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Nine Energy Service

NYSE:NINE
Snowflake Description

Reasonable growth potential with mediocre balance sheet.

The Snowflake is generated from 30 checks in 5 different areas, read more below.
NINE
NYSE
$536M
Market Cap
  1. Home
  2. US
  3. Energy
Company description

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. The last earnings update was 47 days ago. More info.


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  • Nine Energy Service has significant price volatility in the past 3 months.
NINE Share Price and Events
7 Day Returns
4.1%
NYSE:NINE
8.8%
US Energy Services
2.2%
US Market
1 Year Returns
-47.1%
NYSE:NINE
-40%
US Energy Services
3.8%
US Market
NINE Shareholder Return
  7 Day 30 Day 90 Day 1 Year 3 Year 5 Year
Nine Energy Service (NINE) 4.1% -10.3% -23.5% -47.1% - -
US Energy Services 8.8% 2.8% -12.3% -40% -48% -72.4%
US Market 2.2% 4.2% 4.4% 3.8% 43% 40.9%
1 Year Return vs Industry and Market
  • NINE underperformed the Energy Services industry which returned -40% over the past year.
  • NINE underperformed the Market in United States of America which returned 3.8% over the past year.
Price Volatility
Industry
5yr Volatility vs Market

NINE Value

 Is Nine Energy Service undervalued based on future cash flows and its price relative to the stock market?

Value is all about what a company is worth versus what price it is available for. If you went into a grocery store and all the bananas were on sale at half price, they could be considered undervalued.
INTRINSIC VALUE BASED ON FUTURE CASH FLOWS
Here we compare the current share price of Nine Energy Service to its discounted cash flow analysis.value.

The discounted cash flow value is simply looking at what the company is worth today, based on estimates of how much money it is expected to make in the future.
Raw Data

Below are the data sources, inputs and calculation used to determine the intrinsic value for Nine Energy Service.

NYSE:NINE Discounted Cash Flow Data Sources
Data Point Source Value
Valuation Model 2 Stage Free Cash Flow to Equity
Levered Free Cash Flow Average of 8 Analyst Estimates (S&P Global) See below
Discount Rate (Cost of Equity) See below 11.4%
Perpetual Growth Rate 10-Year US Government Bond Rate 2.7%

An important part of a discounted cash flow is the discount rate, below we explain how it has been calculated.

Calculation of Discount Rate/ Cost of Equity for NYSE:NINE
Data Point Calculation/ Source Result
Risk-Free Rate 10-Year US Govt Bond Rate 2.7%
Equity Risk Premium S&P Global 6%
Energy Services Unlevered Beta Simply Wall St/ S&P Global 1.04
Re-levered Beta = Unlevered beta (1 + (1- tax rate) (Debt/Equity))
= 1.04 (1 + (1- 21%) (76.35%))
1.448
Levered Beta Levered Beta limited to 0.8 to 2.0
(practical range for a stable firm)
1.45
Discount Rate/ Cost of Equity = Cost of Equity = Risk Free Rate + (Levered Beta * Equity Risk Premium)
= 2.73% + (1.448 * 5.96%)
11.36%

Discounted Cash Flow Calculation for NYSE:NINE using 2 Stage Free Cash Flow to Equity Model

The calculations below outline how an intrinsic value for Nine Energy Service is arrived at by discounting future cash flows to their present value using the 2 stage method. We try to start with analysts estimates of free cash flow, however if these are not available we use the most recent financial results. In the 1st stage we continue to grow the free cash flow over a 10 year period, with the growth rate trending towards the perpetual growth rate used in the 2nd stage. The 2nd stage assumes the company grows at a stable rate into perpetuity.

NYSE:NINE DCF 1st Stage: Next 10 year cash flow forecast
Levered FCF (USD, Millions) Source Present Value
Discounted (@ 11.36%)
2019 46.87 Analyst x3 42.09
2020 70.88 Analyst x4 57.16
2021 82.90 Analyst x1 60.03
2022 92.66 Est @ 11.77% 60.26
2023 101.06 Est @ 9.06% 59.02
2024 108.29 Est @ 7.16% 56.79
2025 114.61 Est @ 5.83% 53.97
2026 120.23 Est @ 4.9% 50.85
2027 125.34 Est @ 4.25% 47.60
2028 130.09 Est @ 3.79% 44.37
Present value of next 10 years cash flows $532.13
NYSE:NINE DCF 2nd Stage: Terminal Value
Calculation Result
Terminal Value = FCF2028 × (1 + g) ÷ (Discount Rate – g)
= $130.09 × (1 + 2.73%) ÷ (11.36% – 2.73%)
$1,549.07
Present Value of Terminal Value = Terminal Value ÷ (1 + r)10
= $1,549.07 ÷ (1 + 11.36%)10
$528.30
NYSE:NINE Total Equity Value
Calculation Result
Total Equity Value = Present value of next 10 years cash flows + Terminal Value
= $532.13 + $528.30
$1,060.43
Equity Value per Share
(USD)
= Total value / Shares Outstanding
= $1,060.43 / 30.71
$34.53
NYSE:NINE Discount to Share Price
Calculation Result
Value per share (USD) From above. $34.53
Current discount Discount to share price of $17.47
= -1 x ($17.47 - $34.53) / $34.53
49.4%

Learn more about our DCF calculations in Simply Wall St’s analysis model .

