NINE ENERGY SERVICE INC (NINE) Stock Fundamental Analysis
NYSE:NINE - New York Stock Exchange, Inc. - US65441V1017 - Common Stock - Currency: USD
Overall NINE gets a fundamental rating of 2 out of 10. We evaluated NINE against 61 industry peers in the Energy Equipment & Services industry. Both the profitability and financial health of NINE have multiple concerns. NINE does not seem to be growing, but still is valued expensively.
1. Profitability
1.1 Basic Checks
NINE had negative earnings in the past year.
In the past year NINE had a positive cash flow from operations.
NINE had negative earnings in 4 of the past 5 years.
In multiple years NINE reported negative operating cash flow during the last 5 years.
1.2 Ratios
The Return On Assets of NINE (-11.15%) is worse than 85.25% of its industry peers.
NINE has a worse Return On Invested Capital (3.20%) than 72.13% of its industry peers.
The Average Return On Invested Capital over the past 3 years for NINE is below the industry average of 8.08%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -11.15% | ||
| ROE | N/A | ||
| ROIC | 3.2% |
ROA(3y)-5.35%
ROA(5y)-23.72%
ROE(3y)N/A
ROE(5y)N/A
ROIC(3y)5.77%
ROIC(5y)N/A
1.3 Margins
Looking at the Operating Margin, with a value of 1.97%, NINE is doing worse than 81.97% of the companies in the same industry.
In the last couple of years the Operating Margin of NINE has grown nicely.
Looking at the Gross Margin, with a value of 17.65%, NINE is doing worse than 77.05% of the companies in the same industry.
In the last couple of years the Gross Margin of NINE has declined.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 1.97% | ||
| PM (TTM) | N/A | ||
| GM | 17.65% |
OM growth 3YN/A
OM growth 5Y1.94%
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y14.04%
GM growth 5Y-2.13%
2. Health
2.1 Basic Checks
With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), NINE is destroying value.
The number of shares outstanding for NINE has been increased compared to 1 year ago.
The number of shares outstanding for NINE has been increased compared to 5 years ago.
The debt/assets ratio for NINE is higher compared to a year ago.
2.2 Solvency
Based on the Altman-Z score of -1.40, we must say that NINE is in the distress zone and has some risk of bankruptcy.
With a Altman-Z score value of -1.40, NINE is not doing good in the industry: 90.16% of the companies in the same industry are doing better.
NINE has a debt to FCF ratio of 91.73. This is a negative value and a sign of low solvency as NINE would need 91.73 years to pay back of all of its debts.
Looking at the Debt to FCF ratio, with a value of 91.73, NINE is doing worse than 68.85% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | N/A | ||
| Debt/FCF | 91.73 | ||
| Altman-Z | -1.4 |
ROIC/WACC0.29
WACC11.18%
2.3 Liquidity
A Current Ratio of 2.03 indicates that NINE has no problem at all paying its short term obligations.
NINE's Current ratio of 2.03 is fine compared to the rest of the industry. NINE outperforms 62.30% of its industry peers.
NINE has a Quick Ratio of 1.43. This is a normal value and indicates that NINE is financially healthy and should not expect problems in meeting its short term obligations.
With a Quick ratio value of 1.43, NINE perfoms like the industry average, outperforming 45.90% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.03 | ||
| Quick Ratio | 1.43 |
3. Growth
3.1 Past
NINE shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 30.23%, which is quite impressive.
NINE shows a decrease in Revenue. In the last year, the revenue decreased by -9.09%.
Measured over the past years, NINE shows a decrease in Revenue. The Revenue has been decreasing by -7.83% on average per year.
EPS 1Y (TTM)30.23%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%35.9%
Revenue 1Y (TTM)-9.09%
Revenue growth 3Y16.62%
Revenue growth 5Y-7.83%
Sales Q2Q%11.22%
3.2 Future
NINE is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 9.78% yearly.
The Revenue is expected to grow by 2.38% on average over the next years.
EPS Next Y13.76%
EPS Next 2Y5.79%
EPS Next 3Y9.78%
EPS Next 5YN/A
Revenue Next Year2.93%
Revenue Next 2Y1.18%
Revenue Next 3Y2.38%
Revenue Next 5YN/A
3.3 Evolution
The Revenue growth rate is accelerating: in the next years the growth will be better than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
NINE reported negative earnings for the last year, which makes the Price/Earnings Ratio negative.
Also next year NINE is expected to report negative earnings again, which makes the also the Forward Price/Earnings Ratio negative.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | N/A | ||
| Fwd PE | N/A |
4.2 Price Multiples
65.57% of the companies in the same industry are cheaper than NINE, based on the Enterprise Value to EBITDA ratio.
