NATURAL GAS SERVICES GROUP (NGS) Stock Fundamental Analysis
USA - NYSE:NGS - US63886Q1094 - Common Stock
29.56 USD
-0.02 (-0.07%)
29.56 USD
0 (0%)
We assign a fundamental rating of 4 out of 10 to NGS. NGS was compared to 60 industry peers in the Energy Equipment & Services industry. While NGS is still in line with the averages on profitability rating, there are concerns on its financial health. NGS is quite expensive at the moment. It does show a decent growth rate.
1. Profitability
1.1 Basic Checks
NGS had positive earnings in the past year.
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.
NGS had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
The Return On Assets of NGS (3.41%) is comparable to the rest of the industry.
NGS has a Return On Equity of 6.73%. This is comparable to the rest of the industry: NGS outperforms 53.33% of its industry peers.
NGS has a Return On Invested Capital of 5.71%. This is comparable to the rest of the industry: NGS outperforms 50.00% of its industry peers.
The Average Return On Invested Capital over the past 3 years for NGS is significantly below the industry average of 7.85%.
The 3 year average ROIC (2.84%) for NGS is below the current ROIC(5.71%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.41% | ||
| ROE | 6.73% | ||
| ROIC | 5.71% |
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
NGS has a better Profit Margin (10.92%) than 85.00% of its industry peers.
Looking at the Operating Margin, with a value of 23.06%, NGS belongs to the top of the industry, outperforming 90.00% of the companies in the same industry.
NGS's Operating Margin has improved in the last couple of years.
NGS's Gross Margin of 57.49% is amongst the best of the industry. NGS outperforms 93.33% of its industry peers.
In the last couple of years the Gross Margin of NGS has grown nicely.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 23.06% | ||
| PM (TTM) | 10.92% | ||
| GM | 57.49% |
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.
NGS has more shares outstanding than it did 1 year ago.
NGS has less shares outstanding than it did 5 years ago.
Compared to 1 year ago, NGS has about the same debt to assets ratio.
2.2 Solvency
NGS has an Altman-Z score of 1.89. This is not the best score and indicates that NGS is in the grey zone with still only limited risk for bankruptcy at the moment.
The Altman-Z score of NGS (1.89) is comparable to the rest of the industry.
A Debt/Equity ratio of 0.68 indicates that NGS is somewhat dependend on debt financing.
Looking at the Debt to Equity ratio, with a value of 0.68, NGS is doing worse than 71.67% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.68 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 1.89 |
ROIC/WACC0.6
WACC9.56%
2.3 Liquidity
NGS has a Current Ratio of 1.97. This is a normal value and indicates that NGS is financially healthy and should not expect problems in meeting its short term obligations.
NGS has a Current ratio (1.97) which is in line with its industry peers.
A Quick Ratio of 1.23 indicates that NGS should not have too much problems paying its short term obligations.
With a Quick ratio value of 1.23, NGS is not doing good in the industry: 65.00% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.97 | ||
| Quick Ratio | 1.23 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an nice 14.73% over the past year.
Measured over the past years, NGS shows a very strong growth in Earnings Per Share. The EPS has been growing by 87.22% on average per year.
NGS shows a strong growth in Revenue. In the last year, the Revenue has grown by 29.36%.
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)14.73%
EPS 3YN/A
EPS 5Y87.22%
EPS Q2Q%15%
Revenue 1Y (TTM)29.36%
Revenue growth 3Y29.35%
Revenue growth 5Y14.85%
Sales Q2Q%6.67%
3.2 Future
NGS is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 15.48% yearly.
NGS is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 7.94% yearly.
EPS Next Y9.29%
EPS Next 2Y13.17%
EPS Next 3Y15.04%
EPS Next 5Y15.48%
Revenue Next Year8.64%
Revenue Next 2Y11.39%
Revenue Next 3Y9.75%
Revenue Next 5Y7.94%
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
With a Price/Earnings ratio of 19.97, NGS is valued on the expensive side.
Compared to the rest of the industry, the Price/Earnings ratio of NGS is on the same level as its industry peers.
Compared to an average S&P500 Price/Earnings ratio of 25.89, NGS is valued a bit cheaper.
NGS is valuated correctly with a Price/Forward Earnings ratio of 16.72.
The rest of the industry has a similar Price/Forward Earnings ratio as NGS.
NGS's Price/Forward Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 34.59.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 19.97 | ||
| Fwd PE | 16.72 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, NGS is valued a bit more expensive than the industry average as 61.67% of the companies are valued more cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 7.67 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates NGS does not grow enough to justify the current Price/Earnings ratio.
