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NINE ENERGY SERVICE INC (NINE) Stock Fundamental Analysis

NYSE:NINE - New York Stock Exchange, Inc. - US65441V1017 - Common Stock - Currency: USD

1.15  -0.05 (-4.17%)

After market: 1.175 +0.03 (+2.17%)

Fundamental Rating

1

Taking everything into account, NINE scores 1 out of 10 in our fundamental rating. NINE was compared to 59 industry peers in the Energy Equipment & Services industry. Both the profitability and financial health of NINE have multiple concerns. NINE has a expensive valuation and it also scores bad on growth.


Dividend Valuation Growth Profitability Health

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1

1. Profitability

1.1 Basic Checks

NINE had negative earnings in the past year.
In the past year NINE had a positive cash flow from operations.
In the past 5 years NINE reported 4 times negative net income.
In multiple years NINE reported negative operating cash flow during the last 5 years.
NINE Yearly Net Income VS EBIT VS OCF VS FCFNINE Yearly Net Income VS EBIT VS OCF VS FCFYearly Net Income VS EBIT VS OCF VS FCF 2015 2016 2017 2018 2019 2020 2021 2022 2023 0 100M -100M -200M -300M

1.2 Ratios

The Return On Assets of NINE (-12.04%) is worse than 89.66% of its industry peers.
With a Return On Invested Capital value of 2.47%, NINE is not doing good in the industry: 82.76% of the companies in the same industry are doing better.
Industry RankSector Rank
ROA -12.04%
ROE N/A
ROIC 2.47%
ROA(3y)-7.19%
ROA(5y)-26.55%
ROE(3y)N/A
ROE(5y)N/A
ROIC(3y)N/A
ROIC(5y)N/A
NINE Yearly ROA, ROE, ROICNINE Yearly ROA, ROE, ROICYearly ROA, ROE, ROIC 2015 2016 2017 2018 2019 2020 2021 2022 2023 0 -500 -1K -1.5K

1.3 Margins

NINE's Operating Margin of 1.62% is on the low side compared to the rest of the industry. NINE is outperformed by 84.48% of its industry peers.
NINE's Operating Margin has declined in the last couple of years.
With a Gross Margin value of 17.37%, NINE is not doing good in the industry: 74.14% of the companies in the same industry are doing better.
In the last couple of years the Gross Margin of NINE has declined.
Industry RankSector Rank
OM 1.62%
PM (TTM) N/A
GM 17.37%
OM growth 3YN/A
OM growth 5Y-12.35%
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y90.96%
GM growth 5Y-3.02%
NINE Yearly Profit, Operating, Gross MarginsNINE Yearly Profit, Operating, Gross MarginsYearly Profit, Operating, Gross Margins 2015 2016 2017 2018 2019 2020 2021 2022 2023 0 -50 -100

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2

2. Health

2.1 Basic Checks

The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so NINE is destroying value.
The number of shares outstanding for NINE has been increased compared to 1 year ago.
NINE has more shares outstanding than it did 5 years ago.
Compared to 1 year ago, NINE has a worse debt to assets ratio.
NINE Yearly Shares OutstandingNINE Yearly Shares OutstandingYearly Shares Outstanding 2015 2016 2017 2018 2019 2020 2021 2022 2023 10M 20M 30M
NINE Yearly Total Debt VS Total AssetsNINE Yearly Total Debt VS Total AssetsYearly Total Debt VS Total Assets 2015 2016 2017 2018 2019 2020 2021 2022 2023 200M 400M 600M 800M 1B

2.2 Solvency

NINE has an Altman-Z score of -1.35. This is a bad value and indicates that NINE is not financially healthy and even has some risk of bankruptcy.
NINE's Altman-Z score of -1.35 is on the low side compared to the rest of the industry. NINE is outperformed by 89.66% of its industry peers.
The Debt to FCF ratio of NINE is 128.16, which is on the high side as it means it would take NINE, 128.16 years of fcf income to pay off all of its debts.
The Debt to FCF ratio of NINE (128.16) is worse than 67.24% of its industry peers.
Industry RankSector Rank
Debt/Equity N/A
Debt/FCF 128.16
Altman-Z -1.35
ROIC/WACC0.29
WACC8.59%
NINE Yearly LT Debt VS Equity VS FCFNINE Yearly LT Debt VS Equity VS FCFYearly LT Debt VS Equity VS FCF 2015 2016 2017 2018 2019 2020 2021 2022 2023 0 200M 400M