Based on the Price/Free Cash Flow ratio, NINE is valued a bit cheaper than 77.05% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 8.12 | ||
| EV/EBITDA | 7.09 |
4.3 Compensation for Growth
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y5.79%
EPS Next 3Y9.78%
5. Dividend
5.1 Amount
NINE does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
0.6717
-0.01 (-1.37%)
Chartmill FA Rating
GICS SectorEnergy
GICS IndustryGroupEnergy
GICS IndustryEnergy Equipment & Services
Earnings (Last)
Earnings (Next)
Inst Owners29.41%
Inst Owner Change-4.59%
Ins Owners15.81%
Ins Owner Change1.27%
Market Cap28.45M
Analysts40
Price Target0.77 (14.63%)
Short Float %6.86%
Short Ratio0.6
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)-3.76%
Min EPS beat(2)-17.65%
Max EPS beat(2)10.13%
EPS beat(4)2
Avg EPS beat(4)1.86%
Min EPS beat(4)-17.65%
Max EPS beat(4)18.3%
EPS beat(8)5
Avg EPS beat(8)3.65%
EPS beat(12)7
Avg EPS beat(12)122.57%
EPS beat(16)9
Avg EPS beat(16)91.93%
Revenue beat(2)1
Avg Revenue beat(2)0.91%
Min Revenue beat(2)-1.13%
Max Revenue beat(2)2.94%
Revenue beat(4)2
Avg Revenue beat(4)-0.17%
Min Revenue beat(4)-3.13%
Max Revenue beat(4)2.94%
Revenue beat(8)2
Avg Revenue beat(8)-1.38%
Revenue beat(12)4
Avg Revenue beat(12)-0.19%
Revenue beat(16)6
Avg Revenue beat(16)-0.12%
PT rev (1m)0%
PT rev (3m)-25%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-120%
EPS NY rev (1m)0%
EPS NY rev (3m)-57.63%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-5.41%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-5.85%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | N/A | ||
| Fwd PE | N/A | ||
| P/S | 0.05 | ||
| P/FCF | 8.12 | ||
| P/OCF | 1.7 | ||
| P/B | N/A | ||
| P/tB | N/A | ||
| EV/EBITDA | 7.09 |
EPS(TTM)-0.9
EYN/A
EPS(NY)-0.97
Fwd EYN/A
FCF(TTM)0.08
FCFY12.32%
OCF(TTM)0.4
OCFY58.91%
SpS13.28
BVpS-1.7
TBVpS-3.51
PEG (NY)N/A
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -11.15% | ||
| ROE | N/A | ||
| ROCE | 4.06% | ||
| ROIC | 3.2% | ||
| ROICexc | 3.42% | ||
| ROICexgc | 4.88% | ||
| OM | 1.97% | ||
| PM (TTM) | N/A | ||
| GM | 17.65% | ||
| FCFM | 0.62% |
ROA(3y)-5.35%
ROA(5y)-23.72%
ROE(3y)N/A
ROE(5y)N/A
ROIC(3y)5.77%
ROIC(5y)N/A
ROICexc(3y)6.21%
ROICexc(5y)N/A
ROICexgc(3y)9.03%
ROICexgc(5y)N/A
ROCE(3y)7.3%
ROCE(5y)N/A
ROICexcg growth 3YN/A
ROICexcg growth 5Y1.45%
ROICexc growth 3YN/A
ROICexc growth 5Y15.27%
OM growth 3YN/A
OM growth 5Y1.94%
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y14.04%
GM growth 5Y-2.13%
F-Score3
Asset Turnover1.57
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | N/A | ||
| Debt/FCF | 91.73 | ||
| Debt/EBITDA | 6.8 | ||
| Cap/Depr | 36.94% | ||
| Cap/Sales | 2.36% | ||
| Interest Coverage | 0.25 | ||
| Cash Conversion | 35.68% | ||
| Profit Quality | N/A | ||
| Current Ratio | 2.03 | ||
| Quick Ratio | 1.43 | ||
| Altman-Z | -1.4 |
F-Score3
WACC11.18%
ROIC/WACC0.29
Cap/Depr(3y)57.21%
Cap/Depr(5y)45.01%
Cap/Sales(3y)3.84%
Cap/Sales(5y)3.79%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)30.23%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%35.9%
EPS Next Y13.76%
EPS Next 2Y5.79%
EPS Next 3Y9.78%
EPS Next 5YN/A
Revenue 1Y (TTM)-9.09%
Revenue growth 3Y16.62%
Revenue growth 5Y-7.83%
Sales Q2Q%11.22%
Revenue Next Year2.93%
Revenue Next 2Y1.18%
Revenue Next 3Y2.38%
Revenue Next 5YN/A
EBIT growth 1Y-32.19%
EBIT growth 3YN/A
EBIT growth 5Y-6.04%
EBIT Next Year478.5%
EBIT Next 3Y85.85%
EBIT Next 5YN/A
FCF growth 1Y151.53%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y-38.39%
OCF growth 3YN/A
OCF growth 5Y-33.48%