NexTier Oilfield Solutions Inc (NEX) Stock Fundamental Analysis
NYSE:NEX - New York Stock Exchange, Inc. - US65290C1053 - Common Stock - Currency: USD
Taking everything into account, NEX scores 6 out of 10 in our fundamental rating. NEX was compared to 63 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. NEX scores decently on growth, while it is valued quite cheap. This could make an interesting combination. With these ratings, NEX could be worth investigating further for value investing!.
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.
1.2 Ratios
Looking at the Return On Assets, with a value of 29.66%, NEX belongs to the top of the industry, outperforming 100.00% of the companies in the same industry.
NEX's Return On Equity of 56.83% is amongst the best of the industry. NEX outperforms 96.83% of its industry peers.
NEX has a better Return On Invested Capital (30.63%) than 100.00% of its industry peers.
| Industry Rank | Sector 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
1.3 Margins
With an excellent Profit Margin value of 17.59%, NEX belongs to the best of the industry, outperforming 95.24% of the companies in the same industry.
With a decent Operating Margin value of 16.19%, NEX is doing good in 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 has a Gross Margin of 26.92%. This is comparable to the rest of the industry: NEX outperforms 50.79% of its industry peers.
NEX's Gross Margin has improved in the last couple of years.
| Industry Rank | Sector 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%
2. Health
2.1 Basic Checks
With a Return on Invested Capital (ROIC) well above the Cost of Capital (WACC), NEX is creating value.
The number of shares outstanding for NEX has been reduced compared to 1 year ago.
Compared to 1 year ago, NEX has an improved debt to assets ratio.
2.2 Solvency
An Altman-Z score of 4.14 indicates that NEX is not in any danger for bankruptcy at the moment.
The Altman-Z score of NEX (4.14) is better 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.
Looking at the Debt to FCF ratio, with a value of 1.12, NEX belongs to the top of the industry, outperforming 87.30% of the companies in the same industry.
NEX has a Debt/Equity ratio of 0.32. This is a healthy value indicating a solid balance between debt and equity.
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 Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.32 | ||
| Debt/FCF | 1.12 | ||
| Altman-Z | 4.14 |
ROIC/WACC3.33
WACC9.21%
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 worse Quick ratio (1.26) than 61.90% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.37 | ||
| Quick Ratio | 1.26 |
3. Growth
3.1 Past
NEX shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 456.82%, which is quite impressive.
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.
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
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.
The Revenue growth rate is decreasing: in the next years the growth will be less than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
A Price/Earnings ratio of 4.33 indicates a rather cheap valuation of NEX.
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.
When comparing the Price/Earnings ratio of NEX to the average of the S&P500 Index (27.45), we can say NEX is valued rather cheaply.
Based on the Price/Forward Earnings ratio of 5.63, the valuation of NEX can be described as very cheap.
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.
NEX's Price/Forward Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 21.90.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 4.33 | ||
| Fwd PE | 5.63 |
4.2 Price Multiples
NEX's Enterprise Value to EBITDA ratio is rather cheap when compared to the industry. NEX is cheaper than 95.24% of the companies in the same industry.
Based on the Price/Free Cash Flow ratio, NEX is valued cheaply inside the industry as 93.65% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 5.87 | ||
| EV/EBITDA | 2.86 |
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.
NEX has a very decent profitability rating, which may justify a higher PE ratio.
PEG (NY)0.11
PEG (5Y)0.05
EPS Next 2Y9.22%
EPS Next 3Y4.79%
5. Dividend
5.1 Amount
No dividends for NEX!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
10.61
+0.1 (+0.95%)
Chartmill FA Rating
GICS SectorEnergy
GICS IndustryGroupEnergy
GICS IndustryEnergy Equipment & Services
Earnings (Last)
Earnings (Next)
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 Rank | Sector 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 Rank | Sector 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 Rank | Sector 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 Rank | Sector 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%