NATURAL GAS SERVICES GROUP (NGS) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:NGS - US63886Q1094 - Common Stock
31.8 USD
-0.38 (-1.18%)
31.8 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. NGS has a medium profitability rating, but doesn't score so well on its financial health evaluation. 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.
NGS had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
With a Return On Assets value of 3.32%, NGS perfoms like the industry average, outperforming 53.33% of the companies in the same industry.
NGS has a Return On Equity (6.89%) which is in line with its industry peers.
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.
Measured over the past 3 years, the Average Return On Invested Capital for NGS is below the industry average of 7.48%.
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
With an excellent Profit Margin value of 11.20%, NGS belongs to the best of the industry, outperforming 86.67% of the companies in the same industry.
With an excellent Operating Margin value of 23.35%, NGS belongs to the best of the industry, outperforming 90.00% of the companies in the same industry.
NGS's Operating Margin has improved in the last couple of years.
With an excellent Gross Margin value of 58.32%, NGS belongs to the best of the industry, outperforming 93.33% of the companies in the same industry.
NGS's Gross Margin has improved in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 23.35% | ||
| 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
The debt/assets ratio for NGS has remained at the same level compared to a year ago.
2.2 Solvency
NGS has an Altman-Z score of 1.82. 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 has a Altman-Z score (1.82) which is in line with its industry peers.
A Debt/Equity ratio of 0.77 indicates that NGS is somewhat dependend on debt financing.
With a Debt to Equity ratio value of 0.77, NGS is not doing good in the industry: 75.00% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.77 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 1.82 |
ROIC/WACC0.58
WACC9.51%
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 of 1.83. This is comparable to the rest of the industry: NGS outperforms 45.00% of its industry peers.
A Quick Ratio of 1.06 indicates that NGS should not have too much problems paying its short term obligations.
NGS has a worse Quick ratio (1.06) than 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%.
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 15.84% on average over the next years. This is quite good.
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 Year8.28%
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.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.
4. Valuation
4.1 Price/Earnings Ratio
The Price/Earnings ratio is 21.63, which indicates a rather expensive current valuation of NGS.
NGS's Price/Earnings ratio is in line with the industry average.
NGS's Price/Earnings ratio indicates a similar valuation than the S&P500 average which is at 26.34.
NGS is valuated correctly with a Price/Forward Earnings ratio of 16.20.
The rest of the industry has a similar Price/Forward Earnings ratio as NGS.
Compared to an average S&P500 Price/Forward Earnings ratio of 23.56, NGS is valued a bit cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 21.63 | ||
| Fwd PE | 16.2 |
4.2 Price Multiples
61.67% 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 | 8.25 |
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)1.15
PEG (5Y)0.25
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.
Compared to an average industry Dividend Yield of 2.75, NGS pays a bit more dividend than its industry peers.
Compared to an average S&P500 Dividend Yield of 2.31, NGS's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.36% |
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%
31.8
-0.38 (-1.18%)
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 Cap399.73M
Revenue(TTM)166.82M
Net Income(TTM)18.69M
Analysts84.44
Price Target39.98 (25.72%)
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 | 21.63 | ||
| Fwd PE | 16.2 | ||
| P/S | 2.4 | ||
| P/FCF | N/A | ||
| P/OCF | 6.83 | ||
| P/B | 1.47 | ||
| P/tB | 1.47 | ||
| EV/EBITDA | 8.25 |
EPS(TTM)1.47
EY4.62%
EPS(NY)1.96
Fwd EY6.17%
FCF(TTM)-3.42
FCFYN/A
OCF(TTM)4.65
OCFY14.63%
SpS13.27
BVpS21.59
TBVpS21.59
PEG (NY)1.15
PEG (5Y)0.25
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 | 1.82 |
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 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.