NATIONAL ENERGY SERVICES REU (NESR) Stock Fundamental Analysis
NASDAQ:NESR - Nasdaq - VGG6375R1073 - Common Stock - Currency: USD
Overall NESR gets a fundamental rating of 4 out of 10. We evaluated NESR against 61 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 valued too expensively and it also shows a decent growth rate.
1. Profitability
1.1 Basic Checks
NESR had positive earnings in the past year.
The reported net income has been mixed in the past 5 years: NESR reported negative net income in multiple years.
Each year in the past 5 years NESR had a positive operating cash flow.
1.2 Ratios
NESR's Return On Assets of 4.34% is in line compared to the rest of the industry. NESR outperforms 57.38% of its industry peers.
NESR has a Return On Equity (8.33%) which is in line with its industry peers.
Looking at the Return On Invested Capital, with a value of 6.22%, NESR is in line with its industry, outperforming 52.46% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 4.34% | ||
| ROE | 8.33% | ||
| ROIC | 6.22% |
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 5.87%, NESR is in the better half of the industry, outperforming 60.66% of the companies in the same industry.
In the last couple of years the Profit Margin of NESR has remained more or less at the same level.
NESR has a Operating Margin of 10.34%. This is comparable to the rest of the industry: NESR outperforms 52.46% of its industry peers.
NESR's Operating Margin has been stable in the last couple of years.
Looking at the Gross Margin, with a value of 15.62%, NESR is doing worse than 80.33% of the companies in the same industry.
In the last couple of years the Gross Margin of NESR has declined.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 10.34% | ||
| PM (TTM) | 5.87% | ||
| GM | 15.62% |
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
NESR has a Return on Invested Capital (ROIC), which is below the Cost of Capital (WACC), which means it 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.
Compared to 1 year ago, NESR has an improved debt to assets ratio.
2.2 Solvency
Based on the Altman-Z score of 1.52, we must say that NESR is in the distress zone and has some risk of bankruptcy.
Looking at the Altman-Z score, with a value of 1.52, NESR is in line with its industry, outperforming 40.98% of the companies in the same industry.
A Debt/Equity ratio of 0.32 indicates that NESR is not too dependend on debt financing.
With a decent Debt to Equity ratio value of 0.32, NESR is doing good in the industry, outperforming 60.66% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.32 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 1.52 |
ROIC/WACC0.71
WACC8.74%
2.3 Liquidity
A Current Ratio of 1.10 indicates that NESR should not have too much problems paying its short term obligations.
NESR has a Current ratio of 1.10. This is amonst the worse of the industry: NESR underperforms 91.80% of its industry peers.
A Quick Ratio of 0.90 indicates that NESR may have some problems paying its short term obligations.
With a Quick ratio value of 0.90, NESR is not doing good in the industry: 83.61% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.1 | ||
| Quick Ratio | 0.9 |
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.
NESR shows quite a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 12.11% yearly.
NESR shows quite a strong growth in Revenue. In the last year, the Revenue has grown by 13.60%.
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%N/A
Revenue 1Y (TTM)13.6%
Revenue growth 3Y14.08%
Revenue growth 5Y14.61%
Sales Q2Q%N/A
3.2 Future
NESR is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 14.34% yearly.
NESR is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 4.42% yearly.
EPS Next Y7%
EPS Next 2Y14.34%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue Next Year4.39%
Revenue Next 2Y6.24%
Revenue Next 3Y4.42%
Revenue Next 5YN/A
3.3 Evolution
The EPS growth rate is stable: in the next years the growth will be about the same than in the last years.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.
4. Valuation
4.1 Price/Earnings Ratio
The Price/Earnings ratio is 8.65, which indicates a very decent valuation of NESR.
Based on the Price/Earnings ratio, NESR is valued cheaply inside the industry as 91.80% of the companies are valued more expensively.
NESR is valuated cheaply when we compare the Price/Earnings ratio to 26.73, which is the current average of the S&P500 Index.
Based on the Price/Forward Earnings ratio of 5.78, the valuation of NESR can be described as very cheap.
NESR's Price/Forward Earnings ratio is rather cheap when compared to the industry. NESR is cheaper than 96.72% of the companies in the same industry.
