NATURAL GAS SERVICES GROUP (NGS) Stock Fundamental Analysis
NYSE:NGS - New York Stock Exchange, Inc. - US63886Q1094 - Common Stock - Currency: USD
Overall NGS gets a fundamental rating of 5 out of 10. We evaluated NGS against 63 industry peers in the Energy Equipment & Services industry. NGS has a medium profitability rating, but doesn't score so well on its financial health evaluation. NGS shows excellent growth, but is valued quite expensive already.
1. Profitability
1.1 Basic Checks
In the past year NGS was profitable.
NGS had a positive operating cash flow in the past year.
The reported net income has been mixed in the past 5 years: NGS reported negative net income in multiple years.
NGS had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
NGS has a Return On Assets (3.39%) which is comparable to the rest of the industry.
Looking at the Return On Equity, with a value of 6.53%, NGS is in line with its industry, outperforming 44.44% of the companies in the same industry.
With a Return On Invested Capital value of 5.77%, NGS perfoms like the industry average, outperforming 41.27% of the companies in the same industry.
NGS had an Average Return On Invested Capital over the past 3 years of 2.84%. This is significantly below the industry average of 8.65%.
The last Return On Invested Capital (5.77%) for NGS is above the 3 year average (2.84%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.39% | ||
| ROE | 6.53% | ||
| ROIC | 5.77% |
ROA(3y)1.44%
ROA(5y)0.37%
ROE(3y)2.84%
ROE(5y)1.07%
ROIC(3y)2.84%
ROIC(5y)N/A
1.3 Margins
The Profit Margin of NGS (10.53%) is better than 76.19% of its industry peers.
NGS has a better Operating Margin (22.67%) than 87.30% of its industry peers.
In the last couple of years the Operating Margin of NGS has grown nicely.
Looking at the Gross Margin, with a value of 56.53%, NGS belongs to the top of the industry, outperforming 93.65% of the companies in the same industry.
In the last couple of years the Gross Margin of NGS has grown nicely.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 22.67% | ||
| PM (TTM) | 10.53% | ||
| GM | 56.53% |
OM growth 3YN/A
OM growth 5Y156.69%
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y14.53%
GM growth 5Y5.23%
2. Health
2.1 Basic Checks
The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so NGS is destroying value.
Compared to 1 year ago, NGS has more shares outstanding
The number of shares outstanding for NGS has been reduced compared to 5 years ago.
The debt/assets ratio for NGS has remained at the same level compared to a year ago.
2.2 Solvency
Based on the Altman-Z score of 1.80, we must say that NGS is in the distress zone and has some risk of bankruptcy.
NGS's Altman-Z score of 1.80 is in line compared to the rest of the industry. NGS outperforms 57.14% of its industry peers.
The Debt to FCF ratio of NGS is 88.28, which is on the high side as it means it would take NGS, 88.28 years of fcf income to pay off all of its debts.
NGS has a worse Debt to FCF ratio (88.28) than 65.08% of its industry peers.
NGS has a Debt/Equity ratio of 0.65. This is a neutral value indicating NGS is somewhat dependend on debt financing.
NGS has a Debt to Equity ratio of 0.65. This is in the lower half of the industry: NGS underperforms 66.67% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.65 | ||
| Debt/FCF | 88.28 | ||
| Altman-Z | 1.8 |
ROIC/WACC0.56
WACC10.22%
2.3 Liquidity
NGS has a Current Ratio of 2.10. This indicates that NGS is financially healthy and has no problem in meeting its short term obligations.
The Current ratio of NGS (2.10) is better than 65.08% of its industry peers.
NGS has a Quick Ratio of 1.33. This is a normal value and indicates that NGS is financially healthy and should not expect problems in meeting its short term obligations.
The Quick ratio of NGS (1.33) is worse than 65.08% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.1 | ||
| Quick Ratio | 1.33 |
3. Growth
3.1 Past
NGS shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 63.86%, which is quite impressive.
