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NESR

National Energy Services ReunitedNasdaqCM:NESR Stock Report

Last Price

US$9.73

Market Cap

US$888.9m

7D

-2.9%

1Y

-4.0%

Updated

19 Jan, 2022

Data

Company Financials +
NESR fundamental analysis
Snowflake Score
Valuation5/6
Future Growth4/6
Past Performance1/6
Financial Health5/6
Dividends0/6

NESR Stock Overview

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

Price History & Performance

Summary of all time highs, changes and price drops for National Energy Services Reunited
Historical stock prices
Current Share PriceUS$9.73
52 Week HighUS$15.95
52 Week LowUS$8.56
Beta0.77
1 Month Change10.57%
3 Month Change-23.39%
1 Year Change-4.04%
3 Year Change22.39%
5 Year Changen/a
Change since IPO2.31%

Recent News & Updates

Jan 13
Is There An Opportunity With National Energy Services Reunited Corp.'s (NASDAQ:NESR) 47% Undervaluation?

Is There An Opportunity With National Energy Services Reunited Corp.'s (NASDAQ:NESR) 47% Undervaluation?

Today we'll do a simple run through of a valuation method used to estimate the attractiveness of National Energy...

Dec 16
Is National Energy Services Reunited (NASDAQ:NESR) Using Too Much Debt?

Is National Energy Services Reunited (NASDAQ:NESR) Using Too Much Debt?

Legendary fund manager Li Lu (who Charlie Munger backed) once said, 'The biggest investment risk is not the volatility...

Oct 04
An Intrinsic Calculation For National Energy Services Reunited Corp. (NASDAQ:NESR) Suggests It's 44% Undervalued

An Intrinsic Calculation For National Energy Services Reunited Corp. (NASDAQ:NESR) Suggests It's 44% Undervalued

Does the October share price for National Energy Services Reunited Corp. ( NASDAQ:NESR ) reflect what it's really...

Sep 16
National Energy Services Reunited (NASDAQ:NESR) Has A Somewhat Strained Balance Sheet

National Energy Services Reunited (NASDAQ:NESR) Has A Somewhat Strained Balance Sheet

David Iben put it well when he said, 'Volatility is not a risk we care about. What we care about is avoiding the...

Shareholder Returns

NESRUS Energy ServicesUS Market
7D-2.9%0.6%-4.6%
1Y-4.0%26.7%7.7%

Return vs Industry: NESR underperformed the US Energy Services industry which returned 27.2% over the past year.

Return vs Market: NESR underperformed the US Market which returned 10.2% over the past year.

Price Volatility

Is NESR's price volatile compared to industry and market?
NESR volatility
NESR Average Weekly Movement6.4%
Energy Services Industry Average Movement7.5%
Market Average Movement6.6%
10% most volatile stocks in US Market15.7%
10% least volatile stocks in US Market2.4%

Stable Share Price: NESR is not significantly more volatile than the rest of US stocks over the past 3 months, typically moving +/- 6% a week.

Volatility Over Time: NESR's weekly volatility (6%) has been stable over the past year.

About the Company

FoundedEmployeesCEOWebsite
20175,581Sherif Fodahttps://www.nesr.com

National Energy Services Reunited Corp. 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 hydraulic fracturing services; coiled tubing services, including nitrogen lifting, fishing, milling, clean-out, scale removal, and other well applications; stimulation and pumping services; primary and remedial cementing services; nitrogen services; filtration services, as well as frac tanks and pumping units; and 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.

National Energy Services Reunited Fundamentals Summary


Earnings & Revenue

Key profitability statistics from the latest earnings report
NESR income statement (TTM)
RevenueUS$878.52m
Cost of RevenueUS$732.49m
Gross ProfitUS$146.03m
ExpensesUS$108.85m
EarningsUS$37.18m

Last Reported Earnings

Sep 30, 2021

Next Earnings Date

n/a

Earnings per share (EPS)0.41
Gross Margin16.62%
Net Profit Margin4.23%
Debt/Equity Ratio43.2%

How did NESR perform over the long term?

See historical performance and comparison

Valuation

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

48.4%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: NESR ($9.73) is trading below our estimate of fair value ($18.86)

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


Price To Earnings Ratio

PE vs Industry: NESR is good value based on its PE Ratio (23.9x) compared to the US Energy Services industry average (35.9x).

PE vs Market: NESR is poor value based on its PE Ratio (23.9x) compared to the US market (17x).


Price to Earnings Growth Ratio

PEG Ratio: NESR is good value based on its PEG Ratio (0.4x)


Price to Book Ratio

PB vs Industry: NESR is good value based on its PB Ratio (0.9x) compared to the US Energy Services industry average (1.2x).


Future Growth

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

55.4%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: NESR's forecast earnings growth (55.4% per year) is above the savings rate (2%).

Earnings vs Market: NESR's earnings (55.4% per year) are forecast to grow faster than the US market (13% per year).

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

Revenue vs Market: NESR's revenue (18.3% per year) is forecast to grow faster than the US market (9.2% per year).

High Growth Revenue: NESR's revenue (18.3% 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%).


Past Performance

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

25.0%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: NESR has a large one-off gain of $8.4M impacting its September 30 2021 financial results.

Growing Profit Margin: NESR's current net profit margins (4.2%) are lower than last year (4.7%).


Past Earnings Growth Analysis

Earnings Trend: NESR's earnings have grown significantly by 25% per year 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 (-1.8%) over the past year, making it difficult to compare to the Energy Services industry average (-2.7%).


Return on Equity

High ROE: NESR's Return on Equity (3.8%) is considered low.


Financial Health

How is National Energy Services Reunited's financial position?


Financial Position Analysis

Short Term Liabilities: NESR's short term assets ($533.5M) exceed its short term liabilities ($368.9M).

Long Term Liabilities: NESR's short term assets ($533.5M) exceed its long term liabilities ($408.6M).


Debt to Equity History and Analysis

Debt Level: NESR's net debt to equity ratio (33%) is considered satisfactory.

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 (38%).

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


Balance Sheet


Dividend

What is National Energy Services Reunited 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 recent payouts.

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

3.0yrs

Average management tenure


CEO

Sherif Foda (52 yo)

5yrs

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: Insufficient data to establish whether Sherif's total compensation is reasonable compared to companies of similar size in the US market.

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


Leadership Team

Experienced Management: NESR's management team is considered experienced (3 years average tenure).


Board Members

Experienced Board: NESR's board of directors are considered experienced (4.1 years average tenure).


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 been diluted in the past year, with total shares outstanding growing by 4.1%.


Top Shareholders

Company Information

National Energy Services Reunited Corp.'s 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
  • Implied Market Cap: US$888.945m
  • Shares outstanding: 91.36m
  • 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


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2022/01/19 23:51
End of Day Share Price2022/01/19 00:00
Earnings2021/09/30
Annual Earnings2020/12/31


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.