NYSE:IO

Stock Analysis Report

Executive Summary

ION Geophysical Corporation, together with its subsidiaries, provides a suite of services and products for seismic data acquisition and processing in Latin America, North America, Europe, the Asia Pacific, Africa, the Middle East, and internationally.


Snowflake Analysis

Imperfect balance sheet with weak fundamentals.


Similar Companies

Share Price & News

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


Latest Share Price and Events

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


Market Performance


7 Day Return

69.2%

IO

-7.7%

US Energy Services

-4.1%

US Market


1 Year Return

-86.4%

IO

-72.8%

US Energy Services

-14.9%

US Market

Return vs Industry: IO underperformed the US Energy Services industry which returned -71.9% over the past year.

Return vs Market: IO underperformed the US Market which returned -10.7% over the past year.


Shareholder returns

IOIndustryMarket
7 Day69.2%-7.7%-4.1%
30 Day-29.2%-51.0%-19.1%
90 Day-73.4%-67.3%-23.4%
1 Year-86.4%-86.4%-71.9%-72.8%-13.2%-14.9%
3 Year-50.5%-50.5%-80.6%-83.2%10.7%3.5%
5 Year-93.1%-93.1%-82.0%-85.3%28.5%14.5%

Price Volatility Vs. Market

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


Simply Wall St News

Valuation

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


In this section, we usually try to help investors determine whether ION Geophysical is trading at an attractive price based on the cash flow it is expected to produce in the future. But as ION Geophysical has not provided consistent financial data, and the stock also has no analyst forecast or coverage, its intrinsic value cannot be reliably calculated by extrapolating past data or using analyst consensus cash flow predictions.

This is quite a rare situation as 89% of companies covered by Simply Wall St do have a valuation analysis.


Next Steps

  • Take a look at our analysis of IO’s management and see if the CEO’s compensation is within a reasonable range, who is on the board and if insiders have been trading lately.
  • When valuing a company like this, investors focus more on how they perceive the size of the opportunity, the company's ability to deliver and scale, and the strength of the team. While we are not analysing this type of data at the moment, if you don’t know where to start, we recommend reading through ION Geophysical regulatory filings.
  • Explore potentially undervalued companies in the Energy industry.

Future Growth

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

26.6%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: IO is forecast to remain unprofitable over the next 3 years.

Earnings vs Market: IO is forecast to remain unprofitable over the next 3 years.

High Growth Earnings: IO is forecast to remain unprofitable over the next 3 years.

Revenue vs Market: IO's revenue (1.5% per year) is forecast to grow slower than the US market (7.2% per year).

High Growth Revenue: IO's revenue (1.5% 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 IO's Return on Equity is forecast to be high in 3 years time


Next Steps

Past Performance

How has ION Geophysical performed over the past 5 years?

31.0%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: IO is currently unprofitable.

Growing Profit Margin: IO is currently unprofitable.


Past Earnings Growth Analysis

Earnings Trend: IO is unprofitable, but has reduced losses over the past 5 years at a rate of 31% per year.

Accelerating Growth: Unable to compare IO's earnings growth over the past year to its 5-year average as it is currently unprofitable

Earnings vs Industry: IO is unprofitable, making it difficult to compare its past year earnings growth to the Energy Services industry (-34.4%).


Return on Equity

High ROE: IO's liabilities exceed its assets, so it is difficult to calculate its Return on Equity.


Next Steps

Financial Health

How is ION Geophysical's financial position?


Financial Position Analysis

Short Term Liabilities: IO has negative shareholder equity, which is a more serious situation than short term assets not covering short term liabilities.

Long Term Liabilities: IO has negative shareholder equity, which is a more serious situation than short term assets not covering long term liabilities.


Debt to Equity History and Analysis

Debt Level: IO has negative shareholder equity, which is a more serious situation than a high debt level.

Reducing Debt: IO's has negative shareholder equity, so we do not need to check if its debt has reduced over time.


Balance Sheet

Inventory Level: IO has a high level of physical assets or inventory.

Debt Coverage by Assets: IO has negative shareholder equity (liabilities exceed assets) therefore debt is not covered by short term assets.


Cash Runway Analysis

For companies that have on average been loss making in the past we assess whether they have at least 1 year of cash runway.

Stable Cash Runway: Whilst unprofitable IO has sufficient cash runway for more than 3 years if it maintains its current positive free cash flow level.

Forecast Cash Runway: IO is unprofitable but has sufficient cash runway for more than 3 years, even with free cash flow being positive and shrinking by -19% per year.


Next Steps

Dividend

What is ION Geophysical's current dividend yield, its reliability and sustainability?


