NexTier Oilfield Solutions Inc (NEX) Stock Fundamental Analysis
USA • New York Stock Exchange • NYSE:NEX • US65290C1053
10.61 USD
+0.1 (+0.95%)
At close: Aug 31, 2023
10.69 USD
+0.08 (+0.75%)
Pre-Market: 9/1/2023, 7:23:00 AM
Taking everything into account, NEX scores 6 out of 10 in our fundamental rating. NEX was compared to 61 industry peers in the Energy Equipment & Services industry. NEX is in great health and has no worries on liquidiy or solvency at all, but the profibility rating is only average. NEX may be a bit undervalued, certainly considering the very reasonable score on growth These ratings would make NEX suitable for value investing!
1. Profitability
1.1 Basic Checks
- NEX had positive earnings in the past year.
- In the past year NEX had a positive cash flow from operations.
1.2 Ratios
- With an excellent Return On Assets value of 29.66%, NEX belongs to the best of the industry, outperforming 100.00% of the companies in the same industry.
- NEX has a Return On Equity of 56.83%. This is amongst the best in the industry. NEX outperforms 96.83% of its industry peers.
- NEX has a better Return On Invested Capital (30.63%) than 100.00% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 29.66% | ||
| ROE | 56.83% | ||
| ROIC | 30.63% |
ROA(3y)N/A
ROA(5y)N/A
ROE(3y)N/A
ROE(5y)N/A
ROIC(3y)N/A
ROIC(5y)N/A
1.3 Margins
- NEX has a Profit Margin of 17.59%. This is amongst the best in the industry. NEX outperforms 95.24% of its industry peers.
- The Operating Margin of NEX (16.19%) is better than 77.78% of its industry peers.
- In the last couple of years the Operating Margin of NEX has grown nicely.
- NEX has a Gross Margin (26.92%) which is in line with its industry peers.
- NEX's Gross Margin has improved in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 16.19% | ||
| PM (TTM) | 17.59% | ||
| GM | 26.92% |
OM growth 3Y390.97%
OM growth 5Y56.68%
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y0.48%
GM growth 5Y6.55%
2. Health
2.1 Basic Checks
- With a Return on Invested Capital (ROIC) well above the Cost of Capital (WACC), NEX is creating value.
- The number of shares outstanding for NEX has been reduced compared to 1 year ago.
- NEX has a better debt/assets ratio than last year.
2.2 Solvency
- An Altman-Z score of 4.14 indicates that NEX is not in any danger for bankruptcy at the moment.
- With an excellent Altman-Z score value of 4.14, NEX belongs to the best of the industry, outperforming 82.54% of the companies in the same industry.
- The Debt to FCF ratio of NEX is 1.12, which is an excellent value as it means it would take NEX, only 1.12 years of fcf income to pay off all of its debts.
- The Debt to FCF ratio of NEX (1.12) is better than 87.30% of its industry peers.
- NEX has a Debt/Equity ratio of 0.32. This is a healthy value indicating a solid balance between debt and equity.
- NEX's Debt to Equity ratio of 0.32 is in line compared to the rest of the industry. NEX outperforms 57.14% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.32 | ||
| Debt/FCF | 1.12 | ||
| Altman-Z | 4.14 |
ROIC/WACC3.33
WACC9.21%
2.3 Liquidity
- NEX has a Current Ratio of 1.37. This is a normal value and indicates that NEX is financially healthy and should not expect problems in meeting its short term obligations.
- With a Current ratio value of 1.37, NEX is not doing good in the industry: 76.19% of the companies in the same industry are doing better.
- NEX has a Quick Ratio of 1.26. This is a normal value and indicates that NEX is financially healthy and should not expect problems in meeting its short term obligations.
- NEX has a worse Quick ratio (1.26) than 61.90% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.37 | ||
| Quick Ratio | 1.26 |
3. Growth
3.1 Past
- The Earnings Per Share has grown by an impressive 456.82% over the past year.
- The Earnings Per Share has been growing by 81.60% on average over the past years. This is a very strong growth
- NEX shows a strong growth in Revenue. In the last year, the Revenue has grown by 53.21%.
- The Revenue has been growing by 16.04% on average over the past years. This is quite good.
