14.89 USD
-0.06 (-0.4%)
14.89 USD
0 (0%)
We assign a fundamental rating of 4 out of 10 to NESR. NESR was compared to 60 industry peers in the Energy Equipment & Services industry. NESR has a bad profitability rating. Also its financial health evaluation is rather negative. NESR is not priced too expensively while it is growing strongly. Keep and eye on this one!
1. Profitability
1.1 Basic Checks
In the past year NESR was profitable.
NESR had a positive operating cash flow in the past year.
In multiple years NESR reported negative net income over the last 5 years.
Each year in the past 5 years NESR had a positive operating cash flow.
1.2 Ratios
NESR has a Return On Assets of 3.88%. This is comparable to the rest of the industry: NESR outperforms 60.00% of its industry peers.
NESR has a Return On Equity (7.33%) which is comparable to the rest of the industry.
Looking at the Return On Invested Capital, with a value of 5.18%, NESR is in line with its industry, outperforming 48.33% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.88% | ||
| ROE | 7.33% | ||
| ROIC | 5.18% |
ROA(3y)1%
ROA(5y)0.49%
ROE(3y)1.8%
ROE(5y)0.57%
ROIC(3y)N/A
ROIC(5y)N/A
1.3 Margins
Looking at the Profit Margin, with a value of 5.53%, NESR is in line with its industry, outperforming 53.33% of the companies in the same industry.
NESR's Profit Margin has been stable in the last couple of years.
The Operating Margin of NESR (8.88%) is comparable to the rest of the industry.
In the last couple of years the Operating Margin of NESR has remained more or less at the same level.
NESR's Gross Margin of 13.97% is on the low side compared to the rest of the industry. NESR is outperformed by 80.00% of its industry peers.
In the last couple of years the Gross Margin of NESR has declined.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 8.88% | ||
| PM (TTM) | 5.53% | ||
| GM | 13.97% |
OM growth 3YN/A
OM growth 5Y-0.61%
PM growth 3YN/A
PM growth 5Y-0.41%
GM growth 3Y269.72%
GM growth 5Y-6.99%
2. Health
2.1 Basic Checks
With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), NESR is destroying value.
Compared to 1 year ago, NESR has more shares outstanding
The number of shares outstanding for NESR has been increased compared to 5 years ago.
The debt/assets ratio for NESR has been reduced compared to a year ago.
2.2 Solvency
An Altman-Z score of 2.05 indicates that NESR is not a great score, but indicates only limited risk for bankruptcy at the moment.
The Altman-Z score of NESR (2.05) is comparable to the rest of the industry.
The Debt to FCF ratio of NESR is 7.20, which is on the high side as it means it would take NESR, 7.20 years of fcf income to pay off all of its debts.
NESR has a Debt to FCF ratio (7.20) which is comparable to the rest of the industry.
NESR has a Debt/Equity ratio of 0.28. This is a healthy value indicating a solid balance between debt and equity.
NESR's Debt to Equity ratio of 0.28 is fine compared to the rest of the industry. NESR outperforms 63.33% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.28 | ||
| Debt/FCF | 7.2 | ||
| Altman-Z | 2.05 |
ROIC/WACC0.61
WACC8.53%
2.3 Liquidity
NESR has a Current Ratio of 1.10. This is a normal value and indicates that NESR is financially healthy and should not expect problems in meeting its short term obligations.
NESR has a worse Current ratio (1.10) than 88.33% of its industry peers.
NESR has a Quick Ratio of 1.10. This is a bad value and indicates that NESR is not financially healthy enough and could expect problems in meeting its short term obligations.
Looking at the Quick ratio, with a value of 0.92, NESR is doing worse than 81.67% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.1 | ||
| Quick Ratio | 0.92 |
3. Growth
3.1 Past
NESR shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 500.23%, which is quite impressive.
Measured over the past years, NESR shows a quite strong growth in Earnings Per Share. The EPS has been growing by 12.11% on average per year.
Looking at the last year, NESR shows a quite strong growth in Revenue. The Revenue has grown by 13.60% in the last year.
NESR shows quite a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 14.61% yearly.
