NATIONAL ENERGY SERVICES REU (NESR) Stock Fundamental Analysis
USA - NASDAQ:NESR - VGG6375R1073 - Common Stock
10.019 USD
-0.2 (-1.97%)
NESR gets a fundamental rating of 4 out of 10. The analysis compared the fundamentals against 61 industry peers in the Energy Equipment & Services industry. Both the profitability and financial health of NESR have multiple concerns. 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.
In the past year NESR had a positive cash flow from operations.
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 has a Return On Assets (4.00%) which is comparable to the rest of the industry.
NESR's Return On Equity of 7.80% is in line compared to the rest of the industry. NESR outperforms 59.02% of its industry peers.
NESR has a Return On Invested Capital (5.88%) which is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 4% | ||
| ROE | 7.8% | ||
| ROIC | 5.88% |
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 has a Profit Margin (5.57%) which is comparable to the rest of the 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 (9.81%) which 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.
Looking at the Gross Margin, with a value of 14.91%, NESR is doing worse than 80.33% of the companies in the same industry.
NESR's Gross Margin has declined in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 9.81% | ||
| PM (TTM) | 5.57% | ||
| GM | 14.91% |
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.
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
NESR has an Altman-Z score of 1.71. This is a bad value and indicates that NESR is not financially healthy and even has some risk of bankruptcy.
The Altman-Z score of NESR (1.71) is comparable to the rest of the industry.
NESR has a debt to FCF ratio of 2.87. This is a good value and a sign of high solvency as NESR would need 2.87 years to pay back of all of its debts.
NESR's Debt to FCF ratio of 2.87 is fine compared to the rest of the industry. NESR outperforms 65.57% of its industry peers.
NESR has a Debt/Equity ratio of 0.31. This is a healthy value indicating a solid balance between debt and equity.
The Debt to Equity ratio of NESR (0.31) is better than 60.66% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.31 | ||
| Debt/FCF | 2.87 | ||
| Altman-Z | 1.71 |
ROIC/WACC0.7
WACC8.45%
2.3 Liquidity
NESR has a Current Ratio of 1.11. This is a normal value and indicates that NESR is financially healthy and should not expect problems in meeting its short term obligations.
The Current ratio of NESR (1.11) is worse than 88.52% of its industry peers.
A Quick Ratio of 0.93 indicates that NESR may have some problems paying its short term obligations.
With a Quick ratio value of 0.93, NESR is not doing good in the industry: 81.97% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.11 | ||
| Quick Ratio | 0.93 |
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.
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%-21.2%
Revenue 1Y (TTM)13.6%
Revenue growth 3Y14.08%
Revenue growth 5Y14.61%
Sales Q2Q%0.74%
3.2 Future
The Earnings Per Share is expected to grow by 10.75% on average over the next years. This is quite good.
NESR is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 3.45% yearly.
EPS Next Y1.39%
EPS Next 2Y13.32%
EPS Next 3Y11.97%
EPS Next 5Y10.75%
Revenue Next Year2.34%
Revenue Next 2Y5.31%
Revenue Next 3Y4.04%
Revenue Next 5Y3.45%
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
NESR is valuated reasonably with a Price/Earnings ratio of 11.79.
Based on the Price/Earnings ratio, NESR is valued a bit cheaper than 77.05% of the companies in the same industry.
When comparing the Price/Earnings ratio of NESR to the average of the S&P500 Index (27.91), we can say NESR is valued rather cheaply.
The Price/Forward Earnings ratio is 8.52, which indicates a very decent valuation of NESR.
Based on the Price/Forward Earnings ratio, NESR is valued cheaper than 95.08% of the companies in the same industry.
NESR is valuated cheaply when we compare the Price/Forward Earnings ratio to 23.30, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 11.79 | ||
| Fwd PE | 8.52 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, NESR is valued cheaper than 85.25% of the companies in the same industry.
83.61% of the companies in the same industry are more expensive than NESR, based on the Price/Free Cash Flow ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 8.09 | ||
| EV/EBITDA | 4.29 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates NESR does not grow enough to justify the current Price/Earnings ratio.
