Nine Energy Service
Market Cap
US$163.8m
Last Updated
2019/10/23 00:32 UTC
Data Sources
Company Financials +
Executive Summary
Nine Energy Service, Inc. operates as an onshore completion and production services provider that targets unconventional oil and gas resource development in North America and internationally.
Snowflake
Fundamentals
Fair value with mediocre balance sheet.
Similar Companies
Share Price & News
How has Nine Energy Service's share price performed over time and what events caused price changes?
Latest Share Price and Events
Market Performance
7 Day Return
12.0%
NINE
3.8%
US Energy Services
0.07%
US Market
1 Year Return
-83.8%
NINE
-39.4%
US Energy Services
8.9%
US Market
Return vs Industry: NINE underperformed the US Energy Services industry which returned -39.4% over the past year.
Return vs Market: NINE underperformed the US Market which returned 8.9% over the past year.
Shareholder returns
| NINE | Industry | Market | |
|---|---|---|---|
| 7 Day | 12.0% | 3.8% | 0.07% |
| 30 Day | -16.8% | -7.2% | -0.3% |
| 90 Day | -57.0% | -15.6% | -1.6% |
| 1 Year | -83.8%-83.8% | -37.7%-39.4% | 11.3%8.9% |
| 3 Year | n/a | -51.7%-57.7% | 46.3%36.8% |
| 5 Year | n/a | -63.6%-69.0% | 62.1%44.3% |
Price Volatility Vs. Market
How volatile is Nine Energy Service's share price compared to the market and industry in the last 5 years?
Simply Wall St News
1 day ago | Simply Wall St
Did You Manage To Avoid Nine Energy Service's (NYSE:NINE) Devastating 85% Share Price Drop?1 month ago | Simply Wall St
Have Insiders Been Selling Nine Energy Service, Inc. (NYSE:NINE) Shares?2 months ago | Simply Wall St
We Think Nine Energy Service (NYSE:NINE) Is Taking Some Risk With Its DebtValuation
Is Nine Energy Service 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: NINE ($5.58) is trading below our estimate of fair value ($20.19)
Significantly Below Fair Value: NINE is trading below fair value by more than 20%.
Price To Earnings Ratio
PE vs Industry: NINE is unprofitable, so we can't compare its PE Ratio to the Energy Services industry average.
PE vs Market: NINE 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 NINE's PEG Ratio to determine if it is good value.
Price to Book Ratio
PB vs Industry: NINE is good value based on its PB Ratio (0.3x) compared to the US Energy Services industry average (0.7x).
Next Steps
Future Growth
How is Nine Energy Service forecast to perform in the next 1 to 3 years based on estimates from 8 analysts?
72.3%
Forecasted annual earnings growth
Earnings and Revenue Growth Forecasts
Analyst Future Growth Forecasts
Earnings vs Savings Rate: NINE is forecast to remain unprofitable over the next 3 years.
Earnings vs Market: NINE is forecast to remain unprofitable over the next 3 years.
High Growth Earnings: NINE is forecast to remain unprofitable over the next 3 years.
Revenue vs Market: NINE's revenue (3.2% per year) is forecast to grow slower than the US market (7.2% per year).
High Growth Revenue: NINE's revenue (3.2% per year) is forecast to grow slower than 20% per year.
Earnings per Share Growth Forecasts
Future Return on Equity
Future ROE: NINE's Return on Equity is forecast to be low in 3 years time (1.4%).
Next Steps
Past Performance
How has Nine Energy Service performed over the past 5 years?
-18.2%
Historical annual earnings growth
Earnings and Revenue History
Past Earnings Growth Analysis
Earnings Trend: NINE is unprofitable, and losses have increased over the past 5 years at a rate of -18.2% 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 (-13.1%).
Return on Equity
High ROE: NINE has a negative Return on Equity (-6.45%), as it is currently unprofitable.
Return on Assets
ROA vs Industry: NINE is currently unprofitable, so its Return on Assets is negative.
Return on Capital Employed
ROCE Improving: NINE is currently unprofitable, so its Return on Capital Employed is negative.
Next Steps
Financial Health
How is Nine Energy Service's financial position?
Financial Position Analysis
Short Term Liabilities: NINE's short term assets ($290.8M) exceeds its short term liabilities ($70.9M)
Long Term Liabilities: NINE's short term assets (290.8M) do not cover its long term liabilities (402.5M)
Debt to Equity History and Analysis
Debt Level: NINE's debt to equity ratio (62.6%) is considered high
Reducing Debt: Insufficient data to determine if NINE's debt to equity ratio has reduced over the past 5 years.
Balance Sheet
Inventory Level: NINE has a high level of physical assets or inventory.
Debt Coverage by Assets: NINE's debt is not covered by short term assets (assets are 0.7x debt).
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: Whilst unprofitable NINE has sufficient cash runway for more than 3 years if it maintains its current positive free cash flow level.
Forecast Cash Runway: NINE is unprofitable but has sufficient cash runway for more than 3 years, due to free cash flow being positive and growing by 112.3% per year.
Next Steps
Dividend
What is Nine Energy Service's current dividend yield, its reliability and sustainability?
Dividend Yield vs Market
Current dividend yield vs market & industry
Stability and Growth of Payments
Notable Dividend: Unable to evaluate NINE's dividend yield against the bottom 25% of dividend payers, as the company has not reported any payouts.
High Dividend: Unable to evaluate NINE's dividend yield against the top 25% of dividend payers, as the company has not reported any payouts.
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.
