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NEX

NexTier Oilfield Solutions NYSE:NEX Stock Report

Last Price

US$8.73

Market Cap

US$2.1b

7D

-0.3%

1Y

129.7%

Updated

10 Aug, 2022

Data

Company Financials +
NEX fundamental analysis
Snowflake Score
Valuation2/6
Future Growth5/6
Past Performance2/6
Financial Health4/6
Dividends0/6

NEX Stock Overview

NexTier Oilfield Solutions Inc., through its subsidiaries, provides well completion and production services in various active and demanding basins.

NexTier Oilfield Solutions Competitors

Price History & Performance

Summary of all time highs, changes and price drops for NexTier Oilfield Solutions
Historical stock prices
Current Share PriceUS$8.73
52 Week HighUS$12.50
52 Week LowUS$3.06
Beta2.02
1 Month Change5.95%
3 Month Change-8.59%
1 Year Change129.74%
3 Year Change74.25%
5 Year Change-33.66%
Change since IPO-59.68%

Recent News & Updates

Aug 04
We Think That There Are Issues Underlying NexTier Oilfield Solutions' (NYSE:NEX) Earnings

We Think That There Are Issues Underlying NexTier Oilfield Solutions' (NYSE:NEX) Earnings

Despite posting some strong earnings, the market for NexTier Oilfield Solutions Inc.'s ( NYSE:NEX ) stock hasn't moved...

Jul 28
Does NexTier Oilfield Solutions (NYSE:NEX) Have A Healthy Balance Sheet?

Does NexTier Oilfield Solutions (NYSE:NEX) Have A Healthy Balance Sheet?

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

Shareholder Returns

NEXUS Energy ServicesUS Market
7D-0.3%-1.3%1.2%
1Y129.7%21.4%-11.6%

Return vs Industry: NEX exceeded the US Energy Services industry which returned 22.6% over the past year.

Return vs Market: NEX exceeded the US Market which returned -13.5% over the past year.

Price Volatility

Is NEX's price volatile compared to industry and market?
NEX volatility
NEX Average Weekly Movement10.7%
Energy Services Industry Average Movement9.5%
Market Average Movement7.9%
10% most volatile stocks in US Market17.0%
10% least volatile stocks in US Market3.2%

Stable Share Price: NEX is not significantly more volatile than the rest of US stocks over the past 3 months, typically moving +/- 11% a week.

Volatility Over Time: NEX's weekly volatility (11%) has been stable over the past year.

About the Company

FoundedEmployeesCEOWebsite
19733,340Robert Drummondhttps://nextierofs.com

NexTier Oilfield Solutions Inc., through its subsidiaries, provides well completion and production services in various active and demanding basins. The company operates through two segments, Completion Services, and Well Construction and Intervention Services. The Completion Services segment offers hydraulic fracturing services to enhance production of oil and natural gas from formations with low permeability and restricted flow of hydrocarbons; wireline services; and perforating, pumpdown, pipe recovery, pressure pumping, and wellsite make-up and pressure testing services.

NexTier Oilfield Solutions Fundamentals Summary

How do NexTier Oilfield Solutions's earnings and revenue compare to its market cap?
NEX fundamental statistics
Market CapUS$2.13b
Earnings (TTM)US$44.11m
Revenue (TTM)US$2.38b

48.3x

P/E Ratio

0.9x

P/S Ratio

Earnings & Revenue

Key profitability statistics from the latest earnings report
NEX income statement (TTM)
RevenueUS$2.38b
Cost of RevenueUS$1.94b
Gross ProfitUS$439.11m
Other ExpensesUS$395.00m
EarningsUS$44.11m

Last Reported Earnings

Jun 30, 2022

Next Earnings Date

n/a

Earnings per share (EPS)0.18
Gross Margin18.44%
Net Profit Margin1.85%
Debt/Equity Ratio57.2%

How did NEX perform over the long term?

