NATURAL GAS SERVICES GROUP (NGS) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:NGS - US63886Q1094 - Common Stock
30.97 USD
-0.27 (-0.86%)
30.97 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. While showing a medium growth rate, NGS is valued expensive at the moment.
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.
The reported net income has been mixed in the past 5 years: NGS reported negative net income in multiple years.
NGS had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
The Return On Assets of NGS (3.32%) is comparable to the rest of the industry.
The Return On Equity of NGS (6.89%) is comparable to the rest of the industry.
The Return On Invested Capital of NGS (5.51%) 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 last Return On Invested Capital (5.51%) for NGS is above the 3 year average (2.84%), which is a sign of increasing profitability.
| 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
Looking at the Profit Margin, with a value of 11.20%, NGS belongs to the top of the industry, outperforming 86.67% of the companies in the same industry.
With an excellent Operating Margin value of 23.35%, NGS belongs to the best 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 58.32% 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 | 23.35% | ||
| 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
With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), NGS is destroying value.
NGS has more shares outstanding than it did 1 year ago.
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
NGS has an Altman-Z score of 1.79. This is a bad value and indicates that NGS is not financially healthy and even has some risk of bankruptcy.
NGS has a Altman-Z score (1.79) which is comparable to the rest of the industry.
A Debt/Equity ratio of 0.77 indicates that NGS is somewhat dependend on debt financing.
NGS has a Debt to Equity ratio of 0.77. This is in the lower half of the industry: NGS underperforms 73.33% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.77 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 1.79 |
ROIC/WACC0.58
WACC9.49%
2.3 Liquidity
A Current Ratio of 1.83 indicates that NGS should not have too much problems paying its short term obligations.
NGS's Current ratio of 1.83 is in line compared to the rest of the industry. NGS outperforms 41.67% of its industry peers.
NGS has a Quick Ratio of 1.06. This is a normal value and indicates that NGS is financially healthy and should not expect problems in meeting 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.
The Earnings Per Share has been growing by 87.22% on average over the past years. This is a very strong growth
NGS shows quite a strong growth in Revenue. In the last year, the Revenue has grown by 9.53%.
NGS shows quite a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 14.85% yearly.
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
Based on estimates for the next years, NGS will show a quite strong growth in Earnings Per Share. The EPS will grow by 15.84% on average per year.
The Revenue is expected to grow by 8.06% on average over the next years. This is quite good.
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
NGS is valuated rather expensively with a Price/Earnings ratio of 21.07.
Compared to the rest of the industry, the Price/Earnings ratio of NGS is on the same level as its industry peers.
NGS is valuated at similar levels of the S&P average when we compare the Price/Earnings ratio to 26.31, which is the current average of the S&P500 Index.
With a Price/Forward Earnings ratio of 17.52, NGS is valued on the expensive side.
NGS's Price/Forward Earnings ratio is in line with the industry average.
Compared to an average S&P500 Price/Forward Earnings ratio of 36.56, NGS is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 21.07 | ||
| Fwd PE | 17.52 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, NGS is valued a bit more expensive than 63.33% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 8.04 |
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.
NGS's earnings are expected to grow with 15.04% in the coming years. This may justify a more expensive valuation.
PEG (NY)2.27
PEG (5Y)0.24
EPS Next 2Y13.17%
EPS Next 3Y15.04%
5. Dividend
5.1 Amount
NGS has a Yearly Dividend Yield of 1.41%. Purely for dividend investing, there may be better candidates out there.
Compared to an average industry Dividend Yield of 2.95, NGS pays a bit more dividend than its industry peers.
Compared to the average S&P500 Dividend Yield of 2.32, NGS is paying slightly less dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.41% |
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%
30.97
-0.27 (-0.86%)
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 Cap389.29M
Revenue(TTM)166.82M
Net Income(TTM)18.69M
Analysts84.44
Price Target39.58 (27.8%)
Short Float %2.41%
Short Ratio4.04
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 | 21.07 | ||
| Fwd PE | 17.52 | ||
| P/S | 2.33 | ||
| P/FCF | N/A | ||
| P/OCF | 6.66 | ||
| P/B | 1.43 | ||
| P/tB | 1.43 | ||
| EV/EBITDA | 8.04 |
EPS(TTM)1.47
EY4.75%
EPS(NY)1.77
Fwd EY5.71%
FCF(TTM)-3.42
FCFYN/A
OCF(TTM)4.65
OCFY15.02%
SpS13.27
BVpS21.59
TBVpS21.59
PEG (NY)2.27
PEG (5Y)0.24
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 | 1.79 |
F-Score6
WACC9.49%
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.