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Orbit Garant Drill (TSE:OGD)
:OGD
Canadian Market
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Orbit Garant Drill (OGD) AI Stock Analysis

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TSE:OGD

Orbit Garant Drill

(TSX:OGD)

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Outperform 75 (OpenAI - 4o)
Rating:75Outperform
Price Target:
C$2.00
▲(27.39% Upside)
Orbit Garant Drill's strong financial performance and positive earnings call sentiment are the most significant factors contributing to the overall score. The stock's undervaluation further supports its potential for appreciation. However, technical indicators suggest a bearish trend, which slightly offsets the positive outlook.

Orbit Garant Drill (OGD) vs. iShares MSCI Canada ETF (EWC)

Orbit Garant Drill Business Overview & Revenue Model

Company DescriptionOrbit Garant Drilling Inc. (OGD) is a leading Canadian mineral drilling company, providing a comprehensive range of drilling services to the mining industry. Headquartered in Val-d'Or, Quebec, the company operates in various sectors including exploration, definition, and production drilling. Orbit Garant is known for its expertise in diamond drilling and offers specialized services such as underground drilling, surface drilling, and directional drilling, catering to a diverse clientele in the mining sector.
How the Company Makes MoneyOrbit Garant Drill generates revenue primarily through contracts with mining companies for its drilling services. The company's revenue streams include fees for surface and underground drilling services, with rates typically based on meters drilled, project complexity, and duration. Significant partnerships with major mining corporations enhance its revenue by securing long-term contracts and recurring business. Additionally, Orbit Garant's investment in advanced drilling technologies and equipment increases operational efficiency, allowing the company to offer competitive pricing and maintain profitability. The company may also benefit from fluctuations in mineral prices, as increased exploration activities during high commodity price periods can lead to higher demand for its services.

Orbit Garant Drill Earnings Call Summary

Earnings Call Date:Sep 24, 2025
(Q4-2025)
|
% Change Since: |
Next Earnings Date:Nov 12, 2025
Earnings Call Sentiment Positive
The earnings call highlighted significant financial achievements, including record net earnings and revenue growth, improved gross margins, and debt reduction. Positive market conditions, driven by high gold and copper prices, further bolster the outlook. However, challenges such as decreased EBITDA due to foreign exchange issues and demand constraints from junior companies were noted. Overall, the positive aspects of financial performance and market conditions outweigh the challenges.
Q4-2025 Updates
Positive Updates
Record Net Earnings
Highest net earnings in more than 10 years, with net earnings for fiscal 2025 at $7.5 million compared to a net loss of $2.4 million in fiscal 2024.
Revenue Growth
Fiscal 2025 revenue of $189 million, marking an increase of 4.3% compared to fiscal 2024. The fourth quarter revenue grew by 3.9% compared to Q4 last year.
Improved Gross Margin
Adjusted gross margin for fiscal 2025 was 19.5%, up from 15.9% in fiscal 2024, attributed to higher revenue per meter drilled in Canada and increased drilling activity in South America.
Debt Reduction
Net repayment of $7.5 million on the credit facility in fiscal 2025, reducing long-term debt to $14.0 million from $21.5 million at the end of fiscal 2024.
Favorable Market Conditions
Strong demand due to high gold and copper prices, with 60% of revenue generated from gold drilling operations.
Negative Updates
Decreased EBITDA
Adjusted EBITDA for Q4 decreased to $5.5 million from $6.7 million in the previous year, primarily due to unfavorable foreign exchange variance and start-up costs for a new project in South America.
Junior Company Demand Constraints
Demand from junior companies constrained due to financing conditions, although there is a potential for recovery.
Company Guidance
In the fiscal year 2025, Orbit Garant Drilling reported notable financial achievements, including its highest net earnings in over a decade, driven by a strategic focus on senior and intermediate customers in Canada and South America. The company experienced revenue growth of 4.3% year-over-year, reaching $189 million, with Canadian revenue increasing by 2.6% and international revenue by 9.0%. The fourth quarter alone saw a revenue increase of 3.9% compared to the previous year, totaling $47.2 million. Adjusted gross margin for the year was 19.5%, a significant improvement from 15.9% in fiscal 2024, attributed to higher revenue per meter drilled and increased activity in South America. Adjusted EBITDA rose to $21.7 million from $14.7 million the previous year. Net earnings for fiscal 2025 were $7.5 million, or $0.20 per share diluted, compared to a net loss of $2.4 million in fiscal 2024. Additionally, the company reduced its long-term debt to $14.0 million from $21.5 million, while repurchasing and canceling 68,916 common shares. Orbit Garant Drilling's strategic shift, supported by favorable metal prices, positions it well for continued profitability and shareholder value creation.