See historical performance and comparison
We’ve recently updated our valuation analysis.

Valuation

Is NEX undervalued compared to its fair value, analyst forecasts and its price relative to the market?

Valuation Score

2/6

Valuation Score 2/6

  • Price-To-Earnings vs Peers

  • Price-To-Earnings vs Industry

  • Price-To-Earnings vs Fair Ratio

  • Below Fair Value

  • Significantly Below Fair Value

  • Analyst Forecast

Key Valuation Metric

Which metric is best to use when looking at relative valuation for NEX?

Other financial metrics that can be useful for relative valuation.

NEX key valuation metrics and ratios. From Price to Earnings, Price to Sales and Price to Book to Price to Earnings Growth Ratio, Enterprise Value and EBITDA.
Key Statistics
Enterprise Value/Revenue1x
Enterprise Value/EBITDA8.1x
PEG Ratio0.8x

Price to Earnings Ratio vs Peers

How does NEX's PE Ratio compare to its peers?

NEX PE Ratio vs Peers
The above table shows the PE ratio for NEX vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyPEEstimated GrowthMarket Cap
Peer Average47.5x
PFHC ProFrac Holding
101x93.9%US$2.5b
WHD Cactus
32.4x36.5%US$3.1b
RES RPC
20.1x27.2%US$1.6b
AROC Archrock
36.7x15.8%US$1.2b
NEX NexTier Oilfield Solutions
48.3x60.3%US$2.1b

Price-To-Earnings vs Peers: NEX is expensive based on its Price-To-Earnings Ratio (48.3x) compared to the peer average (47.5x).


Price to Earnings Ratio vs Industry

How does NEX's PE Ratio compare vs other companies in the US Energy Services Industry?

Price-To-Earnings vs Industry: NEX is expensive based on its Price-To-Earnings Ratio (48.3x) compared to the US Energy Services industry average (34x)


Price to Earnings Ratio vs Fair Ratio

What is NEX's PE Ratio compared to its Fair PE Ratio? This is the expected PE Ratio taking into account the company's forecast earnings growth, profit margins and other risk factors.

NEX PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio48.3x
Fair PE Ratio37.4x

Price-To-Earnings vs Fair Ratio: NEX is expensive based on its Price-To-Earnings Ratio (48.3x) compared to the estimated Fair Price-To-Earnings Ratio (37.4x).


Share Price vs Fair Value

What is the Fair Price of NEX when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: NEX ($8.73) is trading below our estimate of fair value ($72.29)

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


Analyst Price Targets

What is the analyst 12-month forecast and do we have any statistical confidence in the consensus price target?

Analyst Forecast: Target price is more than 20% higher than the current share price, but analysts are not within a statistically confident range of agreement.


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Future Growth

How is NexTier Oilfield Solutions forecast to perform in the next 1 to 3 years based on estimates from 9 analysts?

Future Growth Score

5/6

Future Growth Score 5/6

  • Earnings vs Savings Rate

  • Earnings vs Market

  • High Growth Earnings

  • Revenue vs Market

  • High Growth Revenue

  • Future ROE


60.3%

Forecasted annual earnings growth

Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: NEX's forecast earnings growth (60.3% per year) is above the savings rate (1.9%).

Earnings vs Market: NEX's earnings (60.3% per year) are forecast to grow faster than the US market (14.6% per year).

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

Revenue vs Market: NEX's revenue (17.5% per year) is forecast to grow faster than the US market (7.9% per year).

High Growth Revenue: NEX'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: NEX's Return on Equity is forecast to be high in 3 years time (37.8%)


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Past Performance

How has NexTier Oilfield Solutions performed over the past 5 years?

Past Performance Score

2/6

Past Performance Score 2/6

  • Quality Earnings

  • Growing Profit Margin

  • Earnings Trend

  • Accelerating Growth

  • Earnings vs Industry

  • High ROE


-17.8%

Historical annual earnings growth

Earnings and Revenue History

Quality Earnings: NEX has a high level of non-cash earnings.