NESR is valuated cheaply when we compare the Price/Forward Earnings ratio to 34.61, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 8.65 | ||
| Fwd PE | 5.78 |
4.2 Price Multiples
NESR's Enterprise Value to EBITDA ratio is rather cheap when compared to the industry. NESR is cheaper than 90.16% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 3.24 |
4.3 Compensation for Growth
NESR's PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
A more expensive valuation may be justified as NESR's earnings are expected to grow with 14.34% in the coming years.
PEG (NY)1.24
PEG (5Y)0.71
EPS Next 2Y14.34%
EPS Next 3YN/A
5. Dividend
5.1 Amount
No dividends for NESR!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
6.92
+0.17 (+2.52%)
Chartmill FA Rating
GICS SectorEnergy
GICS IndustryGroupEnergy
GICS IndustryEnergy Equipment & Services
Earnings (Last)
Earnings (Next)
Inst Owners42.22%
Inst Owner Change4.44%
Ins Owners1.19%
Ins Owner Change0%
Market Cap691.10M
Analysts84
Price Target12.92 (86.71%)
Short Float %4.09%
Short Ratio3.25
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)2.23%
Min EPS beat(2)-5.34%
Max EPS beat(2)9.8%
EPS beat(4)N/A
Avg EPS beat(4)N/A
Min EPS beat(4)N/A
Max EPS beat(4)N/A
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)0
Avg Revenue beat(2)-2.24%
Min Revenue beat(2)-3.62%
Max Revenue beat(2)-0.85%
Revenue beat(4)N/A
Avg Revenue beat(4)N/A
Min Revenue beat(4)N/A
Max Revenue beat(4)N/A
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)-5%
PT rev (3m)-9.52%
EPS NQ rev (1m)1.05%
EPS NQ rev (3m)-5.51%
EPS NY rev (1m)0%
EPS NY rev (3m)-11.49%
Revenue NQ rev (1m)0.07%
Revenue NQ rev (3m)-7.36%
Revenue NY rev (1m)-0.07%
Revenue NY rev (3m)-3.09%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 8.65 | ||
| Fwd PE | 5.78 | ||
| P/S | 0.53 | ||
| P/FCF | N/A | ||
| P/OCF | N/A | ||
| P/B | 0.75 | ||
| P/tB | 3.22 | ||
| EV/EBITDA | 3.24 |
EPS(TTM)0.8
EY11.56%
EPS(NY)1.2
Fwd EY17.29%
FCF(TTM)N/A
FCFYN/A
OCF(TTM)N/A
OCFYN/A
SpS13.1
BVpS9.22
TBVpS2.15
PEG (NY)1.24
PEG (5Y)0.71
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 4.34% | ||
| ROE | 8.33% | ||
| ROCE | 10.67% | ||
| ROIC | 6.22% | ||
| ROICexc | 6.61% | ||
| ROICexgc | 15.21% | ||
| OM | 10.34% | ||
| PM (TTM) | 5.87% | ||
| GM | 15.62% | ||
| FCFM | N/A |
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
ROICexcg growth 3YN/A
ROICexcg 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-ScoreN/A
Asset Turnover0.74
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.32 | ||
| Debt/FCF | N/A | ||
| Debt/EBITDA | 1.08 | ||
| Cap/Depr | N/A | ||
| Cap/Sales | N/A | ||
| Interest Coverage | N/A | ||
| Cash Conversion | N/A | ||
| Profit Quality | N/A | ||
| Current Ratio | 1.1 | ||
| Quick Ratio | 0.9 | ||
| Altman-Z | 1.52 |
F-ScoreN/A
WACC8.74%
ROIC/WACC0.71
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%N/A
EPS Next Y7%
EPS Next 2Y14.34%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue 1Y (TTM)13.6%
Revenue growth 3Y14.08%
Revenue growth 5Y14.61%
Sales Q2Q%N/A
Revenue Next Year4.39%
Revenue Next 2Y6.24%
Revenue Next 3Y4.42%
Revenue Next 5YN/A
EBIT growth 1Y70.63%
EBIT growth 3YN/A
EBIT growth 5Y13.91%
EBIT Next Year120.56%
EBIT Next 3Y-28.33%
EBIT Next 5YN/A
FCF growth 1Y14.21%
FCF growth 3Y81.82%
FCF growth 5YN/A
OCF growth 1Y29.59%
OCF growth 3Y21.54%
OCF growth 5Y20.81%