NATURAL GAS SERVICES GROUP (NGS)
US63886Q1094 - Common Stock
Taking everything into account, NGS scores 5 out of 10 in our fundamental rating. 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 not priced too expensively while it is growing strongly. Keep and eye on this one!
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
Looking at the Return On Assets, with a value of 3.23%, NGS is in line with its industry, outperforming 46.67% of the companies in the same industry.
NGS's Return On Equity of 6.40% is in line compared to the rest of the industry. NGS outperforms 46.67% of its industry peers.
NGS's Return On Invested Capital of 5.61% is on the low side compared to the rest of the industry. NGS is outperformed by 60.00% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.23% | ||
| ROE | 6.4% | ||
| ROIC | 5.61% |
ROA(3y)-0.75%
ROA(5y)-1.3%
ROE(3y)-0.71%
ROE(5y)-1.4%
ROIC(3y)N/A
ROIC(5y)N/A
1.3 Margins
NGS's Profit Margin of 10.55% is fine compared to the rest of the industry. NGS outperforms 75.00% of its industry peers.
In the last couple of years the Profit Margin of NGS has grown nicely.
NGS has a Operating Margin of 23.85%. This is amongst the best in the industry. NGS outperforms 90.00% of its industry peers.
NGS's Gross Margin of 55.98% 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 remained more or less at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 23.85% | ||
| PM (TTM) | 10.55% | ||
| GM | 55.98% |
OM growth 3YN/A
OM growth 5YN/A
PM growth 3Y13.78%
PM growth 5YN/A
GM growth 3Y0.37%
GM growth 5Y0.68%
2. Health
2.1 Basic Checks
With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), NGS is destroying value.
Compared to 1 year ago, NGS has more shares outstanding
Compared to 5 years ago, NGS has less shares outstanding
The debt/assets ratio for NGS is higher compared to a year ago.
2.2 Solvency
An Altman-Z score of 1.81 indicates that NGS is not a great score, but indicates only limited risk for bankruptcy at the moment.
NGS's Altman-Z score of 1.81 is in line compared to the rest of the industry. NGS outperforms 48.33% of its industry peers.
A Debt/Equity ratio of 0.65 indicates that NGS is somewhat dependend on debt financing.
NGS's Debt to Equity ratio of 0.65 is on the low side compared to the rest of the industry. NGS is outperformed by 68.33% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.65 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 1.81 |
ROIC/WACC0.68
WACC8.19%
2.3 Liquidity
NGS has a Current Ratio of 1.76. 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 1.76, NGS perfoms like the industry average, outperforming 43.33% of the companies in the same industry.
A Quick Ratio of 1.16 indicates that NGS should not have too much problems paying its short term obligations.
Looking at the Quick ratio, with a value of 1.16, NGS is doing worse than 66.67% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.76 | ||
| Quick Ratio | 1.16 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an impressive 420.22% over the past year.
NGS shows a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 37.97% yearly.
Looking at the last year, NGS shows a very strong growth in Revenue. The Revenue has grown by 40.02%.
Measured over the past years, NGS shows a quite strong growth in Revenue. The Revenue has been growing by 13.10% on average per year.
EPS 1Y (TTM)420.22%
EPS 3Y39.9%
EPS 5Y37.97%
EPS Q2Q%122.22%
Revenue 1Y (TTM)40.02%
Revenue growth 3Y21.2%
Revenue growth 5Y13.1%
Sales Q2Q%29.71%
3.2 Future
The Earnings Per Share is expected to grow by 51.03% on average over the next years. This is a very strong growth
Based on estimates for the next years, NGS will show a quite strong growth in Revenue. The Revenue will grow by 17.63% on average per year.
EPS Next Y208.24%
EPS Next 2Y72.99%
EPS Next 3Y51.03%
EPS Next 5YN/A
Revenue Next Year32.9%
Revenue Next 2Y22.44%
Revenue Next 3Y17.63%
Revenue Next 5YN/A
3.3 Evolution
The EPS growth rate is accelerating: in the next years the growth will be better than in the last years.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.
4. Valuation
4.1 Price/Earnings Ratio
With a Price/Earnings ratio of 20.09, NGS is valued on the expensive side.
Compared to the rest of the industry, the Price/Earnings ratio of NGS indicates a somewhat cheap valuation: NGS is cheaper than 61.67% of the companies listed in the same industry.
NGS's Price/Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 28.65.
With a Price/Forward Earnings ratio of 19.24, NGS is valued on the expensive side.
65.00% of the companies in the same industry are cheaper than NGS, based on the Price/Forward Earnings ratio.
When comparing the Price/Forward Earnings ratio of NGS to the average of the S&P500 Index (23.56), we can say NGS is valued inline with the index average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 20.09 | ||
| Fwd PE | 19.24 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of NGS is on the same level as its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 7.32 |
4.3 Compensation for Growth
NGS's low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
NGS's earnings are expected to grow with 51.03% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.1
PEG (5Y)0.53
EPS Next 2Y72.99%
EPS Next 3Y51.03%
5. Dividend
5.1 Amount
No dividends for NGS!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
NATURAL GAS SERVICES GROUP
NYSE:NGS (11/20/2024, 8:04:00 PM)
After market: 26.8999 +0.99 (+3.82%)25.91
+0.23 (+0.9%)
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 Cap323.10M
Analysts
Price Target
Dividend
| Industry Rank | Sector 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)
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EPS beat(8)
Avg EPS beat(8)
EPS beat(12)
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EPS beat(16)
Avg EPS beat(16)
Revenue beat(2)
Avg Revenue beat(2)
Min Revenue beat(2)
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Revenue beat(4)
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Revenue beat(8)
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Revenue beat(12)
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Revenue beat(16)
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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 Rank | Sector Rank | ||
|---|---|---|---|
| PE | 20.09 | ||
| Fwd PE | 19.24 | ||
| 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)0.1
PEG (5Y)0.53
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.23% | ||
| ROE | 6.4% | ||
| ROCE | |||
| ROIC | |||
| ROICexc | |||
| ROICexgc | |||
| OM | 23.85% | ||
| PM (TTM) | 10.55% | ||
| GM | 55.98% | ||
| 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 Turnover0.31
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.65 | ||
| Debt/FCF | |||
| Debt/EBITDA | |||
| Cap/Depr | |||
| Cap/Sales | |||
| Interest Coverage | |||
| Cash Conversion | |||
| Profit Quality | |||
| Current Ratio | 1.76 | ||
| Quick Ratio | 1.16 | ||
| 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)
High Growth Momentum
Growth
EPS 1Y (TTM)420.22%
EPS 3Y39.9%
EPS 5Y
EPS Q2Q%
EPS Next Y208.24%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)40.02%
Revenue growth 3Y21.2%
Revenue growth 5Y
Sales 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