PEG (NY)8.46
PEG (5Y)0.97
EPS Next 2Y13.32%
EPS Next 3Y11.97%
5. Dividend
5.1 Amount
No dividends for NESR!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
NASDAQ:NESR (10/9/2025, 2:46:09 PM)
10.019
-0.2 (-1.97%)
Chartmill FA Rating
GICS SectorEnergy
GICS IndustryGroupEnergy
GICS IndustryEnergy Equipment & Services
Earnings (Last)
Earnings (Next)
Inst Owners45.89%
Inst Owner Change0%
Ins Owners1.19%
Ins Owner Change0%
Market Cap1.00B
Analysts83.64
Price Target14.28 (42.53%)
Short Float %4.31%
Short Ratio3.66
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)3.2%
Min EPS beat(2)-5.34%
Max EPS beat(2)11.74%
EPS beat(4)2
Avg EPS beat(4)2.49%
Min EPS beat(4)-6.22%
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)-1.12%
Min Revenue beat(2)-3.62%
Max Revenue beat(2)1.38%
Revenue beat(4)2
Avg Revenue beat(4)-0.59%
Min Revenue beat(4)-3.62%
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)5%
PT rev (3m)5%
EPS NQ rev (1m)-2.61%
EPS NQ rev (3m)-21.05%
EPS NY rev (1m)-1.89%
EPS NY rev (3m)-4.26%
Revenue NQ rev (1m)0.08%
Revenue NQ rev (3m)-6.45%
Revenue NY rev (1m)-0.88%
Revenue NY rev (3m)-1.38%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 11.79 | ||
| Fwd PE | 8.52 | ||
| P/S | 0.76 | ||
| P/FCF | 8.09 | ||
| P/OCF | 4.24 | ||
| P/B | 1.07 | ||
| P/tB | 4.25 | ||
| EV/EBITDA | 4.29 |
EPS(TTM)0.85
EY8.48%
EPS(NY)1.18
Fwd EY11.73%
FCF(TTM)1.24
FCFY12.37%
OCF(TTM)2.36
OCFY23.59%
SpS13.12
BVpS9.38
TBVpS2.36
PEG (NY)8.46
PEG (5Y)0.97
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 4% | ||
| ROE | 7.8% | ||
| ROCE | 10.13% | ||
| ROIC | 5.88% | ||
| ROICexc | 6.52% | ||
| ROICexgc | 15.64% | ||
| OM | 9.81% | ||
| PM (TTM) | 5.57% | ||
| GM | 14.91% | ||
| FCFM | 9.44% |
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 Turnover0.72
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.31 | ||
| Debt/FCF | 2.87 | ||
| Debt/EBITDA | 1.05 | ||
| Cap/Depr | 76.96% | ||
| Cap/Sales | 8.57% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 86% | ||
| Profit Quality | 169.41% | ||
| Current Ratio | 1.11 | ||
| Quick Ratio | 0.93 | ||
| Altman-Z | 1.71 |
F-Score8
WACC8.45%
ROIC/WACC0.7
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%-21.2%
EPS Next Y1.39%
EPS Next 2Y13.32%
EPS Next 3Y11.97%
EPS Next 5Y10.75%
Revenue 1Y (TTM)13.6%
Revenue growth 3Y14.08%
Revenue growth 5Y14.61%
Sales Q2Q%0.74%
Revenue Next Year2.34%
Revenue Next 2Y5.31%
Revenue Next 3Y4.04%
Revenue Next 5Y3.45%
EBIT growth 1Y70.63%
EBIT growth 3YN/A
EBIT growth 5Y13.91%
EBIT Next Year107.11%
EBIT Next 3Y34.41%
EBIT Next 5Y25.82%
FCF growth 1Y14.21%
FCF growth 3Y81.82%
FCF growth 5YN/A
OCF growth 1Y29.59%
OCF growth 3Y21.54%
OCF growth 5Y20.81%