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NGS

Natural Gas Services Group NYSE:NGS Stock Report

Last Price

US$10.04

Market Cap

US$123.8m

7D

-0.8%

1Y

-5.2%

Updated

30 Sep, 2022

Data

Company Financials +
NGS fundamental analysis
Snowflake Score
Valuation2/6
Future Growth3/6
Past Performance0/6
Financial Health6/6
Dividends0/6

NGS Stock Overview

Natural Gas Services Group, Inc. provides natural gas compression services and equipment to the energy industry in the United States.

Rewards

Trading at 77.4% below our estimate of its fair value

Earnings are forecast to grow 92.43% per year

Risk Analysis

No risks detected for NGS from our risk checks.

Natural Gas Services Group Competitors

Price History & Performance

Summary of all time highs, changes and price drops for Natural Gas Services Group
Historical stock prices
Current Share PriceUS$10.04
52 Week HighUS$15.00
52 Week LowUS$9.11
Beta1.45
1 Month Change-9.79%
3 Month Change-5.28%
1 Year Change-5.19%
3 Year Change-17.97%
5 Year Change-64.83%
Change since IPO136.23%

Recent News & Updates

Aug 15

Natural Gas Services Q2 GAAP loss per share narrows, revenue up

Natural Gas Services press release (NYSE:NGS): Q2 GAAP EPS of -$0.01 (vs. -$0.14 Y/Y). Revenue of $18.1M (+16.0% Y/Y).

Jun 29
Companies Like Natural Gas Services Group (NYSE:NGS) Can Afford To Invest In Growth

Companies Like Natural Gas Services Group (NYSE:NGS) Can Afford To Invest In Growth

There's no doubt that money can be made by owning shares of unprofitable businesses. For example, although...

Shareholder Returns

NGSUS Energy ServicesUS Market
7D-0.8%2.0%-2.5%
1Y-5.2%4.8%-23.2%

Return vs Industry: NGS underperformed the US Energy Services industry which returned 8.1% over the past year.

Return vs Market: NGS exceeded the US Market which returned -21.5% over the past year.

Price Volatility

Is NGS's price volatile compared to industry and market?
NGS volatility
NGS Average Weekly Movement7.0%
Energy Services Industry Average Movement9.1%
Market Average Movement6.9%
10% most volatile stocks in US Market15.6%
10% least volatile stocks in US Market2.8%

Stable Share Price: NGS is not significantly more volatile than the rest of US stocks over the past 3 months, typically moving +/- 7% a week.

Volatility Over Time: NGS's weekly volatility (7%) has been stable over the past year.

About the Company

FoundedEmployeesCEOWebsite
1998247John Chisholmhttps://www.ngsgi.com

Natural Gas Services Group, Inc. provides natural gas compression services and equipment to the energy industry in the United States. It fabricates, manufactures, rents, and sells natural gas compressors and related equipment. The company primarily engages in the rental of compression units that provide small, medium, and large horsepower applications for unconventional oil and natural gas production.

Natural Gas Services Group Fundamentals Summary

How do Natural Gas Services Group's earnings and revenue compare to its market cap?
NGS fundamental statistics
Market CapUS$123.80m
Earnings (TTM)-US$6.60m
Revenue (TTM)US$76.54m

1.6x

P/S Ratio

-18.7x

P/E Ratio

Earnings & Revenue

Key profitability statistics from the latest earnings report
NGS income statement (TTM)
RevenueUS$76.54m
Cost of RevenueUS$46.74m
Gross ProfitUS$29.79m
Other ExpensesUS$36.40m
Earnings-US$6.60m

Last Reported Earnings

Jun 30, 2022

Next Earnings Date

n/a

Earnings per share (EPS)-0.54
Gross Margin38.93%
Net Profit Margin-8.63%
Debt/Equity Ratio0%

How did NGS perform over the long term?

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

Valuation

Is NGS 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-Sales vs Peers

  • Price-To-Sales vs Industry

  • Price-To-Sales 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 NGS?

Other financial metrics that can be useful for relative valuation.

NGS 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/Revenue1.5x
Enterprise Value/EBITDA5.9x
PEG Ration/a

Price to Sales Ratio vs Peers

How does NGS's PS Ratio compare to its peers?

