Fundamental Analysis of NATURAL GAS SERVICES GROUP(NYSE:NGS) stock

Fundamental Rating

Overall NGS gets a fundamental rating of 4 out of 10. We evaluated NGS against 65 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.

Quickly go to:

1. Profitability

1.1 Basic Checks

In the past year NGS was profitable.

NGS had a positive operating cash flow in the past year.

In multiple years NGS reported negative net income over the last 5 years.

In the past 5 years NGS always reported a positive cash flow from operatings.

1.2 Ratios

NGS has a Return On Assets (0.99%) which is in line with its industry peers.

NGS has a Return On Equity of 2.01%. This is in the lower half of the industry: NGS underperforms 60.00% of its industry peers.

Looking at the Return On Invested Capital, with a value of 2.52%, NGS is doing worse than 70.77% of the companies in the same industry.

		Industry Rank	Sector Rank
ROA	0.99%
ROE	2.01%
ROIC	2.52%

ROA(3y)-0.75%

ROA(5y)-1.3%

ROE(3y)-0.71%

ROE(5y)-1.4%

ROIC(3y)N/A

ROIC(5y)N/A

1.3 Margins

Looking at the Profit Margin, with a value of 3.91%, NGS is in line with its industry, outperforming 53.85% of the companies in the same industry.

NGS's Profit Margin has improved in the last couple of years.

NGS has a better Operating Margin (12.96%) than 66.15% of its industry peers.

With an excellent Gross Margin value of 48.46%, NGS belongs to the best of the industry, outperforming 89.23% of the companies in the same industry.

In the last couple of years the Gross Margin of NGS has remained more or less at the same level.

		Industry Rank	Sector Rank
OM	12.96%
PM (TTM)	3.91%
GM	48.46%

OM growth 3YN/A

OM growth 5YN/A

PM growth 3Y13.78%

PM growth 5YN/A

GM growth 3Y0.37%

GM growth 5Y0.68%

More info and screens

ROA

ROE

ROIC

Operating and Profit Margin

Show most profitable peers

2. Health

2.1 Basic Checks

The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so NGS is destroying value.

NGS has more shares outstanding than it did 1 year ago.

The number of shares outstanding for NGS has been reduced compared to 5 years ago.

The debt/assets ratio for NGS is higher compared to a year ago.

2.2 Solvency

Based on the Altman-Z score of 1.55, we must say that NGS is in the distress zone and has some risk of bankruptcy.

NGS has a Altman-Z score (1.55) which is comparable to the rest of the industry.

A Debt/Equity ratio of 0.70 indicates that NGS is somewhat dependend on debt financing.

NGS's Debt to Equity ratio of 0.70 is on the low side compared to the rest of the industry. NGS is outperformed by 64.62% of its industry peers.

		Industry Rank	Sector Rank
Debt/Equity	0.7
Debt/FCF	N/A
Altman-Z	1.55

ROIC/WACC0.31

WACC8.23%

2.3 Liquidity

A Current Ratio of 2.33 indicates that NGS has no problem at all paying its short term obligations.

NGS has a better Current ratio (2.33) than 66.15% of its industry peers.

A Quick Ratio of 1.67 indicates that NGS should not have too much problems paying its short term obligations.

With a decent Quick ratio value of 1.67, NGS is doing good in the industry, outperforming 67.69% of the companies in the same industry.

		Industry Rank	Sector Rank
Current Ratio	2.33
Quick Ratio	1.67

More info and screens

WACC

Debt/Equity

How to determine the health of a company

Altman-Z score

Show peers with great health

3. Growth

3.1 Past

NGS shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 964.89%, which is quite impressive.

NGS shows a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 37.97% yearly.

The Revenue has grown by 40.68% in the past year. This is a very strong growth!

Measured over the past years, NGS shows a quite strong growth in Revenue. The Revenue has been growing by 13.10% on average per year.

EPS 1Y (TTM)964.89%

EPS 3Y39.9%

EPS 5Y37.97%

EPS growth Q2Q325.7%

Revenue 1Y (TTM)40.68%

Revenue growth 3Y21.2%

Revenue growth 5Y13.1%

Revenue growth Q2Q52.06%

3.2 Future

The Earnings Per Share is expected to grow by 82.46% on average over the next years. This is a very strong growth

Based on estimates for the next years, NGS will show a quite strong growth in Revenue. The Revenue will grow by 18.95% on average per year.

EPS Next Y156.61%

EPS Next 2Y82.46%

EPS Next 3YN/A

EPS Next 5YN/A

Revenue Next Year28.54%

Revenue Next 2Y18.95%

Revenue Next 3YN/A

Revenue Next 5YN/A

3.3 Evolution

The EPS growth rate is accelerating: in the next years the growth will be better than in the last years.

When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.

More info and screens

Find the best growth stocks

Show best growing peers

4. Valuation

4.1 Price/Earnings Ratio

Based on the Price/Earnings ratio of 49.76, the valuation of NGS can be described as expensive.

Compared to the rest of the industry, the Price/Earnings ratio of NGS indicates a slightly more expensive valuation: NGS is more expensive than 60.00% of the companies listed in the same industry.

NGS's Price/Earnings ratio indicates a rather expensive valuation when compared to the S&P500 average which is at 27.73.

The Price/Forward Earnings ratio is 19.39, which indicates a rather expensive current valuation of NGS.

Compared to the rest of the industry, the Price/Forward Earnings ratio of NGS indicates a slightly more expensive valuation: NGS is more expensive than 67.69% of the companies listed in the same industry.

When comparing the Price/Forward Earnings ratio of NGS to the average of the S&P500 Index (20.41), we can say NGS is valued inline with the index average.