2.3 Liquidity

A Current Ratio of 2.46 indicates that NINE has no problem at all paying its short term obligations.
Looking at the Current ratio, with a value of 2.46, NINE is in the better half of the industry, outperforming 72.41% of the companies in the same industry.
NINE has a Quick Ratio of 1.59. This is a normal value and indicates that NINE is financially healthy and should not expect problems in meeting its short term obligations.
NINE has a Quick ratio of 1.59. This is comparable to the rest of the industry: NINE outperforms 58.62% of its industry peers.
Industry RankSector Rank
Current Ratio 2.46
Quick Ratio 1.59
NINE Yearly Current Assets VS Current LiabilitesNINE Yearly Current Assets VS Current LiabilitesYearly Current Assets VS Current Liabilites 2015 2016 2017 2018 2019 2020 2021 2022 2023 100M 200M 300M

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2

3. Growth

3.1 Past

The earnings per share for NINE have decreased strongly by -866.67% in the last year.
Looking at the last year, NINE shows a very negative growth in Revenue. The Revenue has decreased by -11.92% in the last year.
Measured over the past years, NINE shows a decrease in Revenue. The Revenue has been decreasing by -5.92% on average per year.
EPS 1Y (TTM)-866.67%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%34.21%
Revenue 1Y (TTM)-11.92%
Revenue growth 3Y25.16%
Revenue growth 5Y-5.92%
Sales Q2Q%-1.75%

3.2 Future

Based on estimates for the next years, NINE will show a quite strong growth in Earnings Per Share. The EPS will grow by 8.94% on average per year.
The Revenue is expected to grow by 0.12% on average over the next years.
EPS Next Y-65.57%
EPS Next 2Y-5.29%
EPS Next 3Y12.1%
EPS Next 5Y8.94%
Revenue Next Year-10.2%
Revenue Next 2Y-3.86%
Revenue Next 3Y2.28%
Revenue Next 5Y0.12%

3.3 Evolution

When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.
NINE Yearly Revenue VS EstimatesNINE Yearly Revenue VS EstimatesYearly Revenue VS Estimates 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 200M 400M 600M 800M
NINE Yearly EPS VS EstimatesNINE Yearly EPS VS EstimatesYearly EPS VS Estimates 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 0 2 -2

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1

4. Valuation

4.1 Price/Earnings Ratio

The Price/Earnings Ratio is negative for NINE. In the last year negative earnings were reported.
Also next year NINE is expected to report negative earnings again, which makes the also the Forward Price/Earnings Ratio negative.
Industry RankSector Rank
PE N/A
Fwd PE N/A
NINE Price Earnings VS Forward Price EarningsNINE Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 0 20 40 60 80

4.2 Price Multiples

The rest of the industry has a similar Enterprise Value to EBITDA ratio as NINE.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of NINE is on the same level as its industry peers.
Industry RankSector Rank
P/FCF 19.6
EV/EBITDA 7.55
NINE Per share dataNINE EPS, Sales, OCF, FCF, BookValue per sharePer Share Data Per Share 0 5 10

4.3 Compensation for Growth

A more expensive valuation may be justified as NINE's earnings are expected to grow with 12.10% in the coming years.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y-5.29%
EPS Next 3Y12.1%

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0

5. Dividend

5.1 Amount

NINE does not give a dividend.
Industry RankSector Rank
Dividend Yield N/A

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NINE ENERGY SERVICE INC

NYSE:NINE (2/5/2025, 8:16:59 PM)

After market: 1.175 +0.03 (+2.17%)

1.15

-0.05 (-4.17%)

