NATURAL GAS SERVICES GROUP (NGS) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:NGS - US63886Q1094 - Common Stock
33.44 USD
-0.05 (-0.15%)
33.44 USD
0 (0%)
We assign a fundamental rating of 4 out of 10 to NGS. NGS was compared to 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 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.
In multiple years NGS reported negative net income over the last 5 years.
In the past 5 years NGS always reported a positive cash flow from operatings.
1.2 Ratios
NGS's Return On Assets of 3.32% is in line compared to the rest of the industry. NGS outperforms 53.33% of 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.
Looking at the Return On Invested Capital, with a value of 5.51%, NGS is in line with its industry, outperforming 51.67% 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 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
NGS has a Profit Margin of 11.20%. This is amongst the best in the industry. NGS outperforms 86.67% of its industry peers.
Looking at the Operating Margin, with a value of 23.35%, NGS belongs to the top of the industry, outperforming 90.00% of the companies in the same industry.
In the last couple of years the Operating Margin of NGS has grown nicely.
Looking at the Gross Margin, with a value of 58.32%, NGS belongs to the top 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
With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), NGS 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 1.86. 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 (1.86) which is in line with its industry peers.
NGS has a Debt/Equity ratio of 0.77. This is a neutral value indicating NGS is somewhat dependend on debt financing.
The Debt to Equity ratio of NGS (0.77) is worse than 75.00% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.77 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 1.86 |
ROIC/WACC0.58
WACC9.52%
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 Current ratio of 1.83. This is comparable to the rest of the industry: NGS outperforms 45.00% 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 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.
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 9.53% in the last year.
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
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.
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
Based on the Price/Earnings ratio of 22.75, 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.
NGS is valuated at similar levels of the S&P average when we compare the Price/Earnings ratio to 26.54, which is the current average of the S&P500 Index.
With a Price/Forward Earnings ratio of 17.04, NGS is valued on the expensive side.
The rest of the industry has a similar Price/Forward Earnings ratio as NGS.
NGS is valuated rather cheaply when we compare the Price/Forward Earnings ratio to 23.78, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 22.75 | ||
| Fwd PE | 17.04 |
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 66.67% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 8.47 |
4.3 Compensation for Growth
The PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct 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 15.59% in the coming years.
PEG (NY)1.21
PEG (5Y)0.26
EPS Next 2Y19.26%
EPS Next 3Y15.59%
5. Dividend
5.1 Amount
NGS has a Yearly Dividend Yield of 1.31%.
NGS's Dividend Yield is a higher than the industry average which is at 2.56.
With a Dividend Yield of 1.31, NGS pays less dividend than the S&P500 average, which is at 2.27.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.31% |
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%
33.44
-0.05 (-0.15%)
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 Cap420.34M
Revenue(TTM)166.82M
Net Income(TTM)18.69M
Analysts84.44
Price Target39.98 (19.56%)
Short Float %3.01%
Short Ratio4.55
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.31% |
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 | 22.75 | ||
| Fwd PE | 17.04 | ||
| P/S | 2.52 | ||
| P/FCF | N/A | ||
| P/OCF | 7.19 | ||
| P/B | 1.55 | ||
| P/tB | 1.55 | ||
| EV/EBITDA | 8.47 |
EPS(TTM)1.47
EY4.4%
EPS(NY)1.96
Fwd EY5.87%
FCF(TTM)-3.42
FCFYN/A
OCF(TTM)4.65
OCFY13.91%
SpS13.27
BVpS21.59
TBVpS21.59
PEG (NY)1.21
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 | 1.86 |
F-Score6
WACC9.52%
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.