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 4 out of 10. We evaluated NGS against 61 industry peers in the Energy Equipment & Services industry. While NGS is still in line with the averages on profitability rating, there are concerns on its financial health. NGS is quite expensive at the moment. It does show a decent growth rate.
1. Profitability
1.1 Basic Checks
In the past year NGS was profitable.
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
NGS has a Return On Assets (3.41%) which is comparable to the rest of the industry.
NGS has a Return On Equity of 6.73%. This is comparable to the rest of the industry: NGS outperforms 50.82% of its industry peers.
With a Return On Invested Capital value of 5.71%, NGS perfoms like the industry average, outperforming 47.54% of the companies in the same industry.
Measured over the past 3 years, the Average Return On Invested Capital for NGS is significantly below the industry average of 7.98%.
The 3 year average ROIC (2.84%) for NGS is below the current ROIC(5.71%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.41% | ||
| ROE | 6.73% | ||
| ROIC | 5.71% |
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
Looking at the Profit Margin, with a value of 10.92%, NGS is in the better half of the industry, outperforming 77.05% of the companies in the same industry.
NGS's Operating Margin of 23.06% is amongst the best of the industry. NGS outperforms 88.52% of its industry peers.
NGS's Operating Margin has improved in the last couple of years.
NGS has a better Gross Margin (57.49%) than 93.44% of its industry peers.
In the last couple of years the Gross Margin of NGS has grown nicely.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 23.06% | ||
| PM (TTM) | 10.92% | ||
| GM | 57.49% |
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
NGS has a Return on Invested Capital (ROIC), which is below the Cost of Capital (WACC), which means it is destroying value.
Compared to 1 year ago, NGS has more shares outstanding
Compared to 5 years ago, NGS has less shares outstanding
NGS has about the same debt/assets ratio as last year.
2.2 Solvency
NGS has an Altman-Z score of 1.77. 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 1.77, NGS is in line with its industry, outperforming 52.46% of the companies in the same industry.
NGS has a Debt/Equity ratio of 0.68. This is a neutral value indicating NGS is somewhat dependend on debt financing.
The Debt to Equity ratio of NGS (0.68) is worse than 68.85% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.68 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 1.77 |
ROIC/WACC0.58
WACC9.81%
2.3 Liquidity
A Current Ratio of 1.97 indicates that NGS should not have too much problems paying its short term obligations.
The Current ratio of NGS (1.97) is comparable to the rest of the industry.
NGS has a Quick Ratio of 1.23. 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 (1.23) is worse than 67.21% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.97 | ||
| Quick Ratio | 1.23 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an impressive 32.71% over the past year.
The Earnings Per Share has been growing by 87.22% on average over the past years. This is a very strong growth
NGS shows quite a strong growth in Revenue. In the last year, the Revenue has grown by 14.77%.
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)32.71%
EPS 3YN/A
EPS 5Y87.22%
EPS Q2Q%17.65%
Revenue 1Y (TTM)14.77%
Revenue growth 3Y29.35%
Revenue growth 5Y14.85%
Sales Q2Q%7.51%
3.2 Future
The Earnings Per Share is expected to grow by 15.48% on average over the next years. This is quite good.
The Revenue is expected to grow by 7.94% on average over the next years.
EPS Next Y3.68%
EPS Next 2Y12.63%
EPS Next 3Y15.95%
EPS Next 5Y15.48%
Revenue Next Year12.3%
Revenue Next 2Y13.85%
Revenue Next 3Y10.2%
Revenue Next 5Y7.94%
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.
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
The Price/Earnings ratio is 18.22, which indicates a rather expensive current valuation of NGS.
NGS's Price/Earnings ratio is in line with the industry average.
NGS is valuated rather cheaply when we compare the Price/Earnings ratio to 26.76, which is the current average of the S&P500 Index.
NGS is valuated correctly with a Price/Forward Earnings ratio of 14.78.
NGS's Price/Forward Earnings ratio is a bit more expensive when compared to the industry. NGS is more expensive than 60.66% of the companies in the same industry.
NGS is valuated cheaply when we compare the Price/Forward Earnings ratio to 34.91, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 18.22 | ||
| Fwd PE | 14.78 |
4.2 Price Multiples
63.93% of the companies in the same industry are cheaper than NGS, based on the Enterprise Value to EBITDA ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 6.95 |
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.
NGS has a very decent profitability rating, which 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)4.95
PEG (5Y)0.21
EPS Next 2Y12.63%
EPS Next 3Y15.95%
5. Dividend
5.1 Amount
NGS has a Yearly Dividend Yield of 1.58%. Purely for dividend investing, there may be better candidates out there.
Compared to an average industry Dividend Yield of 3.45, NGS pays a bit more dividend than its industry peers.
