NATURAL GAS SERVICES GROUP (NGS) Stock Fundamental Analysis
USA - NYSE:NGS - US63886Q1094 - Common Stock
27.25 USD
+0.03 (+0.11%)
27.25 USD
0 (0%)
Taking everything into account, NGS scores 4 out of 10 in our fundamental rating. NGS was compared to 61 industry peers in the Energy Equipment & Services industry. NGS has a medium profitability rating, but doesn't score so well on its financial health evaluation. 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.
Each year in the past 5 years NGS had a positive operating cash flow.
1.2 Ratios
NGS has a Return On Assets of 3.41%. This is comparable to the rest of the industry: NGS outperforms 52.46% of its industry peers.
The Return On Equity of NGS (6.73%) is comparable to the rest of the industry.
NGS has a Return On Invested Capital of 5.71%. This is comparable to the rest of the industry: NGS outperforms 49.18% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for NGS is significantly below the industry average of 7.95%.
The last Return On Invested Capital (5.71%) for NGS is above the 3 year average (2.84%), which is a sign of increasing profitability.
| 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 Profit Margin of 10.92%. This is amongst the best in the industry. NGS outperforms 80.33% of its industry peers.
NGS's Operating Margin of 23.06% is amongst the best of the industry. NGS outperforms 88.52% of its industry peers.
NGS's Operating Margin has improved in the last couple of years.
Looking at the Gross Margin, with a value of 57.49%, NGS belongs to the top of the industry, outperforming 93.44% of the companies in the same industry.
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
With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), NGS is destroying value.
The number of shares outstanding for NGS has been increased compared to 1 year ago.
The number of shares outstanding for NGS has been reduced compared to 5 years ago.
The debt/assets ratio for NGS has remained at the same level compared to a year ago.
2.2 Solvency
NGS has an Altman-Z score of 1.83. 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 (1.83) is comparable to the rest of the industry.
NGS has a Debt/Equity ratio of 0.68. This is a neutral value indicating 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 68.85% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.68 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 1.83 |
ROIC/WACC0.6
WACC9.46%
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.
The Current ratio of NGS (1.97) is comparable to the rest of the industry.
A Quick Ratio of 1.23 indicates that NGS should not have too much problems paying its short term obligations.
NGS has a Quick ratio of 1.23. This is in the lower half of the industry: NGS underperforms 65.57% of its industry peers.
| 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 impressive 32.71% 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 14.77%.
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)32.71%
EPS 3YN/A
EPS 5Y87.22%
EPS Q2Q%17.65%
Revenue 1Y (TTM)14.77%
Revenue growth 3Y29.35%
Revenue growth 5Y14.85%
Sales Q2Q%7.51%
3.2 Future
The Earnings Per Share is expected to grow by 15.48% on average over the next years. This is quite good.
Based on estimates for the next years, NGS will show a small growth in Revenue. The Revenue will grow by 7.94% on average per year.
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
A Price/Earnings ratio of 19.19 indicates a rather expensive valuation of NGS.
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 27.77, NGS is valued a bit cheaper.
The Price/Forward Earnings ratio is 15.42, which indicates a correct valuation of NGS.
Compared to the rest of the industry, the Price/Forward Earnings ratio of NGS is on the same level as its industry peers.
NGS is valuated rather cheaply when we compare the Price/Forward Earnings ratio to 23.23, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 19.19 | ||
| Fwd PE | 15.42 |
4.2 Price Multiples
NGS's Enterprise Value to EBITDA ratio is a bit more expensive when compared to the industry. NGS is more expensive than 62.30% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 7.27 |
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)2.06
PEG (5Y)0.22
EPS Next 2Y13.17%
EPS Next 3Y15.04%
5. Dividend
5.1 Amount
NGS has a Yearly Dividend Yield of 1.53%. Purely for dividend investing, there may be better candidates out there.
Compared to an average industry Dividend Yield of 3.21, NGS pays a bit more dividend than its industry peers.
NGS's Dividend Yield is slightly below the S&P500 average, which is at 2.36.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.53% |
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%
27.25
+0.03 (+0.11%)
Chartmill FA Rating
GICS SectorEnergy
GICS IndustryGroupEnergy
GICS IndustryEnergy Equipment & Services
Earnings (Last)
Earnings (Next)
Inst Owners75.55%
Inst Owner Change-0.41%
Ins Owners0.47%
Ins Owner Change-8.43%
Market Cap341.71M
Revenue(TTM)164.11M
Net Income(TTM)17.92M
Analysts84.44
Price Target36.92 (35.49%)
Short Float %2.61%
Short Ratio4.65
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.53% |
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)11.34%
EPS NY rev (1m)0%
EPS NY rev (3m)5.41%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-4.32%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-3.25%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 19.19 | ||
| Fwd PE | 15.42 | ||
| P/S | 2.08 | ||
| P/FCF | N/A | ||
| P/OCF | 5.05 | ||
| P/B | 1.28 | ||
| P/tB | 1.28 | ||
| EV/EBITDA | 7.27 |
EPS(TTM)1.42
EY5.21%
EPS(NY)1.77
Fwd EY6.49%
FCF(TTM)-1.68
FCFYN/A
OCF(TTM)5.39
OCFY19.78%
SpS13.09
BVpS21.23
TBVpS21.23
PEG (NY)2.06
PEG (5Y)0.22
Graham Number26.04
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 | 1.83 |
F-Score6
WACC9.46%
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)32.71%
EPS 3YN/A
EPS 5Y87.22%
EPS Q2Q%17.65%
EPS Next Y9.29%
EPS Next 2Y13.17%
EPS Next 3Y15.04%
EPS Next 5Y15.48%
Revenue 1Y (TTM)14.77%
Revenue growth 3Y29.35%
Revenue growth 5Y14.85%
Sales Q2Q%7.51%
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%