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We were established in 1936 and are one of the world s leading providers of proprietary and patented reservoir description and production enhancement services and products to the oil and gas industry, primarily through client relationships with many of the world s major, national and independent oil companies. These services and products can enable our clients to evaluate and improve reservoir …
10.72% operating margin is respectable but not wide. ROIC at 9.50%. Suggests the business covers its cost of capital, but doesn't point to a wide moat.
Revenue growth slowed to 0.5%, essentially flat. This is a business that needs a catalyst.
Free cash flow declined 42% versus the prior year, cash generation momentum has weakened. Net debt of $141M represents 5.5x FCF, leverage limits flexibility.
Profitability & Returns
Revenue (TTM)
$525M
▲ +0.5% YoY
Net Income (TTM)
$29M
▼ -5.5% YoY
Op. Margin
10.27%
▼ -0.5pp YoY
ROIC
9.27%
▼ -0.7pp YoY
Cash Flow & Balance Sheet
FCF (FY)
$26M
▼ -42.0% YoY
Op. Cash Flow (TTM)
$34M
▼ -34.3% YoY
Net Debt
$145M
Cash & Equiv.
$23M
3Y CAGR: +2.4%
3Y CAGR: +20.5%
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