Breaking Down Mammoth Energy Services, Inc. (TUSK) Financial Health: Key Insights for Investors

Are you keeping a close watch on Mammoth Energy Services, Inc. (TUSK) and wondering about its financial stability? Did you know that in 2024, Mammoth's total revenue reached $187.9 million, even with a net loss of $15.5 million in the fourth quarter? With approximately $86 million in cash, including $21 million in restricted cash, how is Mammoth planning to leverage its debt-free balance sheet for future growth and what does this mean for investors like you?

Mammoth Energy Services, Inc. (TUSK) Revenue Analysis

Understanding the revenue streams of Mammoth Energy Services, Inc. (TUSK) is crucial for investors seeking to assess the company's financial health and future prospects. A detailed breakdown reveals the primary sources of income, growth trends, and the impact of different business segments on the company's overall financial performance.

Mammoth Energy Services, Inc. primarily generates revenue through various services and products within the energy sector. These include:

• Infrastructure Services: This segment focuses on providing services related to the construction, maintenance, and repair of energy infrastructure.
• Drilling Services: Offering drilling solutions and services to energy companies.
• Well Services: Providing services related to well completion, maintenance, and intervention.
• Equipment Rentals: Renting out specialized equipment used in energy operations.

Analyzing the year-over-year revenue growth rate provides insights into the company's performance trends. While specific percentage increases or decreases can fluctuate annually based on market conditions, tracking these historical trends helps investors gauge the company’s ability to adapt and grow. Keep in mind that the energy sector is subject to volatility, and Mammoth's revenue can be significantly impacted by factors such as commodity prices and regulatory changes.

To further understand Mammoth Energy Services, Inc.'s revenue, it is essential to consider the contribution of each business segment to the overall revenue. The following table presents a hypothetical breakdown of revenue contribution by segment, aimed to provide a clear view. Note, this is not real data.

Changes in revenue streams are common in the dynamic energy sector. Factors such as acquisitions, divestitures, or shifts in market demand can lead to significant changes. Investors should closely monitor these changes and assess their potential impact on the company's financial stability and growth prospects. For instance, a strategic shift towards renewable energy infrastructure could open new revenue streams and reduce reliance on traditional oil and gas services.

To gain deeper insights into the investors of Mammoth Energy Services, Inc. (TUSK), explore this resource: Exploring Mammoth Energy Services, Inc. (TUSK) Investor Profile: Who’s Buying and Why?

Mammoth Energy Services, Inc. (TUSK) Profitability Metrics

A comprehensive analysis of Mammoth Energy Services, Inc. (TUSK) reveals key insights into its profitability metrics. Understanding these metrics is crucial for investors to gauge the company's financial health and operational efficiency. You can also read more about the Mission Statement, Vision, & Core Values of Mammoth Energy Services, Inc. (TUSK).

Here's a breakdown of the company's profitability:

• Gross Profit: For the full year 2024, Mammoth Energy Services reported a gross profit of $17.2 million.
• Operating Income/Loss: The operating loss for the third quarter of 2024 was $9.87 million.
• Net Loss: For the full year 2024, the company's net loss was $207.3 million, or $4.31 loss per diluted share. In Q4 2024, the net loss stood at $15.5 million, or $0.32 per diluted share.
• Adjusted EBITDA: The adjusted EBITDA for the full year 2024 was ($167.5) million, compared to $71.0 million in 2023.

The financial results for 2024 indicate a challenging year for Mammoth Energy Services, with a significant net loss compared to the previous year. However, the company reported improved utilization rates and revenue growth in the fourth quarter compared to the third quarter, signaling potential positive momentum heading into 2025.

Trends in Profitability Over Time

Analyzing the trends in profitability over time provides a clearer picture of Mammoth Energy Services' financial trajectory.

• Revenue: Total revenue for 2024 was $187.9 million, a decrease from $309.5 million in 2023.
• Gross Profit Margin: Mammoth Energy Services's median gross profit margin from fiscal years ending December 2020 to 2024 was 19.9%. For the year 2024, the gross profit margin was 9.14%.
• Net Profit Margin: The net profit margin for 2024 was -110.32%.

The company's profitability has been volatile, with significant fluctuations in gross profit and net profit margins over the past few years.

Comparison of Profitability Ratios with Industry Averages

Benchmarking Mammoth Energy Services' profitability ratios against industry averages provides valuable context. However, industry-specific data for 2024 is limited, so we'll consider available information and general benchmarks.

Here is a general overview of industry averages for profitability ratios:

• Gross Profit Margin: Industry averages can vary widely but often fall between 3.48% and 15.97%.
• Operating Profit Margin: Typical industry averages range from -0.83% to 5.88%.
• Pre-Tax Profit Margin: Industry averages generally range from -9.52% to 3.39%.

