NasdaqCM:NESR

Stock Analysis Report

National Energy Services Reunited

Executive Summary

National Energy Services Reunited Corp., through its subsidiaries, provides oilfield services to oil and gas companies in the Middle East, North Africa, and the Asia Pacific regions.


Snowflake Analysis

Good value with reasonable growth potential.

Share Price & News

How has National Energy Services Reunited's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: NESR's share price has been volatile over the past 3 months.


Market Performance


7 Day Return

7.4%

NESR

19.6%

US Energy Services

9.4%

US Market


1 Year Return

-49.5%

NESR

-66.9%

US Energy Services

-6.8%

US Market

Return vs Industry: NESR exceeded the US Energy Services industry which returned -72.5% over the past year.

Return vs Market: NESR underperformed the US Market which returned -15.9% over the past year.


Shareholder returns

NESRIndustryMarket
7 Day7.4%19.6%9.4%
30 Day-26.8%-5.6%-3.9%
90 Day-42.7%-58.2%-16.5%
1 Year-49.5%-49.5%-65.7%-66.9%-4.8%-6.8%
3 Yearn/a-75.4%-78.8%23.4%15.2%
5 Yearn/a-78.7%-82.5%41.3%25.7%

Price Volatility Vs. Market

How volatile is National Energy Services Reunited's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is National Energy Services Reunited undervalued compared to its fair value and its price relative to the market?

>50%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: NESR ($4.71) is trading below our estimate of fair value ($24.33)

Significantly Below Fair Value: NESR is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: NESR is poor value based on its PE Ratio (10.4x) compared to the Energy Services industry average (9.7x).

PE vs Market: NESR is good value based on its PE Ratio (10.4x) compared to the US market (12.2x).


Price to Earnings Growth Ratio

PEG Ratio: NESR is good value based on its PEG Ratio (0.3x)


Price to Book Ratio

PB vs Industry: NESR is overvalued based on its PB Ratio (0.5x) compared to the US Energy Services industry average (0.3x).


Next Steps

Future Growth

How is National Energy Services Reunited forecast to perform in the next 1 to 3 years based on estimates from 5 analysts?

38.8%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: NESR's forecast earnings growth (38.8% per year) is above the savings rate (1.7%).

Earnings vs Market: NESR's earnings (38.8% per year) are forecast to grow faster than the US market (13.4% per year).

High Growth Earnings: earnings are expected to grow significantly over the next 3 years.

Revenue vs Market: NESR's revenue (17.5% per year) is forecast to grow faster than the US market (7% per year).

High Growth Revenue: NESR's revenue (17.5% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: NESR's Return on Equity is forecast to be low in 3 years time (8.3%).


Next Steps

Past Performance

How has National Energy Services Reunited performed over the past 5 years?

-34.7%

Last years earnings growth


Earnings and Revenue History

Quality Earnings: NESR has high quality earnings.

Growing Profit Margin: NESR's current net profit margins (6%) are lower than last year (10.1%).


Past Earnings Growth Analysis

Earnings Trend: Insufficient data to determine if NESR's year-on-year earnings growth rate was positive over the past 5 years.

Accelerating Growth: NESR's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: NESR had negative earnings growth (-34.7%) over the past year, making it difficult to compare to the Energy Services industry average (-34.4%).


Return on Equity

High ROE: NESR's Return on Equity (4.4%) is considered low.


Next Steps

Financial Health

How is National Energy Services Reunited's financial position?


Financial Position Analysis

Short Term Liabilities: NESR's short term assets ($403.2M) exceed its short term liabilities ($228.1M).

Long Term Liabilities: NESR's short term assets ($403.2M) do not cover its long term liabilities ($407.8M).


Debt to Equity History and Analysis

Debt Level: NESR's debt to equity ratio (43.3%) is considered high.

Reducing Debt: Insufficient data to determine if NESR's debt to equity ratio has reduced over the past 5 years.

Debt Coverage: NESR's debt is well covered by operating cash flow (23.2%).

Interest Coverage: NESR's interest payments on its debt are well covered by EBIT (3.8x coverage).


Balance Sheet


Next Steps

Dividend

What is National Energy Services Reunited's current dividend yield, its reliability and sustainability?


Dividend Yield vs Market

Notable Dividend: Unable to evaluate NESR's dividend yield against the bottom 25% of dividend payers, as the company has not reported any payouts.

High Dividend: Unable to evaluate NESR's dividend yield against the top 25% of dividend payers, as the company has not reported any payouts.


Stability and Growth of Payments

Stable Dividend: Insufficient data to determine if NESR's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if NESR's dividend payments have been increasing.


Current Payout to Shareholders

Dividend Coverage: Insufficient data to calculate payout ratio to determine if its dividend payments are covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: No need to calculate the sustainability of NESR's dividend in 3 years as they are not forecast to pay a notable one for the US market.


