NATURAL GAS SERVICES GROUP (NGS) Stock Fundamental Analysis
NYSE:NGS - New York Stock Exchange, Inc. - US63886Q1094 - Common Stock - Currency: USD
We assign a fundamental rating of 5 out of 10 to NGS. NGS was compared to 62 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 is valued quite expensive, but it does show an excellent growth.
1. Profitability
1.1 Basic Checks
NGS had positive earnings in the past year.
In the past year NGS had a positive cash flow from operations.
In multiple years NGS reported negative net income over the last 5 years.
NGS had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
The Return On Assets of NGS (3.50%) is comparable to the rest of the industry.
NGS has a Return On Equity (6.75%) which is comparable to the rest of the industry.
NGS has a Return On Invested Capital (5.67%) which is comparable to the rest of the 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 8.11%.
The last Return On Invested Capital (5.67%) for NGS is above the 3 year average (2.84%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.5% | ||
| ROE | 6.75% | ||
| ROIC | 5.67% |
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
With a decent Profit Margin value of 10.99%, NGS is doing good in the industry, outperforming 75.81% of the companies in the same industry.
NGS's Operating Margin of 22.73% is amongst the best of the industry. NGS outperforms 85.48% of its industry peers.
In the last couple of years the Operating Margin of NGS has grown nicely.
The Gross Margin of NGS (56.13%) is better than 91.94% of its industry peers.
NGS's Gross Margin has improved in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 22.73% | ||
| PM (TTM) | 10.99% | ||
| GM | 56.13% |
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
With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), NGS is destroying value.
The number of shares outstanding for NGS has been increased compared to 1 year ago.
Compared to 5 years ago, NGS has less shares outstanding
Compared to 1 year ago, NGS has about the same debt to assets ratio.
2.2 Solvency
NGS has an Altman-Z score of 1.66. This is a bad value and indicates that NGS is not financially healthy and even has some risk of bankruptcy.
Looking at the Altman-Z score, with a value of 1.66, NGS is in line with its industry, outperforming 50.00% of the companies in the same industry.
NGS has a Debt/Equity ratio of 0.67. This is a neutral value indicating NGS is somewhat dependend on debt financing.
With a Debt to Equity ratio value of 0.67, NGS is not doing good in the industry: 67.74% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.67 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 1.66 |
ROIC/WACC0.56
WACC10.15%
2.3 Liquidity
A Current Ratio of 2.78 indicates that NGS has no problem at all paying its short term obligations.
NGS's Current ratio of 2.78 is fine compared to the rest of the industry. NGS outperforms 77.42% of its industry peers.
A Quick Ratio of 1.74 indicates that NGS should not have too much problems paying its short term obligations.
Looking at the Quick ratio, with a value of 1.74, NGS is in the better half of the industry, outperforming 69.35% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.78 | ||
| Quick Ratio | 1.74 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an impressive 206.67% over the past year.
NGS shows a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 87.22% yearly.
NGS shows a strong growth in Revenue. In the last year, the Revenue has grown by 29.36%.
Measured over the past years, NGS shows a quite strong growth in Revenue. The Revenue has been growing by 14.85% on average per year.
EPS 1Y (TTM)206.67%
EPS 3YN/A
EPS 5Y87.22%
EPS Q2Q%64.29%
Revenue 1Y (TTM)29.36%
Revenue growth 3Y29.35%
Revenue growth 5Y14.85%
Sales Q2Q%12.25%
3.2 Future
The Earnings Per Share is expected to grow by 15.04% on average over the next years. This is quite good.
Based on estimates for the next years, NGS will show a quite strong growth in Revenue. The Revenue will grow by 9.62% on average per year.
EPS Next Y-11.44%
EPS Next 2Y11.65%
EPS Next 3Y15.04%
EPS Next 5YN/A
Revenue Next Year11.62%
Revenue Next 2Y13.5%
Revenue Next 3Y9.62%
Revenue Next 5YN/A
3.3 Evolution
The estimated forward EPS growth is still strong, although it is decreasing when compared to the stronger growth in the past years.
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
With a Price/Earnings ratio of 13.78, NGS is valued correctly.
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 cheaply when we compare the Price/Earnings ratio to 28.92, which is the current average of the S&P500 Index.
NGS is valuated correctly with a Price/Forward Earnings ratio of 15.56.
NGS's Price/Forward Earnings is on the same level as the industry average.
NGS's Price/Forward Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 21.65.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 13.78 | ||
| Fwd PE | 15.56 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, NGS is valued a bit more expensive than 62.90% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 6.06 |
4.3 Compensation for Growth
The decent profitability rating of NGS may justify a higher PE ratio.
