| Valuation method | Value, $ | Upside, % |
|---|---|---|
| Artificial intelligence (AI) | 60.44 | 2483 |
| Intrinsic value (DCF) | 0.79 | -66 |
| Graham-Dodd Method | n/a | |
| Graham Formula | 126.67 | 5313 |
Mammoth Energy Services, Inc. (NASDAQ: TUSK) is a diversified energy services company specializing in infrastructure, well completion, natural sand proppant, and drilling services. Operating primarily in the U.S. and Canada, Mammoth serves utilities, oil and gas producers, and drilling contractors with a broad portfolio that includes electric transmission and distribution, hydraulic fracturing, sand logistics, and land drilling. The company’s Infrastructure Services segment is a key player in storm recovery and grid modernization, while its Well Completion Services segment supports shale production through high-pressure fracking. Despite cyclical energy market pressures, Mammoth maintains a niche in integrated energy solutions, combining engineering, logistics, and field operations. With a market cap of ~$115.5M and a focus on cost efficiency, Mammoth is positioned to capitalize on infrastructure spending and oilfield activity rebounds, though its high beta (1.477) reflects sensitivity to commodity prices and utility demand.
Mammoth Energy Services presents a high-risk, high-reward opportunity tied to energy and infrastructure cycles. The company’s diversified segments offer revenue stability, with Infrastructure Services benefiting from grid investment and storm restoration, while Well Completion Services remains leveraged to shale activity. However, FY2023’s net loss of $207.3M and negative EPS (-$4.31) highlight operational challenges, likely from volatile fracking demand and sand pricing. Positive operating cash flow ($180.7M) suggests liquidity, but the zero dividend and modest market cap signal limited appeal to conservative investors. The stock’s high beta implies amplified volatility, making it suited for tactical investors betting on energy sector recovery or infrastructure stimulus. Key risks include debt ($18M) and reliance on oil/gas capex, while potential upside lies in utility contracts and frac sand logistics efficiency.
Mammoth Energy’s competitive advantage stems from its vertical integration across energy services, particularly in combining infrastructure expertise (e.g., grid repair) with oilfield solutions (e.g., fracking, sand logistics). This diversification mitigates reliance on any single market, though its smaller scale (~$188M revenue) limits economies of scale versus giants like Halliburton. The Infrastructure segment’s government/utility contracts provide steady cash flow, but the Well Completion segment faces intense pricing pressure from larger pressure pumping rivals. Mammoth’s sand proppant services are cost-competitive due to owned mining assets, but spot-market reliance introduces volatility. The company’s niche in storm restoration (e.g., post-hurricane grid repairs) is a differentiator, though project timing is irregular. Operational risks include exposure to oil/gas downturns and utility spending delays, while opportunities lie in leveraging its engineering capabilities for renewable energy infrastructure expansion.