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 61 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 expensively, but it does show have an excellent growth rating.
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.
Each year in the past 5 years NGS had a positive operating cash flow.
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 42.62% of its industry peers.
NGS had an Average Return On Invested Capital over the past 3 years of 2.84%. This is significantly below the industry average of 8.28%.
The 3 year average ROIC (2.84%) for NGS is below the current ROIC(5.77%), indicating increased profibility in the last year.
| 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
With a decent Profit Margin value of 10.53%, NGS is doing good in the industry, outperforming 73.77% of the companies in the same industry.
NGS has a better Operating Margin (22.67%) than 86.89% of its industry peers.
NGS's Operating Margin has improved in the last couple of years.
NGS has a Gross Margin of 56.53%. This is amongst the best in the industry. NGS outperforms 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 | 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.
The number of shares outstanding for NGS has been increased compared to 1 year ago.
NGS has less shares outstanding than it did 5 years ago.
NGS has about the same debt/assets ratio as last year.
2.2 Solvency
NGS has an Altman-Z score of 1.82. 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.
The Altman-Z score of NGS (1.82) is comparable to the rest of the industry.
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.
The Debt to FCF ratio of NGS (88.28) is worse than 65.57% 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 worse Debt to Equity ratio (0.65) than 65.57% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.65 | ||
| Debt/FCF | 88.28 | ||
| Altman-Z | 1.82 |
ROIC/WACC0.56
WACC10.27%
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.
NGS has a better Current ratio (2.10) than 65.57% of its industry peers.
A Quick Ratio of 1.33 indicates that NGS should not have too much problems paying its short term obligations.
NGS's Quick ratio of 1.33 is on the low side compared to the rest of the industry. NGS is outperformed by 62.30% 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.
Measured over the past years, NGS shows a very strong growth in Earnings Per Share. The EPS has been growing by 87.22% on average per year.
NGS shows a strong growth in Revenue. In the last year, the Revenue has grown by 22.64%.
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)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.
Based on estimates for the next years, NGS will show a quite strong growth in Revenue. The Revenue will grow by 10.20% on average per year.
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 17.90, which indicates a rather expensive current valuation of NGS.
NGS's Price/Earnings ratio is in line with the industry average.
Compared to an average S&P500 Price/Earnings ratio of 27.93, NGS is valued a bit cheaper.
A Price/Forward Earnings ratio of 13.91 indicates a correct valuation of NGS.
NGS's Price/Forward Earnings ratio is in line with the industry average.
NGS is valuated cheaply when we compare the Price/Forward Earnings ratio to 37.78, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 17.9 | ||
| Fwd PE | 13.91 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of NGS is on the same level as its industry peers.
67.21% of the companies in the same industry are cheaper than NGS, based on the Price/Free Cash Flow ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 160.33 | ||
| EV/EBITDA | 6.8 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
NGS has a very decent profitability rating, which 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)4.86
PEG (5Y)0.21
EPS Next 2Y12.63%
EPS Next 3Y15.95%
5. Dividend
5.1 Amount
No dividends for NGS!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
NYSE:NGS (7/29/2025, 12:54:55 PM)
24.35
-0.12 (-0.49%)
Chartmill FA Rating
GICS SectorEnergy
GICS IndustryGroupEnergy
GICS IndustryEnergy Equipment & Services
Earnings (Last)
Earnings (Next)
Inst Owners72.91%
Inst Owner Change0.63%
Ins Owners0.38%
Ins Owner Change-1.04%
Market Cap305.11M
Analysts85
Price Target37.4 (53.59%)
Short Float %2.42%
Short Ratio3.5
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)1.85%
EPS NQ rev (1m)0%
EPS NQ rev (3m)33.76%
EPS NY rev (1m)0%
EPS NY rev (3m)17.08%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-0.48%
Revenue NY rev (1m)0%
Revenue NY rev (3m)0.6%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 17.9 | ||
| Fwd PE | 13.91 | ||
| P/S | 1.89 | ||
| P/FCF | 160.33 | ||
| P/OCF | 3.72 | ||
| P/B | 1.17 | ||
| P/tB | 1.17 | ||
| EV/EBITDA | 6.8 |
EPS(TTM)1.36
EY5.59%
EPS(NY)1.75
Fwd EY7.19%
FCF(TTM)0.15
FCFY0.62%
OCF(TTM)6.55
OCFY26.92%
SpS12.87
BVpS20.77
TBVpS20.77
PEG (NY)4.86
PEG (5Y)0.21
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 | 1.82 |
F-Score7
WACC10.27%
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%