TSX:GEO

Stock Analysis Report

NOT FOR DISTRIBUTION
Header cover image

Executive Summary

Geodrill Limited, together with its subsidiaries, provides exploration and development drilling services to major, intermediate, and junior mining companies with exploration, development, and production operations in West Africa and the African copper belt.


Snowflake Analysis

Flawless balance sheet with solid track record.


Similar Companies

Share Price & News

How has Geodrill's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: GEO's share price has been volatile over the past 3 months.


Market Performance


7 Day Return

-5.8%

GEO

2.6%

CA Metals and Mining

1.5%

CA Market


1 Year Return

-10.4%

GEO

34.6%

CA Metals and Mining

-11.5%

CA Market

Return vs Industry: GEO underperformed the Canadian Metals and Mining industry which returned 31.4% over the past year.

Return vs Market: GEO exceeded the Canadian Market which returned -12.4% over the past year.


Shareholder returns

GEOIndustryMarket
7 Day-5.8%2.6%1.5%
30 Day17.6%14.0%-2.3%
90 Day17.6%45.4%12.2%
1 Year-10.4%-10.4%35.6%34.6%-8.4%-11.5%
3 Year-22.6%-22.6%32.4%30.2%4.4%-5.5%
5 Year110.0%110.0%87.9%82.8%21.9%3.5%

Price Volatility Vs. Market

How volatile is Geodrill's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is Geodrill undervalued compared to its fair value and its price relative to the market?

19.47x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: GEO (CA$1.47) is trading above our estimate of fair value (CA$0.15)

Significantly Below Fair Value: GEO is trading above our estimate of fair value.


Price To Earnings Ratio

PE vs Industry: GEO is good value based on its PE Ratio (19.5x) compared to the Metals and Mining industry average (24.4x).

PE vs Market: GEO is poor value based on its PE Ratio (19.5x) compared to the Canadian market (13.1x).


Price to Earnings Growth Ratio

PEG Ratio: Insufficient data to calculate GEO's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: GEO is good value based on its PB Ratio (0.7x) compared to the CA Metals and Mining industry average (2.2x).


Next Steps

Future Growth

How is Geodrill forecast to perform in the next 1 to 3 years based on estimates from 4 analysts?

13.6%

Forecasted annual revenue growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: Insufficient data to determine if GEO's forecast earnings growth is above the savings rate (1.7%).

Earnings vs Market: Insufficient data to determine if GEO's earnings are forecast to grow faster than the Canadian market

High Growth Earnings: Insufficient data to determine if earnings are expected to grow significantly over the next 3 years.

Revenue vs Market: GEO's revenue (13.6% per year) is forecast to grow faster than the Canadian market (5.5% per year).

High Growth Revenue: GEO's revenue (13.6% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: Insufficient data to determine if GEO's Return on Equity is forecast to be high in 3 years time


Next Steps

Past Performance

How has Geodrill performed over the past 5 years?

25.4%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: GEO has high quality earnings.

Growing Profit Margin: GEO's current net profit margins (3%) are higher than last year (1%).


Past Earnings Growth Analysis

Earnings Trend: GEO has become profitable over the past 5 years, growing earnings by 25.4% per year.

Accelerating Growth: GEO's earnings growth over the past year (199.6%) exceeds its 5-year average (25.4% per year).

Earnings vs Industry: GEO earnings growth over the past year (199.6%) exceeded the Metals and Mining industry 18.3%.


Return on Equity

High ROE: GEO's Return on Equity (3.7%) is considered low.


Next Steps

Financial Health

How is Geodrill's financial position?


Financial Position Analysis

Short Term Liabilities: GEO's short term assets ($45.7M) exceed its short term liabilities ($17.4M).

Long Term Liabilities: GEO's short term assets ($45.7M) exceed its long term liabilities ($3.7M).


Debt to Equity History and Analysis

Debt Level: GEO's debt to equity ratio (4.9%) is considered satisfactory.

Reducing Debt: GEO's debt to equity ratio has reduced from 16% to 4.9% over the past 5 years.

Debt Coverage: GEO's debt is well covered by operating cash flow (283.1%).