NGS shows a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 87.22% yearly.
The Revenue has grown by 22.64% in the past year. This is a very strong growth!
NGS shows quite a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 14.85% yearly.
EPS 1Y (TTM)63.86%
EPS 3YN/A
EPS 5Y87.22%
EPS Q2Q%-4.88%
Revenue 1Y (TTM)22.64%
Revenue growth 3Y29.35%
Revenue growth 5Y14.85%
Sales Q2Q%12.13%
3.2 Future
NGS is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 15.95% yearly.
The Revenue is expected to grow by 10.20% on average over the next years. This is quite good.
EPS Next Y3.68%
EPS Next 2Y12.63%
EPS Next 3Y15.95%
EPS Next 5YN/A
Revenue Next Year12.3%
Revenue Next 2Y13.85%
Revenue Next 3Y10.2%
Revenue Next 5YN/A
3.3 Evolution
Although the future EPS growth is still strong, it is not able to hold up the even more excellent growth rate of the past years.
Although the future Revenue growth is still strong, it is not able to hold up the even more excellent growth rate of the past years.
4. Valuation
4.1 Price/Earnings Ratio
The Price/Earnings ratio is 17.62, which indicates a rather expensive current valuation of NGS.
Compared to the rest of the industry, the Price/Earnings ratio of NGS is on the same level as its industry peers.
NGS is valuated rather cheaply when we compare the Price/Earnings ratio to 26.25, which is the current average of the S&P500 Index.
NGS is valuated correctly with a Price/Forward Earnings ratio of 13.69.
NGS's Price/Forward Earnings ratio is a bit more expensive when compared to the industry. NGS is more expensive than 60.32% of the companies in the same industry.
Compared to an average S&P500 Price/Forward Earnings ratio of 22.15, NGS is valued a bit cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 17.62 | ||
| Fwd PE | 13.69 |
4.2 Price Multiples
NGS's Enterprise Value to EBITDA ratio is a bit more expensive when compared to the industry. NGS is more expensive than 68.25% of the companies in the same industry.
Based on the Price/Free Cash Flow ratio, NGS is valued a bit more expensive than the industry average as 66.67% of the companies are valued more cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 157.83 | ||
| EV/EBITDA | 6.71 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates NGS does not grow enough to justify the current Price/Earnings ratio.
The decent profitability rating of NGS may justify a higher PE ratio.
NGS's earnings are expected to grow with 15.95% in the coming years. This may justify a more expensive valuation.
PEG (NY)4.78
PEG (5Y)0.2
EPS Next 2Y12.63%
EPS Next 3Y15.95%
5. Dividend
5.1 Amount
NGS does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
23.97
-0.5 (-2.04%)
Chartmill FA Rating
GICS SectorEnergy
GICS IndustryGroupEnergy
GICS IndustryEnergy Equipment & Services
Earnings (Last)
Earnings (Next)
Inst Owners71.04%
Inst Owner Change-3.66%
Ins Owners0.47%
Ins Owner Change-4.89%
Market Cap300.34M
Analysts85
