NexTier Oilfield Solutions Inc (NEX) Fundamental Analysis & Valuation

NYSE:NEX • US65290C1053

Current stock price

10.61 USD
+0.1 (+0.95%)
At close:
10.69 USD
+0.08 (+0.75%)
Pre-Market:

This NEX fundamental analysis includes valuation metrics, fair value assessment, financial health analysis, profitability trends, growth metrics and dividend sustainability analysis.

6

1. NEX Profitability Analysis

1.1 Basic Checks

  • In the past year NEX was profitable.
  • NEX had a positive operating cash flow in the past year.
NEX Yearly Net Income VS EBIT VS OCF VS FCFNEX Yearly Net Income VS EBIT VS OCF VS FCFYearly Net Income VS EBIT VS OCF VS FCF 2016 2017 2018 2019 2020 2021 2022 0 200M -200M 400M

1.2 Ratios

  • With an excellent Return On Assets value of 29.66%, NEX belongs to the best of the industry, outperforming 100.00% of the companies in the same industry.
  • NEX has a Return On Equity of 56.83%. This is amongst the best in the industry. NEX outperforms 96.83% of its industry peers.
  • The Return On Invested Capital of NEX (30.63%) is better than 100.00% of its industry peers.
Industry RankSector Rank
ROA 29.66%
ROE 56.83%
ROIC 30.63%
ROA(3y)N/A
ROA(5y)N/A
ROE(3y)N/A
ROE(5y)N/A
ROIC(3y)N/A
ROIC(5y)N/A
NEX Yearly ROA, ROE, ROICNEX Yearly ROA, ROE, ROICYearly ROA, ROE, ROIC 2016 2017 2018 2019 2020 2021 2022 0 -50 -100

1.3 Margins

  • NEX has a better Profit Margin (17.59%) than 95.24% of its industry peers.
  • Looking at the Operating Margin, with a value of 16.19%, NEX is in the better half of the industry, outperforming 77.78% of the companies in the same industry.
  • In the last couple of years the Operating Margin of NEX has grown nicely.
  • NEX's Gross Margin of 26.92% is in line compared to the rest of the industry. NEX outperforms 50.79% of its industry peers.
  • In the last couple of years the Gross Margin of NEX has grown nicely.
Industry RankSector Rank
OM 16.19%
PM (TTM) 17.59%
GM 26.92%
OM growth 3Y390.97%
OM growth 5Y56.68%
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y0.48%
GM growth 5Y6.55%
NEX Yearly Profit, Operating, Gross MarginsNEX Yearly Profit, Operating, Gross MarginsYearly Profit, Operating, Gross Margins 2016 2017 2018 2019 2020 2021 2022 0 20 -20 -40

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ROAROEROICOperating and Profit MarginShow most profitable peers

7

2. NEX Health Analysis

2.1 Basic Checks

  • NEX has a Return on Invested Capital (ROIC), which is well above the Cost of Capital (WACC), which means it is creating value.
  • NEX has less shares outstanding than it did 1 year ago.
  • Compared to 1 year ago, NEX has an improved debt to assets ratio.
NEX Yearly Shares OutstandingNEX Yearly Shares OutstandingYearly Shares Outstanding 2016 2017 2018 2019 2020 2021 2022 50M 100M 150M 200M
NEX Yearly Total Debt VS Total AssetsNEX Yearly Total Debt VS Total AssetsYearly Total Debt VS Total Assets 2016 2017 2018 2019 2020 2021 2022 500M 1B 1.5B

2.2 Solvency

  • NEX has an Altman-Z score of 4.14. This indicates that NEX is financially healthy and has little risk of bankruptcy at the moment.
  • NEX has a better Altman-Z score (4.14) than 82.54% of its industry peers.
  • NEX has a debt to FCF ratio of 1.12. This is a very positive value and a sign of high solvency as it would only need 1.12 years to pay back of all of its debts.
  • NEX's Debt to FCF ratio of 1.12 is amongst the best of the industry. NEX outperforms 87.30% of its industry peers.
  • A Debt/Equity ratio of 0.32 indicates that NEX is not too dependend on debt financing.
  • NEX has a Debt to Equity ratio of 0.32. This is comparable to the rest of the industry: NEX outperforms 57.14% of its industry peers.
Industry RankSector Rank
Debt/Equity 0.32
Debt/FCF 1.12
Altman-Z 4.14
ROIC/WACC3.33
WACC9.21%
NEX Yearly LT Debt VS Equity VS FCFNEX Yearly LT Debt VS Equity VS FCFYearly LT Debt VS Equity VS FCF 2016 2017 2018 2019 2020 2021 2022 0 200M -200M 400M 600M 800M