Compared to the average S&P500 Dividend Yield of 2.36, NGS is paying slightly less dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.58% |
5.2 History
NGS is new to the dividend game and has less than 3 years of track record.
Dividend Growth(5Y)N/A
Div Incr Years0
Div Non Decr Years0
5.3 Sustainability
DPN/A
EPS Next 2Y12.63%
EPS Next 3Y15.95%
25.87
+0.44 (+1.73%)
Chartmill FA Rating
GICS SectorEnergy
GICS IndustryGroupEnergy
GICS IndustryEnergy Equipment & Services
Earnings (Last)
Earnings (Next)
Inst Owners73.36%
Inst Owner Change7.6%
Ins Owners0.41%
Ins Owner Change-1.78%
Market Cap324.41M
Analysts85
Price Target37.4 (44.57%)
Short Float %2.22%
Short Ratio3.36
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.58% |
Yearly DividendN/A
Dividend Growth(5Y)N/A
DPN/A
Div Incr Years0
Div Non Decr Years0
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)34.9%
Min EPS beat(2)15.35%
Max EPS beat(2)54.46%
EPS beat(4)3
Avg EPS beat(4)22.64%
Min EPS beat(4)-11.28%
Max EPS beat(4)54.46%
EPS beat(8)7
Avg EPS beat(8)58.57%
EPS beat(12)9
Avg EPS beat(12)50.16%
EPS beat(16)11
Avg EPS beat(16)-12.65%
Revenue beat(2)1
Avg Revenue beat(2)-0.51%
Min Revenue beat(2)-2.14%
Max Revenue beat(2)1.12%
Revenue beat(4)2
Avg Revenue beat(4)0.82%
Min Revenue beat(4)-2.14%
Max Revenue beat(4)5.71%
Revenue beat(8)6
Avg Revenue beat(8)5.08%
Revenue beat(12)10
Avg Revenue beat(12)7.15%
Revenue beat(16)13
Avg Revenue beat(16)6.78%
PT rev (1m)0%
PT rev (3m)1.85%
EPS NQ rev (1m)0%
EPS NQ rev (3m)4.04%
EPS NY rev (1m)0%
EPS NY rev (3m)0%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-0.24%
Revenue NY rev (1m)0%
Revenue NY rev (3m)0%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 18.22 | ||
| Fwd PE | 14.78 | ||
| P/S | 1.98 | ||
| P/FCF | N/A | ||
| P/OCF | 4.8 | ||
| P/B | 1.22 | ||
| P/tB | 1.22 | ||
| EV/EBITDA | 6.95 |
EPS(TTM)1.42
EY5.49%
EPS(NY)1.75
Fwd EY6.77%
FCF(TTM)-1.68
FCFYN/A
OCF(TTM)5.39
OCFY20.84%
SpS13.09
BVpS21.23
TBVpS21.23
PEG (NY)4.95
PEG (5Y)0.21
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.41% | ||
| ROE | 6.73% | ||
| ROCE | 7.56% | ||
| ROIC | 5.71% | ||
| ROICexc | 5.72% | ||
| ROICexgc | 5.72% | ||
| OM | 23.06% | ||
| PM (TTM) | 10.92% | ||
| GM | 57.49% | ||
| 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-Score6
Asset Turnover0.31
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.68 | ||
| Debt/FCF | N/A | ||
| Debt/EBITDA | 2.53 | ||
| Cap/Depr | 259.65% | ||
| Cap/Sales | 54.05% | ||
| Interest Coverage | 2.53 | ||
| Cash Conversion | 93.9% | ||
| Profit Quality | N/A | ||
| Current Ratio | 1.97 | ||
| Quick Ratio | 1.23 | ||
| Altman-Z | 1.77 |
F-Score6
WACC9.81%
ROIC/WACC0.58
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)32.71%
EPS 3YN/A
EPS 5Y87.22%
EPS Q2Q%17.65%
EPS Next Y3.68%
EPS Next 2Y12.63%
EPS Next 3Y15.95%
EPS Next 5Y15.48%
Revenue 1Y (TTM)14.77%
Revenue growth 3Y29.35%
Revenue growth 5Y14.85%
Sales Q2Q%7.51%
Revenue Next Year12.3%
Revenue Next 2Y13.85%
Revenue Next 3Y10.2%
Revenue Next 5Y7.94%
EBIT growth 1Y19.6%
EBIT growth 3YN/A
EBIT growth 5Y194.8%
EBIT Next Year124.89%
EBIT Next 3Y38.84%
EBIT Next 5Y30.45%
FCF growth 1Y79.38%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y81.98%
OCF growth 3Y32.56%
OCF growth 5Y17.71%