NATURAL GAS SERVICES GROUP (NGS) Stock Fundamental Analysis
USA - NYSE:NGS - US63886Q1094 - Common Stock
26.79 USD
-0.45 (-1.65%)
26.79 USD
0 (0%)
Overall NGS gets a fundamental rating of 4 out of 10. We evaluated NGS against 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. 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.
NGS had a positive operating cash flow in the past year.
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's Return On Assets of 3.41% is in line compared to the rest of the industry. NGS outperforms 52.46% of its industry peers.
NGS's Return On Equity of 6.73% is in line compared to the rest of the industry. NGS outperforms 50.82% of its industry peers.
Looking at the Return On Invested Capital, with a value of 5.71%, NGS is in line with its industry, outperforming 49.18% of the companies in the same industry.
NGS had an Average Return On Invested Capital over the past 3 years of 2.84%. This is significantly below the industry average of 8.01%.
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
With a decent Profit Margin value of 10.92%, NGS is doing good in the industry, outperforming 78.69% of the companies in the same industry.
The Operating Margin of NGS (23.06%) is better than 88.52% of its industry peers.
NGS's Operating Margin has improved in the last couple of years.
With an excellent Gross Margin value of 57.49%, NGS belongs to the best of the industry, outperforming 93.44% of the companies in the same industry.
NGS's Gross Margin has improved in the last couple of years.
| 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
NGS has a Return on Invested Capital (ROIC), which is below the Cost of Capital (WACC), which means it is destroying value.
Compared to 1 year ago, NGS has more shares outstanding
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 1.83. 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.
NGS's Altman-Z score of 1.83 is in line compared to the rest of the industry. NGS outperforms 49.18% of its industry peers.
NGS has a Debt/Equity ratio of 0.68. This is a neutral value indicating NGS is somewhat dependend on debt financing.
NGS has a Debt to Equity ratio of 0.68. This is in the lower half of the industry: NGS underperforms 68.85% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.68 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 1.83 |
ROIC/WACC0.59
WACC9.71%
2.3 Liquidity
A Current Ratio of 1.97 indicates that NGS should not have too much problems paying its short term obligations.
NGS has a Current ratio of 1.97. This is comparable to the rest of the industry: NGS outperforms 54.10% of its industry peers.
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.
NGS shows a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 87.22% yearly.
Looking at the last year, NGS shows a quite strong growth in Revenue. The Revenue has grown by 14.77% in the last year.
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)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
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
Based on the Price/Earnings ratio of 18.87, the valuation of NGS can be described as rather expensive.
Compared to the rest of the industry, the Price/Earnings ratio of NGS is on the same level as its industry peers.
The average S&P500 Price/Earnings ratio is at 27.20. NGS is valued slightly cheaper when compared to this.
The Price/Forward Earnings ratio is 15.16, which indicates a correct valuation of NGS.
NGS's Price/Forward Earnings ratio is in line with the industry average.
The average S&P500 Price/Forward Earnings ratio is at 22.70. NGS is valued slightly cheaper when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 18.87 | ||
| Fwd PE | 15.16 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of NGS indicates a slightly more expensive valuation: NGS is more expensive than 62.30% of the companies listed 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 an expensive valuation of the company.
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)2.03
PEG (5Y)0.22
EPS Next 2Y13.17%
EPS Next 3Y15.04%
5. Dividend
5.1 Amount
NGS has a Yearly Dividend Yield of 1.50%.
NGS's Dividend Yield is a higher than the industry average which is at 3.34.
Compared to the average S&P500 Dividend Yield of 2.38, NGS is paying slightly less dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.5% |
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%
26.79
-0.45 (-1.65%)
Chartmill FA Rating
GICS SectorEnergy
GICS IndustryGroupEnergy
GICS IndustryEnergy Equipment & Services
Earnings (Last)
Earnings (Next)
Inst Owners73.36%
Inst Owner Change7.6%
Ins Owners0.41%
Ins Owner Change-4.99%
Market Cap335.95M
Analysts85
Price Target36.92 (37.81%)
Short Float %2.43%
Short Ratio4.58
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.5% |
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)-1.27%
PT rev (3m)-1.27%
EPS NQ rev (1m)3.85%
EPS NQ rev (3m)11.34%
EPS NY rev (1m)5.41%
EPS NY rev (3m)5.41%
Revenue NQ rev (1m)-3.68%
Revenue NQ rev (3m)-4.32%
Revenue NY rev (1m)-3.25%
Revenue NY rev (3m)-3.25%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 18.87 | ||
| Fwd PE | 15.16 | ||
| P/S | 2.05 | ||
| P/FCF | N/A | ||
| P/OCF | 4.97 | ||
| P/B | 1.26 | ||
| P/tB | 1.26 | ||
| EV/EBITDA | 7.27 |
EPS(TTM)1.42
EY5.3%
EPS(NY)1.77
Fwd EY6.6%
FCF(TTM)-1.68
FCFYN/A
OCF(TTM)5.39
OCFY20.12%
SpS13.09
BVpS21.23
TBVpS21.23
PEG (NY)2.03
PEG (5Y)0.22
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
ROICexcg growth 3YN/A
ROICexcg 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
WACC9.71%
ROIC/WACC0.59
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 Year124.89%
EBIT Next 3Y38.84%
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%