EPS 1Y (TTM)456.82%
EPS 3YN/A
EPS 5Y81.6%
EPS Q2Q%74.36%
Revenue 1Y (TTM)53.21%
Revenue growth 3Y21.22%
Revenue growth 5Y16.04%
Sales Q2Q%12.12%
3.2 Future
- Based on estimates for the next years, NEX will show a small growth in Earnings Per Share. The EPS will grow by 4.79% on average per year.
- The Revenue is expected to grow by 4.32% on average over the next years.
EPS Next Y40.89%
EPS Next 2Y9.22%
EPS Next 3Y4.79%
EPS Next 5YN/A
Revenue Next Year10.1%
Revenue Next 2Y6.01%
Revenue Next 3Y4.32%
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 decreasing.
- When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.
4. Valuation
4.1 Price/Earnings Ratio
- With a Price/Earnings ratio of 4.33, the valuation of NEX can be described as very cheap.
- Compared to the rest of the industry, the Price/Earnings ratio of NEX indicates a rather cheap valuation: NEX is cheaper than 96.83% of the companies listed in the same industry.
- Compared to an average S&P500 Price/Earnings ratio of 28.18, NEX is valued rather cheaply.
- Based on the Price/Forward Earnings ratio of 5.63, the valuation of NEX can be described as very cheap.
- Based on the Price/Forward Earnings ratio, NEX is valued cheaply inside the industry as 90.48% of the companies are valued more expensively.
- NEX's Price/Forward Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 25.51.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 4.33 | ||
| Fwd PE | 5.63 |
4.2 Price Multiples
- Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of NEX indicates a rather cheap valuation: NEX is cheaper than 95.24% of the companies listed in the same industry.
- Based on the Price/Free Cash Flow ratio, NEX is valued cheaply inside the industry as 93.65% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 5.87 | ||
| EV/EBITDA | 2.86 |
4.3 Compensation for Growth
- NEX's low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
- NEX has a very decent profitability rating, which may justify a higher PE ratio.
PEG (NY)0.11
PEG (5Y)0.05
EPS Next 2Y9.22%
EPS Next 3Y4.79%
5. Dividend
5.1 Amount
- No dividends for NEX!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
10.61
+0.1 (+0.95%)
Chartmill FA Rating
GICS SectorEnergy
GICS IndustryGroupEnergy
GICS IndustryEnergy Equipment & Services
Earnings (Last)07-25 2023-07-25/amc
Earnings (Next)10-23 2023-10-23/amc
Inst Owners0%
Inst Owner Change0%
Ins Owners16.43%
Ins Owner Change0%
Market Cap2.25B
Revenue(TTM)3.65B
Net Income(TTM)641.78M
Analysts77.14
Price Target13.63 (28.46%)
Short Float %N/A
Short RatioN/A
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)2
Avg EPS beat(2)6.64%
Min EPS beat(2)6.63%
Max EPS beat(2)6.64%
EPS beat(4)4
Avg EPS beat(4)14.69%
Min EPS beat(4)6.63%
Max EPS beat(4)35.22%
EPS beat(8)N/A
Avg EPS beat(8)N/A
EPS beat(12)N/A
Avg EPS beat(12)N/A
EPS beat(16)N/A
Avg EPS beat(16)N/A
Revenue beat(2)0
Avg Revenue beat(2)-1.01%
Min Revenue beat(2)-1.99%
Max Revenue beat(2)-0.03%
Revenue beat(4)0
Avg Revenue beat(4)-1.81%
Min Revenue beat(4)-4.06%
Max Revenue beat(4)-0.03%
Revenue beat(8)N/A
Avg Revenue beat(8)N/A
Revenue beat(12)N/A
Avg Revenue beat(12)N/A
Revenue beat(16)N/A