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

1.3yrs

Average management tenure


CEO

Sherif Foda (50yo)

3.25s

Tenure

US$1,444,343

Compensation

Mr. Sherif Foda has been the Chairman and Chief Executive Officer of National Energy Services Reunited Corp. since January 23, 2017 and serves as its Executive Chairman. Mr. Foda was Chairman of National E ...


CEO Compensation Analysis

Compensation vs Market: Sherif's total compensation ($USD1.44M) is below average for companies of similar size in the US market ($USD2.30M).

Compensation vs Earnings: Insufficient data to compare Sherif's compensation with company performance.


Leadership Team

NamePositionTenureCompensationOwnership
Thomas Wood
Independent Director3.25yrsUS$65.00k1.11% $4.9m
Sherif Foda
Executive Chairman & CEO3.25yrsUS$1.44m0.31% $1.4m
Christopher Boone
Chief Financial Officer0.92yrno datano data
Salih Merghani
Vice President of Operations1.25yrsno datano data
Cathy Konwisarz
General Counsel & Corporate Secretary0.083yrno datano data
Dhiraj Dudeja
Chief Commercial Officerno dataUS$923.34k0.26% $1.2m
Sahar Badran
Head of Legal-Middle East1.25yrsno datano data
Haya Kablawi
Corporate Financial Controller1.25yrsno datano data
Hani Almaimani
VP of Arabian Regionno dataUS$766.35kno data

1.3yrs

Average Tenure

50yo

Average Age

Experienced Management: NESR's management team is not considered experienced ( 1.3 years average tenure), which suggests a new team.


Board Members

NamePositionTenureCompensationOwnership
Thomas Wood
Independent Director3.25yrsUS$65.00k1.11% $4.9m
Sherif Foda
Executive Chairman & CEO3.25yrsUS$1.44m0.31% $1.4m
Andrew Waite
Independent Director1.83yrsUS$70.00k0.012% $51.1k
Antonio Campo Mejia
Lead Directorno dataUS$65.00k0.79% $3.5m
Theresa Eaton
Alternate Director1.92yrsno datano data
Nadhmi Al-Nasr
Independent Director1.83yrsUS$50.00k0.012% $51.1k
Hala Zeibak
Independent Director2.92yrsno datano data
Yousef Al Nowais
Independent Director0.42yrUS$12.50kno data
Amr Al Menhali
Independent Director0.42yrUS$12.50kno data

1.9yrs

Average Tenure

60.5yo

Average Age

Experienced Board: NESR's board of directors are not considered experienced ( 1.9 years average tenure), which suggests a new board.


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Top Shareholders

Company Information

National Energy Services Reunited Corp.'s company bio, employee growth, exchange listings and data sources


Key Information

  • Name: National Energy Services Reunited Corp.
  • Ticker: NESR
  • Exchange: NasdaqCM
  • Founded: 2017
  • Industry: Oil and Gas Equipment and Services
  • Sector: Energy
  • Market Cap: US$442.911m
  • Shares outstanding: 87.19m
  • Website: https://www.nesr.com

Number of Employees


Location

  • National Energy Services Reunited Corp.
  • 777 Post Oak Boulevard
  • 7th Floor
  • Houston
  • Texas
  • 77056
  • United States

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
NESRNasdaqCM (Nasdaq Capital Market)YesOrdinary SharesUSUSDJun 2017

Biography

National Energy Services Reunited Corp., through its subsidiaries, provides oilfield services to oil and gas companies in the Middle East, North Africa, and the Asia Pacific regions. It operates through two segments: Production Services; and Drilling and Evaluation Services. The Production Services segment offers coiled tubing services, including nitrogen lifting, fishing, milling, clean-out, scale removal, and other well applications; hydraulic fracturing services; stimulation and pumping services; nitrogen services; pipeline services, such as water filling and hydro testing, nitrogen purging, and de-gassing and pressure testing, as well as cutting/welding and cooling down piping/vessels systems; and primary and remedial cementing services. This segment also provides laboratory services; filtration services, as well as frac tanks and pumping units; artificial lift services; production assurance chemicals; and surface and subsurface safety systems, high-pressure packer systems, flow controls, service tools, expandable liner technology, vacuum insulated tubing technology, and engineering capabilities with manufacturing capacity and testing facilities, as well as sources, treats, and disposes water for oil and gas, municipal, and industrial use. Its Drilling and Evaluation Services segment provides drilling and workover rigs; rig services; fishing and remedial solutions; directional and turbines drilling services; drilling fluid systems and related technologies; wireline logging services; slickline services for removal of scale, wax and sand build-up, setting plugs, changing out gas lift valves, and fishing and other well applications; and well testing services to measure solids, gas, and oil and water produced from a well, as well as rents drilling tools. National Energy Services Reunited Corp. was founded in 2017 and is headquartered in Houston, Texas. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/04/09 05:41
End of Day Share Price2020/04/08 00:00
Earnings2019/12/31
Annual Earnings2019/12/31


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.