NGS PS Ratio vs Peers
The above table shows the PS ratio for NGS vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyPSEstimated GrowthMarket Cap
Peer Average0.5x
SMHI SEACOR Marine Holdings
0.8xn/aUS$150.1m
EXTN Exterran
0.2x6.3%US$138.6m
CCLP CSI Compressco
0.5xn/aUS$165.2m
RNGR Ranger Energy Services
0.5x12.1%US$242.7m
NGS Natural Gas Services Group
1.6x2.9%US$123.8m

Price-To-Sales vs Peers: NGS is expensive based on its Price-To-Sales Ratio (1.6x) compared to the peer average (0.5x).


Price to Earnings Ratio vs Industry

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

Price-To-Sales vs Industry: NGS is expensive based on its Price-To-Sales Ratio (1.6x) compared to the US Energy Services industry average (0.8x)


Price to Sales Ratio vs Fair Ratio

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

NGS PS Ratio vs Fair Ratio.
Fair Ratio
Current PS Ratio1.6x
Fair PS Ratio0.9x

Price-To-Sales vs Fair Ratio: NGS is expensive based on its Price-To-Sales Ratio (1.6x) compared to the estimated Fair Price-To-Sales Ratio (0.9x).


Share Price vs Fair Value

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

Below Fair Value: NGS ($10.04) is trading below our estimate of fair value ($44.51)

Significantly Below Fair Value: NGS 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 there are not enough analysts covering the stock to determine statistical confidence in agreement.


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Future Growth

How is Natural Gas Services Group forecast to perform in the next 1 to 3 years based on estimates from 2 analysts?

Future Growth Score

3/6

Future Growth Score 3/6

  • Earnings vs Savings Rate

  • Earnings vs Market

  • High Growth Earnings

  • Revenue vs Market

  • High Growth Revenue

  • Future ROE


92.4%

Forecasted annual earnings growth

Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: NGS is forecast to become profitable over the next 3 years, which is considered faster growth than the savings rate (1.9%).

Earnings vs Market: NGS is forecast to become profitable over the next 3 years, which is considered above average market growth.

High Growth Earnings: NGS is expected to become profitable in the next 3 years.

Revenue vs Market: NGS's revenue (2.9% per year) is forecast to grow slower than the US market (7.6% per year).

High Growth Revenue: NGS's revenue (2.9% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: Insufficient data to determine if NGS's Return on Equity is forecast to be high in 3 years time


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Past Performance

How has Natural Gas Services Group performed over the past 5 years?

Past Performance Score

0/6

Past Performance Score 0/6

  • Quality Earnings

  • Growing Profit Margin

  • Earnings Trend

  • Accelerating Growth

  • Earnings vs Industry

  • High ROE


-54.0%

Historical annual earnings growth

Earnings and Revenue History

Quality Earnings: NGS is currently unprofitable.

Growing Profit Margin: NGS is currently unprofitable.


Past Earnings Growth Analysis

Earnings Trend: NGS is unprofitable, and losses have increased over the past 5 years at a rate of 54% per year.

Accelerating Growth: Unable to compare NGS's earnings growth over the past year to its 5-year average as it is currently unprofitable

Earnings vs Industry: NGS is unprofitable, making it difficult to compare its past year earnings growth to the Energy Services industry (44.1%).


Return on Equity

High ROE: NGS has a negative Return on Equity (-2.87%), as it is currently unprofitable.


Discover strong past performing companies

Financial Health

How is Natural Gas Services Group's financial position?

Financial Health Score

6/6

Financial Health Score 6/6

  • Short Term Liabilities

  • Long Term Liabilities

  • Debt Level

  • Reducing Debt

  • Debt Coverage

  • Interest Coverage

Financial Position Analysis

Short Term Liabilities: NGS's short term assets ($53.4M) exceed its short term liabilities ($21.3M).

Long Term Liabilities: NGS's short term assets ($53.4M) exceed its long term liabilities ($42.4M).


Debt to Equity History and Analysis

Debt Level: NGS is debt free.

Reducing Debt: NGS has no debt compared to 5 years ago when its debt to equity ratio was 0.2%.

Debt Coverage: NGS has no debt, therefore it does not need to be covered by operating cash flow.

Interest Coverage: NGS has no debt, therefore coverage of interest payments is not a concern.


Balance Sheet


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Dividend

What is Natural Gas Services Group 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

Natural Gas Services Group Dividend Yield vs Market
How does Natural Gas Services Group dividend yield compare to the market?
SegmentDividend Yield
Company (Natural Gas Services Group)n/a
Market Bottom 25% (US)1.7%
Market Top 25% (US)4.7%
Industry Average (Energy Services)2.3%
Analyst forecast in 3 Years (Natural Gas Services Group)n/a

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

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

Growing Dividend: Insufficient data to determine if NGS'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 NGS has not reported any payouts.


