What is April outlook for Dawson (USA Stocks:DWSN)?

DWSN Stock

USD 1.82 0.22 13.75%

Macroaxis Story

Dawson Geophysical is scheduled to announce its earnings tomorrow. The upcoming quarterly report is expected on the 14th of March 2023. Dawson Geophysical Market Capitalization is very stable at the moment as compared to the past year. Dawson Geophysical reported last year Market Capitalization of 49.37 Million. As of 5th of March 2023, Tangible Asset Value is likely to grow to about 100.7 M, while Net Income Per Employee is likely to drop (180.7 K). Although many aggressive traders are getting into energy equipment & services space, Dawson Geophysical may or may not be your first choice. What exactly are Dawson Geophysical shareholders getting in April?

Published over three weeks ago

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Reviewed by Michael Smolkin

Dawson Geophysical currently holds 8 K 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 5.86, suggesting that it is liquid enough and is able to pay its financial obligations when due. Debt can assist Dawson Geophysical until it has trouble settling it off, either with new capital or with free cash flow. So, Dawson Geophysical's shareholders could walk away with nothing if the company can't fulfill its legal obligations to repay debt. However, a more frequent occurrence is when companies like Dawson Geophysical sell additional shares at bargain prices, diluting existing shareholders. Debt, in this case, can be an excellent and much better tool for Dawson to invest in growth at high rates of return. When we think about Dawson Geophysical's use of debt, we should always consider it together with cash and equity.

What is April outlook for Dawson (USA Stocks:DWSN)?

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 Wayne Whitener of 10000 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 common stock by Wayne Whitener, President and CEO, on 4th of December 2022. This event was filed by Dawson Geophysical Co with SEC on 2013-03-05. 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.

Another Deeper Perspective

The recent decline in stock price could raise concerns from insiders as the firm is trading at a share price of 1.50 on very low momentum in volume. The company directors and management have failed to build on market volatilities in February. However, diversifying your overall positions with Dawson Geophysical may protect your principal portfolio during upcoming market swings. The stock standard deviation of daily returns for 90 days investing horizon is currently 5.44. 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

7 M

Current Liabilities

3.7 M

Long-Term Liabilities

	Total Liabilities	10.68 Million
	Current Liabilities	7.01 Million
	Long-Term Liabilities	3.67 Million
	Tax Liabilities	18,473.68

Dawson Geophysical recent price decline can leaving insiders with little time to react

Recent Information Ratio is up to -0.06. Price may decline again. Dawson Geophysical exhibits very low volatility with skewness of 0.4 and kurtosis of 2.48. However, we advise investors to further study Dawson Geophysical technical indicators to ensure that all market info is available and is reliable. Understanding different market volatility trends often help investors to time the market. Properly using volatility indicators enable traders to measure Dawson Geophysical's stock risk against market volatility during both bullish and bearish trends. The higher level of volatility that comes with bear markets can directly impact Dawson Geophysical's stock price while adding stress to investors as they watch their shares' value plummet. This usually forces investors to rebalance their portfolios by buying different stocks as prices fall.

Our Conclusion on Dawson Geophysical

Although some firms in the oil & gas equipment & services industry are either recovering or due for a correction, Dawson may not be as strong as the others in terms of longer-term growth potentials. Taking everything into account, as of the 5th of March 2023, our analysis shows that Dawson Geophysical moves indifferently to market moves. The firm is overvalued and projects average odds of financial distress for the next 2 years. Our concluding 90 days 'Buy-Sell' recommendation on the firm is Strong Sell.

Editorial Staff

Vlad Skutelnik is a Macroaxis Contributor. Vlad covers stocks, funds, cryptocurrencies, and ETFs that are traded in North America, focusing primarily on fundamentals, valuation and market volatility. He has many years of experience in fintech, predictive investment analytics, and risk management. View Profile

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 Vlad Skutelnik 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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