NATURAL GAS SERVICES GROUP (NGS) Stock Fundamental Analysis
NYSE:NGS - New York Stock Exchange, Inc. - US63886Q1094 - Common Stock - Currency: USD
Taking everything into account, NGS scores 5 out of 10 in our fundamental rating. NGS was compared to 63 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 valued quite expensively, but it does show have an excellent growth rating.
1. Profitability
1.1 Basic Checks
NGS had positive earnings in the past year.
NGS had a positive operating cash flow in the past year.
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
NGS has a Return On Assets (3.39%) which is comparable to the rest of the industry.
NGS has a Return On Equity (6.53%) which is in line with its industry peers.
NGS's Return On Invested Capital of 5.77% is in line compared to the rest of the industry. NGS outperforms 41.27% of its industry peers.
The Average Return On Invested Capital over the past 3 years for NGS is significantly below the industry average of 8.44%.
The last Return On Invested Capital (5.77%) for NGS is above the 3 year average (2.84%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.39% | ||
| ROE | 6.53% | ||
| ROIC | 5.77% |
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 better Profit Margin (10.53%) than 76.19% of its industry peers.
NGS has a Operating Margin of 22.67%. This is amongst the best in the industry. NGS outperforms 87.30% 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 56.53%, NGS belongs to the top of the industry, outperforming 93.65% 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 | 22.67% | ||
| PM (TTM) | 10.53% | ||
| GM | 56.53% |
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
NGS has less shares outstanding than it did 5 years ago.
NGS has about the same debt/assets ratio as last year.
2.2 Solvency
An Altman-Z score of 1.83 indicates that NGS is not a great score, but indicates only limited risk for bankruptcy at the moment.
NGS has a Altman-Z score (1.83) which is comparable to the rest of the industry.
The Debt to FCF ratio of NGS is 88.28, which is on the high side as it means it would take NGS, 88.28 years of fcf income to pay off all of its debts.
The Debt to FCF ratio of NGS (88.28) is worse than 65.08% of its industry peers.
A Debt/Equity ratio of 0.65 indicates that NGS is somewhat dependend on debt financing.
NGS has a Debt to Equity ratio of 0.65. This is in the lower half of the industry: NGS underperforms 66.67% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.65 | ||
| Debt/FCF | 88.28 | ||
| Altman-Z | 1.83 |
ROIC/WACC0.56
WACC10.27%
2.3 Liquidity
NGS has a Current Ratio of 2.10. This indicates that NGS is financially healthy and has no problem in meeting its short term obligations.
The Current ratio of NGS (2.10) is better than 63.49% of its industry peers.
NGS has a Quick Ratio of 1.33. This is a normal value and indicates that NGS is financially healthy and should not expect problems in meeting its short term obligations.
NGS's Quick ratio of 1.33 is on the low side compared to the rest of the industry. NGS is outperformed by 63.49% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.1 | ||
| Quick Ratio | 1.33 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an impressive 63.86% over the past year.
NGS shows a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 87.22% yearly.
The Revenue has grown by 22.64% in the past year. This is a very strong growth!
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)63.86%
EPS 3YN/A
EPS 5Y87.22%
EPS Q2Q%-4.88%
Revenue 1Y (TTM)22.64%
Revenue growth 3Y29.35%
Revenue growth 5Y14.85%
Sales Q2Q%12.13%
3.2 Future
NGS is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 15.95% yearly.
Based on estimates for the next years, NGS will show a quite strong growth in Revenue. The Revenue will grow by 10.20% on average per year.
EPS Next Y3.68%
EPS Next 2Y12.63%
EPS Next 3Y15.95%
EPS Next 5YN/A
Revenue Next Year12.3%
Revenue Next 2Y13.85%
Revenue Next 3Y10.2%
Revenue Next 5YN/A
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.
The estimated forward Revenue growth is still strong, although it is decreasing when compared to the stronger growth in the past years.
4. Valuation
4.1 Price/Earnings Ratio
With a Price/Earnings ratio of 17.94, NGS is valued on the expensive side.
The rest of the industry has a similar Price/Earnings ratio as NGS.
NGS is valuated rather cheaply when we compare the Price/Earnings ratio to 27.30, which is the current average of the S&P500 Index.
Based on the Price/Forward Earnings ratio of 13.94, the valuation of NGS can be described as correct.
The rest of the industry has a similar Price/Forward Earnings ratio as NGS.
When comparing the Price/Forward Earnings ratio of NGS to the average of the S&P500 Index (21.76), we can say NGS is valued slightly cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 17.94 | ||
| Fwd PE | 13.94 |
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 60.32% of the companies listed in the same industry.
