NATURAL GAS SERVICES GROUP (NGS) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:NGS - US63886Q1094 - Common Stock
31.73 USD
+1.06 (+3.46%)
31.73 USD
0 (0%)
NGS gets a fundamental rating of 4 out of 10. The analysis compared the fundamentals against 60 industry peers in the Energy Equipment & Services industry. There are concerns on the financial health of NGS while its profitability can be described as average. NGS is quite expensive at the moment. It does show a decent growth rate.
1. Profitability
1.1 Basic Checks
In the past year NGS was profitable.
In the past year NGS had a positive cash flow from operations.
In multiple years NGS reported negative net income over the last 5 years.
In the past 5 years NGS always reported a positive cash flow from operatings.
1.2 Ratios
The Return On Assets of NGS (3.32%) is comparable to the rest of the industry.
Looking at the Return On Equity, with a value of 6.89%, NGS is in line with its industry, outperforming 55.00% of the companies in the same industry.
NGS has a Return On Invested Capital (5.51%) which is comparable to the rest of the industry.
Measured over the past 3 years, the Average Return On Invested Capital for NGS is below the industry average of 7.66%.
The 3 year average ROIC (2.84%) for NGS is below the current ROIC(5.51%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.32% | ||
| ROE | 6.89% | ||
| ROIC | 5.51% |
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
The Profit Margin of NGS (11.20%) is better than 86.67% of its industry peers.
Looking at the Operating Margin, with a value of 23.35%, NGS belongs to the top of the industry, outperforming 90.00% of the companies in the same industry.
In the last couple of years the Operating Margin of NGS has grown nicely.
Looking at the Gross Margin, with a value of 58.32%, NGS belongs to the top of the industry, outperforming 93.33% of the companies in the same industry.
NGS's Gross Margin has improved in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 23.35% | ||
| PM (TTM) | 11.2% | ||
| GM | 58.32% |
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.
Compared to 1 year ago, NGS has more shares outstanding
The number of shares outstanding for NGS has been reduced compared to 5 years ago.
NGS has about the same debt/assets ratio as last year.
2.2 Solvency
Based on the Altman-Z score of 1.78, we must say that NGS is in the distress zone and has some risk of bankruptcy.
With a Altman-Z score value of 1.78, NGS perfoms like the industry average, outperforming 43.33% of the companies in the same industry.
NGS has a Debt/Equity ratio of 0.77. This is a neutral value indicating NGS is somewhat dependend on debt financing.
The Debt to Equity ratio of NGS (0.77) is worse than 73.33% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.77 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 1.78 |
ROIC/WACC0.58
WACC9.53%
2.3 Liquidity
NGS has a Current Ratio of 1.83. This is a normal value and indicates that NGS is financially healthy and should not expect problems in meeting its short term obligations.
With a Current ratio value of 1.83, NGS perfoms like the industry average, outperforming 41.67% of the companies in the same industry.
A Quick Ratio of 1.06 indicates that NGS should not have too much problems paying its short term obligations.
NGS's Quick ratio of 1.06 is on the low side compared to the rest of the industry. NGS is outperformed by 70.00% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.83 | ||
| Quick Ratio | 1.06 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an nice 13.95% over the past year.
NGS shows a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 87.22% yearly.
The Revenue has grown by 9.53% in the past year. This is quite good.
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)13.95%
EPS 3YN/A
EPS 5Y87.22%
EPS Q2Q%12.5%
Revenue 1Y (TTM)9.53%
Revenue growth 3Y29.35%
Revenue growth 5Y14.85%
Sales Q2Q%6.67%
3.2 Future
The Earnings Per Share is expected to grow by 15.84% on average over the next years. This is quite good.
NGS is expected to show quite a strong growth in Revenue. In the coming years, the Revenue will grow by 8.06% yearly.
EPS Next Y9.29%
EPS Next 2Y13.17%
EPS Next 3Y15.04%
EPS Next 5Y15.84%
Revenue Next Year8.64%
Revenue Next 2Y11.39%
Revenue Next 3Y9.75%
Revenue Next 5Y8.06%
3.3 Evolution
The estimated forward EPS growth is still strong, although it is decreasing when compared to the stronger growth in the past 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 21.59, the valuation of NGS can be described as rather expensive.
NGS's Price/Earnings ratio is in line with the industry average.
NGS is valuated at similar levels of the S&P average when we compare the Price/Earnings ratio to 26.37, which is the current average of the S&P500 Index.
With a Price/Forward Earnings ratio of 17.95, NGS is valued on the expensive side.
The rest of the industry has a similar Price/Forward Earnings ratio as NGS.
The average S&P500 Price/Forward Earnings ratio is at 36.20. NGS is valued rather cheaply when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 21.59 | ||
| Fwd PE | 17.95 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, NGS is valued a bit more expensive than the industry average as 60.00% of the companies are valued more cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 7.99 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
The decent profitability rating of NGS may justify a higher PE ratio.
NGS's earnings are expected to grow with 15.04% in the coming years. This may justify a more expensive valuation.
PEG (NY)2.32
PEG (5Y)0.25
EPS Next 2Y13.17%
EPS Next 3Y15.04%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 1.41%, NGS has a reasonable but not impressive dividend return.
NGS's Dividend Yield is a higher than the industry average which is at 2.95.
NGS's Dividend Yield is slightly below the S&P500 average, which is at 2.32.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.41% |
5.2 History
NGS does not have a reliable dividend history as it only pays dividend since a couple or years.
