NEWPARK RESOURCES INC (NR)

US6517185046 - Common Stock

7.23  +0.04 (+0.56%)

Fundamental Rating

4

NR gets a fundamental rating of 4 out of 10. The analysis compared the fundamentals against 66 industry peers in the Energy Equipment & Services industry. NR has a great financial health rating, but its profitability evaluates not so good. NR is quite expensive at the moment. It does show a decent growth rate.



2

1. Profitability

1.1 Basic Checks

NR had positive earnings in the past year.
In the past year NR had a positive cash flow from operations.
NR had negative earnings in 4 of the past 5 years.
In multiple years NR reported negative operating cash flow during the last 5 years.

1.2 Ratios

NR's Return On Assets of 2.26% is in line compared to the rest of the industry. NR outperforms 46.97% of its industry peers.
With a Return On Equity value of 3.50%, NR perfoms like the industry average, outperforming 45.45% of the companies in the same industry.
NR's Return On Invested Capital of 6.26% is in line compared to the rest of the industry. NR outperforms 45.45% of its industry peers.
Industry RankSector Rank
ROA 2.26%
ROE 3.5%
ROIC 6.26%
ROA(3y)-1.35%
ROA(5y)-3.37%
ROE(3y)-2.31%
ROE(5y)-5.17%
ROIC(3y)N/A
ROIC(5y)N/A

1.3 Margins

NR's Profit Margin of 1.94% is in line compared to the rest of the industry. NR outperforms 40.91% of its industry peers.
In the last couple of years the Profit Margin of NR has declined.
NR has a Operating Margin of 5.35%. This is in the lower half of the industry: NR underperforms 62.12% of its industry peers.
In the last couple of years the Operating Margin of NR has declined.
With a Gross Margin value of 18.49%, NR is not doing good in the industry: 72.73% of the companies in the same industry are doing better.
NR's Gross Margin has been stable in the last couple of years.
Industry RankSector Rank
OM 5.35%
PM (TTM) 1.94%
GM 18.49%
OM growth 3YN/A
OM growth 5Y-3.96%
PM growth 3YN/A
PM growth 5Y-10.71%
GM growth 3Y67.42%
GM growth 5Y-0.53%

8

2. Health

2.1 Basic Checks

The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so NR is destroying value.
NR has less shares outstanding than it did 1 year ago.
NR has less shares outstanding than it did 5 years ago.
Compared to 1 year ago, NR has an improved debt to assets ratio.

2.2 Solvency

An Altman-Z score of 3.43 indicates that NR is not in any danger for bankruptcy at the moment.
NR's Altman-Z score of 3.43 is amongst the best of the industry. NR outperforms 80.30% of its industry peers.
NR has a debt to FCF ratio of 1.06. This is a very positive value and a sign of high solvency as it would only need 1.06 years to pay back of all of its debts.
Looking at the Debt to FCF ratio, with a value of 1.06, NR belongs to the top of the industry, outperforming 86.36% of the companies in the same industry.
NR has a Debt/Equity ratio of 0.14. This is a healthy value indicating a solid balance between debt and equity.
The Debt to Equity ratio of NR (0.14) is better than 71.21% of its industry peers.
Industry RankSector Rank
Debt/Equity 0.14
Debt/FCF 1.06
Altman-Z 3.43
ROIC/WACC0.73
WACC8.56%

2.3 Liquidity

A Current Ratio of 2.62 indicates that NR has no problem at all paying its short term obligations.
NR's Current ratio of 2.62 is fine compared to the rest of the industry. NR outperforms 75.76% of its industry peers.
NR has a Quick Ratio of 1.59. This is a normal value and indicates that NR is financially healthy and should not expect problems in meeting its short term obligations.
NR has a Quick ratio of 1.59. This is in the better half of the industry: NR outperforms 62.12% of its industry peers.
Industry RankSector Rank
Current Ratio 2.62
Quick Ratio 1.59

