NATURAL GAS SERVICES GROUP (NGS) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:NGS - US63886Q1094 - Common Stock
34.39 USD
-0.5 (-1.43%)
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. NGS is valied quite expensively at the moment, while 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.
In the past 5 years NGS always reported a positive cash flow from operatings.
1.2 Ratios
The Return On Assets of NGS (3.32%) is comparable to the rest of the industry.
The Return On Equity of NGS (6.89%) is comparable to the rest of the industry.
The Return On Invested Capital of NGS (5.51%) is comparable to the rest of the industry.
The Average Return On Invested Capital over the past 3 years for NGS is significantly below the industry average of 12.79%.
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
The Profit Margin of NGS (11.20%) is better than 90.32% of its industry peers.
NGS's Operating Margin of 23.35% is amongst the best of the industry. NGS outperforms 90.32% of its industry peers.
NGS's Operating Margin has improved in the last couple of years.
NGS's Gross Margin of 58.32% is amongst the best of the industry. NGS outperforms 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
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
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 1.88 indicates that NGS is not a great score, but indicates only limited risk for bankruptcy at the moment.
NGS has a Altman-Z score of 1.88. This is comparable to the rest of the industry: NGS outperforms 45.16% of its industry peers.
A Debt/Equity ratio of 0.77 indicates that NGS is somewhat dependend on debt financing.
Looking at the Debt to Equity ratio, with a value of 0.77, NGS is doing worse than 70.97% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.77 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 1.88 |
ROIC/WACC0.58
WACC9.42%
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.
With a Quick ratio value of 1.06, NGS is not doing good in the industry: 67.74% of the companies in the same industry are doing better.
| 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.
The Earnings Per Share has been growing by 87.22% on average over the past years. This is a very strong growth
The Revenue has grown by 9.53% in the past year. This is quite good.
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
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.
The Revenue is expected to grow by 8.06% on average over the next years. This is quite good.
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
The Price/Earnings ratio is 23.39, which indicates a rather expensive current valuation of NGS.
NGS's Price/Earnings is on the same level as the industry average.
NGS's Price/Earnings ratio indicates a similar valuation than the S&P500 average which is at 27.19.
With a Price/Forward Earnings ratio of 17.52, NGS is valued on the expensive side.
Based on the Price/Forward Earnings ratio, NGS is valued a bit cheaper than the industry average as 62.90% of the companies are valued more expensively.
NGS is valuated rather cheaply when we compare the Price/Forward Earnings ratio to 23.88, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 23.39 | ||
| Fwd PE | 17.52 |
4.2 Price Multiples
62.90% 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 | 8.62 |
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)1.24
PEG (5Y)0.27
EPS Next 2Y19.26%
EPS Next 3Y15.59%
5. Dividend
5.1 Amount
NGS has a Yearly Dividend Yield of 1.26%.
NGS's Dividend Yield is a higher than the industry average which is at 1.24.
Compared to the average S&P500 Dividend Yield of 1.90, NGS is paying slightly less dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.26% |
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%
NYSE:NGS (1/9/2026, 8:10:42 PM)
34.39
-0.5 (-1.43%)
Chartmill FA Rating
GICS SectorEnergy
GICS IndustryGroupEnergy
GICS IndustryEnergy Equipment & Services
Earnings (Last)
Earnings (Next)
Inst Owners76.19%
Inst Owner Change0%
Ins Owners0.6%
Ins Owner Change-18.2%
Market Cap432.28M
Revenue(TTM)166.82M
Net Income(TTM)18.69M
Analysts84.44
Price Target39.98 (16.25%)
Short Float %2.88%
Short Ratio3.77
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.26% |
Yearly DividendN/A
Dividend Growth(5Y)N/A
DPN/A
Div Incr Years0
Div Non Decr Years0
Ex-DateN/A
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)8.29%
EPS NQ rev (1m)0%
EPS NQ rev (3m)12%
EPS NY rev (1m)0%
EPS NY rev (3m)8.71%
Revenue NQ rev (1m)0.68%
Revenue NQ rev (3m)-0.94%
Revenue NY rev (1m)0.3%
Revenue NY rev (3m)-0.03%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 23.39 | ||
| Fwd PE | 17.52 | ||
| P/S | 2.59 | ||
| P/FCF | N/A | ||
| P/OCF | 7.39 | ||
| P/B | 1.59 | ||
| P/tB | 1.59 | ||
| EV/EBITDA | 8.62 |
EPS(TTM)1.47
EY4.27%
EPS(NY)1.96
Fwd EY5.71%
FCF(TTM)-3.42
FCFYN/A
OCF(TTM)4.65
OCFY13.53%
SpS13.27
BVpS21.59
TBVpS21.59
PEG (NY)1.24
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 | 1.88 |
F-Score6
WACC9.42%
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.
What is the valuation status of NATURAL GAS SERVICES GROUP (NGS) stock?
ChartMill assigns a valuation rating of 3 / 10 to NATURAL GAS SERVICES GROUP (NGS). This can be considered as Overvalued.
How profitable is NATURAL GAS SERVICES GROUP (NGS) stock?
NATURAL GAS SERVICES GROUP (NGS) has a profitability rating of 6 / 10.
What is the valuation of NATURAL GAS SERVICES GROUP based on its PE and PB ratios?
The Price/Earnings (PE) ratio for NATURAL GAS SERVICES GROUP (NGS) is 23.39 and the Price/Book (PB) ratio is 1.59.