Dividend Growth(5Y)N/A
Div Incr Years0
Div Non Decr Years0
5.3 Sustainability
DPN/A
EPS Next 2Y13.17%
EPS Next 3Y15.04%
31.73
+1.06 (+3.46%)
Chartmill FA Rating
GICS SectorEnergy
GICS IndustryGroupEnergy
GICS IndustryEnergy Equipment & Services
Earnings (Last)
Earnings (Next)
Inst Owners75.55%
Inst Owner Change-3.29%
Ins Owners0.47%
Ins Owner Change-12.24%
Market Cap398.85M
Revenue(TTM)166.82M
Net Income(TTM)18.69M
Analysts84.44
Price Target39.58 (24.74%)
Short Float %3.01%
Short Ratio4.55
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.41% |
Yearly DividendN/A
Dividend Growth(5Y)N/A
DPN/A
Div Incr Years0
Div Non Decr Years0
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)19.56%
Min EPS beat(2)15.35%
Max EPS beat(2)23.76%
EPS beat(4)3
Avg EPS beat(4)20.57%
Min EPS beat(4)-11.28%
Max EPS beat(4)54.46%
EPS beat(8)7
Avg EPS beat(8)44.34%
EPS beat(12)10
Avg EPS beat(12)76.97%
EPS beat(16)12
Avg EPS beat(16)-8.58%
Revenue beat(2)0
Avg Revenue beat(2)-1.32%
Min Revenue beat(2)-2.14%
Max Revenue beat(2)-0.49%
Revenue beat(4)1
Avg Revenue beat(4)-0.73%
Min Revenue beat(4)-2.14%
Max Revenue beat(4)1.12%
Revenue beat(8)5
Avg Revenue beat(8)3.68%
Revenue beat(12)9
Avg Revenue beat(12)6.28%
Revenue beat(16)12
Avg Revenue beat(16)6.29%
PT rev (1m)7.18%
PT rev (3m)7.03%
EPS NQ rev (1m)12%
EPS NQ rev (3m)12%
EPS NY rev (1m)0%
EPS NY rev (3m)0%
Revenue NQ rev (1m)-1.61%
Revenue NQ rev (3m)-1.26%
Revenue NY rev (1m)0%
Revenue NY rev (3m)0.1%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 21.59 | ||
| Fwd PE | 17.95 | ||
| P/S | 2.39 | ||
| P/FCF | N/A | ||
| P/OCF | 6.82 | ||
| P/B | 1.47 | ||
| P/tB | 1.47 | ||
| EV/EBITDA | 7.99 |
EPS(TTM)1.47
EY4.63%
EPS(NY)1.77
Fwd EY5.57%
FCF(TTM)-3.42
FCFYN/A
OCF(TTM)4.65
OCFY14.66%
SpS13.27
BVpS21.59
TBVpS21.59
PEG (NY)2.32
PEG (5Y)0.25
Graham Number26.72
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.32% | ||
| ROE | 6.89% | ||
| ROCE | 7.29% | ||
| ROIC | 5.51% | ||
| ROICexc | 5.51% | ||
| ROICexgc | 5.51% | ||
| OM | 23.35% | ||
| PM (TTM) | 11.2% | ||
| GM | 58.32% | ||
| FCFM | N/A |
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
ROICexgc growth 3YN/A
ROICexgc 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-Score6
Asset Turnover0.3
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.77 | ||
| Debt/FCF | N/A | ||
| Debt/EBITDA | 2.8 | ||
| Cap/Depr | 287.26% | ||
| Cap/Sales | 60.82% | ||
| Interest Coverage | 2.66 | ||
| Cash Conversion | 78.74% | ||
| Profit Quality | N/A | ||
| Current Ratio | 1.83 | ||
| Quick Ratio | 1.06 | ||
| Altman-Z | 1.78 |
F-Score6
WACC9.53%
ROIC/WACC0.58
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)13.95%
EPS 3YN/A
EPS 5Y87.22%
EPS Q2Q%12.5%
EPS Next Y9.29%
EPS Next 2Y13.17%
EPS Next 3Y15.04%
EPS Next 5Y15.84%
Revenue 1Y (TTM)9.53%
Revenue growth 3Y29.35%
Revenue growth 5Y14.85%
Sales Q2Q%6.67%
Revenue Next Year8.64%
Revenue Next 2Y11.39%
Revenue Next 3Y9.75%
Revenue Next 5Y8.06%
EBIT growth 1Y7.22%
EBIT growth 3YN/A
EBIT growth 5Y194.8%
EBIT Next Year127.08%
EBIT Next 3Y40.54%
EBIT Next 5Y30.61%
FCF growth 1Y65.66%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y75.75%
OCF growth 3Y32.56%
OCF growth 5Y17.71%
NATURAL GAS SERVICES GROUP / NGS FAQ
Can you provide the ChartMill fundamental rating for NATURAL GAS SERVICES GROUP?
ChartMill assigns a fundamental rating of 4 / 10 to NGS.
Can you provide the valuation status for NATURAL GAS SERVICES GROUP?
ChartMill assigns a valuation rating of 2 / 10 to NATURAL GAS SERVICES GROUP (NGS). This can be considered as Overvalued.
Can you provide the profitability details for NATURAL GAS SERVICES GROUP?
NATURAL GAS SERVICES GROUP (NGS) has a profitability rating of 6 / 10.
What is the earnings growth outlook for NATURAL GAS SERVICES GROUP?
The Earnings per Share (EPS) of NATURAL GAS SERVICES GROUP (NGS) is expected to grow by 9.29% in the next year.