66.67% of the companies in the same industry are cheaper than NGS, based on the Price/Free Cash Flow ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 160.66 | ||
| EV/EBITDA | 6.85 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive 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 15.95% in the coming years.
PEG (NY)4.87
PEG (5Y)0.21
EPS Next 2Y12.63%
EPS Next 3Y15.95%
5. Dividend
5.1 Amount
NGS does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
24.4
-0.3 (-1.21%)
Chartmill FA Rating
GICS SectorEnergy
GICS IndustryGroupEnergy
GICS IndustryEnergy Equipment & Services
Earnings (Last)
Earnings (Next)
Inst Owners72.91%
Inst Owner Change0.18%
Ins Owners0.38%
Ins Owner Change-3.31%
Market Cap305.73M
Analysts85
Price Target37.4 (53.28%)
Short Float %2.3%
Short Ratio3
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
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)1
Avg EPS beat(2)21.59%
Min EPS beat(2)-11.28%
Max EPS beat(2)54.46%
EPS beat(4)3
Avg EPS beat(4)22.82%
Min EPS beat(4)-11.28%
Max EPS beat(4)54.46%
EPS beat(8)7
Avg EPS beat(8)131.03%
EPS beat(12)9
Avg EPS beat(12)55.83%
EPS beat(16)10
Avg EPS beat(16)-30.74%
Revenue beat(2)1
Avg Revenue beat(2)-0.15%
Min Revenue beat(2)-1.43%
Max Revenue beat(2)1.12%
Revenue beat(4)3
Avg Revenue beat(4)2.29%
Min Revenue beat(4)-1.43%
Max Revenue beat(4)5.71%
Revenue beat(8)7
Avg Revenue beat(8)6.3%
Revenue beat(12)11
Avg Revenue beat(12)7.77%
Revenue beat(16)14
Avg Revenue beat(16)7.44%
PT rev (1m)1.85%
PT rev (3m)1.85%
EPS NQ rev (1m)0%
EPS NQ rev (3m)33.76%
EPS NY rev (1m)0%
EPS NY rev (3m)17.08%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-0.48%
Revenue NY rev (1m)0%
Revenue NY rev (3m)0.6%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 17.94 | ||
| Fwd PE | 13.94 | ||
| P/S | 1.9 | ||
| P/FCF | 160.66 | ||
| P/OCF | 3.72 | ||
| P/B | 1.17 | ||
| P/tB | 1.17 | ||
| EV/EBITDA | 6.85 |
EPS(TTM)1.36
EY5.57%
EPS(NY)1.75
Fwd EY7.17%
FCF(TTM)0.15
FCFY0.62%
OCF(TTM)6.55
OCFY26.86%
SpS12.87
BVpS20.77
TBVpS20.77
PEG (NY)4.87
PEG (5Y)0.21
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.39% | ||
| ROE | 6.53% | ||
| ROCE | 7.63% | ||
| ROIC | 5.77% | ||
| ROICexc | 5.79% | ||
| ROICexgc | 5.79% | ||
| OM | 22.67% | ||
| PM (TTM) | 10.53% | ||
| GM | 56.53% | ||
| FCFM | 1.18% |
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
ROICexcg growth 3YN/A
ROICexcg 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-Score7
Asset Turnover0.32
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.65 | ||
| Debt/FCF | 88.28 | ||
| Debt/EBITDA | 2.42 | ||
| Cap/Depr | 243.85% | ||
| Cap/Sales | 49.76% | ||
| Interest Coverage | 2.33 | ||
| Cash Conversion | 118.26% | ||
| Profit Quality | 11.21% | ||
| Current Ratio | 2.1 | ||
| Quick Ratio | 1.33 | ||
| Altman-Z | 1.83 |
F-Score7
WACC10.27%
ROIC/WACC0.56
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)63.86%
EPS 3YN/A
EPS 5Y87.22%
EPS Q2Q%-4.88%
EPS Next Y3.68%
EPS Next 2Y12.63%
EPS Next 3Y15.95%
EPS Next 5YN/A
Revenue 1Y (TTM)22.64%
Revenue growth 3Y29.35%
Revenue growth 5Y14.85%
Sales Q2Q%12.13%
Revenue Next Year12.3%
Revenue Next 2Y13.85%
Revenue Next 3Y10.2%
Revenue Next 5YN/A
EBIT growth 1Y48.42%
EBIT growth 3YN/A
EBIT growth 5Y194.8%
EBIT Next Year124.89%
EBIT Next 3Y38.84%
EBIT Next 5YN/A
FCF growth 1Y102.99%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y100.39%
OCF growth 3Y32.56%
OCF growth 5Y17.71%