4

3. Growth

3.1 Past

NR shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 76.47%, which is quite impressive.
NR shows a decrease in Earnings Per Share. Measured over the last years, the EPS has been decreasing by -3.04% yearly.
The Revenue has decreased by -8.09% in the past year.
NR shows a decrease in Revenue. Measured over the last years, the Revenue has been decreasing by -4.56% yearly.
EPS 1Y (TTM)76.47%
EPS 3YN/A
EPS 5Y-3.04%
EPS growth Q2Q-42.86%
Revenue 1Y (TTM)-8.09%
Revenue growth 3Y15.02%
Revenue growth 5Y-4.56%
Revenue growth Q2Q-25.48%

3.2 Future

NR is expected to show a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 23.61% yearly.
NR is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 0.71% yearly.
EPS Next Y6.43%
EPS Next 2Y23.61%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue Next Year-6.03%
Revenue Next 2Y0.71%
Revenue Next 3YN/A
Revenue Next 5YN/A

3.3 Evolution

When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.
The Revenue growth rate is accelerating: in the next years the growth will be better than in the last years.

3

4. Valuation

4.1 Price/Earnings Ratio

NR is valuated rather expensively with a Price/Earnings ratio of 24.10.
The rest of the industry has a similar Price/Earnings ratio as NR.
NR is valuated at similar levels of the S&P average when we compare the Price/Earnings ratio to 26.42, which is the current average of the S&P500 Index.
A Price/Forward Earnings ratio of 22.64 indicates a rather expensive valuation of NR.
NR's Price/Forward Earnings ratio is a bit more expensive when compared to the industry. NR is more expensive than 68.18% of the companies in the same industry.
NR's Price/Forward Earnings ratio indicates a similar valuation than the S&P500 average which is at 22.74.
Industry RankSector Rank
PE 24.1
Fwd PE 22.64

4.2 Price Multiples

NR's Enterprise Value to EBITDA ratio is in line with the industry average.
78.79% of the companies in the same industry are more expensive than NR, based on the Price/Free Cash Flow ratio.
Industry RankSector Rank
P/FCF 8.7
EV/EBITDA 9.08

4.3 Compensation for Growth

The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
NR's earnings are expected to grow with 23.61% in the coming years. This may justify a more expensive valuation.
PEG (NY)3.75
PEG (5Y)N/A
EPS Next 2Y23.61%
EPS Next 3YN/A

0

5. Dividend

5.1 Amount

NR does not give a dividend.
Industry RankSector Rank
Dividend Yield N/A

NEWPARK RESOURCES INC

NYSE:NR (3/28/2024, 12:08:52 PM)

7.23

+0.04 (+0.56%)

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 Cap616.00M
Analysts
Price Target
Dividend
Industry RankSector Rank
Dividend Yield N/A
Dividend Growth(5Y)
DP
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)
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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 RankSector Rank
PE 24.1
Fwd PE 22.64
P/S
P/FCF
P/OCF
P/B
P/tB
EV/EBITDA
EPS(TTM)
EY
EPS(NY)
Fwd EY
FCF(TTM)
FCFY
OCF(TTM)
OCFY
SpS
BVpS
TBVpS
PEG (NY)3.75
PEG (5Y)N/A
Profitability
Industry RankSector Rank
ROA 2.26%
ROE 3.5%
ROCE
ROIC
ROICexc
ROICexgc
OM 5.35%
PM (TTM) 1.94%
GM 18.49%
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 Turnover1.17
Health
Industry RankSector Rank
Debt/Equity 0.14
Debt/FCF
Debt/EBITDA
Cap/Depr
Cap/Sales
Interest Coverage
Cash Conversion
Profit Quality
Current Ratio 2.62
Quick Ratio 1.59
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)76.47%
EPS 3YN/A
EPS 5Y
EPS growth Q2Q
EPS Next Y6.43%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)-8.09%
Revenue growth 3Y15.02%
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