Price Target36.72 (53.19%)
Short Float %1.87%
Short Ratio2.31
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)1
Avg EPS beat(2)21.59%
Min EPS beat(2)-11.28%
Max EPS beat(2)54.46%
EPS beat(4)3
Avg EPS beat(4)22.82%
Min EPS beat(4)-11.28%
Max EPS beat(4)54.46%
EPS beat(8)7
Avg EPS beat(8)131.03%
EPS beat(12)9
Avg EPS beat(12)55.83%
EPS beat(16)10
Avg EPS beat(16)-30.74%
Revenue beat(2)1
Avg Revenue beat(2)-0.15%
Min Revenue beat(2)-1.43%
Max Revenue beat(2)1.12%
Revenue beat(4)3
Avg Revenue beat(4)2.29%
Min Revenue beat(4)-1.43%
Max Revenue beat(4)5.71%
Revenue beat(8)7
Avg Revenue beat(8)6.3%
Revenue beat(12)11
Avg Revenue beat(12)7.77%
Revenue beat(16)14
Avg Revenue beat(16)7.44%
PT rev (1m)0%
PT rev (3m)-0.69%
EPS NQ rev (1m)33.76%
EPS NQ rev (3m)14.44%
EPS NY rev (1m)17.08%
EPS NY rev (3m)11.26%
Revenue NQ rev (1m)-0.48%
Revenue NQ rev (3m)-3.93%
Revenue NY rev (1m)0.6%
Revenue NY rev (3m)-1.05%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 17.62 | ||
| Fwd PE | 13.69 | ||
| P/S | 1.86 | ||
| P/FCF | 157.83 | ||
| P/OCF | 3.66 | ||
| P/B | 1.15 | ||
| P/tB | 1.15 | ||
| EV/EBITDA | 6.71 |
EPS(TTM)1.36
EY5.67%
EPS(NY)1.75
Fwd EY7.3%
FCF(TTM)0.15
FCFY0.63%
OCF(TTM)6.55
OCFY27.34%
SpS12.87
BVpS20.77
TBVpS20.77
PEG (NY)4.78
PEG (5Y)0.2
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.39% | ||
| ROE | 6.53% | ||
| ROCE | 7.63% | ||
| ROIC | 5.77% | ||
| ROICexc | 5.79% | ||
| ROICexgc | 5.79% | ||
| OM | 22.67% | ||
| PM (TTM) | 10.53% | ||
| GM | 56.53% | ||
| FCFM | 1.18% |
ROA(3y)1.44%
ROA(5y)0.37%
ROE(3y)2.84%
ROE(5y)1.07%
ROIC(3y)2.84%
ROIC(5y)N/A
ROICexc(3y)2.85%
ROICexc(5y)N/A
ROICexgc(3y)2.85%
ROICexgc(5y)N/A
ROCE(3y)3.75%
ROCE(5y)N/A
ROICexcg growth 3YN/A
ROICexcg growth 5Y163.18%
ROICexc growth 3YN/A
ROICexc growth 5Y163.43%
OM growth 3YN/A
OM growth 5Y156.69%
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y14.53%
GM growth 5Y5.23%
F-Score7
Asset Turnover0.32
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.65 | ||
| Debt/FCF | 88.28 | ||
| Debt/EBITDA | 2.42 | ||
| Cap/Depr | 243.85% | ||
| Cap/Sales | 49.76% | ||
| Interest Coverage | 2.33 | ||
| Cash Conversion | 118.26% | ||
| Profit Quality | 11.21% | ||
| Current Ratio | 2.1 | ||
| Quick Ratio | 1.33 | ||
| Altman-Z | 1.8 |
F-Score7
WACC10.22%
ROIC/WACC0.56
Cap/Depr(3y)359.72%
Cap/Depr(5y)248.19%
Cap/Sales(3y)83.23%
Cap/Sales(5y)61.52%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)63.86%
EPS 3YN/A
EPS 5Y87.22%
EPS Q2Q%-4.88%
EPS Next Y3.68%
EPS Next 2Y12.63%
EPS Next 3Y15.95%
EPS Next 5YN/A
Revenue 1Y (TTM)22.64%
Revenue growth 3Y29.35%
Revenue growth 5Y14.85%
Sales Q2Q%12.13%
Revenue Next Year12.3%
Revenue Next 2Y13.85%
Revenue Next 3Y10.2%
Revenue Next 5YN/A
EBIT growth 1Y48.42%
EBIT growth 3YN/A
EBIT growth 5Y194.8%
EBIT Next Year124.89%
EBIT Next 3Y38.84%
EBIT Next 5YN/A
FCF growth 1Y102.99%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y100.39%
OCF growth 3Y32.56%
OCF growth 5Y17.71%