NATURAL GAS SERVICES GROUP (NGS) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:NGS - US63886Q1094 - Common Stock
33.99 USD
+0.25 (+0.74%)
33.99 USD
0 (0%)
NGS gets a fundamental rating of 4 out of 10. The analysis compared the fundamentals against 62 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. While showing a medium growth rate, NGS is valued expensive at the moment.
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.
In the past 5 years NGS always reported a positive cash flow from operatings.
1.2 Ratios
NGS's Return On Assets of 3.32% is in line compared to the rest of the industry. NGS outperforms 53.23% of its industry peers.
With a Return On Equity value of 6.89%, NGS perfoms like the industry average, outperforming 56.45% 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 significantly below the industry average of 13.08%.
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
NGS has a Profit Margin of 11.20%. This is amongst the best in the industry. NGS outperforms 87.10% of its industry peers.
NGS's Operating Margin of 23.35% is amongst the best of the industry. NGS outperforms 88.71% of its industry peers.
In the last couple of years the Operating Margin of NGS has grown nicely.
NGS has a better Gross Margin (58.32%) than 93.55% 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
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
Compared to 5 years ago, NGS has less shares outstanding
NGS has about the same debt/assets ratio as last year.
2.2 Solvency
An Altman-Z score of 1.86 indicates that NGS is not a great score, but indicates only limited risk for bankruptcy at the moment.
NGS's Altman-Z score of 1.86 is in line compared to the rest of the industry. NGS outperforms 45.16% of its industry peers.
NGS has a Debt/Equity ratio of 0.77. This is a neutral value indicating NGS is somewhat dependend on debt financing.
NGS's Debt to Equity ratio of 0.77 is on the low side compared to the rest of the industry. NGS is outperformed by 72.58% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.77 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 1.86 |
ROIC/WACC0.58
WACC9.54%
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.
The Current ratio of NGS (1.83) is comparable to the rest of the industry.
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.
The Quick ratio of NGS (1.06) is worse than 69.35% 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.
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 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
NGS is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 15.84% yearly.
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 Y18.81%
EPS Next 2Y19.26%
EPS Next 3Y15.59%
EPS Next 5Y15.84%
Revenue Next Year8.61%
Revenue Next 2Y11.51%
Revenue Next 3Y10.36%
Revenue Next 5Y8.06%
3.3 Evolution
Although the future EPS growth is still strong, it is not able to hold up the even more excellent growth rate of 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 23.12, the valuation of NGS can be described as rather expensive.
NGS's Price/Earnings is on the same level as the industry average.
Compared to an average S&P500 Price/Earnings ratio of 26.77, NGS is valued at the same level.
Based on the Price/Forward Earnings ratio of 17.32, the valuation of NGS can be described as rather expensive.
Compared to the rest of the industry, the Price/Forward Earnings ratio of NGS is on the same level as its industry peers.
When comparing the Price/Forward Earnings ratio of NGS to the average of the S&P500 Index (23.35), we can say NGS is valued slightly cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 23.12 | ||
| Fwd PE | 17.32 |
4.2 Price Multiples
66.13% of the companies in the same industry are cheaper than NGS, based on the Enterprise Value to EBITDA ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 8.51 |
4.3 Compensation for Growth
NGS's PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
NGS has a very decent profitability rating, which may justify a higher PE ratio.
NGS's earnings are expected to grow with 15.59% in the coming years. This may justify a more expensive valuation.
PEG (NY)1.23
PEG (5Y)0.27
EPS Next 2Y19.26%
EPS Next 3Y15.59%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 1.29%, NGS has a reasonable but not impressive dividend return.
Compared to an average industry Dividend Yield of 1.30, NGS pays a bit more dividend than its industry peers.
NGS's Dividend Yield is slightly below the S&P500 average, which is at 2.00.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.29% |
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 2Y19.26%
EPS Next 3Y15.59%
33.99
+0.25 (+0.74%)
Chartmill FA Rating
GICS SectorEnergy
GICS IndustryGroupEnergy
GICS IndustryEnergy Equipment & Services
Earnings (Last)
Earnings (Next)
Inst Owners76.03%
Inst Owner Change-3.29%
Ins Owners0.58%
Ins Owner Change-18.49%
Market Cap427.25M
Revenue(TTM)166.82M
Net Income(TTM)18.69M
Analysts84.44
Price Target39.98 (17.62%)
Short Float %2.88%
Short Ratio3.77
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.29% |
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)1.03%
PT rev (3m)8.29%
EPS NQ rev (1m)0%
EPS NQ rev (3m)12%
EPS NY rev (1m)8.71%
EPS NY rev (3m)8.71%
Revenue NQ rev (1m)0.68%
Revenue NQ rev (3m)-0.94%
Revenue NY rev (1m)-0.03%
Revenue NY rev (3m)-0.03%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 23.12 | ||
| Fwd PE | 17.32 | ||
| P/S | 2.56 | ||
| P/FCF | N/A | ||
| P/OCF | 7.3 | ||
| P/B | 1.57 | ||
| P/tB | 1.57 | ||
| EV/EBITDA | 8.51 |
EPS(TTM)1.47
EY4.32%
EPS(NY)1.96
Fwd EY5.77%
FCF(TTM)-3.42
FCFYN/A
OCF(TTM)4.65
OCFY13.69%
SpS13.27
BVpS21.59
TBVpS21.59
PEG (NY)1.23
PEG (5Y)0.27
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 | 1.86 |
F-Score6
WACC9.54%
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 Y18.81%
EPS Next 2Y19.26%
EPS Next 3Y15.59%
EPS Next 5Y15.84%
Revenue 1Y (TTM)9.53%
Revenue growth 3Y29.35%
Revenue growth 5Y14.85%
Sales Q2Q%6.67%
Revenue Next Year8.61%
Revenue Next 2Y11.51%
Revenue Next 3Y10.36%
Revenue Next 5Y8.06%
EBIT growth 1Y7.22%
EBIT growth 3YN/A
EBIT growth 5Y194.8%
EBIT Next Year130.95%
EBIT Next 3Y42.81%
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 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 18.81% in the next year.