS was $0.25. Then in fiscal Q2 2026, the quarter ended 2026-06-30, revenue dropped to $17.9M, net income was -$3.4M, and diluted EPS was -$0.11. For full fiscal 2025, ended 2025-12-31, revenue was $75.6M and net loss was $1.9M, or -$0.06 per diluted share. Fiscal 2024 lost $4.1M, and the Lynch screen says no category fits because the company lost money in each of the last four years. Financial health is stretched: trailing free cash flow is -$4.5M and FCF yield is -5.7% on a FairStock calculation; D/E is 1.00, Altman Z is -2.03, and Piotroski is 2/9. At $2.50 on 2026-10-13, FairStock shows P/B of 3.85 and P/E of 20.83. The Graham Number of $1.32 implies a margin of safety of -89.39%, so the price is well above a conservative asset-based value. Revenue and profit growth look enormous, but they are rebounding from depressed levels; Q1 profit shows operating leverage, yet one quarter does not make a trend. I would want sustained positive free cash flow and a sturdier balance sheet before calling this a bargain.

In plain English: Dawson Geophysical provides onshore seismic data acquisition and processing for oil and gas companies and carbon capture projects. The business looks weak overall: it lost money in each of the last four years and recent cash flow is negative, though one quarter in fiscal 2026 was profitable. At $2.50, the shares look expensive relative to the company's profits, net assets, and a conservative asset-based value.

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Data as of 2026-10-13 close · note generated 2026-10-15 · model deepseek-flash

Sources (SEC EDGAR): fiscal Q2 2026 10-Q (period ended 2026-06-30) · fiscal Q1 2026 10-Q (period ended 2026-03-31) · fiscal Q3 2025 10-Q (period ended 2025-09-30) · fiscal Q2 2025 10-Q (period ended 2025-06-30) · FY2025 10-K (period ended 2025-12-31) · FY2024 10-K (period ended 2024-12-31) · FY2023 10-K (period ended 2023-12-31)

Fundamentals from company filings and market-data providers; prices are end-of-day, not real-time. AI-generated analysis is general and educational — not personal investment advice. Scoring methodology · Score test · Disclaimer