EPS 1Y (TTM)500.23%
EPS 3YN/A
EPS 5Y12.11%
EPS Q2Q%-27.27%
Revenue 1Y (TTM)13.6%
Revenue growth 3Y14.08%
Revenue growth 5Y14.61%
Sales Q2Q%-12.16%
3.2 Future
The Earnings Per Share is expected to grow by 25.41% on average over the next years. This is a very strong growth
Based on estimates for the next years, NESR will show a quite strong growth in Revenue. The Revenue will grow by 13.75% on average per year.
EPS Next Y-14.76%
EPS Next 2Y28.49%
EPS Next 3Y32.97%
EPS Next 5Y25.41%
Revenue Next Year-0.08%
Revenue Next 2Y15.64%
Revenue Next 3Y13.89%
Revenue Next 5Y13.75%
3.3 Evolution
The EPS growth rate is accelerating: in the next years the growth will be better than in the last years.
The Revenue growth rate is stable: in the next years the growth will be about the same than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
NESR is valuated rather expensively with a Price/Earnings ratio of 18.85.
Compared to the rest of the industry, the Price/Earnings ratio of NESR indicates a somewhat cheap valuation: NESR is cheaper than 68.33% of the companies listed in the same industry.
NESR is valuated rather cheaply when we compare the Price/Earnings ratio to 26.54, which is the current average of the S&P500 Index.
Based on the Price/Forward Earnings ratio of 9.85, the valuation of NESR can be described as reasonable.
Based on the Price/Forward Earnings ratio, NESR is valued cheaper than 95.00% of the companies in the same industry.
The average S&P500 Price/Forward Earnings ratio is at 23.78. NESR is valued rather cheaply when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 18.85 | ||
| Fwd PE | 9.85 |
4.2 Price Multiples
NESR's Enterprise Value to EBITDA ratio is in line with the industry average.
Based on the Price/Free Cash Flow ratio, NESR is valued a bit more expensive than 60.00% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 32.45 | ||
| EV/EBITDA | 6.6 |
4.3 Compensation for Growth
NESR's earnings are expected to grow with 32.97% in the coming years. This may justify a more expensive valuation.
PEG (NY)N/A
PEG (5Y)1.56
EPS Next 2Y28.49%
EPS Next 3Y32.97%
5. Dividend
5.1 Amount
No dividends for NESR!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
14.89
-0.06 (-0.4%)
Chartmill FA Rating
GICS SectorEnergy
GICS IndustryGroupEnergy
GICS IndustryEnergy Equipment & Services
Earnings (Last)
Earnings (Next)
Inst Owners47.6%
Inst Owner Change5.4%
Ins Owners1.18%
Ins Owner Change0%
Market Cap1.50B
Revenue(TTM)1.27B
Net Income(TTM)70.17M
Analysts83.64
Price Target20.2 (35.66%)
Short Float %5.8%
Short Ratio3.67
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
Yearly DividendN/A
Dividend Growth(5Y)N/A
DP0%
Div Incr Years0
Div Non Decr Years0
Ex-DateN/A
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)0.18%
Min EPS beat(2)-11.38%
Max EPS beat(2)11.74%
EPS beat(4)2
Avg EPS beat(4)1.21%
Min EPS beat(4)-11.38%
Max EPS beat(4)11.74%
EPS beat(8)N/A
Avg EPS beat(8)N/A
EPS beat(12)N/A
Avg EPS beat(12)N/A
EPS beat(16)N/A
Avg EPS beat(16)N/A
Revenue beat(2)1
Avg Revenue beat(2)-2.22%
Min Revenue beat(2)-5.83%
Max Revenue beat(2)1.38%
Revenue beat(4)1
Avg Revenue beat(4)-2.23%
Min Revenue beat(4)-5.83%
Max Revenue beat(4)1.38%
Revenue beat(8)N/A
