| Snowflake Score | |
|---|---|
| Valuation | 5/6 |
| Future Growth | 4/6 |
| Past Performance | 0/6 |
| Financial Health | 0/6 |
| Dividends | 0/6 |
NINE Stock Overview
Nine Energy Service, Inc. operates as an onshore completion services provider that targets unconventional oil and gas resource development across North American basins and internationally.
Nine Energy Service Competitors
Price History & Performance
| Historical stock prices | |
|---|---|
| Current Share Price | US$2.62 |
| 52 Week High | US$8.10 |
| 52 Week Low | US$0.79 |
| Beta | 3.5 |
| 1 Month Change | -19.14% |
| 3 Month Change | -19.14% |
| 1 Year Change | -10.27% |
| 3 Year Change | -84.88% |
| 5 Year Change | n/a |
| Change since IPO | -89.96% |
Recent News & Updates
Nine Energy: Beneficial Oil Play, But With A Lot Of Leverage
Nine Energy Service offers onshore completion and production services to oil and gas operators. What makes the company’s business model very interesting is that NINE is capable of offering a long list of onshore well drilling services, including horizontal lateral and super laterals. I included a larger EBITDA margin and further sales growth because of the effects of the new dissolvable plug market.
Shareholder Returns
| NINE | US Energy Services | US Market | |
|---|---|---|---|
| 7D | -5.1% | -3.9% | 6.6% |
| 1Y | -10.3% | 6.6% | -18.4% |
Return vs Industry: NINE underperformed the US Energy Services industry which returned 6.6% over the past year.
Return vs Market: NINE exceeded the US Market which returned -18.4% over the past year.
Price Volatility
| NINE volatility | |
|---|---|
| NINE Average Weekly Movement | 15.6% |
| Energy Services Industry Average Movement | 9.1% |
| Market Average Movement | 8.1% |
| 10% most volatile stocks in US Market | 16.6% |
| 10% least volatile stocks in US Market | 3.2% |
Stable Share Price: NINE is more volatile than 75% of US stocks over the past 3 months, typically moving +/- 16% a week.
Volatility Over Time: NINE's weekly volatility has decreased from 23% to 16% over the past year, but is still higher than 75% of US stocks.
About the Company
| Founded | Employees | CEO | Website |
|---|---|---|---|
| 2011 | 944 | Ann Fox | https://nineenergyservice.com |
Nine Energy Service, Inc. operates as an onshore completion services provider that targets unconventional oil and gas resource development across North American basins and internationally. It offers cementing services, which consist of blending high-grade cement and water with various solid and liquid additives to create a cement slurry that is pumped between the casing and the wellbore of the well. The company also provides a portfolio of completion tools, such as liner hangers and accessories, fracture isolation packers, frac sleeves, stage one prep tools, frac plugs, casing flotation tools, specialty open hole float equipment, disk subs, composite cement retainers, and centralizers that provide pinpoint frac sleeve system technologies.
Nine Energy Service Fundamentals Summary
| NINE fundamental statistics | |
|---|---|
| Market Cap | US$85.72m |
| Earnings (TTM) | -US$63.23m |
| Revenue (TTM) | US$399.73m |
0.2x
P/S Ratio-1.4x
P/E RatioIs NINE overvalued?
See Fair Value and valuation analysisEarnings & Revenue
| NINE income statement (TTM) | |
|---|---|
| Revenue | US$399.73m |
| Cost of Revenue | US$340.03m |
| Gross Profit | US$59.70m |
| Other Expenses | US$122.93m |
| Earnings | -US$63.23m |
Last Reported Earnings
Mar 31, 2022
Next Earnings Date
n/a
| Earnings per share (EPS) | -1.93 |
| Gross Margin | 14.94% |
| Net Profit Margin | -15.82% |
| Debt/Equity Ratio | -747.0% |
How did NINE perform over the long term?
See historical performance and comparisonValuation
Is NINE undervalued compared to its fair value, analyst forecasts and its price relative to the market?