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 NINE's dividend in 3 years as they are not forecast to pay a notable one for the US market.
Next Steps
Management
What is the CEO of Nine Energy Service's salary, the management and board of directors tenure and is there insider trading?
1.5yrs
Average management tenure
CEO
Ann Fox (42yo)
4.3yrs
Tenure
US$3,919,148
Compensation
Ms. Ann G. Fox serves as Director at Devon Energy Corporation since June 05, 2019. She has been Chief Executive Officer and President of Nine Energy Service, Inc. since July 2015. Ms. Fox served as Chief FÂ ...
CEO Compensation Analysis
Compensation vs. Market: Insufficient data to establish whether Ann's total compensation is reasonable compared to companies of similar size in the US market.
Compensation vs Earnings: Ann's compensation has been consistent with company performance over the past year.
Management Age and Tenure
1.5yrs
Average Tenure
45yo
Average Age
Experienced Management: NINE's management team is not considered experienced ( 1.5 years average tenure), which suggests a new team.
Board Age and Tenure
2.7yrs
Average Tenure
56yo
Average Age
Experienced Board: NINE's board of directors are not considered experienced ( 2.7 years average tenure), which suggests a new board.
Insider Trading
Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.
Recent Insider Transactions
| Entity | Individual |
| Role | Chief Operating Officer Executive VP & COO |
| Shares | 27,011 |
| Max Price | US$21.61 |
| Entity | Individual |
| Role | Chief Financial Officer Senior VP & CFO |
| Shares | 9,750 |
| Max Price | US$22.17 |
| Entity | Individual |
| Role | Chief Operating Officer Executive VP & COO |
| Shares | 5,000 |
| Max Price | US$21.50 |
| Entity | Individual |
| Role | Chief Executive Officer President |
| Shares | 22,731 |
| Max Price | US$22.00 |
| Entity | Individual |
| Role | Chief Legal Officer Senior VP |
| Shares | 8,730 |
| Max Price | US$21.54 |
| Entity | Individual |
| Role | Chief Operating Officer Executive VP & COO |
| Shares | 60,000 |
| Max Price | US$22.40 |
| Entity | Individual |
| Role | Chief Executive Officer President |
| Shares | 12,077 |
| Max Price | US$29.34 |
| Entity | Individual |
| Role | Chief Operating Officer Executive VP & COO |
| Shares | 60,000 |
| Max Price | US$29.24 |
Ownership Breakdown
Management Team
Ted Moore (41yo)
Senior VP
- Tenure: 2.6yrs
- Compensation: US$1.55m
Ann Fox (42yo)
President
- Tenure: 4.3yrs
- Compensation: US$3.92m
Clinton Roeder (48yo)
Senior VP & CFO
- Tenure: 1.8yrs
- Compensation: US$1.86m
James Holley
Chief Technology Officer
- Tenure: 0yrs
David Crombie (45yo)
Executive VP & COO
- Tenure: 0.8yrs
- Compensation: US$2.48m
Nick Pottmeyer
Senior Vice President of US Completion Tools
- Tenure: 0.8yrs
Edward Morgan (51yo)
President of Administration & Operations
- Tenure: 0.08yrs
- Compensation: US$1.16m
Heather Schmidt
Vice President of Investor Relations & Marketing
- Tenure: 2.6yrs
S. Luz
Chief Accounting Officer
- Tenure: 1.1yrs
Board Members
David Baldwin (56yo)
Independent Director
- Tenure: 2.7yrs
- Compensation: US$170.00k
Andy Waite (59yo)
Independent Director
- Tenure: 6.7yrs
- Compensation: US$170.00k
Curtis Harrell (55yo)
Independent Director
- Tenure: 2.7yrs
- Compensation: US$180.00k
Ernie Danner (64yo)
Chairman of the Board
- Tenure: 2.7yrs
- Compensation: US$249.99k
Gary Thomas (69yo)
Independent Director
- Tenure: 6.6yrs
- Compensation: US$170.00k
Mark Baldwin (65yo)
Independent Director
- Tenure: 6.4yrs
Scott Schwinger (53yo)
Independent Director
- Tenure: 2.4yrs
- Compensation: US$312.50k
Ann Fox (42yo)
President
- Tenure: 4.3yrs
- Compensation: US$3.92m
Darryl Willis (49yo)
Independent Director
- Tenure: 1.2yrs
- Compensation: US$159.99k
Company Information
Nine Energy Service, Inc.'s company bio, 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
- Market Cap: US$163.845m
- Shares outstanding: 29.36m
- Website: https://nineenergyservice.com
Number of Employees
Location
- Nine Energy Service, Inc.
- 2001 Kirby Drive
- Suite 200
- Houston
- Texas
- 77019
- United States
Listings
| Ticker | Exchange | Primary Security | Security Type | Country | Currency | Listed on |
|---|---|---|---|---|---|---|
| NINE | NYSE (New York Stock Exchange) | Yes | Common Stock | US | USD | Jan 2018 |
| NEJ | DB (Deutsche Boerse AG) | Yes | Common Stock | DE | EUR | Jan 2018 |
Biography
Nine Energy Service, Inc. operates as an onshore completion and production services provider that targets unconventional oil and gas resource development in North America and internationally. It operates i ...
Company Analysis and Financial Data Status
| Data | Last Updated (UTC time) |
|---|---|
| Company Analysis | 2019/10/23 00:32 |
| End of Day Share Price | 2019/10/22 00:00 |
| Earnings | 2019/06/30 |
| Annual Earnings | 2018/12/31 |
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.