A more expensive valuation may be justified as NGS's earnings are expected to grow with 15.04% in the coming years.
PEG (NY)N/A
PEG (5Y)0.16
EPS Next 2Y11.65%
EPS Next 3Y15.04%
5. Dividend
5.1 Amount
NGS does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
19.01
+0.73 (+3.99%)
Chartmill FA Rating
GICS SectorEnergy
GICS IndustryGroupEnergy
GICS IndustryEnergy Equipment & Services
Earnings (Last)
Earnings (Next)
Inst Owners71.04%
Inst Owner Change-0.22%
Ins Owners0.47%
Ins Owner Change-11.47%
Market Cap237.82M
Analysts85
Price Target36.72 (93.16%)
Short Float %1.18%
Short Ratio1.51
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)10.37%
Min EPS beat(2)-11.28%
Max EPS beat(2)32.01%
EPS beat(4)3
Avg EPS beat(4)32.53%
Min EPS beat(4)-11.28%
Max EPS beat(4)93.31%
EPS beat(8)7
Avg EPS beat(8)142.44%
EPS beat(12)9
Avg EPS beat(12)61.13%
EPS beat(16)10
Avg EPS beat(16)-30.21%
Revenue beat(2)1
Avg Revenue beat(2)2.14%
Min Revenue beat(2)-1.43%
Max Revenue beat(2)5.71%
Revenue beat(4)3
Avg Revenue beat(4)3.15%
Min Revenue beat(4)-1.43%
Max Revenue beat(4)5.71%
Revenue beat(8)7
Avg Revenue beat(8)8.3%
Revenue beat(12)11
Avg Revenue beat(12)8.61%
Revenue beat(16)14
Avg Revenue beat(16)8.17%
PT rev (1m)-0.69%
PT rev (3m)1.41%
EPS NQ rev (1m)-5.06%
EPS NQ rev (3m)-6.25%
EPS NY rev (1m)-4.97%
EPS NY rev (3m)-5.22%
Revenue NQ rev (1m)-4.61%
Revenue NQ rev (3m)-4.43%
Revenue NY rev (1m)-1.64%
Revenue NY rev (3m)-1.64%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 13.78 | ||
| Fwd PE | 15.56 | ||
| P/S | 1.52 | ||
| P/FCF | N/A | ||
| P/OCF | 3.58 | ||
| P/B | 0.93 | ||
| P/tB | 0.93 | ||
| EV/EBITDA | 6.06 |
EPS(TTM)1.38
EY7.26%
EPS(NY)1.22
Fwd EY6.43%
FCF(TTM)-0.43
FCFYN/A
OCF(TTM)5.31
OCFY27.95%
SpS12.53
BVpS20.39
TBVpS20.39
PEG (NY)N/A
PEG (5Y)0.16
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.5% | ||
| ROE | 6.75% | ||
| ROCE | 7.5% | ||
| ROIC | 5.67% | ||
| ROICexc | 5.69% | ||
| ROICexgc | 5.69% | ||
| OM | 22.73% | ||
| PM (TTM) | 10.99% | ||
| GM | 56.13% | ||
| FCFM | N/A |
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 | 0.67 | ||
| Debt/FCF | N/A | ||
| Debt/EBITDA | 2.54 | ||
| Cap/Depr | 229.35% | ||
| Cap/Sales | 45.87% | ||
| Interest Coverage | 1.94 | ||
| Cash Conversion | 99.24% | ||
| Profit Quality | N/A | ||
| Current Ratio | 2.78 | ||
| Quick Ratio | 1.74 | ||
| Altman-Z | 1.66 |
F-Score7
WACC10.15%
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)206.67%
EPS 3YN/A
EPS 5Y87.22%
EPS Q2Q%64.29%
EPS Next Y-11.44%
EPS Next 2Y11.65%
EPS Next 3Y15.04%
EPS Next 5YN/A
Revenue 1Y (TTM)29.36%
Revenue growth 3Y29.35%
Revenue growth 5Y14.85%
Sales Q2Q%12.25%
Revenue Next Year11.62%
Revenue Next 2Y13.5%
Revenue Next 3Y9.62%
Revenue Next 5YN/A
EBIT growth 1Y126.94%
EBIT growth 3YN/A
EBIT growth 5Y194.8%
EBIT Next Year117.62%
EBIT Next 3Y38.44%
EBIT Next 5YN/A
FCF growth 1Y96%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y268.56%
OCF growth 3Y32.56%
OCF growth 5Y17.71%