		Industry Rank	Sector Rank
PE	49.76
Fwd PE	19.39

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 72.31% of the companies in the same industry.

		Industry Rank	Sector Rank
P/FCF	N/A
EV/EBITDA	10.41

4.3 Compensation for Growth

NGS's low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.

NGS's earnings are expected to grow with 82.46% in the coming years. This may justify a more expensive valuation.

PEG (NY)0.32

PEG (5Y)1.31

EPS Next 2Y82.46%

EPS Next 3YN/A

More info and screens

Show best valued peers

5. Dividend

5.1 Amount

NGS does not give a dividend.

		Industry Rank	Sector Rank
Dividend Yield	N/A

More info and screens

Find the best dividend stocks

Show peers with best dividend

NATURAL GAS SERVICES GROUP

NYSE:NGS (5/3/2024, 7:08:37 PM)

After market: 21.88 -0.51 (-2.28%)

22.39

-0.05 (-0.22%)

Chartmill FA Rating

GICS SectorEnergy

GICS IndustryGroupEnergy

GICS IndustryEnergy Equipment & Services

Earnings (Last)

Earnings (Next)

Inst Owners

Inst Owner Change

Ins Owners

Ins Owner Change

Market Cap278.53M

Analysts

Price Target

Dividend

		Industry Rank	Sector Rank
Dividend Yield	N/A

Dividend Growth(5Y)

Div Incr Years

Div Non Decr Years

Ex-Date

Surprises & Revisions

EPS beat(2)

Avg EPS beat(2)

Min EPS beat(2)

Max EPS beat(2)

EPS beat(4)

Avg EPS beat(4)

Min EPS beat(4)

Max EPS beat(4)

EPS beat(8)

Avg EPS beat(8)

EPS beat(12)

Avg EPS beat(12)

EPS beat(16)

Avg EPS beat(16)

Revenue beat(2)

Avg Revenue beat(2)

Min Revenue beat(2)

Max Revenue beat(2)

Revenue beat(4)

Avg Revenue beat(4)

Min Revenue beat(4)

Max Revenue beat(4)

Revenue beat(8)

Avg Revenue beat(8)

Revenue beat(12)

Avg Revenue beat(12)

Revenue beat(16)

Avg Revenue beat(16)

PT rev (1m)

PT rev (3m)

EPS NQ rev (1m)

EPS NQ rev (3m)

EPS NY rev (1m)

EPS NY rev (3m)

Revenue NQ rev (1m)

Revenue NQ rev (3m)

Revenue NY rev (1m)

Revenue NY rev (3m)

Valuation

		Industry Rank	Sector Rank
PE	49.76
Fwd PE	19.39
P/S
P/FCF
P/OCF
P/B
P/tB
EV/EBITDA

EPS(TTM)

EPS(NY)

Fwd EY

FCF(TTM)

FCFY

OCF(TTM)

OCFY

SpS

BVpS

TBVpS

PEG (NY)0.32

PEG (5Y)1.31

Profitability

		Industry Rank	Sector Rank
ROA	0.99%
ROE	2.01%
ROCE
ROIC
ROICexc
ROICexgc
OM	12.96%
PM (TTM)	3.91%
GM	48.46%
FCFM

ROA(3y)

ROA(5y)

ROE(3y)

ROE(5y)

ROIC(3y)

ROIC(5y)

ROICexc(3y)

ROICexc(5y)

ROICexgc(3y)

ROICexgc(5y)

ROCE(3y)

ROCE(5y)

ROICexcg growth 3Y

ROICexcg growth 5Y

ROICexc growth 3Y

ROICexc growth 5Y

OM growth 3Y

OM growth 5Y

PM growth 3Y

PM growth 5Y

GM growth 3Y

GM growth 5Y

F-Score

Asset Turnover0.25

Health

		Industry Rank	Sector Rank
Debt/Equity	0.7
Debt/FCF
Debt/EBITDA
Cap/Depr
Cap/Sales
Interest Coverage
Cash Conversion
Profit Quality
Current Ratio	2.33
Quick Ratio	1.67
Altman-Z

F-Score

WACC

ROIC/WACC

Cap/Depr(3y)

Cap/Depr(5y)

Cap/Sales(3y)

Cap/Sales(5y)

Profit Quality(3y)

Profit Quality(5y)

Growth

EPS 1Y (TTM)964.89%

EPS 3Y39.9%

EPS 5Y

EPS growth Q2Q

EPS Next Y156.61%

EPS Next 2Y

EPS Next 3Y

EPS Next 5Y

Revenue 1Y (TTM)40.68%

Revenue growth 3Y21.2%

Revenue growth 5Y

Revenue growth Q2Q

Revenue Next Year

Revenue Next 2Y

Revenue Next 3Y

Revenue Next 5Y

EBIT growth 1Y

EBIT growth 3Y

EBIT growth 5Y

EBIT Next Year

EBIT Next 3Y

EBIT Next 5Y

FCF growth 1Y

FCF growth 3Y

FCF growth 5Y

OCF growth 1Y

OCF growth 3Y

OCF growth 5Y

NATURAL GAS SERVICES GROUP (NGS)

1. Profitability

1.1 Basic Checks

1.2 Ratios

1.3 Margins

More info and screens

2. Health

2.1 Basic Checks

2.2 Solvency

2.3 Liquidity

More info and screens

3. Growth

3.1 Past

3.2 Future

3.3 Evolution

More info and screens

4. Valuation

4.1 Price/Earnings Ratio

4.2 Price Multiples

4.3 Compensation for Growth

More info and screens

5. Dividend

5.1 Amount

More info and screens