NATURAL GAS SERVICES GROUP (NGS) Stock Fundamental Analysis
USA - NYSE:NGS - US63886Q1094 - Common Stock
29.21 USD
+0.35 (+1.21%)
29.21 USD
0 (0%)
Overall NGS gets a fundamental rating of 4 out of 10. We evaluated NGS against 60 industry peers in the Energy Equipment & Services industry. There are concerns on the financial health of NGS while its profitability can be described as average. 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.
Each year in the past 5 years NGS had a positive operating cash flow.
1.2 Ratios
With a Return On Assets value of 3.41%, NGS perfoms like the industry average, outperforming 56.67% of the companies in the same industry.
NGS has a Return On Equity (6.73%) which is comparable to the rest of the industry.
With a Return On Invested Capital value of 5.71%, NGS perfoms like the industry average, outperforming 51.67% of the companies in the same industry.
The Average Return On Invested Capital over the past 3 years for NGS is below the industry average of 7.82%.
The 3 year average ROIC (2.84%) for NGS is below the current ROIC(5.71%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.41% | ||
| ROE | 6.73% | ||
| ROIC | 5.71% |
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 10.92%, NGS belongs to the best of the industry, outperforming 81.67% of the companies in the same industry.
NGS has a Operating Margin of 23.06%. This is amongst the best in the industry. NGS outperforms 90.00% of its industry peers.
NGS's Operating Margin has improved in the last couple of years.
NGS has a better Gross Margin (57.49%) than 93.33% of its industry peers.
NGS's Gross Margin has improved in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 23.06% | ||
| PM (TTM) | 10.92% | ||
| GM | 57.49% |
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.
The number of shares outstanding for NGS has been increased compared to 1 year ago.
Compared to 5 years ago, NGS has less shares outstanding
Compared to 1 year ago, NGS has about the same debt to assets ratio.
2.2 Solvency
An Altman-Z score of 1.87 indicates that NGS is not a great score, but indicates only limited risk for bankruptcy at the moment.
With a Altman-Z score value of 1.87, NGS perfoms like the industry average, outperforming 56.67% of the companies in the same industry.
A Debt/Equity ratio of 0.68 indicates that NGS is somewhat dependend on debt financing.
NGS has a worse Debt to Equity ratio (0.68) than 68.33% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.68 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 1.87 |
ROIC/WACC0.6
WACC9.55%
2.3 Liquidity
NGS has a Current Ratio of 1.97. This is a normal value and indicates that NGS is financially healthy and should not expect problems in meeting its short term obligations.
Looking at the Current ratio, with a value of 1.97, NGS is in line with its industry, outperforming 53.33% of the companies in the same industry.
A Quick Ratio of 1.23 indicates that NGS should not have too much problems paying its short term obligations.
NGS has a worse Quick ratio (1.23) than 65.00% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.97 | ||
| Quick Ratio | 1.23 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an impressive 32.71% over the past year.
The Earnings Per Share has been growing by 87.22% on average over the past years. This is a very strong growth
NGS shows quite a strong growth in Revenue. In the last year, the Revenue has grown by 14.77%.
The Revenue has been growing by 14.85% on average over the past years. This is quite good.
EPS 1Y (TTM)32.71%
EPS 3YN/A
EPS 5Y87.22%
EPS Q2Q%17.65%
Revenue 1Y (TTM)14.77%
Revenue growth 3Y29.35%
Revenue growth 5Y14.85%
Sales Q2Q%7.51%
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 15.48% on average per year.
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
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
A Price/Earnings ratio of 20.57 indicates a rather expensive valuation of NGS.
NGS's Price/Earnings ratio is in line with the industry average.
NGS is valuated rather cheaply when we compare the Price/Earnings ratio to 25.83, which is the current average of the S&P500 Index.
The Price/Forward Earnings ratio is 16.53, which indicates a correct valuation of NGS.
NGS's Price/Forward Earnings is on the same level as the industry average.
Compared to an average S&P500 Price/Forward Earnings ratio of 32.68, NGS is valued a bit cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 20.57 | ||
| Fwd PE | 16.53 |
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 | 7.55 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates NGS does not grow enough to justify the current Price/Earnings ratio.
The decent profitability rating of NGS may justify a higher PE ratio.
NGS's earnings are expected to grow with 15.04% in the coming years. This may justify a more expensive valuation.
PEG (NY)2.21
PEG (5Y)0.24
EPS Next 2Y13.17%
EPS Next 3Y15.04%
5. Dividend
5.1 Amount
NGS has a Yearly Dividend Yield of 1.39%. Purely for dividend investing, there may be better candidates out there.
