NATURAL GAS SERVICES GROUP (NGS) Stock Fundamental Analysis
NYSE:NGS - New York Stock Exchange, Inc. - US63886Q1094 - Common Stock - Currency: USD
NGS gets a fundamental rating of 5 out of 10. The analysis compared the fundamentals against 63 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 shows excellent growth, but is valued quite expensive already.
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.
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
The Return On Assets of NGS (3.39%) is comparable to the rest of the industry.
NGS has a Return On Equity (6.53%) which is in line with its industry peers.
NGS's Return On Invested Capital of 5.77% is in line compared to the rest of the industry. NGS outperforms 41.27% of its industry peers.
The Average Return On Invested Capital over the past 3 years for NGS is significantly below the industry average of 8.50%.
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's Operating Margin of 22.67% is amongst the best of the industry. NGS outperforms 87.30% of its industry peers.
In the last couple of years the Operating Margin of NGS has grown nicely.
The Gross Margin of NGS (56.53%) is better than 93.65% of its industry peers.
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
With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), NGS is destroying value.
Compared to 1 year ago, NGS has more shares outstanding
Compared to 5 years ago, NGS has less shares outstanding
The debt/assets ratio for NGS has remained at the same level compared to a year ago.
2.2 Solvency
NGS has an Altman-Z score of 1.87. This is not the best score and indicates that NGS is in the grey zone with still only limited risk for bankruptcy at the moment.
NGS has a Altman-Z score (1.87) which is in line with 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 Debt to FCF ratio of 88.28. This is in the lower half of the industry: NGS underperforms 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.
The Debt to Equity ratio of NGS (0.65) is worse than 66.67% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.65 | ||
| Debt/FCF | 88.28 | ||
| Altman-Z | 1.87 |
ROIC/WACC0.66
WACC8.78%
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.
Looking at the Current ratio, with a value of 2.10, NGS is in the better half of the industry, outperforming 63.49% of the companies in the same industry.
A Quick Ratio of 1.33 indicates that NGS should not have too much problems paying its short term obligations.
The Quick ratio of NGS (1.33) is worse than 63.49% 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.
The Earnings Per Share has been growing by 87.22% on average over the past years. This is a very strong growth
The Revenue has grown by 22.64% in the past year. This is a very strong growth!
The Revenue has been growing by 14.85% on average over the past years. This is quite good.
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
Based on estimates for the next years, NGS will show a quite strong growth in Earnings Per Share. The EPS will grow by 15.95% on average per year.
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
Based on the Price/Earnings ratio of 19.10, the valuation of NGS can be described as rather expensive.
The rest of the industry has a similar Price/Earnings ratio as NGS.
Compared to an average S&P500 Price/Earnings ratio of 26.65, NGS is valued a bit cheaper.
NGS is valuated correctly with a Price/Forward Earnings ratio of 14.84.
Based on the Price/Forward Earnings ratio, NGS is valued a bit more expensive than the industry average as 60.32% of the companies are valued more cheaply.
NGS is valuated rather cheaply when we compare the Price/Forward Earnings ratio to 21.27, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 19.1 | ||
| Fwd PE | 14.84 |
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 63.49% of the companies in the same industry.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of NGS indicates a slightly more expensive valuation: NGS is more expensive than 65.08% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 171.06 | ||
| EV/EBITDA | 7.08 |
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.
A more expensive valuation may be justified as NGS's earnings are expected to grow with 15.95% in the coming years.
PEG (NY)5.19
PEG (5Y)0.22
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 |
25.98
-0.95 (-3.53%)
Chartmill FA Rating
GICS SectorEnergy
GICS IndustryGroupEnergy
GICS IndustryEnergy Equipment & Services
Earnings (Last)
Earnings (Next)
Inst Owners72.91%
Inst Owner Change-4.02%
Ins Owners0.38%
Ins Owner Change-3.31%
Market Cap325.53M
Analysts85
Price Target37.4 (43.96%)
Short Float %2.35%
Short Ratio3.08
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)1.85%
PT rev (3m)1.15%
EPS NQ rev (1m)0%
EPS NQ rev (3m)14.44%
EPS NY rev (1m)0%
EPS NY rev (3m)11.26%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-3.93%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-1.05%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 19.1 | ||
| Fwd PE | 14.84 | ||
| P/S | 2.02 | ||
| P/FCF | 171.06 | ||
| P/OCF | 3.96 | ||
| P/B | 1.25 | ||
| P/tB | 1.25 | ||
| EV/EBITDA | 7.08 |
EPS(TTM)1.36
EY5.23%
EPS(NY)1.75
Fwd EY6.74%
FCF(TTM)0.15
FCFY0.58%
OCF(TTM)6.55
OCFY25.23%
SpS12.87
BVpS20.77
TBVpS20.77
PEG (NY)5.19
PEG (5Y)0.22
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 | 1.87 |
F-Score7
WACC8.78%
ROIC/WACC0.66
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%