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NexTier Oilfield Solutions Inc (NEX) Stock Fundamental Analysis

NYSE:NEX - New York Stock Exchange, Inc. - US65290C1053 - Common Stock - Currency: USD

10.61  +0.1 (+0.95%)

Premarket: 10.69 +0.08 (+0.75%)

Fundamental Rating

6

We assign a fundamental rating of 6 out of 10 to NEX. NEX was compared to 62 industry peers in the Energy Equipment & Services industry. NEX is in great health and has no worries on liquidiy or solvency at all, but the profibility rating is only average. A decent growth rate in combination with a cheap valuation! Better keep an eye on NEX. These ratings would make NEX suitable for value investing!


Dividend Valuation Growth Profitability Health

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6

1. Profitability

1.1 Basic Checks

NEX had positive earnings in the past year.
NEX had a positive operating cash flow in the past year.
The reported net income has been mixed in the past 5 years: NEX reported negative net income in multiple years.
NEX had a positive operating cash flow in 4 of the past 5 years.
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 2015 2016 2017 2018 2019 2020 2021 2022 0 200M -200M 400M

1.2 Ratios

The Return On Assets of NEX (29.66%) is better than 100.00% of its industry peers.
The Return On Equity of NEX (56.83%) is better than 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 2015 2016 2017 2018 2019 2020 2021 2022 0 -50 -100

1.3 Margins

NEX has a Profit Margin of 17.59%. This is amongst the best in the industry. NEX outperforms 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.
The Gross Margin of NEX (26.92%) is comparable to the rest of the industry.
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 2015 2016 2017 2018 2019 2020 2021 2022 0 20 -20 -40

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7

2. Health

2.1 Basic Checks

With a Return on Invested Capital (ROIC) well above the Cost of Capital (WACC), NEX is creating value.
Compared to 1 year ago, NEX has less shares outstanding
NEX has a better debt/assets ratio than last year.
NEX Yearly Shares OutstandingNEX Yearly Shares OutstandingYearly Shares Outstanding 2015 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 2015 2016 2017 2018 2019 2020 2021 2022 500M 1B 1.5B

2.2 Solvency

An Altman-Z score of 4.14 indicates that NEX is not in any danger for bankruptcy at the moment.
NEX has a better Altman-Z score (4.14) than 82.54% of its industry peers.
The Debt to FCF ratio of NEX is 1.12, which is an excellent value as it means it would take NEX, only 1.12 years of fcf income to pay off 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.
Looking at the Debt to Equity ratio, with a value of 0.32, NEX is in line with its industry, outperforming 57.14% of the companies in the same industry.
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 2015 2016 2017 2018 2019 2020 2021 2022 0 200M -200M 400M 600M 800M

2.3 Liquidity

NEX has a Current Ratio of 1.37. This is a normal value and indicates that NEX is financially healthy and should not expect problems in meeting its short term obligations.
NEX's Current ratio of 1.37 is on the low side compared to the rest of the industry. NEX is outperformed by 76.19% of its industry peers.
A Quick Ratio of 1.26 indicates that NEX should not have too much problems paying its short term obligations.
Looking at the Quick ratio, with a value of 1.26, NEX is doing worse than 61.90% of the companies in the same industry.
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 2015 2016 2017 2018 2019 2020 2021 2022 200M 400M 600M

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6

3. Growth

3.1 Past

The Earnings Per Share has grown by an impressive 456.82% over the past year.
Measured over the past years, NEX shows a very strong growth in Earnings Per Share. The EPS has been growing by 81.60% on average per year.
NEX shows a strong growth in Revenue. In the last year, 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

NEX is expected to show a small growth in Earnings Per Share. In the coming years, the EPS will grow by 4.79% yearly.
NEX is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 4.32% yearly.
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

When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.
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.
NEX Yearly Revenue VS EstimatesNEX Yearly Revenue VS EstimatesYearly Revenue VS Estimates 2014 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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9

4. Valuation

4.1 Price/Earnings Ratio

NEX is valuated cheaply with a Price/Earnings ratio of 4.33.
Compared to the rest of the industry, the Price/Earnings ratio of NEX indicates a rather cheap valuation: NEX is cheaper than 96.83% of the companies listed in the same industry.
NEX's Price/Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 28.18.
NEX is valuated cheaply with a Price/Forward Earnings ratio of 5.63.
Compared to the rest of the industry, the Price/Forward Earnings ratio of NEX indicates a rather cheap valuation: NEX is cheaper than 90.48% of the companies listed in the same industry.
Compared to an average S&P500 Price/Forward Earnings ratio of 20.81, NEX is valued rather cheaply.
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 5 10 15 20 25

4.2 Price Multiples

Based on the Enterprise Value to EBITDA ratio, NEX is valued cheaply inside the industry as 95.24% of the companies are valued more expensively.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of NEX indicates a rather cheap valuation: NEX is cheaper than 93.65% of the companies listed 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

NEX's 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%

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0

5. Dividend

5.1 Amount

No dividends for NEX!.
Industry RankSector Rank
Dividend Yield N/A

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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
Earnings (Last)07-25 2023-07-25/amc
Earnings (Next)10-23 2023-10-23/amc
Inst Owners0%
Inst Owner Change0%
Ins Owners16.43%
Ins Owner Change0%
Market Cap2.25B
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
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
ROICexcg growth 3Y526.68%
ROICexcg 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%