Valuation Score
5/6Valuation Score 5/6
Price-To-Sales vs Peers
Price-To-Sales vs Industry
Price-To-Sales vs Fair Ratio
Below Fair Value
Significantly Below Fair Value
PEG Ratio
Key Valuation Metric
Which metric is best to use when looking at relative valuation for NINE?
Other financial metrics that can be useful for relative valuation.
| What is NINE's n/a Ratio? | |
|---|---|
| n/a Ratio | 0x |
| n/a | n/a |
| Market Cap | US$85.72m |
| Key Statistics | |
|---|---|
| Enterprise Value/Revenue | 1.1x |
| Enterprise Value/EBITDA | 34.5x |
| PEG Ratio | n/a |
Price to Sales Ratio vs Peers
How does NINE's PS Ratio compare to its peers?
| NINE PS Ratio vs Peers |
|---|
| Company | PS | Estimated Growth | Market Cap |
|---|---|---|---|
| Peer Average | 0.5x | ||
SND Smart Sand | 0.7x | 28.2% | US$91.7m |
NCSM NCS Multistage Holdings | 0.6x | n/a | US$78.6m |
GIFI Gulf Island Fabrication | 0.5x | n/a | US$51.3m |
FET Forum Energy Technologies | 0.2x | n/a | US$117.7m |
NINE Nine Energy Service | 0.2x | 19.2% | US$85.7m |
Price-To-Sales vs Peers: NINE is good value based on its Price-To-Sales Ratio (0.2x) compared to the peer average (0.5x).
Price to Earnings Ratio vs Industry
How does NINE's PE Ratio compare vs other companies in the US Energy Services Industry?
Price-To-Sales vs Industry: NINE is good value based on its Price-To-Sales Ratio (0.2x) compared to the US Energy Services industry average (1x)
Price to Sales Ratio vs Fair Ratio
What is NINE'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.
| Fair Ratio | |
|---|---|
| Current PS Ratio | 0.2x |
| Fair PS Ratio | 0.6x |
Price-To-Sales vs Fair Ratio: NINE is good value based on its Price-To-Sales Ratio (0.2x) compared to the estimated Fair Price-To-Sales Ratio (0.6x).
Share Price vs Fair Value
What is the Fair Price of NINE when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.
Below Fair Value: NINE ($2.62) is trading below our estimate of fair value ($25.16)
Significantly Below Fair Value: NINE is trading below fair value by more than 20%.
Price to Earnings Growth Ratio
PEG Ratio: Insufficient data to calculate NINE's PEG Ratio to determine if it is good value.
Discover undervalued companies
Future Growth
How is Nine Energy Service forecast to perform in the next 1 to 3 years based on estimates from 1 analyst?
Future Growth Score
4/6Future Growth Score 4/6
Earnings vs Savings Rate
Earnings vs Market
High Growth Earnings
Revenue vs Market
High Growth Revenue
Future ROE
108.1%
Forecasted annual earnings growth
Earnings and Revenue Growth Forecasts
Analyst Future Growth Forecasts
Earnings vs Savings Rate: NINE is forecast to become profitable over the next 3 years, which is considered faster growth than the savings rate (1.9%).
Earnings vs Market: NINE is forecast to become profitable over the next 3 years, which is considered above average market growth.
High Growth Earnings: NINE is expected to become profitable in the next 3 years.
Revenue vs Market: NINE's revenue (19.2% per year) is forecast to grow faster than the US market (8.4% per year).
High Growth Revenue: NINE's revenue (19.2% 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 NINE's Return on Equity is forecast to be high in 3 years time
Discover growth companies
Past Performance
How has Nine Energy Service performed over the past 5 years?
Past Performance Score
0/6Past Performance Score 0/6
Quality Earnings
Growing Profit Margin
Earnings Trend
Accelerating Growth
Earnings vs Industry
High ROE
-24.0%
Historical annual earnings growth
Earnings and Revenue History
Quality Earnings: NINE is currently unprofitable.
Growing Profit Margin: NINE is currently unprofitable.
Past Earnings Growth Analysis
Earnings Trend: NINE is unprofitable, and losses have increased over the past 5 years at a rate of 24% per year.
