One-glance verdict
Undervalued
$27.32 our estimate vs market $3.79
86% below our estimate, below the bear case
Fundamentals snapshot
Geospace Technologies Corporation
GEOS · NMS · Energy · Oil & Gas Equipment & Services
Current price
$3.79
52-week range
$3.56 - $28.77
Market cap
$49.03M
Balance sheet
Healthy
-93.69x Concerning
Net cash $2.17M. Interest coverage shows how many times profit covers the interest bill.
What stands out
1 Reward
2 Risks
1 rewards · 2 risks
- Reward Free cash flow was positive in 4/10 years.
- Risk Operating margin compressed from -26.4% to -63.8% over 3 years.
- Risk Return on equity was -34.4% last year — the company lost money on shareholders' equity.
What this company does
Geospace Technologies Corporation
Geospace Technologies Corporation makes special equipment that helps oil and gas companies find and monitor underground oil and gas. Their main money comes from selling these seismic equipment and smart water management systems. This matters because their technology is key to finding the energy resources that power much of the world.
How the company got here
Geospace Technologies Corporation was founded in 1980 and is headquartered in Houston, Texas. The company has evolved over the decades, initially focusing on seismic exploration products for the oil and gas industry. A key turning point was its expansion into new markets and technologies, including water management and industrial security solutions. This diversification aimed to create more stable revenue streams beyond the cyclical nature of oil and gas exploration.
What it actually does
Geospace Technologies designs and manufactures specialized equipment that helps industries gather and analyze data. Think of it like creating the high-tech tools that allow scientists and engineers to "see" underground or monitor sensitive areas. Their products are crucial for finding resources like oil and gas, managing water resources, and enhancing security.
Energy Solutions
This segment is Geospace's original core business, providing the essential tools for oil and gas companies to find underground reserves. They offer wireless systems that capture seismic data (like vibrations from explosions or natural sources) to map out where oil and gas might be located. This segment also includes traditional products like geophones and hydrophones, which are sensors that detect these vibrations, and other equipment used in seismic exploration.
Smart Water
This newer business line focuses on the water management industry, offering "smart" solutions for water systems. Products like Hydroconn provide connectivity for water infrastructure, enabling better monitoring and control. Aquana products are also part of this segment, likely contributing to more efficient and intelligent water usage and management, reflecting a move into a less volatile market.
Intelligent Industrial
The Intelligent Industrial segment broadens Geospace's reach beyond oil and gas into security and monitoring applications. They develop and sell products for border security, detecting underground tunnels, and monitoring for intrusions. This segment also includes seismic sensors used for monitoring vibrations in mines for safety or detecting earthquakes, as well as providing contract manufacturing services to various government agencies and energy companies.
What management is betting on now
Management is strategically diversifying Geospace's revenue streams by expanding its offerings in the Smart Water and Intelligent Industrial segments. This move aims to reduce the company's reliance on the often-volatile oil and gas market. By developing innovative solutions for water management and security, Geospace seeks to tap into new growth opportunities and create a more balanced business portfolio for long-term stability.
Price history
How the share price has moved
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Loading price history…
Earnings history
Last 8 quarters — what happened
Click any quarter to read the call summary and what the numbers say.
FY2024 Q4
$-1.84M
FY2025 Q1
$-14.71M
FY2025 Q2
$-3.11M
FY2025 Q3
$-6.15M
FY2025 Q4
$-6.24M
FY2026 Q1
$-17.55M
FY2026 Q2
$-2.12M
FY2026 Q3
$-10.99M
Revenue
$15.80M
Net income
$-9.71M
Diluted EPS
-0.75
Operating cash flow
$-10.69M
Free cash flow
$-10.99M
Fetching…
Sources
Revenue
$19.74M
Net income
$-11.05M
Diluted EPS
-0.86
Operating cash flow
$-1.59M
Free cash flow
$-2.12M
Fetching…
Sources
Revenue
$25.59M
Net income
$-9.77M
Diluted EPS
-0.76
Operating cash flow
$-15.07M
Free cash flow
$-17.55M
Fetching…
Sources
Revenue
$30.71M
Net income
$-9.06M
Diluted EPS
-0.70
Operating cash flow
$-4.11M
Free cash flow
$-6.24M
Fetching…
Sources
Revenue
$24.84M
Net income
$760.00K
Diluted EPS
0.06
Operating cash flow
$-4.72M
Free cash flow
$-6.15M
Fetching…
Sources
Revenue
$18.02M
Net income
$-9.80M
Diluted EPS
-0.77
Operating cash flow
$-1.89M
Free cash flow
$-3.11M
Fetching…
Sources
Revenue
$37.22M
Net income
$8.38M
Diluted EPS
0.65
Operating cash flow
$-11.51M
Free cash flow
$-14.71M
Fetching…
Sources
Revenue
$35.44M
Net income
$-12.86M
Diluted EPS
-0.96
Operating cash flow
$-1.56M
Free cash flow
$-1.84M
Fetching…
Sources
Is it cheap or expensive?
Fair value $27.32 vs current price $3.79
Our most-likely fair value is $27.32 a share — about 620.8% above today's price of $3.79, so the stock currently looks cheap (undervalued).
Is it drowning in debt?
Healthy
Net cash $2.2M - more cash than debt. Interest coverage -93.7x.
Net debt
$-2.17M
Interest coverage
-93.69x
Geospace Technologies Corporation's profit covers its interest bill about 0.0 times over. which is weaker than most peers shown here and 1 peers sit below 1x, which is the danger zone where profit does not fully cover the interest bill.
Healthy
Worse cushion
Baseline
Better cushion
GEOS
BASELINE
Geospace Technologies Corporation
Total debt $663.00K Interest coverage -93.69x This is the baseline the peer rows are being compared against.
Total debt $20.05M Interest coverage -3.10x Neither company has much profit cushion over interest right now.
Total debt $79.41M Interest coverage 1.74x This peer still has a real interest-payment cushion, while GEOS does not.
Total debt $12.78M Interest coverage 42.61x This peer still has a real interest-payment cushion, while GEOS does not.
Total debt $161.97M Interest coverage 4.78x This peer still has a real interest-payment cushion, while GEOS does not.
What you should know
The case for and against GEOS
1 Reward
2 Risks
Rewards
-
Free cash flow was positive in 4/10 years.
Risks
-
Operating margin compressed from -26.4% to -63.8% over 3 years.
-
Return on equity was -34.4% last year — the company lost money on shareholders' equity.
The numbers
All the key metrics, grouped by purpose
Tap any ? icon to learn what it means.
Valuation
How expensive the stock looks
P/E (TTM)
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Forward P/E
9.47x
P/B
0.51x
P/S
0.53x
EV/EBITDA
-1.54x
PEG ratio
0.77x
Profitability
How much profit each dollar creates
Gross margin
8.0%
Operating margin
-63.8%
Net margin
-43.1%
ROE
-34.4%
ROA
-18.5%
Health
Liquidity and balance-sheet strength
Debt / equity
0.01x
Current ratio
2.44x
Quick ratio
0.34x
Total debt
$663.00K
Total cash
$2.83M
Growth
How the business has been compounding
Revenue TTM
$91.85M
Revenue 5Y CAGR
4.0%
EPS TTM
-3.08
EPS 5Y CAGR
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Cash flow
How much cash the business throws off
Operating CF TTM
$-31.45M
Free CF TTM
$-30.20M
FCF margin
-32.9%
Dividend
Shareholder payout
Yield
0.0%
Payout ratio
0.0%
Last ex-div date
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