14.89 USD
+0.17 (+1.15%)
14.89 USD
0 (0%)
We assign a fundamental rating of 4 out of 10 to NESR. NESR was compared to 62 industry peers in the Energy Equipment & Services industry. NESR may be in some trouble as it scores bad on both profitability and health. NESR is showing excellent growth while it is valued at reasonable prices. Keep and eye on this one!
1. Profitability
1.1 Basic Checks
NESR had positive earnings in the past year.
NESR had a positive operating cash flow in the past year.
In multiple years NESR reported negative net income over the last 5 years.
In the past 5 years NESR always reported a positive cash flow from operatings.
1.2 Ratios
NESR has a Return On Assets (3.88%) which is in line with its industry peers.
NESR has a Return On Equity of 7.33%. This is comparable to the rest of the industry: NESR outperforms 58.06% of its industry peers.
NESR has a Return On Invested Capital of 5.18%. This is comparable to the rest of the industry: NESR outperforms 48.39% of its industry peers.
| 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
NESR's Profit Margin of 5.53% is in line compared to the rest of the industry. NESR outperforms 53.23% of its industry peers.
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 (8.88%) which is in line with 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 13.97%, NESR is doing worse than 80.65% 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 | 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
NESR has a Return on Invested Capital (ROIC), which is below the Cost of Capital (WACC), which means it is destroying value.
The number of shares outstanding for NESR has been increased compared to 1 year ago.
NESR has more shares outstanding than it did 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 2.03 indicates that NESR is not a great score, but indicates only limited risk for bankruptcy at the moment.
The Altman-Z score of NESR (2.03) is comparable to the rest of the industry.
NESR has a debt to FCF ratio of 7.20. This is a slightly negative value and a sign of low solvency as NESR would need 7.20 years to pay back of all of its debts.
With a Debt to FCF ratio value of 7.20, NESR perfoms like the industry average, outperforming 46.77% of the companies in the same industry.
A Debt/Equity ratio of 0.28 indicates that NESR is not too dependend on debt financing.
NESR has a better Debt to Equity ratio (0.28) than 64.52% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.28 | ||
| Debt/FCF | 7.2 | ||
| Altman-Z | 2.03 |
ROIC/WACC0.61
WACC8.55%
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 87.10% of its industry peers.
A Quick Ratio of 0.92 indicates that NESR may have some problems paying its short term obligations.
With a Quick ratio value of 0.92, NESR is not doing good in the industry: 82.26% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.1 | ||
| Quick Ratio | 0.92 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an impressive 500.23% over the past year.
The Earnings Per Share has been growing by 12.11% on average over the past years. This is quite good.
Looking at the last year, NESR shows a quite strong growth in Revenue. The Revenue has grown by 13.60% in the last year.
Measured over the past years, NESR shows a quite strong growth in Revenue. The Revenue has been growing by 14.61% on average per year.
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
Based on estimates for the next years, NESR will show a very strong growth in Earnings Per Share. The EPS will grow by 25.41% on average per year.
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.
66.13% of the companies in the same industry are more expensive than NESR, based on the Price/Earnings ratio.
When comparing the Price/Earnings ratio of NESR to the average of the S&P500 Index (26.61), we can say NESR is valued slightly cheaper.
With a Price/Forward Earnings ratio of 9.85, the valuation of NESR can be described as very reasonable.
Based on the Price/Forward Earnings ratio, NESR is valued cheaper than 95.16% of the companies in the same industry.
When comparing the Price/Forward Earnings ratio of NESR to the average of the S&P500 Index (24.01), we can say NESR is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 18.85 | ||
| Fwd PE | 9.85 |
4.2 Price Multiples
NESR's Enterprise Value to EBITDA is on the same level as the industry average.
The rest of the industry has a similar Price/Free Cash Flow ratio as NESR.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 32.45 | ||
| EV/EBITDA | 6.51 |
4.3 Compensation for Growth
A more expensive valuation may be justified as NESR's earnings are expected to grow with 32.97% in the coming years.
PEG (NY)N/A
PEG (5Y)1.56
EPS Next 2Y28.49%
EPS Next 3Y32.97%
5. Dividend
5.1 Amount
NESR does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0% |
14.89
+0.17 (+1.15%)
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 %4.57%
Short Ratio2.74
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0% |
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)8.79%
PT rev (3m)41.43%
EPS NQ rev (1m)-2.47%
EPS NQ rev (3m)-24.12%
EPS NY rev (1m)-5.32%
EPS NY rev (3m)-17.52%
Revenue NQ rev (1m)0.62%
Revenue NQ rev (3m)1.69%
Revenue NY rev (1m)-0.9%
Revenue NY rev (3m)-2.37%
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 | 6.51 |
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 | 2.03 |
F-Score7
WACC8.55%
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 5 / 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.