Accelerating Growth: Unable to compare NINE's earnings growth over the past year to its 5-year average as it is currently unprofitable
Earnings vs Industry: NINE is unprofitable, making it difficult to compare its past year earnings growth to the Energy Services industry (-1.8%).
Return on Equity
High ROE: NINE's liabilities exceed its assets, so it is difficult to calculate its Return on Equity.
Discover strong past performing companies
Financial Health
How is Nine Energy Service's financial position?
Financial Health Score
0/6Financial Health Score 0/6
Short Term Liabilities
Long Term Liabilities
Debt Level
Reducing Debt
Stable Cash Runway
Forecast Cash Runway
Financial Position Analysis
Short Term Liabilities: NINE has negative shareholder equity, which is a more serious situation than short term assets not covering short term liabilities.
Long Term Liabilities: NINE has negative shareholder equity, which is a more serious situation than short term assets not covering long term liabilities.
Debt to Equity History and Analysis
Debt Level: NINE has negative shareholder equity, which is a more serious situation than a high debt level.
Reducing Debt: NINE's has negative shareholder equity, so we do not need to check if its debt has reduced over time.
Balance Sheet
Cash Runway Analysis
For companies that have on average been loss making in the past we assess whether they have at least 1 year of cash runway.
Stable Cash Runway: NINE has less than a year of cash runway based on its current free cash flow.
Forecast Cash Runway: Insufficient data to determine if NINE has enough cash runway if its free cash flow continues to grow or shrink based on historical rates.
Discover healthy companies
Dividend
What is Nine Energy Service current dividend yield, its reliability and sustainability?
Dividend Score
0/6Dividend Score 0/6
Notable Dividend
High Dividend
Stable Dividend
Growing Dividend
Earnings Coverage
Future Dividend Coverage
Dividend Yield vs Market
Notable Dividend: Unable to evaluate NINE's dividend yield against the bottom 25% of dividend payers, as the company has not reported any recent payouts.
High Dividend: Unable to evaluate NINE'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 NINE's dividends per share have been stable in the past.
Growing Dividend: Insufficient data to determine if NINE'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 NINE has not reported any payouts.
Discover strong dividend paying companies
Management
How experienced are the management team and are they aligned to shareholders interests?
3.6yrs
Average management tenure
CEO
Ann Fox (44 yo)
6.92yrs
Tenure
US$1,462,783
Compensation
Ms. Ann G. Fox has been the Chief Executive Officer and President of Nine Energy Service, Inc. since July 2015 and has been its Director since September 2, 2014. Ms. Fox has been a Director of Devon Energy...
CEO Compensation Analysis
Compensation vs Market: Ann's total compensation ($USD1.46M) is above average for companies of similar size in the US market ($USD749.40K).
Compensation vs Earnings: Ann's compensation has increased whilst the company is unprofitable.
Leadership Team
Experienced Management: NINE's management team is considered experienced (3.6 years average tenure).
Board Members
Experienced Board: NINE's board of directors are considered experienced (5.3 years average tenure).
Ownership
Who are the major shareholders and have insiders been buying or selling?
Insider Trading Volume
Insider Buying: NINE insiders have only sold shares 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 4.3%.
Top Shareholders
Company Information
Nine Energy Service, Inc.'s employee growth, exchange listings and data sources
Key Information
- Name: Nine Energy Service, Inc.
- Ticker: NINE
- Exchange: NYSE
- Founded: 2011
- Industry: Oil and Gas Equipment and Services
- Sector: Energy
- Implied Market Cap: US$85.725m
- Shares outstanding: 32.72m
- Website: https://nineenergyservice.com
Number of Employees
Location
- Nine Energy Service, Inc.
- 2001 Kirby Drive
- Suite 200
- Houston
- Texas
- 77019
- United States
Listings
Company Analysis and Financial Data Status
| Data | Last Updated (UTC time) |
|---|---|
| Company Analysis | 2022/06/26 00:00 |
| End of Day Share Price | 2022/06/24 00:00 |
| Earnings | 2022/03/31 |
| Annual Earnings | 2021/12/31 |
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.