Growing Profit Margin: NEX became profitable in the past.


Past Earnings Growth Analysis

Earnings Trend: NEX has become profitable over the past 5 years, growing earnings by -17.8% per year.

Accelerating Growth: NEX has become profitable in the last year, making the earnings growth rate difficult to compare to its 5-year average.

Earnings vs Industry: NEX has become profitable in the last year, making it difficult to compare its past year earnings growth to the Energy Services industry (140.2%).


Return on Equity

High ROE: NEX's Return on Equity (6.8%) is considered low.


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Financial Health

How is NexTier Oilfield Solutions's financial position?

Financial Health Score

4/6

Financial Health Score 4/6

  • Short Term Liabilities

  • Long Term Liabilities

  • Debt Level

  • Reducing Debt

  • Debt Coverage

  • Interest Coverage

Financial Position Analysis

Short Term Liabilities: NEX's short term assets ($726.8M) exceed its short term liabilities ($610.4M).

Long Term Liabilities: NEX's short term assets ($726.8M) exceed its long term liabilities ($399.8M).


Debt to Equity History and Analysis

Debt Level: NEX's net debt to equity ratio (32.5%) is considered satisfactory.

Reducing Debt: NEX's debt to equity ratio has increased from 45.1% to 57.2% over the past 5 years.

Debt Coverage: NEX's debt is well covered by operating cash flow (28.3%).

Interest Coverage: NEX's interest payments on its debt are not well covered by EBIT (2.8x coverage).


Balance Sheet


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Dividend

What is NexTier Oilfield Solutions's current dividend yield, its reliability and sustainability?

Dividend Score

0/6

Dividend Score 0/6

  • Notable Dividend

  • High Dividend

  • Stable Dividend

  • Growing Dividend

  • Earnings Coverage

  • Cash Flow Coverage

Dividend Yield vs Market

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

High Dividend: Unable to evaluate NEX'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 NEX's dividends per share have been stable in the past.

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


Earnings Payout to Shareholders

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


Cash Payout to Shareholders

Cash Flow Coverage: Unable to calculate sustainability of dividends as NEX has not reported any payouts.


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Management

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

2.8yrs

Average management tenure


CEO

Robert Drummond (61 yo)

4yrs

Tenure

US$7,126,991

Compensation

Mr. Robert Wayne Drummond, Jr. is Director of Expro Group Holdings N.V. from October 01, 2021. He has been the Chief Executive Officer and Director of NexTier Oilfield Solutions Inc. since August 6, 2018....


CEO Compensation Analysis

Compensation vs Market: Robert's total compensation ($USD7.13M) is above average for companies of similar size in the US market ($USD5.40M).

Compensation vs Earnings: Robert's compensation has been consistent with company performance over the past year.


Leadership Team

Experienced Management: NEX's management team is considered experienced (2.8 years average tenure).


Board Members

Experienced Board: NEX's board of directors are not considered experienced ( 2.8 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 been diluted in the past year, with total shares outstanding growing by 13.2%.


Top Shareholders

Company Information

NexTier Oilfield Solutions Inc.'s employee growth, exchange listings and data sources


Key Information

  • Name: NexTier Oilfield Solutions Inc.
  • Ticker: NEX
  • Exchange: NYSE
  • Founded: 1973
  • Industry: Oil and Gas Equipment and Services
  • Sector: Energy
  • Implied Market Cap: US$2.131b
  • Shares outstanding: 244.14m
  • Website: https://nextierofs.com

Number of Employees


Location

  • NexTier Oilfield Solutions Inc.
  • 3990 Rogerdale Road
  • Houston
  • Texas
  • 77042
  • United States

Listings


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2022/08/10 00:00
End of Day Share Price2022/08/10 00:00
Earnings2022/06/30
Annual Earnings2021/12/31


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.