Interest Coverage: GEO's interest payments on its debt are well covered by EBIT (21.6x coverage).


Balance Sheet


Next Steps

Dividend

What is Geodrill current dividend yield, its reliability and sustainability?


Dividend Yield vs Market

Notable Dividend: Unable to evaluate GEO's dividend yield against the bottom 25% of dividend payers, as the company has not reported any recent payouts.

High Dividend: Unable to evaluate GEO's dividend yield against the top 25% of dividend payers, as the company has not reported any recent payouts.


Stability and Growth of Payments

Stable Dividend: Insufficient data to determine if GEO's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if GEO's dividend payments have been increasing.


Current Payout to Shareholders

Dividend Coverage: Insufficient data to calculate payout ratio to determine if its dividend payments are covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: No need to calculate the sustainability of GEO's dividend in 3 years as they are not forecast to pay a notable one for the Canadian market.


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

7.9yrs

Average management tenure


CEO

Dave Harper

no data

Tenure

US$1,356,120

Compensation

Mr. David Michael Harper, also known as Dave, FAIA, LEED AP, serves as the Chairman and Chief Executive Officer of HKS HADP Studio. Mr. Harper serves as the Chief Executive Officer and President of GEODRIL ...


CEO Compensation Analysis

Compensation vs Market: Dave's total compensation ($USD1.36M) is above average for companies of similar size in the Canadian market ($USD173.14K).

Compensation vs Earnings: Dave's compensation has increased by more than 20% in the past year.


Leadership Team

NamePositionTenureCompensationOwnership
David Harper
Presidentno dataUS$1.36m39.99% $26.9m
Gregory Borsk
Chief Financial Officer7.92yrsUS$750.93k1.04% $696.9k
Terry Burling
Chief Operating Officer9.67yrsUS$759.45k4.75% $3.2m
Victoria Prentice
Corporate Secretary6.83yrsUS$113.55k0.10% $67.9k

7.9yrs

Average Tenure

Experienced Management: GEO's management team is seasoned and experienced (7.9 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
David Harper
Presidentno dataUS$1.36m39.99% $26.9m
Ronald Sellwood
Independent Director8.67yrsUS$97.44k0.57% $385.0k
Johnny Ciampi
Independent Director1.17yrsUS$39.44kno data
Samuel Bingham
Independent Chairman of the Board9.58yrsUS$105.16k0.39% $264.2k

9.1yrs

Average Tenure

Experienced Board: GEO's board of directors are considered experienced (9.1 years average tenure).


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Top Shareholders

Company Information

Geodrill Limited's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Geodrill Limited
  • Ticker: GEO
  • Exchange: TSX
  • Founded: 1998
  • Industry: Diversified Metals and Mining
  • Sector: Materials
  • Market Cap: CA$67.268m
  • Shares outstanding: 44.55m
  • Website: https://www.geodrill-gh.com

Number of Employees


Location

  • Geodrill Limited
  • Ragnall House
  • South Suite
  • Douglas
  • IM1 4LZ
  • Isle of Man

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
GEOTSX (The Toronto Stock Exchange)YesOrdinary SharesCACADDec 2010
GDLL.FOTCPK (Pink Sheets LLC)YesOrdinary SharesUSUSDDec 2010

Biography

Geodrill Limited, together with its subsidiaries, provides exploration and development drilling services to major, intermediate, and junior mining companies with exploration, development, and production operations in West Africa and the African copper belt. The company offers reverse circulation (RC), diamond core, air-core, RC grade control, water borehole, and underground drilling services. It operates a fleet of multi-purpose, core, air-core, grade control, and underground drill rigs; boosters and auxiliary compressors; and various support vehicles, such as pick-up trucks, MAN trucks, and other trucks, as well as purpose-built crawler-mounted support vehicles and Bell tractors. The company operates a fleet of 67 drill rigs. Geodrill Limited was founded in 1998 and is headquartered in Douglas, Isle of Man. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/07/07 00:09
End of Day Share Price2020/07/06 00:00
Earnings2020/03/31
Annual Earnings2019/12/31


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.