Chartmill FA Rating
GICS SectorEnergy
GICS IndustryGroupEnergy
GICS IndustryEnergy Equipment & Services
Earnings (Last)10-31 2024-10-31/amc
Earnings (Next)N/A N/A
Inst Owners27.59%
Inst Owner Change-2.44%
Ins Owners30%
Ins Owner Change4.71%
Market Cap48.71M
Analysts40
Price Target1.02 (-11.3%)
Short Float %10.05%
Short Ratio1.31
Dividend
Industry RankSector 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)7.48%
Min EPS beat(2)-3.34%
Max EPS beat(2)18.3%
EPS beat(4)3
Avg EPS beat(4)15.75%
Min EPS beat(4)-3.34%
Max EPS beat(4)26.47%
EPS beat(8)4
Avg EPS beat(8)-5.37%
EPS beat(12)8
Avg EPS beat(12)127.4%
EPS beat(16)8
Avg EPS beat(16)88.88%
Revenue beat(2)1
Avg Revenue beat(2)-1.25%
Min Revenue beat(2)-3.13%
Max Revenue beat(2)0.63%
Revenue beat(4)1
Avg Revenue beat(4)-1.23%
Min Revenue beat(4)-3.13%
Max Revenue beat(4)0.63%
Revenue beat(8)1
Avg Revenue beat(8)-1.97%
Revenue beat(12)4
Avg Revenue beat(12)0.27%
Revenue beat(16)6
Avg Revenue beat(16)0.01%
PT rev (1m)0%
PT rev (3m)0%
EPS NQ rev (1m)20%
EPS NQ rev (3m)-71.43%
EPS NY rev (1m)0%
EPS NY rev (3m)13.85%
Revenue NQ rev (1m)0.59%
Revenue NQ rev (3m)-9.66%
Revenue NY rev (1m)0%
Revenue NY rev (3m)1%
Valuation
Industry RankSector Rank
PE N/A
Fwd PE N/A
P/S 0.09
P/FCF 19.6
P/OCF 2.16
P/B N/A
P/tB N/A
EV/EBITDA 7.55
EPS(TTM)-1.16
EYN/A
EPS(NY)-0.76
Fwd EYN/A
FCF(TTM)0.06
FCFY5.1%
OCF(TTM)0.53
OCFY46.22%
SpS13.14
BVpS-1.36
TBVpS-3.3
PEG (NY)N/A
PEG (5Y)N/A
Profitability
Industry RankSector Rank
ROA -12.04%
ROE N/A
ROCE 3.12%
ROIC 2.47%
ROICexc 2.61%
ROICexgc 3.73%
OM 1.62%
PM (TTM) N/A
GM 17.37%
FCFM 0.45%
ROA(3y)-7.19%
ROA(5y)-26.55%
ROE(3y)N/A
ROE(5y)N/A
ROIC(3y)N/A
ROIC(5y)N/A
ROICexc(3y)N/A
ROICexc(5y)N/A
ROICexgc(3y)N/A
ROICexgc(5y)N/A
ROCE(3y)N/A
ROCE(5y)N/A
ROICexcg growth 3YN/A
ROICexcg growth 5Y-6.09%
ROICexc growth 3YN/A
ROICexc growth 5Y5.09%
OM growth 3YN/A
OM growth 5Y-12.35%
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y90.96%
GM growth 5Y-3.02%
F-Score2
Asset Turnover1.58
Health
Industry RankSector Rank
Debt/Equity N/A
Debt/FCF 128.16
Debt/EBITDA 6.8
Cap/Depr 52.98%
Cap/Sales 3.6%
Interest Coverage 0.21
Cash Conversion 48.08%
Profit Quality N/A
Current Ratio 2.46
Quick Ratio 1.59
Altman-Z -1.35
F-Score2
WACC8.59%
ROIC/WACC0.29
Cap/Depr(3y)55.23%
Cap/Depr(5y)55.85%
Cap/Sales(3y)4.42%
Cap/Sales(5y)4.82%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)-866.67%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%34.21%
EPS Next Y-65.57%
EPS Next 2Y-5.29%
EPS Next 3Y12.1%
EPS Next 5Y8.94%
Revenue 1Y (TTM)-11.92%
Revenue growth 3Y25.16%
Revenue growth 5Y-5.92%
Sales Q2Q%-1.75%
Revenue Next Year-10.2%
Revenue Next 2Y-3.86%
Revenue Next 3Y2.28%
Revenue Next 5Y0.12%
EBIT growth 1Y-71.34%
EBIT growth 3YN/A
EBIT growth 5Y-17.54%
EBIT Next Year98.7%
EBIT Next 3Y46.78%
EBIT Next 5Y31.39%
FCF growth 1Y109.75%
FCF growth 3YN/A
FCF growth 5Y-13.43%
OCF growth 1Y509.38%
OCF growth 3YN/A
OCF growth 5Y-12.67%