Avg Revenue beat(8)N/A
Revenue beat(12)N/A
Avg Revenue beat(12)N/A
Revenue beat(16)N/A
Avg Revenue beat(16)N/A
PT rev (1m)28.57%
PT rev (3m)48.5%
EPS NQ rev (1m)-15.42%
EPS NQ rev (3m)-23.93%
EPS NY rev (1m)-5.32%
EPS NY rev (3m)-17.52%
Revenue NQ rev (1m)1.24%
Revenue NQ rev (3m)0.48%
Revenue NY rev (1m)-0.9%
Revenue NY rev (3m)-3.22%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 18.85 | ||
| Fwd PE | 9.85 | ||
| P/S | 1.18 | ||
| P/FCF | 32.45 | ||
| P/OCF | 8.73 | ||
| P/B | 1.57 | ||
| P/tB | 5.78 | ||
| EV/EBITDA | 6.6 |
EPS(TTM)0.79
EY5.31%
EPS(NY)1.51
Fwd EY10.15%
FCF(TTM)0.46
FCFY3.08%
OCF(TTM)1.71
OCFY11.46%
SpS12.6
BVpS9.49
TBVpS2.58
PEG (NY)N/A
PEG (5Y)1.56
Graham Number12.99
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.88% | ||
| ROE | 7.33% | ||
| ROCE | 8.9% | ||
| ROIC | 5.18% | ||
| ROICexc | 5.47% | ||
| ROICexgc | 12.25% | ||
| OM | 8.88% | ||
| PM (TTM) | 5.53% | ||
| GM | 13.97% | ||
| FCFM | 3.64% |
ROA(3y)1%
ROA(5y)0.49%
ROE(3y)1.8%
ROE(5y)0.57%
ROIC(3y)N/A
ROIC(5y)N/A
ROICexc(3y)N/A
ROICexc(5y)N/A
ROICexgc(3y)N/A
ROICexgc(5y)N/A
ROCE(3y)N/A
ROCE(5y)N/A
ROICexgc growth 3YN/A
ROICexgc growth 5Y16.08%
ROICexc growth 3YN/A
ROICexc growth 5Y14.6%
OM growth 3YN/A
OM growth 5Y-0.61%
PM growth 3YN/A
PM growth 5Y-0.41%
GM growth 3Y269.72%
GM growth 5Y-6.99%
F-Score7
Asset Turnover0.7
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.28 | ||
| Debt/FCF | 7.2 | ||
| Debt/EBITDA | 1.04 | ||
| Cap/Depr | 86.02% | ||
| Cap/Sales | 9.9% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 66.42% | ||
| Profit Quality | 65.9% | ||
| Current Ratio | 1.1 | ||
| Quick Ratio | 0.92 | ||
| Altman-Z | 2.05 |
F-Score7
WACC8.53%
ROIC/WACC0.61
Cap/Depr(3y)75.74%
Cap/Depr(5y)77.93%
Cap/Sales(3y)9.16%
Cap/Sales(5y)10.1%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)500.23%
EPS 3YN/A
EPS 5Y12.11%
EPS Q2Q%-27.27%
EPS Next Y-14.76%
EPS Next 2Y28.49%
EPS Next 3Y32.97%
EPS Next 5Y25.41%
Revenue 1Y (TTM)13.6%
Revenue growth 3Y14.08%
Revenue growth 5Y14.61%
Sales Q2Q%-12.16%
Revenue Next Year-0.08%
Revenue Next 2Y15.64%
Revenue Next 3Y13.89%
Revenue Next 5Y13.75%
EBIT growth 1Y70.63%
EBIT growth 3YN/A
EBIT growth 5Y13.91%
EBIT Next Year96.92%
EBIT Next 3Y47.14%
EBIT Next 5Y35.13%
FCF growth 1Y14.21%
FCF growth 3Y81.82%
FCF growth 5YN/A
OCF growth 1Y29.59%
OCF growth 3Y21.54%
OCF growth 5Y20.81%
NATIONAL ENERGY SERVICES REU / NESR FAQ
Can you provide the ChartMill fundamental rating for NATIONAL ENERGY SERVICES REU?
ChartMill assigns a fundamental rating of 4 / 10 to NESR.
Can you provide the valuation status for NATIONAL ENERGY SERVICES REU?
ChartMill assigns a valuation rating of 4 / 10 to NATIONAL ENERGY SERVICES REU (NESR). This can be considered as Fairly Valued.
Can you provide the profitability details for NATIONAL ENERGY SERVICES REU?
NATIONAL ENERGY SERVICES REU (NESR) has a profitability rating of 3 / 10.
What are the PE and PB ratios of NATIONAL ENERGY SERVICES REU (NESR) stock?
The Price/Earnings (PE) ratio for NATIONAL ENERGY SERVICES REU (NESR) is 18.85 and the Price/Book (PB) ratio is 1.57.
Can you provide the financial health for NESR stock?
The financial health rating of NATIONAL ENERGY SERVICES REU (NESR) is 3 / 10.