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NATIONAL ENERGY SERVICES REU (NESR) Stock Fundamental Analysis

NASDAQ:NESR - Nasdaq - VGG6375R1073 - Common Stock - Currency: USD

6.295  +0.08 (+1.21%)

Fundamental Rating

3

NESR gets a fundamental rating of 3 out of 10. The analysis compared the fundamentals against 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 has a valuation in line with the averages, but it does not seem to be growing.


Dividend Valuation Growth Profitability Health

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3

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.
In the past 5 years NESR always reported a positive cash flow from operatings.
NESR Yearly Net Income VS EBIT VS OCF VS FCFNESR Yearly Net Income VS EBIT VS OCF VS FCFYearly Net Income VS EBIT VS OCF VS FCF 2017 2018 2019 2020 2021 2022 2023 2024 0 50M -50M 100M 150M 200M

1.2 Ratios

NESR's Return On Assets of 4.30% is in line compared to the rest of the industry. NESR outperforms 50.00% of its industry peers.
NESR has a Return On Equity of 8.40%. This is comparable to the rest of the industry: NESR outperforms 48.39% of its industry peers.
Looking at the Return On Invested Capital, with a value of 6.32%, NESR is in line with its industry, outperforming 50.00% of the companies in the same industry.
Industry RankSector Rank
ROA 4.3%
ROE 8.4%
ROIC 6.32%
ROA(3y)1%
ROA(5y)0.49%
ROE(3y)1.8%
ROE(5y)0.57%
ROIC(3y)N/A
ROIC(5y)N/A
NESR Yearly ROA, ROE, ROICNESR Yearly ROA, ROE, ROICYearly ROA, ROE, ROIC 2017 2018 2019 2020 2021 2022 2023 2024 0 5 -5

1.3 Margins

NESR has a Profit Margin (5.86%) which is in line with its industry peers.
In the last couple of years the Profit Margin of NESR has remained more or less at the same level.
With a Operating Margin value of 10.58%, NESR perfoms like the industry average, outperforming 51.61% of the companies in the same industry.
NESR's Operating Margin has been stable in the last couple of years.
With a Gross Margin value of 16.03%, NESR is not doing good in the industry: 82.26% of the companies in the same industry are doing better.
In the last couple of years the Gross Margin of NESR has declined.
Industry RankSector Rank
OM 10.58%
PM (TTM) 5.86%
GM 16.03%
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%
NESR Yearly Profit, Operating, Gross MarginsNESR Yearly Profit, Operating, Gross MarginsYearly Profit, Operating, Gross Margins 2017 2018 2019 2020 2021 2022 2023 2024 0 10 20

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3

2. Health

2.1 Basic Checks

With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), NESR is destroying value.
NESR has more shares outstanding than it did 1 year ago.
Compared to 5 years ago, NESR has more shares outstanding
Compared to 1 year ago, NESR has an improved debt to assets ratio.
NESR Yearly Shares OutstandingNESR Yearly Shares OutstandingYearly Shares Outstanding 2017 2018 2019 2020 2021 2022 2023 2024 20M 40M 60M 80M
NESR Yearly Total Debt VS Total AssetsNESR Yearly Total Debt VS Total AssetsYearly Total Debt VS Total Assets 2017 2018 2019 2020 2021 2022 2023 2024 500M 1B 1.5B

2.2 Solvency

Based on the Altman-Z score of 1.44, we must say that NESR is in the distress zone and has some risk of bankruptcy.
NESR has a Altman-Z score (1.44) which is comparable to the rest of the industry.
NESR has a debt to FCF ratio of 3.08. This is a good value and a sign of high solvency as NESR would need 3.08 years to pay back of all of its debts.
NESR's Debt to FCF ratio of 3.08 is fine compared to the rest of the industry. NESR outperforms 61.29% of its industry peers.
NESR has a Debt/Equity ratio of 0.35. This is a healthy value indicating a solid balance between debt and equity.
NESR has a Debt to Equity ratio (0.35) which is comparable to the rest of the industry.
Industry RankSector Rank
Debt/Equity 0.35
Debt/FCF 3.08
Altman-Z 1.44
ROIC/WACC0.72
WACC8.82%
NESR Yearly LT Debt VS Equity VS FCFNESR Yearly LT Debt VS Equity VS FCFYearly LT Debt VS Equity VS FCF 2017 2018 2019 2020 2021 2022 2023 2024 0 200M 400M 600M 800M

2.3 Liquidity

A Current Ratio of 1.07 indicates that NESR should not have too much problems paying its short term obligations.
NESR has a worse Current ratio (1.07) than 91.94% of its industry peers.
A Quick Ratio of 0.88 indicates that NESR may have some problems paying its short term obligations.
NESR has a Quick ratio of 0.88. This is amonst the worse of the industry: NESR underperforms 83.87% of its industry peers.
Industry RankSector Rank
Current Ratio 1.07
Quick Ratio 0.88
NESR Yearly Current Assets VS Current LiabilitesNESR Yearly Current Assets VS Current LiabilitesYearly Current Assets VS Current Liabilites 2017 2018 2019 2020 2021 2022 2023 2024 200M 400M 600M

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3

3. Growth

3.1 Past

The earnings per share for NESR have decreased by -4.41% in the last year.
NESR shows a strong growth in Revenue. In the last year, the Revenue has grown by 26.69%.
EPS 1Y (TTM)-4.41%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%N/A
Revenue 1Y (TTM)26.69%
Revenue growth 3YN/A
Revenue growth 5YN/A
Sales Q2Q%N/A

