NATURAL GAS SERVICES GROUP (NGS) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:NGS - US63886Q1094 - Common Stock
32.96 USD
+1.16 (+3.65%)
32.96 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. While NGS is still in line with the averages on profitability rating, there are concerns on its financial health. 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.
The reported net income has been mixed in the past 5 years: NGS reported negative net income in multiple years.
Each year in the past 5 years NGS had a positive operating cash flow.
1.2 Ratios
NGS has a Return On Assets (3.32%) which is in line with its industry peers.
Looking at the Return On Equity, with a value of 6.89%, NGS is in line with its industry, outperforming 55.00% of the companies in the same industry.
NGS has a Return On Invested Capital of 5.51%. This is comparable to the rest of the industry: NGS outperforms 51.67% of its industry peers.
The Average Return On Invested Capital over the past 3 years for NGS is below the industry average of 7.48%.
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
The Profit Margin of NGS (11.20%) is better than 86.67% of its industry peers.
The Operating Margin of NGS (23.35%) is better than 90.00% of its industry peers.
NGS's Operating Margin has improved in the last couple of years.
The Gross Margin of NGS (58.32%) is better than 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
The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so 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.
The debt/assets ratio for NGS has remained at the same level compared to a year ago.
2.2 Solvency
An Altman-Z score of 1.84 indicates that NGS is not a great score, but indicates only limited risk for bankruptcy at the moment.
Looking at the Altman-Z score, with a value of 1.84, NGS is in line with its industry, outperforming 43.33% of the companies in the same industry.
A Debt/Equity ratio of 0.77 indicates that 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 75.00% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.77 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 1.84 |
ROIC/WACC0.58
WACC9.5%
2.3 Liquidity
A Current Ratio of 1.83 indicates that NGS should not have too much problems paying its short term obligations.
NGS has a Current ratio (1.83) which 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.
NGS's Quick ratio of 1.06 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 | ||
|---|---|---|---|
| Current Ratio | 1.83 | ||
| Quick Ratio | 1.06 |
3. Growth
3.1 Past
NGS shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 13.95%, which is quite good.
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%.
The Revenue has been growing by 14.85% on average over the past years. This is quite good.
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.
Based on estimates for the next years, NGS will show a quite strong growth in Revenue. The Revenue will grow by 8.06% on average per year.
EPS Next Y18.81%
EPS Next 2Y19.26%
EPS Next 3Y15.59%
EPS Next 5Y15.84%
Revenue Next Year8.28%
Revenue Next 2Y11.05%
Revenue Next 3Y9.48%
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 22.42.
NGS's Price/Earnings is on the same level as the industry average.
Compared to an average S&P500 Price/Earnings ratio of 26.28, NGS is valued at the same level.
A Price/Forward Earnings ratio of 16.79 indicates a correct valuation of NGS.
NGS's Price/Forward Earnings ratio is in line with the industry average.
When comparing the Price/Forward Earnings ratio of NGS to the average of the S&P500 Index (23.52), we can say NGS is valued slightly cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 22.42 | ||
| Fwd PE | 16.79 |
4.2 Price Multiples
65.00% 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 | 8.38 |
4.3 Compensation for Growth
The 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.
A more expensive valuation may be justified as NGS's earnings are expected to grow with 15.59% in the coming years.
PEG (NY)1.19
PEG (5Y)0.26
EPS Next 2Y19.26%
EPS Next 3Y15.59%
5. Dividend
5.1 Amount
NGS has a Yearly Dividend Yield of 1.36%. Purely for dividend investing, there may be better candidates out there.
NGS's Dividend Yield is a higher than the industry average which is at 2.75.
With a Dividend Yield of 1.36, NGS pays less dividend than the S&P500 average, which is at 2.31.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.36% |
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 2Y19.26%
EPS Next 3Y15.59%
32.96
+1.16 (+3.65%)
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-15.28%
Market Cap414.31M
Revenue(TTM)166.82M
Net Income(TTM)18.69M
Analysts84.44
Price Target39.98 (21.3%)
Short Float %3.01%
Short Ratio4.55
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.36% |
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)8.29%
PT rev (3m)8.14%
EPS NQ rev (1m)12%
EPS NQ rev (3m)12%
EPS NY rev (1m)8.71%
EPS NY rev (3m)8.71%
Revenue NQ rev (1m)-1.61%
Revenue NQ rev (3m)-1.26%
Revenue NY rev (1m)-0.33%
Revenue NY rev (3m)-0.23%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 22.42 | ||
| Fwd PE | 16.79 | ||
| P/S | 2.48 | ||
| P/FCF | N/A | ||
| P/OCF | 7.08 | ||
| P/B | 1.53 | ||
| P/tB | 1.53 | ||
| EV/EBITDA | 8.38 |
EPS(TTM)1.47
EY4.46%
EPS(NY)1.96
Fwd EY5.95%
FCF(TTM)-3.42
FCFYN/A
OCF(TTM)4.65
OCFY14.12%
SpS13.27
BVpS21.59
TBVpS21.59
PEG (NY)1.19
PEG (5Y)0.26
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 | 1.84 |
F-Score6
WACC9.5%
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 Year8.28%
Revenue Next 2Y11.05%
Revenue Next 3Y9.48%
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.