Dawson Story

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DWSN -- USA Stock  

USD 1.83  0.08  4.57%

Dawson Geophysical is scheduled to announce its earnings today. Dawson Geophysical Invested Capital is quite stable at the moment as compared to the past year. The company's current value of Invested Capital is estimated at 115.57 Million. Invested Capital Average is projected to rise to about 120.5 M this year, although the value of Net Income Per Employee will most likely fall to (36.1 K). As many of us are excited about energy space, it is fair to outline Dawson Geophysical as a unique alternative.
Published over two months ago
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Should I hold on to my Dawson (NASDAQ:DWSN) position?
Dawson Geophysical currently holds 9.91 M in liabilities with Debt to Equity (D/E) ratio of 0.1, which may suggest Dawson Geophysical is not taking enough advantage from borrowing. The entity has a current ratio of 3.26, suggesting that it is liquid enough and is able to pay its financial obligations when due.
Dawson Geophysical financial leverage ratio helps determine the effect of debt on the overall profitability of the company. It measures the total debt position of Dawson Geophysical, including all of Dawson Geophysical's outstanding debt obligations, and compares it with the equity. In simple terms, the high financial leverage means the cost of production, together with running the business day-to-day, is high, whereas, lower financial leverage implies lower fixed cost investment in the business and generally considered by investors to be a good sign. So if creditors own a majority of Dawson Geophysical assets, the company is considered highly leveraged. Understanding the composition and structure of overall Dawson Geophysical debt and outstanding corporate bonds gives a good idea of how risky the capital structure of a business is and if it is worth investing in it. Please read more on our technical analysis page.

Understanding Dawson Total Debt

Dawson Geophysical liabilities are broken down into two parts on the balance sheet. These are short-term (or current) obligations and long-term debt. Dawson Geophysical has to fulfill its short-term liabilities in this reporting year and should be no more than 12 months old. Long-term debt, on the other hand, is anything beyond the 12-month payment timeframe. Common short-term liabilities found on Dawson Geophysical balance sheet include debt obligations and money owed to different Dawson Geophysical vendors, workers, and loan providers. Below is the chart of Dawson main long-term debt accounts currently reported on its balance sheet.
You can use Dawson Geophysical financial leverage analysis tool to get a better grip on understanding its financial position

How important is Dawson Geophysical's Liquidity

Dawson Geophysical financial leverage refers to using borrowed capital as a funding source to finance Dawson Geophysical ongoing operations. It is usually used to expand the firm's asset base and generate returns on borrowed capital. Dawson Geophysical financial leverage is typically calculated by taking the company's all interest-bearing debt and dividing it by total capital. So the higher the debt-to-capital ratio (i.e., financial leverage), the riskier the company. Please check the breakdown between Dawson Geophysical's total debt and its cash.

Sale by Tobias C Ray of 2448 shares of Dawson Geophysical

Legal trades by Dawson Geophysical insiders are very common, as founders, directors, or employees of any publicly traded firm often have stock or stock options. These trades are made public in the United States through the filing of Form 4 of the Securities and Exchange Commission. Below entry was recorded recently and is publicly available as an insider trade:
Dawson insider trading alert for sale of dawson geophysical company-common stock $0.01 par value by Tobias C Ray, EVP Chief Operating Officer, on 17th of September 2020. This event was filed by Dawson Geophysical Co with SEC on 2020-09-17. Statement of changes in beneficial ownership - SEC Form 4 [view details]   
Note, although insider trading is legal, in the United States, Canada, Australia, and Germany, for mandatory reporting purposes, corporate insiders are defined as a company's officers, directors, and any beneficial owners of more than 10% of a class of the company's equity securities.

A Deeper look at Dawson

The latest price thrive of Dawson Geophysical could raise concerns from institutional investors as the firm closed today at a share price of 1.77 on 5,741 in volume. The company executives may have good odds in positioning the firm resources to exploit market volatility in August. The stock standard deviation of daily returns for 30 days investing horizon is currently 7.24. The very high volatility is mostly attributed to the latest market swings and not very good earnings reports from some of the Dawson Geophysical partners.

Liabilities Breakdown

19.6 M
Current Liabilities
8.6 M
Long-Term Liabilities
Total Liabilities28.14 Million
Current Liabilities19.56 Million
Long-Term Liabilities8.58 Million
Tax Liabilities123,774

Dawson Geophysical is projected to stay under $1.82 in August

Variance is down to 56.41. It may entail a possible volatility slide. As of the 30th of July, Dawson Geophysical shows the Downside Deviation of 5.96, mean deviation of 5.11, and Coefficient Of Variation of 737.41. Dawson Geophysical technical analysis allows you to utilize historical prices and volume patterns in order to determine a pattern that computes the direction of the firm's future prices. Put another way, you can use this information to find out if the firm will indeed mirror its model of historical prices and volume momentum, or the prices will eventually revert. We were able to break down and interpolate data for nineteen technical drivers for Dawson Geophysical, which can be compared to its rivals. Please confirm Dawson Geophysical information ratio, potential upside, as well as the relationship between the Potential Upside and kurtosis to decide if Dawson Geophysical is priced favorably, providing market reflects its regular price of 1.78 per share. Please also check Dawson Geophysical total risk alpha, which is currently at 0.2801 to verify the company can sustain itself at a future point.

Our Takeaway on Dawson Geophysical Investment

Whereas other companies in the oil & gas equipment & services industry are either recovering or due for a correction, Dawson Geophysical may not be performing as strong as the other in terms of long-term growth potentials. While some institutional investors may not share our view we believe that the current risk-reward utility is not appealing enough to do any trading. Please use our equity advice module to run different scenarios to ensure your current risk level and investment horizon are fully reflective of your current investing preferences in regards to Dawson Geophysical.

About Contributor

This story should be regarded as informational only and should not be considered a solicitation to sell or buy any financial products. Macroaxis does not express any opinion as to the present or future value of any investments referred to in this post. This post may not be reproduced without the consent of Macroaxis LLC. Macroaxis LLC and Gabriel Shpitalnik do not own shares of Dawson Geophysical. Please refer to our Terms of Use for any information regarding our disclosure principles.

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