3.2 Future

The Earnings Per Share is expected to grow by 11.23% on average over the next years. This is quite good.
Based on estimates for the next years, NESR will show a quite strong growth in Revenue. The Revenue will grow by 10.86% on average per year.
EPS Next Y-27.66%
EPS Next 2Y-19.79%
EPS Next 3Y8.32%
EPS Next 5Y11.23%
Revenue Next Year7.16%
Revenue Next 2Y9.83%
Revenue Next 3Y14.03%
Revenue Next 5Y10.86%

3.3 Evolution

NESR Yearly Revenue VS EstimatesNESR Yearly Revenue VS EstimatesYearly Revenue VS Estimates 2018 2019 2020 2021 2022 2023 2024 2025 2026 500M 1B 1.5B
NESR Yearly EPS VS EstimatesNESR Yearly EPS VS EstimatesYearly EPS VS Estimates 2018 2019 2020 2021 2022 2023 2024 2025 2026 0.2 0.4 0.6 0.8 1

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5

4. Valuation

4.1 Price/Earnings Ratio

NESR is valuated reasonably with a Price/Earnings ratio of 9.68.
Compared to the rest of the industry, the Price/Earnings ratio of NESR indicates a somewhat cheap valuation: NESR is cheaper than 74.19% of the companies listed in the same industry.
The average S&P500 Price/Earnings ratio is at 28.10. NESR is valued rather cheaply when compared to this.
NESR is valuated correctly with a Price/Forward Earnings ratio of 15.05.
Compared to the rest of the industry, the Price/Forward Earnings ratio of NESR indicates a slightly more expensive valuation: NESR is more expensive than 66.13% of the companies listed in the same industry.
Compared to an average S&P500 Price/Forward Earnings ratio of 20.74, NESR is valued a bit cheaper.
Industry RankSector Rank
PE 9.68
Fwd PE 15.05
NESR Price Earnings VS Forward Price EarningsNESR Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 5 10 15 20 25

4.2 Price Multiples

Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of NESR indicates a rather cheap valuation: NESR is cheaper than 93.55% of the companies listed in the same industry.
Based on the Price/Free Cash Flow ratio, NESR is valued cheaply inside the industry as 91.94% of the companies are valued more expensively.
Industry RankSector Rank
P/FCF 4.87
EV/EBITDA 2.9
NESR Per share dataNESR EPS, Sales, OCF, FCF, BookValue per sharePer Share Data Per Share 2 4 6 8 10

4.3 Compensation for Growth

PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y-19.79%
EPS Next 3Y8.32%

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0

5. Dividend

5.1 Amount

NESR does not give a dividend.
Industry RankSector Rank
Dividend Yield N/A

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NATIONAL ENERGY SERVICES REU

NASDAQ:NESR (5/6/2025, 12:46:50 PM)

6.295

+0.08 (+1.21%)

Chartmill FA Rating
GICS SectorEnergy
GICS IndustryGroupEnergy
GICS IndustryEnergy Equipment & Services
Earnings (Last)03-12 2025-03-12/bmo
Earnings (Next)N/A N/A
Inst Owners38.98%
Inst Owner Change0.39%
Ins Owners1.14%
Ins Owner Change0%
Market Cap604.63M
Analysts84.44
Price Target14.28 (126.85%)
Short Float %0.64%
Short Ratio1.34
Dividend
Industry RankSector 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)1.79%
Min EPS beat(2)-6.22%
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)1
Avg Revenue beat(2)-0.06%
Min Revenue beat(2)-0.85%
Max Revenue beat(2)0.74%
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)-1.75%
PT rev (3m)-2.33%
EPS NQ rev (1m)-1.69%
EPS NQ rev (3m)-36.03%
EPS NY rev (1m)-0.23%
EPS NY rev (3m)-2.54%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-7.91%
Revenue NY rev (1m)0%
Revenue NY rev (3m)0.14%
Valuation
Industry RankSector Rank
PE 9.68
Fwd PE 15.05
P/S 0.46
P/FCF 4.87
P/OCF 2.64
P/B 0.67
P/tB 3.06
EV/EBITDA 2.9
EPS(TTM)0.65
EY10.33%
EPS(NY)0.42
Fwd EY6.64%
FCF(TTM)1.29
FCFY20.55%
OCF(TTM)2.39
OCFY37.93%
SpS13.55
BVpS9.46
TBVpS2.06
PEG (NY)N/A
PEG (5Y)N/A
Profitability
Industry RankSector Rank
ROA 4.3%
ROE 8.4%
ROCE 10.84%
ROIC 6.32%
ROICexc 6.88%
ROICexgc 16.44%
OM 10.58%
PM (TTM) 5.86%
GM 16.03%
FCFM 9.54%
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-Score8
Asset Turnover0.73
Health
Industry RankSector Rank
Debt/Equity 0.35
Debt/FCF 3.08
Debt/EBITDA 1.12
Cap/Depr 73.61%
Cap/Sales 8.07%
Interest Coverage 3.59
Cash Conversion 81.76%
Profit Quality 162.79%
Current Ratio 1.07
Quick Ratio 0.88
Altman-Z 1.44
F-Score8
WACC8.82%
ROIC/WACC0.72
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)-4.41%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%N/A
EPS Next Y-27.66%
EPS Next 2Y-19.79%
EPS Next 3Y8.32%
EPS Next 5Y11.23%
Revenue 1Y (TTM)26.69%
Revenue growth 3YN/A
Revenue growth 5YN/A
Sales Q2Q%N/A
Revenue Next Year7.16%
Revenue Next 2Y9.83%
Revenue Next 3Y14.03%
Revenue Next 5Y10.86%
EBIT growth 1Y70.63%
EBIT growth 3YN/A
EBIT growth 5Y13.91%
EBIT Next Year131.94%
EBIT Next 3YN/A
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%