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 has an excellent financial health rating, but there are some minor concerns on its profitability. NEX is valued quite cheap, while showing a decent growth score. This is a good combination! With these ratings, NEX could be worth investigating further for value investing!.
1. Profitability
1.1 Basic Checks
- NEX had positive earnings in the past year.
- NEX had a positive operating cash flow in the past year.
1.2 Ratios
- Looking at the Return On Assets, with a value of 29.66%, NEX belongs to the top of the industry, outperforming 100.00% of the companies in the same industry.
- With an excellent Return On Equity value of 56.83%, NEX belongs to the best of the industry, outperforming 96.83% of the companies in the same industry.
- NEX has a Return On Invested Capital of 30.63%. This is amongst the best in the industry. NEX outperforms 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
- Looking at the Profit Margin, with a value of 17.59%, NEX belongs to the top of the industry, outperforming 95.24% of the companies in the same industry.
- NEX has a better Operating Margin (16.19%) 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 comparable to the rest of the industry.
- 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
- The Return on Invested Capital (ROIC) is well above the Cost of Capital (WACC), so NEX is creating value.
- NEX has less shares outstanding than it did 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.
- NEX's Altman-Z score of 4.14 is amongst the best of the industry. NEX outperforms 82.54% of its industry peers.
- 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.
- NEX's Debt to FCF ratio of 1.12 is amongst the best of the industry. NEX outperforms 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 has a Debt to Equity ratio (0.32) which is in line with 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
- A Current Ratio of 1.37 indicates that NEX should not have too much problems paying its short term obligations.
- Looking at the Current ratio, with a value of 1.37, NEX is doing worse than 76.19% of the companies in the same industry.
- 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 Quick ratio of 1.26. This is in the lower half of the industry: NEX underperforms 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
- The Revenue has grown by 53.21% in the past year. This is a very strong growth!
- NEX shows quite a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 16.04% yearly.
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
- NEX is expected to show a small growth in Earnings Per Share. In the coming years, the EPS will grow by 4.79% yearly.
- NEX is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 4.32% yearly.
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
- The EPS growth rate is decreasing: in the next years the growth will be less than in the last years.
- The Revenue growth rate is decreasing: in the next years the growth will be less than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
- Based on the Price/Earnings ratio of 4.33, the valuation of NEX can be described as very cheap.
- Based on the Price/Earnings ratio, NEX is valued cheaply inside the industry as 96.83% of the companies are valued more expensively.
- NEX is valuated cheaply when we compare the Price/Earnings ratio to 28.32, which is the current average of the S&P500 Index.
- A Price/Forward Earnings ratio of 5.63 indicates a rather cheap valuation of NEX.
- Based on the Price/Forward Earnings ratio, NEX is valued cheaper than 90.48% of the companies in the same industry.
- NEX is valuated cheaply when we compare the Price/Forward Earnings ratio to 25.57, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 4.33 | ||
| Fwd PE | 5.63 |
4.2 Price Multiples
- NEX's Enterprise Value to EBITDA ratio is rather cheap when compared to the industry. NEX is cheaper than 95.24% of the companies in the same industry.
- NEX's Price/Free Cash Flow ratio is rather cheap when compared to the industry. NEX is cheaper than 93.65% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 5.87 | ||
| EV/EBITDA | 2.86 |
4.3 Compensation for Growth
- The low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
- The decent profitability rating of NEX 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 |
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.