Given Mammoth Energy Services' reported gross profit margin of 9.14% and a net profit margin of -110.32% for 2024, the company's performance lags behind industry standards. The negative net profit margin indicates significant challenges in managing overall profitability.

Analysis of Operational Efficiency

Operational efficiency is critical to Mammoth Energy Services' profitability. Key factors include cost management and gross margin trends.

• Cost Management: The company is focused on efficient and effective cost management to align with customer activity levels. In Q2 2024, they focused on efficient cost management to align with customer activity levels.
• Gross Margin Trends: While gross profit was $17.2 million, the gross profit margin stood at 9.14% for 2024.

Despite efforts to manage costs, the significant net loss indicates that cost management and revenue generation need improvement. The company is proactively lowering its 2024 capex guidance to $9 million, a $6 million decrease from prior guidance, showing an effort to manage capital expenditures.

Mammoth Energy Services faces considerable challenges in achieving profitability. While there are signs of potential improvement, significant operational and financial adjustments are needed to align with industry standards and ensure long-term financial health.

Mammoth Energy Services, Inc. (TUSK) Debt vs. Equity Structure

Understanding how Mammoth Energy Services, Inc. (TUSK) finances its operations and growth is crucial for investors. This involves analyzing the company's debt levels, its debt-to-equity ratio, and how it strategically uses debt and equity to fund its activities. For further insights into the company's strategic direction, refer to the Mission Statement, Vision, & Core Values of Mammoth Energy Services, Inc. (TUSK).

As of the fiscal year 2024, a detailed breakdown of Mammoth Energy Services, Inc. (TUSK)'s debt levels is essential to gauge its financial risk. This includes both short-term and long-term debt obligations.

• Short-Term Debt: Analyzing the amount of debt due within the next 12 months.
• Long-Term Debt: Examining debt obligations that extend beyond one year.

The debt-to-equity ratio is a key metric for assessing Mammoth Energy Services, Inc. (TUSK)'s financial leverage. It indicates the proportion of debt and equity the company uses to finance its assets. A higher ratio suggests greater financial risk, while a lower ratio indicates a more conservative approach.

Industry standards for debt-to-equity ratios vary, but comparing Mammoth Energy Services, Inc. (TUSK)'s ratio to its peers provides valuable context. A ratio significantly above the industry average might raise concerns, while one below average could signal financial strength.

Recent activities, such as debt issuances, credit rating changes, or refinancing, can significantly impact Mammoth Energy Services, Inc. (TUSK)'s financial health. For example:

• New debt issuances may provide capital for expansion but increase debt burden.
• Improved credit ratings can lower borrowing costs.
• Refinancing activities might extend debt maturities or reduce interest rates.

Mammoth Energy Services, Inc. (TUSK) strategically balances debt and equity to optimize its capital structure. Debt financing can offer tax advantages and potentially higher returns on equity, but it also increases financial risk. Equity funding, on the other hand, dilutes ownership but reduces financial leverage.

The optimal mix of debt and equity depends on various factors, including the company's growth prospects, risk tolerance, and market conditions. A well-balanced approach ensures financial flexibility and supports sustainable growth.

Mammoth Energy Services, Inc. (TUSK) Liquidity and Solvency

Understanding Mammoth Energy Services, Inc.'s financial health requires a close examination of its liquidity and solvency. Liquidity refers to the company's ability to meet its short-term obligations, while solvency assesses its ability to meet long-term obligations.

Liquidity Ratios:

As of the year ended December 31, 2023, Mammoth Energy Services, Inc. showcases the following liquidity positions:

• Current Ratio: The current ratio, a key indicator of short-term liquidity, stood at 1.3x. This ratio compares current assets to current liabilities, providing insight into the company's ability to cover its immediate obligations.
• Quick Ratio: The quick ratio, which excludes inventories from current assets, was 1.1x. This offers a more conservative view of liquidity, focusing on the most liquid assets.

Working Capital Trends:

Analyzing the trends in working capital provides a deeper understanding of Mammoth Energy Services, Inc.’s operational efficiency and short-term financial health. The components of working capital, including accounts receivable, accounts payable, and inventory levels, play a crucial role in assessing the company's ability to manage its short-term liabilities. The company’s working capital was $72.9 million as of December 31, 2023, compared to $59.2 million as of December 31, 2022.

Cash Flow Statements Overview:

An overview of cash flow statements reveals the trends in operating, investing, and financing activities, offering insights into how Mammoth Energy Services, Inc. generates and uses cash.

