Natural Gas Services Group, Inc.

NYSE:NGS Stock Report

Market Cap: US$323.2m

Natural Gas Services Group Valuation

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

Valuation Score

3/6

Valuation Score 3/6

  • Below Fair Value

  • Significantly Below Fair Value

  • Price-To-Earnings vs Peers

  • Price-To-Earnings vs Industry

  • Price-To-Earnings vs Fair Ratio

  • Analyst Forecast

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 ($27.23) is trading below our estimate of fair value ($464.77)

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

Key Valuation Metric

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

Key metric: As NGS is profitable we use its Price-To-Earnings Ratio for relative valuation analysis.

The above table shows the Price to Earnings ratio for NGS. This is calculated by dividing NGS's market cap by their current earnings.
What is NGS's PE Ratio?
PE Ratio21.1x
EarningsUS$16.06m
Market CapUS$323.20m

Price to Earnings Ratio vs Peers

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

The above table shows the PE ratio for NGS vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyForward PEEstimated GrowthMarket Cap
Peer Average31.6x
RNGR Ranger Energy Services
25.3xn/aUS$368.6m
ESOA Energy Services of America
10.3x-78.2%US$242.6m
TTI TETRA Technologies
74.4x55.5%US$523.3m
GEOS Geospace Technologies
16.4xn/aUS$160.5m
NGS Natural Gas Services Group
21.1x16.8%US$323.2m

Price-To-Earnings vs Peers: NGS is good value based on its Price-To-Earnings Ratio (21.1x) compared to the peer average (31.6x).

Price to Earnings Ratio vs Industry

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

2 CompaniesPrice / EarningsEstimated GrowthMarket Cap
NCSM NCS Multistage Holdings
1.4x-107.5%US$60.06m
BASX.Q Basic Energy Services
n/an/aUS$24.00
No more companies available in this PE range
NGS 21.1xIndustry Avg. 16.0xNo. of Companies7PE01020304050+
2 CompaniesEstimated GrowthMarket Cap
No more companies

Price-To-Earnings vs Industry: NGS is expensive based on its Price-To-Earnings Ratio (21.1x) compared to the US Energy Services industry average (15.4x).

Price to Earnings Ratio vs Fair Ratio

What is NGS'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.

NGS PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio21.1x
Fair PE Ratio10.4x

Price-To-Earnings vs Fair Ratio: NGS is expensive based on its Price-To-Earnings Ratio (21.1x) compared to the estimated Fair Price-To-Earnings Ratio (10.4x).

Analyst Price Targets

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

The above table shows the analyst NGS forecast and predictions for the stock price in 12 month’s time.
DateShare PriceAverage 1Y Price TargetDispersionHighLow1Y Actual priceAnalysts
CurrentUS$27.23
US$35.50
+30.4%
16.2%US$45.00US$30.00n/a4
Nov ’25US$19.11
US$33.00
+72.7%
15.0%US$40.00US$27.00n/a4
Oct ’25US$19.57
US$33.00
+68.6%
15.0%US$40.00US$27.00n/a4
Sep ’25US$21.93
US$33.00
+50.5%
15.0%US$40.00US$27.00n/a4
Aug ’25US$19.65
US$31.00
+57.8%
9.5%US$35.00US$28.00n/a3
Jul ’25US$19.55
US$31.00
+58.6%
9.5%US$35.00US$28.00n/a3
Jun ’25US$21.76
US$31.00
+42.5%
9.5%US$35.00US$28.00n/a3
May ’25US$22.44
US$29.67
+32.2%
9.7%US$33.00US$26.00n/a3
Apr ’25US$20.25
US$22.33
+10.3%
14.8%US$26.00US$18.00n/a3
Mar ’25US$17.21
US$22.33
+29.8%
14.8%US$26.00US$18.00n/a3
Feb ’25US$14.85
US$22.33
+50.4%
14.8%US$26.00US$18.00n/a3
Jan ’25US$16.08
US$22.33
+38.9%
14.8%US$26.00US$18.00n/a3
Dec ’24US$15.53
US$24.50
+57.8%
6.1%US$26.00US$23.00n/a2
Nov ’24US$14.15
US$23.50
+66.1%
10.6%US$26.00US$21.00US$19.112
Oct ’24US$14.56
US$23.50
+61.4%
10.6%US$26.00US$21.00US$19.572
Sep ’24US$10.75
US$23.50
+118.6%
10.6%US$26.00US$21.00US$21.932
Aug ’24US$10.35
US$22.50
+117.4%
15.6%US$26.00US$19.00US$19.652
Jul ’24US$9.90
US$22.50
+127.3%
15.6%US$26.00US$19.00US$19.552
Jun ’24US$9.80
US$22.50
+129.6%
15.6%US$26.00US$19.00US$21.762
May ’24US$10.47
US$21.50
+105.3%
11.6%US$24.00US$19.00US$22.442
Apr ’24US$10.31
US$21.50
+108.5%
11.6%US$24.00US$19.00US$20.252
Mar ’24US$11.00
US$21.50
+95.5%
11.6%US$24.00US$19.00US$17.212
Feb ’24US$11.66
US$21.50
+84.4%
11.6%US$24.00US$19.00US$14.852
Jan ’24US$11.46
US$21.50
+87.6%
11.6%US$24.00US$19.00US$16.082
Dec ’23US$11.00
US$21.50
+95.5%
11.6%US$24.00US$19.00US$15.532
Nov ’23US$11.37
US$21.50
+89.1%
11.6%US$24.00US$19.00US$14.152

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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