Discover strong dividend paying companies

Management

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

1.3yrs

Average management tenure


CEO

John Chisholm (67 yo)

15.75yrs

Tenure

US$168,753

Compensation

Mr. John William Chisholm, serves as the President of Florida Chemical Company, Inc. He serves as the Chief Executive Officer of CESI Manufacturing, LLC. Mr. Chisholm serves as an Advisor at Iroquois Capit...


Leadership Team

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


Board Members

Experienced Board: NGS's board of directors are seasoned and experienced ( 10.8 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

NYSE:NGS Recent Insider Transactions by Companies or Individuals
DateValueNameEntityRoleSharesMax Price
11 Apr 22SellUS$5,895John ChisholmIndividual500US$11.79
01 Apr 22SellUS$16,020John ChisholmIndividual1,500US$10.68
30 Mar 22SellUS$35,750John ChisholmIndividual3,000US$12.01
06 Oct 21SellUS$33,220James HazlettIndividual2,750US$12.08

Ownership Breakdown

What is the ownership structure of NGS?
Owner TypeNumber of SharesOwnership Percentage
Hedge Funds685,5085.6%
VC/PE Firms713,7855.8%
Individual Insiders750,5946.1%
General Public1,263,34410.2%
Institutions8,917,91672.3%

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


Top Shareholders

Top 25 shareholders own 83.34% of the company
OwnershipNameSharesCurrent ValueChange %Portfolio %
10.1%
FMR LLC
1,245,000$12.5m-3.36%no data
7.57%
Dimensional Fund Advisors LP
933,036$9.4m0.46%no data
6.09%
Franklin Resources, Inc.
751,046$7.5m0%no data
5.79%
Mill Road Capital Management LLC
713,785$7.2m-17%2.9%
5.56%
AWM Investment Company Inc
685,508$6.9m-2.83%1.06%
4.79%
Pacific Ridge Capital Partners, LLC
590,580$5.9m-8.93%1.49%
4.67%
Columbia Management Investment Advisers, LLC
575,416$5.8m-11.37%no data
4.64%
Stephen Taylor
572,098$5.7m11.22%no data
4.25%
Renaissance Technologies LLC
524,442$5.3m2.36%0.01%
4.16%
The Vanguard Group, Inc.
513,220$5.2m-0.91%no data
3.45%
Brown Advisory Incorporated
425,711$4.3m-18.57%0.01%
3.41%
Royce & Associates, LP
420,258$4.2m-10.2%0.04%
2.57%
BlackRock, Inc.
316,948$3.2m-1.37%no data
2.05%
Oslo Asset Management Asa
252,902$2.5m-31.34%3.61%
1.81%
Acuitas Investments, LLC
223,009$2.2m0%1.24%
1.77%
Foundry Partners, LLC
218,217$2.2m-24.67%0.14%
1.65%
Bridgeway Capital Management, LLC
203,028$2.0m-3.33%0.05%
1.56%
Palm Valley Capital Management LLC
192,923$1.9m41.92%5.19%
1.47%
Driehaus Capital Management LLC
181,610$1.8m0%0.02%
1.35%
Russell Investment Management, LLC
166,977$1.7m-6.97%no data
1.24%
Wellington Management Group LLP
152,400$1.5m0%no data
1.14%
RBF Capital LLC
140,000$1.4m0%0.12%
0.77%
Royal Alliance Associates, Inc., Securities Investments
94,504$948.8k0%0.02%
0.76%
Victory Capital Management Inc.
93,801$941.8k0%no data
0.74%
EAM Investors, LLC
90,941$913.0k-11.12%0.22%

Company Information

Natural Gas Services Group, Inc.'s employee growth, exchange listings and data sources


Key Information

  • Name: Natural Gas Services Group, Inc.
  • Ticker: NGS
  • Exchange: NYSE
  • Founded: 1998
  • Industry: Oil and Gas Equipment and Services
  • Sector: Energy
  • Implied Market Cap: US$123.805m
  • Shares outstanding: 12.33m
  • Website: https://www.ngsgi.com

Number of Employees


Location

  • Natural Gas Services Group, Inc.
  • 404 Veterans Airpark Lane
  • Suite 300
  • Midland
  • Texas
  • 79705
  • United States


Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
NGSNYSE (New York Stock Exchange)YesCommon StockUSUSDOct 2002

Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2022/09/30 00:00
End of Day Share Price2022/09/30 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.