• Operating Cash Flow: For the year 2023, net cash provided by operating activities was approximately $78.3 million, compared to $49.4 million for the year 2022.
• Investing Cash Flow: Net cash used in investing activities totaled $13.9 million for the year 2023, versus $7.4 million for the year 2022.
• Financing Cash Flow: Net cash used in financing activities amounted to $23.7 million for the year 2023, compared to net cash used in financing activities of $3.2 million for the year 2022.

Potential Liquidity Concerns or Strengths:

Mammoth Energy Services, Inc. exhibits both strengths and potential concerns regarding its liquidity position.

• Strengths: The increase in net cash provided by operating activities from $49.4 million in 2022 to $78.3 million in 2023 signals enhanced operational efficiency and cash generation capabilities. This improvement bolsters the company's ability to meet its short-term obligations and invest in future growth opportunities.
• Concerns: The increase in net cash used in investing activities from $7.4 million in 2022 to $13.9 million in 2023 indicates higher capital expenditures. While these investments may drive long-term growth, they could strain short-term liquidity if not managed effectively.

Debt and Solvency Analysis:

As of December 31, 2023, Mammoth Energy Services, Inc. had a total debt of $27.4 million, reflecting its reliance on borrowed funds to finance operations and growth initiatives.

Financial Leverage:

Financial leverage ratios provide insights into the extent to which Mammoth Energy Services, Inc. uses debt to finance its assets and operations. As of December 31, 2023:

• Debt-to-Equity Ratio: The debt-to-equity ratio, which compares total debt to shareholders' equity, stood at 0.09x.

Interest Coverage:

The interest coverage ratio assesses Mammoth Energy Services, Inc.'s ability to cover its interest expenses with its earnings. A higher ratio indicates a stronger capacity to meet interest obligations. For the year 2023, the interest coverage ratio can be calculated using earnings before interest and taxes (EBIT) and interest expense:

• Interest Expense: $2.6 million for the year 2023.

Additional Solvency Considerations:

Beyond the ratios, several qualitative factors influence Mammoth Energy Services, Inc.'s solvency. These include:

• Industry Trends: The cyclical nature of the energy sector impacts the company’s long-term revenue and profitability.
• Asset Quality: The value and liquidity of Mammoth Energy Services, Inc.'s assets support its solvency.
• Contingent Liabilities: Any potential legal or environmental liabilities could affect its long-term financial stability.

Summary Table:

For further insights, you might find this resource helpful: Breaking Down Mammoth Energy Services, Inc. (TUSK) Financial Health: Key Insights for Investors

Mammoth Energy Services, Inc. (TUSK) Valuation Analysis

Assessing whether Mammoth Energy Services, Inc. (TUSK) is overvalued or undervalued requires a multifaceted approach, incorporating key financial ratios, stock performance analysis, and analyst sentiment. This comprehensive evaluation provides investors with a clearer understanding of the company's current market position.

Key valuation ratios offer a snapshot of Mammoth Energy Services, Inc.'s financial health:

• Price-to-Earnings (P/E) Ratio: This ratio indicates how much investors are willing to pay for each dollar of earnings. A higher P/E ratio might suggest overvaluation, while a lower one could indicate undervaluation, relative to industry peers or historical averages.
• Price-to-Book (P/B) Ratio: The P/B ratio compares a company's market capitalization to its book value of equity. A lower P/B ratio may suggest that the stock is undervalued, as it implies the market is valuing the company at less than its net asset value.
• Enterprise Value-to-EBITDA (EV/EBITDA) Ratio: This ratio compares a company's enterprise value (total market value plus debt, minus cash) to its earnings before interest, taxes, depreciation, and amortization (EBITDA). It provides a more comprehensive valuation measure than the P/E ratio, especially for companies with significant debt.

Analyzing Mammoth Energy Services, Inc.'s stock price trends over the past year or longer provides context on market sentiment and investor confidence. Recent data indicates:

As of April 18, 2025, Mammoth Energy Services, Inc. (TUSK) has a Beta of 2.66, suggesting higher volatility compared to the market average. Investors should be aware of these fluctuations when making investment decisions.

Dividend yield and payout ratios are essential for income-focused investors. However, it's important to note:

• Mammoth Energy Services, Inc. does not currently offer a dividend. Therefore, dividend yield and payout ratios are not applicable in this valuation analysis.

Analyst consensus plays a crucial role in shaping market perception. Recent analyst ratings provide insights into the prevailing sentiment regarding Mammoth Energy Services, Inc.'s stock:

• Based on the last 3 months, 1 analyst has offered 12-month price targets for Mammoth Energy Services, Inc. The consensus target suggests a potential upside.
• The average price target is $16.00.
• The range of price targets spans from a low of $16.00 to a high of $16.00.

These targets reflect analysts' expectations for the stock's performance over the next year.

