NATURAL GAS SERVICES GROUP (NGS) Stock Fundamental Analysis
USA - NYSE:NGS - US63886Q1094 - Common Stock
30.99 USD
+0.99 (+3.3%)
Overall NGS gets a fundamental rating of 4 out of 10. We evaluated NGS 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. 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.
NGS had a positive operating cash flow in the past year.
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
Looking at the Return On Assets, with a value of 3.32%, NGS is in line with its industry, outperforming 53.33% of the companies in the same industry.
NGS's Return On Equity of 6.89% is in line compared to the rest of the industry. NGS outperforms 53.33% of its industry peers.
NGS has a Return On Invested Capital (5.51%) which is comparable to the rest of the industry.
NGS had an Average Return On Invested Capital over the past 3 years of 2.84%. This is below the industry average of 7.76%.
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 86.67% of its industry peers.
NGS's Operating Margin of 23.35% is amongst the best of the industry. NGS outperforms 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
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.
NGS has less shares outstanding than it did 5 years ago.
The debt/assets ratio for NGS has remained at the same level compared to a year ago.
2.2 Solvency
Based on the Altman-Z score of 1.79, we must say that NGS is in the distress zone and has some risk of bankruptcy.
NGS's Altman-Z score of 1.79 is in line compared to the rest of the industry. NGS outperforms 45.00% of its industry peers.
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
WACC9.51%
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.
NGS has a worse Current ratio (1.83) than 60.00% 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 has a Quick ratio of 1.06. This is in the lower half of the industry: NGS underperforms 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.
NGS shows a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 87.22% yearly.
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
The Earnings Per Share is expected to grow by 15.48% on average over the next years. This is quite good.
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 21.08, the valuation of NGS can be described as rather expensive.
NGS's Price/Earnings ratio is in line with the industry average.
NGS is valuated at similar levels of the S&P average when we compare the Price/Earnings ratio to 25.47, which is the current average of the S&P500 Index.
The Price/Forward Earnings ratio is 17.53, which indicates a rather expensive current valuation of NGS.
The rest of the industry has a similar Price/Forward Earnings ratio as NGS.
When comparing the Price/Forward Earnings ratio of NGS to the average of the S&P500 Index (35.42), we can say NGS is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 21.08 | ||
| Fwd PE | 17.53 |
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 63.33% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 8.03 |
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.
A more expensive valuation may be justified as NGS's earnings are expected to grow with 15.04% in the coming years.
PEG (NY)2.27
PEG (5Y)0.24
EPS Next 2Y13.17%
EPS Next 3Y15.04%
5. Dividend
5.1 Amount
NGS has a Yearly Dividend Yield of 1.46%. 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 2.96.
With a Dividend Yield of 1.46, NGS pays less dividend than the S&P500 average, which is at 2.44.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.46% |
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 2Y13.17%
EPS Next 3Y15.04%
NYSE:NGS (11/19/2025, 2:58:22 PM)
30.99
+0.99 (+3.3%)
Chartmill FA Rating
GICS SectorEnergy
GICS IndustryGroupEnergy
GICS IndustryEnergy Equipment & Services
Earnings (Last)
Earnings (Next)
Inst Owners75.55%
Inst Owner Change0.33%
Ins Owners0.47%
Ins Owner Change-10.41%
Market Cap388.61M
Revenue(TTM)166.82M
Net Income(TTM)18.69M
Analysts84.44
Price Target39.58 (27.72%)
Short Float %2.41%
Short Ratio4.04
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.46% |
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)0%
PT rev (3m)-1.27%
EPS NQ rev (1m)0%
EPS NQ rev (3m)3.85%
EPS NY rev (1m)0%
EPS NY rev (3m)5.41%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-3.68%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-3.25%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 21.08 | ||
| Fwd PE | 17.53 | ||
| P/S | 2.33 | ||
| P/FCF | N/A | ||
| P/OCF | 6.64 | ||
| P/B | 1.43 | ||
| P/tB | 1.43 | ||
| EV/EBITDA | 8.03 |
EPS(TTM)1.47
EY4.74%
EPS(NY)1.77
Fwd EY5.7%
FCF(TTM)-3.43
FCFYN/A
OCF(TTM)4.66
OCFY15.05%
SpS13.3
BVpS21.64
TBVpS21.64
PEG (NY)2.27
PEG (5Y)0.24
Graham Number26.76
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
WACC9.51%
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 5Y15.48%
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 5Y7.94%
EBIT growth 1Y7.22%
EBIT growth 3YN/A
EBIT growth 5Y194.8%
EBIT Next Year127.08%
EBIT Next 3Y40.54%
EBIT Next 5Y30.45%
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.