Compared to an average industry Dividend Yield of 2.87, NGS pays a bit more dividend than its industry peers.
With a Dividend Yield of 1.39, NGS pays less dividend than the S&P500 average, which is at 2.37.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.39% |
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%
29.21
+0.35 (+1.21%)
Chartmill FA Rating
GICS SectorEnergy
GICS IndustryGroupEnergy
GICS IndustryEnergy Equipment & Services
Earnings (Last)
Earnings (Next)
Inst Owners75.55%
Inst Owner Change-1.22%
Ins Owners0.47%
Ins Owner Change-8.7%
Market Cap366.29M
Revenue(TTM)164.11M
Net Income(TTM)17.92M
Analysts84.44
Price Target36.92 (26.4%)
Short Float %2.49%
Short Ratio4.58
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.39% |
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)34.9%
Min EPS beat(2)15.35%
Max EPS beat(2)54.46%
EPS beat(4)3
Avg EPS beat(4)22.64%
Min EPS beat(4)-11.28%
Max EPS beat(4)54.46%
EPS beat(8)7
Avg EPS beat(8)58.57%
EPS beat(12)9
Avg EPS beat(12)50.16%
EPS beat(16)11
Avg EPS beat(16)-12.65%
Revenue beat(2)1
Avg Revenue beat(2)-0.51%
Min Revenue beat(2)-2.14%
Max Revenue beat(2)1.12%
Revenue beat(4)2
Avg Revenue beat(4)0.82%
Min Revenue beat(4)-2.14%
Max Revenue beat(4)5.71%
Revenue beat(8)6
Avg Revenue beat(8)5.08%
Revenue beat(12)10
Avg Revenue beat(12)7.15%
Revenue beat(16)13
Avg Revenue beat(16)6.78%
PT rev (1m)0%
PT rev (3m)-1.27%
EPS NQ rev (1m)0%
EPS NQ rev (3m)11.34%
EPS NY rev (1m)0%
EPS NY rev (3m)5.41%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-4.32%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-3.25%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 20.57 | ||
| Fwd PE | 16.53 | ||
| P/S | 2.23 | ||
| P/FCF | N/A | ||
| P/OCF | 5.42 | ||
| P/B | 1.38 | ||
| P/tB | 1.38 | ||
| EV/EBITDA | 7.55 |
EPS(TTM)1.42
EY4.86%
EPS(NY)1.77
Fwd EY6.05%
FCF(TTM)-1.68
FCFYN/A
OCF(TTM)5.39
OCFY18.46%
SpS13.09
BVpS21.23
TBVpS21.23
PEG (NY)2.21
PEG (5Y)0.24
Graham Number26.04
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.41% | ||
| ROE | 6.73% | ||
| ROCE | 7.56% | ||
| ROIC | 5.71% | ||
| ROICexc | 5.72% | ||
| ROICexgc | 5.72% | ||
| OM | 23.06% | ||
| PM (TTM) | 10.92% | ||
| GM | 57.49% | ||
| 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 Turnover0.31
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.68 | ||
| Debt/FCF | N/A | ||
| Debt/EBITDA | 2.53 | ||
| Cap/Depr | 259.65% | ||
| Cap/Sales | 54.05% | ||
| Interest Coverage | 2.53 | ||
| Cash Conversion | 93.9% | ||
| Profit Quality | N/A | ||
| Current Ratio | 1.97 | ||
| Quick Ratio | 1.23 | ||
| Altman-Z | 1.87 |
F-Score6
WACC9.55%
ROIC/WACC0.6
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)32.71%
EPS 3YN/A
EPS 5Y87.22%
EPS Q2Q%17.65%
EPS Next Y9.29%
EPS Next 2Y13.17%
EPS Next 3Y15.04%
EPS Next 5Y15.48%
Revenue 1Y (TTM)14.77%
Revenue growth 3Y29.35%
Revenue growth 5Y14.85%
Sales Q2Q%7.51%
Revenue Next Year8.64%
Revenue Next 2Y11.39%
Revenue Next 3Y9.75%
Revenue Next 5Y7.94%
EBIT growth 1Y19.6%
EBIT growth 3YN/A
EBIT growth 5Y194.8%
EBIT Next Year127.08%
EBIT Next 3Y40.54%
EBIT Next 5Y30.45%
FCF growth 1Y79.38%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y81.98%
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 9.29% in the next year.