Here is a summary table of key financial data for Mammoth Energy Services, Inc. as of fiscal year 2024:

Understanding Mammoth Energy Services, Inc.'s core values and strategic objectives can further inform investment decisions. Learn more at: Mission Statement, Vision, & Core Values of Mammoth Energy Services, Inc. (TUSK).

By considering these factors, investors can make well-informed decisions about Mammoth Energy Services, Inc.'s valuation and potential investment opportunities.

Mammoth Energy Services, Inc. (TUSK) Risk Factors

Mammoth Energy Services, Inc. (TUSK) faces a variety of internal and external risks that could significantly impact its financial health. These risks span industry competition, regulatory changes, market conditions, and specific operational and strategic challenges highlighted in the company's reports.

Here's a breakdown of key risk areas:

• Industry Competition: The energy sector is highly competitive. Mammoth Energy Services, Inc. (TUSK) competes with numerous other companies, some of which may have greater financial resources or a stronger market presence. Intense competition can lead to pricing pressures, reduced profit margins, and difficulty in securing contracts.
• Regulatory Changes: Changes in environmental regulations, energy policies, and other government regulations can significantly affect Mammoth Energy Services, Inc. (TUSK)'s operations and financial performance. Compliance with new regulations may require substantial investments or limit the company's ability to pursue certain business opportunities.
• Market Conditions: The demand for Mammoth Energy Services, Inc. (TUSK)'s services is closely tied to the overall health of the energy market. Fluctuations in oil and natural gas prices, drilling activity, and infrastructure development can impact the company's revenue and profitability. Economic downturns or shifts in energy demand patterns can create significant challenges.

Recent earnings reports and filings may highlight specific operational, financial, or strategic risks. These could include:

• Operational Risks: These risks relate to the efficiency and effectiveness of Mammoth Energy Services, Inc. (TUSK)'s operations. Examples include equipment failures, supply chain disruptions, project delays, and safety incidents.
• Financial Risks: Financial risks involve the company's ability to manage its debt, generate sufficient cash flow, and maintain adequate liquidity. Factors such as high debt levels, fluctuating interest rates, and difficulty in collecting receivables can pose financial challenges.
• Strategic Risks: Strategic risks pertain to the company's long-term goals and plans. These risks may include unsuccessful acquisitions, failure to adapt to technological changes, or an inability to capitalize on new market opportunities.

Mitigation strategies and plans are crucial for addressing these risks. While specific details may vary depending on the nature of the risk, common strategies include:

• Diversification: Expanding into new markets or service offerings can reduce Mammoth Energy Services, Inc. (TUSK)'s reliance on any single area of the energy sector.
• Cost Management: Implementing measures to control costs and improve efficiency can help the company maintain profitability even during periods of market volatility.
• Risk Management Programs: Establishing comprehensive risk management programs can help identify, assess, and mitigate potential risks across the organization.
• Insurance: Obtaining adequate insurance coverage can protect the company from financial losses resulting from accidents, natural disasters, or other unforeseen events.

Investors can stay informed about Mammoth Energy Services, Inc. (TUSK)'s risk profile and mitigation efforts by regularly reviewing the company's filings with the Securities and Exchange Commission (SEC), listening to earnings calls, and monitoring industry news.

Learn more about the investors of Mammoth Energy Services, Inc. (TUSK): Exploring Mammoth Energy Services, Inc. (TUSK) Investor Profile: Who’s Buying and Why?

Mammoth Energy Services, Inc. (TUSK) Growth Opportunities

To understand Mammoth Energy Services, Inc.'s (TUSK) future, it's important to consider the factors that will drive its growth. These include new offerings, expanding into different markets, and strategic acquisitions.

While specific future revenue growth projections and earnings estimates for Mammoth Energy Services, Inc. (TUSK) are not available, keeping an eye on industry trends and company announcements is crucial for investors. Factors to consider include:

• Product Innovations: Advances in technology and service offerings can set Mammoth Energy Services, Inc. (TUSK) apart from its competitors.
• Market Expansions: Entering new geographical areas or service sectors can significantly boost revenue.
• Acquisitions: Buying other companies can provide access to new technologies, markets, or customers.

Strategic initiatives and partnerships can also play a key role in Mammoth Energy Services, Inc.'s (TUSK) growth trajectory. These collaborations can provide access to new resources, technologies, or markets, enhancing the company's competitive position.

Mammoth Energy Services, Inc. (TUSK) has certain competitive advantages that could support its growth, such as specialized expertise, strong customer relationships, or unique technologies. Examining these strengths relative to its competitors is essential for assessing its long-term potential.

For a deeper dive into the investor landscape, check out: Exploring Mammoth Energy Services, Inc. (TUSK) Investor Profile: Who’s Buying and Why?