The decent profitability rating of NGS may justify a higher PE ratio.
A more expensive valuation may be justified as NGS's earnings are expected to grow with 15.04% in the coming years.
PEG (NY)2.15
PEG (5Y)0.23
EPS Next 2Y13.17%
EPS Next 3Y15.04%
5. Dividend
5.1 Amount
NGS has a Yearly Dividend Yield of 1.49%. Purely for dividend investing, there may be better candidates out there.
Compared to an average industry Dividend Yield of 2.97, NGS pays a bit more dividend than its industry peers.
Compared to the average S&P500 Dividend Yield of 2.42, NGS is paying slightly less dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.49% |
5.2 History
NGS is new to the dividend game and has less than 3 years of track record.
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%
29.56
-0.02 (-0.07%)
Chartmill FA Rating
GICS SectorEnergy
GICS IndustryGroupEnergy
GICS IndustryEnergy Equipment & Services
Earnings (Last)
Earnings (Next)
Inst Owners75.55%
Inst Owner Change-1.05%
Ins Owners0.47%
Ins Owner Change-8.56%
Market Cap370.68M
Revenue(TTM)156.74M
Net Income(TTM)17.92M
Analysts84.44
Price Target36.92 (24.9%)
Short Float %2.49%
Short Ratio4.58
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.49% |
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)34.9%
Min EPS beat(2)15.35%
Max EPS beat(2)54.46%
EPS beat(4)3
Avg EPS beat(4)22.64%
Min EPS beat(4)-11.28%
Max EPS beat(4)54.46%
EPS beat(8)7
Avg EPS beat(8)58.57%
EPS beat(12)9
Avg EPS beat(12)50.16%
EPS beat(16)11
Avg EPS beat(16)-12.65%
Revenue beat(2)1
Avg Revenue beat(2)-0.51%
Min Revenue beat(2)-2.14%
Max Revenue beat(2)1.12%
Revenue beat(4)2
Avg Revenue beat(4)0.82%
Min Revenue beat(4)-2.14%
Max Revenue beat(4)5.71%
Revenue beat(8)6
Avg Revenue beat(8)5.08%
Revenue beat(12)10
Avg Revenue beat(12)7.15%
Revenue beat(16)13
Avg Revenue beat(16)6.78%
PT rev (1m)0%
PT rev (3m)-1.27%
EPS NQ rev (1m)0%
EPS NQ rev (3m)3.85%
EPS NY rev (1m)0%
EPS NY rev (3m)5.41%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-3.68%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-3.25%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 19.97 | ||
| Fwd PE | 16.72 | ||
| P/S | 2.26 | ||
| P/FCF | N/A | ||
| P/OCF | 5.48 | ||
| P/B | 1.39 | ||
| P/tB | 1.39 | ||
| EV/EBITDA | 7.67 |
EPS(TTM)1.48
EY5.01%
EPS(NY)1.77
Fwd EY5.98%
FCF(TTM)-1.68
FCFYN/A
OCF(TTM)5.39
OCFY18.24%
SpS13.09
BVpS21.23
TBVpS21.23
PEG (NY)2.15
PEG (5Y)0.23
Graham Number26.59
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.41% | ||
| ROE | 6.73% | ||
| ROCE | 7.56% | ||
| ROIC | 5.71% | ||
| ROICexc | 5.72% | ||
| ROICexgc | 5.72% | ||
| OM | 23.06% | ||
| PM (TTM) | 10.92% | ||
| GM | 57.49% | ||
| 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 Turnover0.31
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.68 | ||
| Debt/FCF | N/A | ||
| Debt/EBITDA | 2.53 | ||
| Cap/Depr | 259.65% | ||
| Cap/Sales | 54.05% | ||
| Interest Coverage | 2.53 | ||
| Cash Conversion | 93.9% | ||
| Profit Quality | N/A | ||
| Current Ratio | 1.97 | ||
| Quick Ratio | 1.23 | ||
| Altman-Z | 1.89 |
F-Score6
WACC9.56%
ROIC/WACC0.6
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)14.73%
EPS 3YN/A
EPS 5Y87.22%
EPS Q2Q%15%
EPS Next Y9.29%
EPS Next 2Y13.17%
EPS Next 3Y15.04%
EPS Next 5Y15.48%
Revenue 1Y (TTM)29.36%
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 5Y7.94%
EBIT growth 1Y19.6%
EBIT growth 3YN/A
EBIT growth 5Y194.8%
EBIT Next Year127.08%
EBIT Next 3Y40.54%
EBIT Next 5Y30.45%
FCF growth 1Y79.38%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y81.98%
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 3 / 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.