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NINE

Nine Energy Service NYSE:NINE Stock Report

Last Price

US$2.62

Market Cap

US$85.7m

7D

-5.1%

1Y

-10.3%

Updated

26 Jun, 2022

Data

Company Financials +
NINE fundamental analysis
Snowflake Score
Valuation5/6
Future Growth4/6
Past Performance0/6
Financial Health0/6
Dividends0/6

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

Summary of all time highs, changes and price drops for Nine Energy Service
Historical stock prices
Current Share PriceUS$2.62
52 Week HighUS$8.10
52 Week LowUS$0.79
Beta3.5
1 Month Change-19.14%
3 Month Change-19.14%
1 Year Change-10.27%
3 Year Change-84.88%
5 Year Changen/a
Change since IPO-89.96%

Recent News & Updates

Jun 09

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

NINEUS Energy ServicesUS 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

Is NINE's price volatile compared to industry and market?
NINE volatility
NINE Average Weekly Movement15.6%
Energy Services Industry Average Movement9.1%
Market Average Movement8.1%
10% most volatile stocks in US Market16.6%
10% least volatile stocks in US Market3.2%

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

FoundedEmployeesCEOWebsite
2011944Ann Foxhttps://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

How do Nine Energy Service's earnings and revenue compare to its market cap?
NINE fundamental statistics
Market CapUS$85.72m
Earnings (TTM)-US$63.23m
Revenue (TTM)US$399.73m

0.2x

P/S Ratio

-1.4x

P/E Ratio

Earnings & Revenue

Key profitability statistics from the latest earnings report
NINE income statement (TTM)
RevenueUS$399.73m
Cost of RevenueUS$340.03m
Gross ProfitUS$59.70m
Other ExpensesUS$122.93m
Earnings-US$63.23m

Last Reported Earnings

Mar 31, 2022

Next Earnings Date

n/a

Earnings per share (EPS)-1.93
Gross Margin14.94%
Net Profit Margin-15.82%
Debt/Equity Ratio-747.0%

How did NINE perform over the long term?

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

Valuation

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

Valuation Score

5/6

Valuation 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.

NINE 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/Revenue1.1x
Enterprise Value/EBITDA34.5x
PEG Ration/a

Price to Sales Ratio vs Peers

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

NINE PS Ratio vs Peers
The above table shows the PS ratio for NINE vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyPSEstimated GrowthMarket Cap
Peer Average0.5x
SND Smart Sand
0.7x28.2%US$91.7m
NCSM NCS Multistage Holdings
0.6xn/aUS$78.6m
GIFI Gulf Island Fabrication
0.5xn/aUS$51.3m
FET Forum Energy Technologies
0.2xn/aUS$117.7m
NINE Nine Energy Service
0.2x19.2%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.

NINE PS Ratio vs Fair Ratio.
Fair Ratio
Current PS Ratio0.2x
Fair PS Ratio0.6x

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.


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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

4/6

Future 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


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Past Performance

How has Nine Energy Service 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


-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.


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Financial Health

How is Nine Energy Service's financial position?

Financial Health Score

0/6

Financial 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.


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Dividend

What is Nine Energy Service 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

  • 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.


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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

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2022/06/26 00:00
End of Day Share Price2022/06/24 00:00
Earnings2022/03/31
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.