2.3 Liquidity

  • A Current Ratio of 1.37 indicates that NEX should not have too much problems paying its short term obligations.
  • NEX has a worse Current ratio (1.37) than 76.19% of its industry peers.
  • NEX has a Quick Ratio of 1.26. This is a normal value and indicates that NEX is financially healthy and should not expect problems in meeting its short term obligations.
  • NEX has a Quick ratio of 1.26. This is in the lower half of the industry: NEX underperforms 61.90% of its industry peers.
Industry RankSector Rank
Current Ratio 1.37
Quick Ratio 1.26
NEX Yearly Current Assets VS Current LiabilitesNEX Yearly Current Assets VS Current LiabilitesYearly Current Assets VS Current Liabilites 2016 2017 2018 2019 2020 2021 2022 200M 400M 600M

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WACCDebt/EquityHow to determine the health of a companyAltman-Z scoreShow peers with great health

6

3. NEX Growth Analysis

3.1 Past

  • The Earnings Per Share has grown by an impressive 456.82% over the past year.
  • NEX shows a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 81.60% yearly.
  • Looking at the last year, NEX shows a very strong growth in Revenue. The Revenue has grown by 53.21%.
  • Measured over the past years, NEX shows a quite strong growth in Revenue. The Revenue has been growing by 16.04% on average per year.
EPS 1Y (TTM)456.82%
EPS 3YN/A
EPS 5Y81.6%
EPS Q2Q%74.36%
Revenue 1Y (TTM)53.21%
Revenue growth 3Y21.22%
Revenue growth 5Y16.04%
Sales Q2Q%12.12%

3.2 Future

  • Based on estimates for the next years, NEX will show a small growth in Earnings Per Share. The EPS will grow by 4.79% on average per year.
  • Based on estimates for the next years, NEX will show a small growth in Revenue. The Revenue will grow by 4.32% on average per year.
EPS Next Y40.89%
EPS Next 2Y9.22%
EPS Next 3Y4.79%
EPS Next 5YN/A
Revenue Next Year10.1%
Revenue Next 2Y6.01%
Revenue Next 3Y4.32%
Revenue Next 5YN/A

3.3 Evolution

  • The EPS growth rate is decreasing: in the next years the growth will be less than in the last years.
  • The Revenue growth rate is decreasing: in the next years the growth will be less than in the last years.
NEX Yearly Revenue VS EstimatesNEX Yearly Revenue VS EstimatesYearly Revenue VS Estimates 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 1B 2B 3B
NEX Yearly EPS VS EstimatesNEX Yearly EPS VS EstimatesYearly EPS VS Estimates 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 0 1 -1 2

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Find the best growth stocksShow best growing peers

9

4. NEX Valuation Analysis

4.1 Price/Earnings Ratio

  • A Price/Earnings ratio of 4.33 indicates a rather cheap valuation of NEX.
  • 96.83% of the companies in the same industry are more expensive than NEX, based on the Price/Earnings ratio.
  • Compared to an average S&P500 Price/Earnings ratio of 26.64, NEX is valued rather cheaply.
  • A Price/Forward Earnings ratio of 5.63 indicates a rather cheap valuation of NEX.
  • 90.48% of the companies in the same industry are more expensive than NEX, based on the Price/Forward Earnings ratio.
  • NEX is valuated cheaply when we compare the Price/Forward Earnings ratio to 21.36, which is the current average of the S&P500 Index.
Industry RankSector Rank
PE 4.33
Fwd PE 5.63
NEX Price Earnings VS Forward Price EarningsNEX Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 10 20 30 40 50

4.2 Price Multiples

  • Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of NEX indicates a rather cheap valuation: NEX is cheaper than 95.24% of the companies listed in the same industry.
  • Based on the Price/Free Cash Flow ratio, NEX is valued cheaper than 93.65% of the companies in the same industry.
Industry RankSector Rank
P/FCF 5.87
EV/EBITDA 2.86
NEX Per share dataNEX EPS, Sales, OCF, FCF, BookValue per sharePer Share Data Per Share 5 10 15

4.3 Compensation for Growth

  • The low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
  • The decent profitability rating of NEX may justify a higher PE ratio.
PEG (NY)0.11
PEG (5Y)0.05
EPS Next 2Y9.22%
EPS Next 3Y4.79%

More info and screens

Price/EarningsPrice/FCFFCF per shareEV/EBITDAPEG RATIOShow best valued peers

0

5. NEX Dividend Analysis

5.1 Amount

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

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Find the best dividend stocksShow peers with best dividend

NEX Fundamentals: All Metrics, Ratios and Statistics

NexTier Oilfield Solutions Inc

NYSE:NEX (8/31/2023, 8:09:30 PM)

Premarket: 10.69 +0.08 (+0.75%)

10.61

+0.1 (+0.95%)