Orbit Garant Drill Financial Statement Overview

Summary
Orbit Garant Drill has shown a strong financial recovery with significant improvements in profitability and cash flow generation. The income statement indicates robust revenue growth and improved margins. The balance sheet reflects reduced leverage and better returns on equity, while cash flow metrics highlight efficient cash management.
Income Statement
75
Positive
Orbit Garant Drill has shown a strong recovery in its income statement metrics over the past year. The gross profit margin improved to 14.96% from 11.24% in the previous year, indicating better cost management. The net profit margin turned positive at 3.99%, a significant improvement from the negative margins in prior years. Revenue growth was robust at 94%, showcasing a strong rebound. However, the EBIT and EBITDA margins, while positive, remain relatively low, suggesting room for operational efficiency improvements.
Balance Sheet
68
Positive
The company's balance sheet reflects moderate financial stability. The debt-to-equity ratio decreased to 0.48, indicating a reduction in leverage, which is a positive sign. Return on equity improved to 11.01%, reflecting better profitability. However, the equity ratio remains stable, suggesting a balanced asset structure. Continued focus on reducing debt and improving equity returns could enhance financial stability further.
Cash Flow
80
Positive
Cash flow metrics are strong, with a significant increase in free cash flow growth at 291.24%, indicating improved cash generation capabilities. The operating cash flow to net income ratio is healthy at 0.57, suggesting efficient cash conversion. The free cash flow to net income ratio of 0.40 indicates that a substantial portion of earnings is being converted into free cash flow, supporting future investments and debt reduction.
BreakdownTTMDec 2025Dec 2024Dec 2023Dec 2022Dec 2021
Income Statement
Total Revenue189.05M189.05M181.24M200.98M195.47M163.29M
Gross Profit28.03M28.28M20.37M16.82M13.74M20.29M
EBITDA25.19M20.47M9.16M14.87M9.97M17.58M
Net Income7.54M7.54M-1.32M-669.00K-6.65M2.29M
Balance Sheet
Total Assets130.64M130.64M119.88M127.56M137.06M138.14M
Cash, Cash Equivalents and Short-Term Investments3.54M3.54M332.00K2.18M1.02M3.26M
Total Debt32.66M32.66M34.12M37.01M40.31M37.30M
Total Liabilities62.22M62.22M59.65M65.92M74.55M67.79M
Stockholders Equity68.42M68.42M60.23M61.64M62.51M70.35M
Cash Flow
Free Cash Flow7.48M7.32M481.00K4.92M-6.14M1.93M
Operating Cash Flow18.93M18.52M9.22M14.35M5.86M9.79M
Investing Cash Flow-8.99M-8.57M-5.98M-8.44M-10.78M-6.70M
Financing Cash Flow-6.67M-6.67M-5.56M-4.43M2.71M-3.79M

Orbit Garant Drill Technical Analysis

Technical Analysis Sentiment
Negative
Last Price1.57
Price Trends
50DMA
1.66
Negative
100DMA
1.60
Negative
200DMA
1.40
Positive
Market Momentum
MACD
>-0.01
Positive
RSI
35.41
Neutral
STOCH
46.67
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For TSE:OGD, the sentiment is Negative. The current price of 1.57 is below the 20-day moving average (MA) of 1.73, below the 50-day MA of 1.66, and above the 200-day MA of 1.40, indicating a neutral trend. The MACD of >-0.01 indicates Positive momentum. The RSI at 35.41 is Neutral, neither overbought nor oversold. The STOCH value of 46.67 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for TSE:OGD.

Orbit Garant Drill Peers Comparison

Overall Rating
UnderperformOutperform
Sector (61)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
75
Outperform
C$59.27M7.7811.72%4.31%
61
Neutral
$10.43B7.12-0.05%2.87%2.86%-36.73%
59
Neutral
C$213.51M-122.83%80.31%
40
Underperform
C$46.28M-4.45%25.24%
39
Underperform
C$113.28M-3.01%16.83%
33
Underperform
C$95.80M630.000.37%
32
Underperform
C$79.90M-162.80%0.42%
* Basic Materials Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
TSE:OGD
Orbit Garant Drill
1.57
0.89
130.88%
TSE:CDB
Cordoba Minerals
0.88
0.42
91.30%
TSE:LCE
Century Lithium
0.28
-0.08
-22.22%
TSE:FPC
Falco Resources
0.32
-0.05
-13.51%
TSE:NIM
Nicola Mining
1.03
0.76
281.48%
TSE:WM
Wallbridge Mng Co
0.10
0.02
25.00%

Orbit Garant Drill Corporate Events

Business Operations and StrategyFinancial Disclosures
Orbit Garant Reports Increased Earnings in Q3 Fiscal 2025
Positive
May 7, 2025

Orbit Garant Drilling Inc. reported a 3.9% increase in revenue for the third quarter of fiscal 2025, driven by increased drilling activity in South America despite slower activity in Canada. The company’s net earnings rose to $2.7 million, supported by a favorable foreign exchange gain and strategic focus on well-financed intermediate customers, although challenges in the Canadian market impacted overall margins.

Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.Date of analysis: Oct 19, 2025