NYSE:NINE

Stock Analysis Report

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

-2.2%

NINE

0.4%

US Energy Services

1.8%

US Market


1 Year Return

-85.9%

NINE

-46.0%

US Energy Services

7.3%

US Market

Return vs Industry: NINE underperformed the US Energy Services industry which returned -46% over the past year.

Return vs Market: NINE underperformed the US Market which returned 7.3% over the past year.


Shareholder returns

NINEIndustryMarket
7 Day-2.2%0.4%1.8%
30 Day-25.9%-13.3%-0.7%
90 Day-61.0%-16.2%0.06%
1 Year-85.9%-85.9%-44.5%-46.0%9.7%7.3%
3 Yearn/a-55.2%-60.6%46.3%36.9%
5 Yearn/a-66.3%-71.2%64.5%46.5%

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

Valuation

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

Undervalued: NINE ($5.27) is trading below our estimate of fair value ($20.19)

Significantly Undervalued: 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

Low 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 (0.6x).


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?

72.0%

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 (7.3% 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

High 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

companyn/amarketbottom25%1.5%markettop25%3.7%industryaverage4.5%forecastin3Years0%

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 F ...


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

SellUS$583,70815 May 19
David Crombie
EntityIndividual
Role
Chief Operating Officer
Executive VP & COO
Shares27,011
Max PriceUS$21.61
SellUS$216,15813 May 19
Clinton Roeder
EntityIndividual
Role
Chief Financial Officer
Senior VP & CFO
Shares9,750
Max PriceUS$22.17
SellUS$107,50013 May 19
David Crombie
EntityIndividual
Role
Chief Operating Officer
Executive VP & COO
Shares5,000
Max PriceUS$21.50
SellUS$500,08213 May 19
Ann Fox
EntityIndividual
Role
Chief Executive Officer
President
Shares22,731
Max PriceUS$22.00
SellUS$188,04413 May 19
Theodore Moore
EntityIndividual
Role
Chief Legal Officer
Senior VP
Shares8,730
Max PriceUS$21.54
SellUS$1,344,00014 Mar 19
David Crombie
EntityIndividual
Role
Chief Operating Officer
Executive VP & COO
Shares60,000
Max PriceUS$22.40
SellUS$354,33919 Nov 18
Ann Fox
EntityIndividual
Role
Chief Executive Officer
President
Shares12,077
Max PriceUS$29.34
SellUS$1,754,40019 Nov 18
David Crombie
EntityIndividual
Role
Chief Operating Officer
Executive VP & COO
Shares60,000
Max PriceUS$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$154.743m
  • 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

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
NINENYSE (New York Stock Exchange)YesCommon StockUSUSDJan 2018
NEJDB (Deutsche Boerse AG)YesCommon StockDEEURJan 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

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/10/18 00:48
End of Day Share Price2019/10/17 00:00
Earnings2019/06/30
Annual Earnings2018/12/31


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.