Chartmill FA Rating
GICS SectorEnergy
GICS IndustryGroupEnergy
GICS IndustryEnergy Equipment & Services
Industry Strength89.44
Industry Growth41.61
Earnings (Last)07-25
Earnings (Next)10-23
Inst Owners0%
Inst Owner Change0%
Ins Owners16.43%
Ins Owner Change0%
Market Cap2.25B
Revenue(TTM)3.65B
Net Income(TTM)641.78M
Analysts77.14
Price Target13.63 (28.46%)
Short Float %N/A
Short RatioN/A
Dividend
Industry RankSector Rank
Dividend Yield N/A
Yearly DividendN/A
Dividend Growth(5Y)N/A
DPN/A
Div Incr Years0
Div Non Decr Years0
Ex-DateN/A
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)6.64%
Min EPS beat(2)6.63%
Max EPS beat(2)6.64%
EPS beat(4)4
Avg EPS beat(4)14.69%
Min EPS beat(4)6.63%
Max EPS beat(4)35.22%
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)-1.01%
Min Revenue beat(2)-1.99%
Max Revenue beat(2)-0.03%
Revenue beat(4)0
Avg Revenue beat(4)-1.81%
Min Revenue beat(4)-4.06%
Max Revenue beat(4)-0.03%
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)0%
PT rev (3m)-2.59%
EPS NQ rev (1m)2.58%
EPS NQ rev (3m)-21.74%
EPS NY rev (1m)0%
EPS NY rev (3m)-15.95%
Revenue NQ rev (1m)-0.12%
Revenue NQ rev (3m)-11.49%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-8.05%
Valuation
Industry RankSector Rank
PE 4.33
Fwd PE 5.63
P/S 0.62
P/FCF 5.87
P/OCF 3.18
P/B 1.99
P/tB 2.53
EV/EBITDA 2.86
EPS(TTM)2.45
EY23.09%
EPS(NY)1.88
Fwd EY17.77%
FCF(TTM)1.81
FCFY17.05%
OCF(TTM)3.34
OCFY31.45%
SpS17.21
BVpS5.33
TBVpS4.19
PEG (NY)0.11
PEG (5Y)0.05
Graham Number0 (-100%)
Profitability
Industry RankSector Rank
ROA 29.66%
ROE 56.83%
ROCE 38.78%
ROIC 30.63%
ROICexc 38.5%
ROICexgc 48.07%
OM 16.19%
PM (TTM) 17.59%
GM 26.92%
FCFM 10.51%
ROA(3y)N/A
ROA(5y)N/A
ROE(3y)N/A
ROE(5y)N/A
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 3Y526.68%
ROICexgc growth 5Y70.24%
ROICexc growth 3Y509.03%
ROICexc growth 5Y71.08%
OM growth 3Y390.97%
OM growth 5Y56.68%
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y0.48%
GM growth 5Y6.55%
F-Score9
Asset Turnover1.69
Health
Industry RankSector Rank
Debt/Equity 0.32
Debt/FCF 1.12
Debt/EBITDA 0.44
Cap/Depr 136.35%
Cap/Sales 8.88%
Interest Coverage N/A
Cash Conversion N/A
Profit Quality 59.73%
Current Ratio 1.37
Quick Ratio 1.26
Altman-Z 4.14
F-Score9
WACC9.21%
ROIC/WACC3.33
Cap/Depr(3y)79.46%
Cap/Depr(5y)83.31%
Cap/Sales(3y)10.04%
Cap/Sales(5y)10.9%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)456.82%
EPS 3YN/A
EPS 5Y81.6%
EPS Q2Q%74.36%
EPS Next Y40.89%
EPS Next 2Y9.22%
EPS Next 3Y4.79%
EPS Next 5YN/A
Revenue 1Y (TTM)53.21%
Revenue growth 3Y21.22%
Revenue growth 5Y16.04%
Sales Q2Q%12.12%
Revenue Next Year10.1%
Revenue Next 2Y6.01%
Revenue Next 3Y4.32%
Revenue Next 5YN/A
EBIT growth 1Y619.09%
EBIT growth 3Y495.16%
EBIT growth 5Y81.81%
EBIT Next Year124.4%
EBIT Next 3Y30.9%
EBIT Next 5YN/A
FCF growth 1Y369.29%
FCF growth 3Y32.48%
FCF growth 5YN/A
OCF growth 1Y1511.4%
OCF growth 3Y14.15%
OCF growth 5Y41.64%

NexTier Oilfield Solutions Inc / NEX Fundamental Analysis FAQ

What is the fundamental rating for NEX stock?

ChartMill assigns a fundamental rating of 6 / 10 to NEX.


What is the valuation status for NEX stock?

ChartMill assigns a valuation rating of 9 / 10 to NexTier Oilfield Solutions Inc (NEX). This can be considered as Undervalued.


How profitable is NexTier Oilfield Solutions Inc (NEX) stock?

NexTier Oilfield Solutions Inc (NEX) has a profitability rating of 6 / 10.


What is the valuation of NexTier Oilfield Solutions Inc based on its PE and PB ratios?

The Price/Earnings (PE) ratio for NexTier Oilfield Solutions Inc (NEX) is 4.33 and the Price/Book (PB) ratio is 1.99.


What is the earnings growth outlook for NexTier Oilfield Solutions Inc?

The Earnings per Share (EPS) of NexTier Oilfield Solutions Inc (NEX) is expected to grow by 40.89% in the next year.