Dividend Yield vs Market

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

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


Stability and Growth of Payments

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

Growing Dividend: Insufficient data to determine if IO'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 IO's dividend in 3 years as they are not forecast to pay a notable one for the US market.


Next Steps

Management

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

0.8yrs

Average management tenure


CEO

Chris Usher (58yo)

0.83

Tenure

US$1,760,257

Compensation

Mr. Christopher T. Usher, also known as Chris, has been President, Chief Executive Officer and Director of ION Geophysical Corporation since June 1, 2019. Mr. Usher served as Chief Operating Officer of Ope ...


CEO Compensation Analysis

Compensation vs Market: Chris's total compensation ($USD1.76M) is above average for companies of similar size in the US market ($USD605.16K).

Compensation vs Earnings: Chris's compensation has increased whilst the company is unprofitable.


Leadership Team

NamePositionTenureCompensationOwnership
Christopher Usher
CEO, President & Director0.83yrUS$1.76m1.98% $635.2k
Matthew Powers
Executive VP2.58yrsUS$862.82k0.38% $121.3k
Steven Bate
Strategic Advisor0.17yrUS$1.88m1.41% $450.4k
Kenneth Williamson
Executive VP and COO of E&P Technology & Services13.25yrsUS$1.83m1.16% $370.4k
Michael Morrison
Interim Executive VP0.17yrno data0.43% $137.6k
Rachel White
Vice President of Corporate Communicationsno datano datano data
Larry Burke
Executive Vice President of Global Human Resourcesno datano datano data

0.8yrs

Average Tenure

54yo

Average Age

Experienced Management: IO's management team is not considered experienced ( 0.8 years average tenure), which suggests a new team.


Board Members

NamePositionTenureCompensationOwnership
Christopher Usher
CEO, President & Director0.83yrUS$1.76m1.98% $635.2k
James Lapeyre
Chairman & Lead Independent Director7.25yrsUS$221.72k3.85% $1.2m
S. Nelson
Independent Director15.67yrsUS$212.72k0.15% $49.0k
John Seitz
Independent Director16.67yrsUS$201.72k0.17% $53.5k
Michael McGovern
Director0.83yrno data0.034% $10.8k
David Barr
Independent Director9.33yrsUS$191.72k0.21% $68.5k
Huasheng Zheng
Independent Director2yrsUS$117.17k0.042% $13.4k
Tina Wininger
Director0.83yrno datano data

4.6yrs

Average Tenure

66.5yo

Average Age

Experienced Board: IO's board of directors are considered experienced (4.6 years average tenure).


Ownership

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


Insider Trading Volume

Insider Buying: IO insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: Shareholders have been diluted in the past year, with total shares outstanding growing by 3.2%.


Top Shareholders

Company Information

ION Geophysical Corporation's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: ION Geophysical Corporation
  • Ticker: IO
  • Exchange: NYSE
  • Founded: 1968
  • Industry: Oil and Gas Equipment and Services
  • Sector: Energy
  • Market Cap: US$32.006m
  • Shares outstanding: 14.22m
  • Website: https://www.iongeo.com

Number of Employees


Location

  • ION Geophysical Corporation
  • 2105 CityWest Boulevard
  • Suite 100
  • Houston
  • Texas
  • 77042-2839
  • United States

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
IONYSE (New York Stock Exchange)YesCommon StockUSUSDApr 1991
IO8NDB (Deutsche Boerse AG)YesCommon StockDEEURApr 1991

Biography

ION Geophysical Corporation, together with its subsidiaries, provides a suite of services and products for seismic data acquisition and processing in Latin America, North America, Europe, the Asia Pacific, Africa, the Middle East, and internationally. The company operates in two segments: E&P Technology & Services and Operations Optimization. The E&P Technology & Services segment offers data processing and imaging services; and survey planning and design, data acquisition and management, subsurface imaging, and reservoir characterization, as well as technical, commercial, and strategic advisory services. The Operations Optimization segment provides survey design, and command and control software systems and related services for marine towed streamer and seabed operations; and in-field optimization, and equipment maintenance and training services. This segment also develops, manufactures, and repairs marine towed streamer positioning and data acquisition systems, ocean bottom data acquisition technologies, marine diverters, analog geophones, and land acquisition systems, which are deployed in marine robotics, defense, scientific, exploration and production, and other commercial applications. ION Geophysical Corporation markets and sells its services and products through direct sales force and third-party sales representatives. The company was formerly known as Input/Output, Inc. and changed its name to ION Geophysical Corporation in 2007. ION Geophysical Corporation was founded in 1968 and is headquartered in Houston, Texas. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/04/03 06:52
End of Day Share Price2020/04/02 00:00
Earnings2019/12/31
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.