Avg Revenue beat(16)N/A
PT rev (1m)0%
PT rev (3m)-2.59%
EPS NQ rev (1m)2.58%
EPS NQ rev (3m)-21.74%
EPS NY rev (1m)0%
EPS NY rev (3m)-15.95%
Revenue NQ rev (1m)-0.12%
Revenue NQ rev (3m)-11.49%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-8.05%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 4.33 | ||
| Fwd PE | 5.63 | ||
| P/S | 0.62 | ||
| P/FCF | 5.87 | ||
| P/OCF | 3.18 | ||
| P/B | 1.99 | ||
| P/tB | 2.53 | ||
| EV/EBITDA | 2.86 |
EPS(TTM)2.45
EY23.09%
EPS(NY)1.88
Fwd EY17.77%
FCF(TTM)1.81
FCFY17.05%
OCF(TTM)3.34
OCFY31.45%
SpS17.21
BVpS5.33
TBVpS4.19
PEG (NY)0.11
PEG (5Y)0.05
Graham NumberN/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 29.66% | ||
| ROE | 56.83% | ||
| ROCE | 38.78% | ||
| ROIC | 30.63% | ||
| ROICexc | 38.5% | ||
| ROICexgc | 48.07% | ||
| OM | 16.19% | ||
| PM (TTM) | 17.59% | ||
| GM | 26.92% | ||
| FCFM | 10.51% |
ROA(3y)N/A
ROA(5y)N/A
ROE(3y)N/A
ROE(5y)N/A
ROIC(3y)N/A
ROIC(5y)N/A
ROICexc(3y)N/A
ROICexc(5y)N/A
ROICexgc(3y)N/A
ROICexgc(5y)N/A
ROCE(3y)N/A
ROCE(5y)N/A
ROICexgc growth 3Y526.68%
ROICexgc growth 5Y70.24%
ROICexc growth 3Y509.03%
ROICexc growth 5Y71.08%
OM growth 3Y390.97%
OM growth 5Y56.68%
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y0.48%
GM growth 5Y6.55%
F-Score9
Asset Turnover1.69
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.32 | ||
| Debt/FCF | 1.12 | ||
| Debt/EBITDA | 0.44 | ||
| Cap/Depr | 136.35% | ||
| Cap/Sales | 8.88% | ||
| Interest Coverage | N/A | ||
| Cash Conversion | N/A | ||
| Profit Quality | 59.73% | ||
| Current Ratio | 1.37 | ||
| Quick Ratio | 1.26 | ||
| Altman-Z | 4.14 |
F-Score9
WACC9.21%
ROIC/WACC3.33
Cap/Depr(3y)79.46%
Cap/Depr(5y)83.31%
Cap/Sales(3y)10.04%
Cap/Sales(5y)10.9%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)456.82%
EPS 3YN/A
EPS 5Y81.6%
EPS Q2Q%74.36%
EPS Next Y40.89%
EPS Next 2Y9.22%
EPS Next 3Y4.79%
EPS Next 5YN/A
Revenue 1Y (TTM)53.21%
Revenue growth 3Y21.22%
Revenue growth 5Y16.04%
Sales Q2Q%12.12%
Revenue Next Year10.1%
Revenue Next 2Y6.01%
Revenue Next 3Y4.32%
Revenue Next 5YN/A
EBIT growth 1Y619.09%
EBIT growth 3Y495.16%
EBIT growth 5Y81.81%
EBIT Next Year124.4%
EBIT Next 3Y30.9%
EBIT Next 5YN/A
FCF growth 1Y369.29%
FCF growth 3Y32.48%
FCF growth 5YN/A
OCF growth 1Y1511.4%
OCF growth 3Y14.15%
OCF growth 5Y41.64%
NexTier Oilfield Solutions Inc / NEX FAQ
What is the fundamental rating for NEX stock?
ChartMill assigns a fundamental rating of 6 / 10 to NEX.
What is the valuation status of NexTier Oilfield Solutions Inc (NEX) stock?
ChartMill assigns a valuation rating of 9 / 10 to NexTier Oilfield Solutions Inc (NEX). This can be considered as Undervalued.
Can you provide the profitability details for NexTier Oilfield Solutions Inc?
NexTier Oilfield Solutions Inc (NEX) has a profitability rating of 6 / 10.
What is the financial health of NexTier Oilfield Solutions Inc (NEX) stock?
The financial health rating of NexTier Oilfield Solutions Inc (NEX) is 7 / 10.
What is the expected EPS growth for NexTier Oilfield Solutions Inc (NEX) stock?
The Earnings per Share (EPS) of NexTier Oilfield Solutions Inc (NEX) is expected to grow by 40.89% in the next year.