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NGS

Natural Gas Services GroupNYSE:NGS Stock Report

Last Price

US$10.26

Market Cap

US$133.8m

7D

-9.9%

1Y

18.5%

Updated

21 Jan, 2022

Data

Company Financials +
NGS fundamental analysis
Snowflake Score
Valuation3/6
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 76.5% below our estimate of its fair value

Earnings are forecast to grow 110.77% per year

Risk Analysis

No risks detected for NGS from our risk checks.

Price History & Performance

Summary of all time highs, changes and price drops for Natural Gas Services Group
Historical stock prices
Current Share PriceUS$10.26
52 Week HighUS$12.97
52 Week LowUS$8.00
Beta1.92
1 Month Change-3.21%
3 Month Change-9.28%
1 Year Change18.48%
3 Year Change-40.35%
5 Year Change-66.36%
Change since IPO141.41%

Recent News & Updates

Dec 05

Natural Gas Services Group Targets Margin Improvement

The natural gas production continues to surge while price has taken a dip over the past couple of months after the sharp upward movement in 1H 2021. Rental rate and gross margin improved as the share of large horsepower units rose in NGS's portfolio. Cash flows declined sharply in 9M 2021 as working capital requirements increase. The stock is marginally overvalued versus its peers at this level.

Shareholder Returns

NGSUS Energy ServicesUS Market
7D-9.9%-5.0%-6.1%
1Y18.5%27.7%4.2%

Return vs Industry: NGS underperformed the US Energy Services industry which returned 30.7% over the past year.

Return vs Market: NGS exceeded the US Market which returned 6.6% over the past year.

Price Volatility

Is NGS's price volatile compared to industry and market?
NGS volatility
NGS Average Weekly Movement6.1%
Energy Services Industry Average Movement7.3%
Market Average Movement6.7%
10% most volatile stocks in US Market15.6%
10% least volatile stocks in US Market2.4%

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

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

About the Company

FoundedEmployeesCEOWebsite
1998229Steve Taylorhttps://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$133.78m
Earnings (TTM)-US$5.45m
Revenue (TTM)US$71.39m

1.9x

P/S Ratio

-24.6x

P/E Ratio

Earnings & Revenue

Key profitability statistics from the latest earnings report
NGS income statement (TTM)
RevenueUS$71.39m
Cost of RevenueUS$40.83m
Gross ProfitUS$30.56m
ExpensesUS$36.00m
Earnings-US$5.45m

Last Reported Earnings

Sep 30, 2021

Next Earnings Date

n/a

Earnings per share (EPS)-0.42
Gross Margin42.80%
Net Profit Margin-7.63%
Debt/Equity Ratio0%

How did NGS perform over the long term?

See historical performance and comparison

Valuation

Is Natural Gas Services Group 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: NGS ($10.26) is trading below our estimate of fair value ($43.63)

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


Price To Earnings Ratio

PE vs Industry: NGS is unprofitable, so we can't compare its PE Ratio to the US Energy Services industry average.

PE vs Market: NGS is unprofitable, so we can't compare its PE Ratio to the US market.


Price to Earnings Growth Ratio

PEG Ratio: Insufficient data to calculate NGS's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: NGS is good value based on its PB Ratio (0.5x) compared to the US Energy Services industry average (1.1x).


Future Growth

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

110.8%

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 (2%).

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's is expected to become profitable in the next 3 years.

Revenue vs Market: NGS's revenue (0.3% per year) is forecast to grow slower than the US market (9.2% per year).

High Growth Revenue: NGS's revenue (0.3% 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


Past Performance

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

-48.0%

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 48% 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 (-2.7%).


Return on Equity

High ROE: NGS has a negative Return on Equity (-2.23%), as it is currently unprofitable.


Financial Health

How is Natural Gas Services Group's financial position?


Financial Position Analysis

Short Term Liabilities: NGS's short term assets ($69.6M) exceed its short term liabilities ($15.5M).

Long Term Liabilities: NGS's short term assets ($69.6M) exceed its long term liabilities ($44.3M).


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


Dividend

What is Natural Gas Services Group current dividend yield, its reliability and sustainability?


Dividend Yield vs Market

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.


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 NGS'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?

16.6yrs

Average management tenure


CEO

Steve Taylor (67 yo)

17yrs

Tenure

US$3,188,949

Compensation

Mr. Stephen C. Taylor, also known as Steve, has been Chairman of Natural Gas Services Group Inc. since January 1, 2006 and as its Chief Executive Officer and President since January 20, 2005. Mr. Taylor se...


CEO Compensation Analysis

Compensation vs Market: Steve's total compensation ($USD3.19M) is above average for companies of similar size in the US market ($USD582.55K).

Compensation vs Earnings: Steve's compensation has increased whilst the company is unprofitable.


Leadership Team

Experienced Management: NGS's management team is seasoned and experienced (16.6 years average tenure).


Board Members

Experienced Board: NGS's board of directors are seasoned and experienced ( 15.1 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 not been meaningfully diluted in the past year.


Top Shareholders

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$133.777m
  • Shares outstanding: 13.04m
  • 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


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2022/01/21 23:40
End of Day Share Price2022/01/21 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.