NATURAL GAS SERVICES GROUP (NGS) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:NGS - US63886Q1094 - Common Stock
34.18 USD
-0.07 (-0.2%)
34.18 USD
0 (0%)
We assign a fundamental rating of 4 out of 10 to NGS. NGS was compared to 62 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.
NGS had a positive operating cash flow in the past year.
In multiple years NGS reported negative net income over the last 5 years.
Each year in the past 5 years NGS had a positive operating cash flow.
1.2 Ratios
NGS has a Return On Assets of 3.32%. This is comparable to the rest of the industry: NGS outperforms 56.45% of its industry peers.
NGS's Return On Equity of 6.89% is in line compared to the rest of the industry. NGS outperforms 59.68% of its industry peers.
NGS has a Return On Invested Capital (5.51%) which 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 12.77%.
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 90.32% of its industry peers.
The Operating Margin of NGS (23.35%) is better than 90.32% of its industry peers.
NGS's Operating Margin has improved in the last couple of years.
Looking at the Gross Margin, with a value of 58.32%, NGS belongs to the top of the industry, outperforming 93.55% of the companies in the same industry.
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
The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so NGS is destroying value.
The number of shares outstanding for NGS has been increased compared to 1 year ago.
The number of shares outstanding for NGS has been reduced compared to 5 years ago.
The debt/assets ratio for NGS has remained at the same level compared to a year ago.
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.
Looking at the Altman-Z score, with a value of 1.88, NGS is in line with its industry, outperforming 46.77% of the companies in the same industry.
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 70.97% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.77 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 1.88 |
ROIC/WACC0.59
WACC9.38%
2.3 Liquidity
A Current Ratio of 1.83 indicates that NGS should not have too much problems paying its short term obligations.
With a Current ratio value of 1.83, NGS perfoms like the industry average, outperforming 46.77% of the companies in the same industry.
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 67.74% 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
The Earnings Per Share is expected to grow by 15.84% on average over the next years. This is quite good.
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 Year8.61%
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 23.25, which indicates a rather expensive current valuation of NGS.
Compared to the rest of the industry, the Price/Earnings ratio of NGS is on the same level as its industry peers.
The average S&P500 Price/Earnings ratio is at 27.30. NGS is around the same levels.
The Price/Forward Earnings ratio is 17.41, which indicates a rather expensive current valuation of NGS.
Compared to the rest of the industry, the Price/Forward Earnings ratio of NGS indicates a somewhat cheap valuation: NGS is cheaper than 62.90% of the companies listed in the same industry.
NGS is valuated rather cheaply when we compare the Price/Forward Earnings ratio to 24.04, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 23.25 | ||
| Fwd PE | 17.41 |
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 | 8.6 |
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)1.24
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 1.21.
Compared to the average S&P500 Dividend Yield of 1.92, NGS is paying slightly less dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.26% |
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%
34.18
-0.07 (-0.2%)
Chartmill FA Rating
GICS SectorEnergy
GICS IndustryGroupEnergy
GICS IndustryEnergy Equipment & Services
Earnings (Last)
Earnings (Next)
Inst Owners76.19%
Inst Owner Change0.04%
Ins Owners0.6%
Ins Owner Change-18.2%
Market Cap429.64M
Revenue(TTM)166.82M
Net Income(TTM)18.69M
Analysts84.44
Price Target39.98 (16.97%)
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 | 23.25 | ||
| Fwd PE | 17.41 | ||
| P/S | 2.58 | ||
| P/FCF | N/A | ||
| P/OCF | 7.35 | ||
| P/B | 1.58 | ||
| P/tB | 1.58 | ||
| EV/EBITDA | 8.6 |
EPS(TTM)1.47
EY4.3%
EPS(NY)1.96
Fwd EY5.74%
FCF(TTM)-3.42
FCFYN/A
OCF(TTM)4.65
OCFY13.61%
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
WACC9.38%
ROIC/WACC0.59
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 23.25 and the Price/Book (PB) ratio is 1.58.