Current Discount
Amount off the current price Nine Energy Service is available for.
Intrinsic value
49%
Share price is $17.47 vs Future cash flow value of $34.53
Current Discount Checks
For Nine Energy Service to be considered undervalued it must be available for at least 20% below the current price. Less than 40% is even better.
  • Nine Energy Service's share price is below the future cash flow value, and at a moderate discount (> 20%).
  • Nine Energy Service's share price is below the future cash flow value, and at a substantial discount (> 40%).
PRICE RELATIVE TO MARKET
We can also value a company based on what the stock market is willing to pay for it. This is similar to the price of fruit (e.g. Mangoes or Avocados) increasing when they are out of season, or how much your home is worth.

The amount the stock market is willing to pay for Nine Energy Service's earnings, growth and assets is considered below, and whether this is a fair price.
Price based on past earnings
Are Nine Energy Service's earnings available for a low price, and how does this compare to other companies in the same industry?
Raw Data
NYSE:NINE PE (Price to Earnings) Ratio Data Sources
Data Point Source Value
Earnings Per Share * Company Filings (2019-03-31) in USD $-1.42
NYSE:NINE Share Price ** NYSE (2019-06-21) in USD $17.47
United States of America Energy Services Industry PE Ratio Median Figure of 31 Publicly-Listed Energy Services Companies 20.27x
United States of America Market PE Ratio Median Figure of 3,094 Publicly-Listed Companies 17.87x

* Trailing twelve months (TTM) annual GAAP earnings per share excluding extraordinary items.

** Primary Listing of Nine Energy Service.

NYSE:NINE PE (Price to Earnings) Ratio Calculation
Calculation Outcome
PE Ratio

= NYSE:NINE Share Price ÷ EPS (both in USD)

= 17.47 ÷ -1.42

-12.27x

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Nine Energy Service is loss making, we can't compare its value to the US Energy Services industry average.
  • Nine Energy Service is loss making, we can't compare the value of its earnings to the United States of America market.
Price based on expected Growth
Does Nine Energy Service's expected growth come at a high price?
Raw Data
NYSE:NINE PEG (Price to Earnings to Growth) Ratio Data Sources
Data Point Source Value
PE Ratio See PE Ratio Section -12.27x
Net Income Annual Growth Rate See Future Growth Section.
Line of Best Fit* through Consensus Estimate Earnings of 8 Analysts
61.2%per year
United States of America Energy Services Industry PEG Ratio Median Figure of 27 Publicly-Listed Energy Services Companies 0.5x
United States of America Market PEG Ratio Median Figure of 2,134 Publicly-Listed Companies 1.54x

*Line of best fit is calculated by linear regression .

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Unable to calculate PEG ratio for Nine Energy Service, we can't assess if its growth is good value.
Price based on value of assets
What value do investors place on Nine Energy Service's assets?
Raw Data
NYSE:NINE PB (Price to Book) Ratio Data Sources
Data Point Source Value
Book Value per Share Company Filings (2019-03-31) in USD $19.99
NYSE:NINE Share Price * NYSE (2019-06-21) in USD $17.47
United States of America Energy Services Industry PB Ratio Median Figure of 88 Publicly-Listed Energy Services Companies 0.87x
United States of America Market PB Ratio Median Figure of 5,255 Publicly-Listed Companies 1.81x
NYSE:NINE PB (Price to Book) Ratio Calculation
Calculation Outcome
PB Ratio

= NYSE:NINE Share Price ÷ Book Value per Share (both in USD)

= 17.47 ÷ 19.99

0.87x

* Primary Listing of Nine Energy Service.

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Nine Energy Service is overvalued based on assets compared to the US Energy Services industry average.
X
Value checks
We assess Nine Energy Service's value by looking at:
  1. Is the discounted cash flow value less than 20%, or 40% of the share price? (2 checks) ( Click here or on bar chart for details of DCF calculation. )
  2. Is the PE ratio less than the market average, and/ or less than the Energy Services industry average (and greater than 0)? (2 checks)
  3. Is the PEG ratio within a reasonable range (0 to 1)? (1 check)
  4. Is the PB ratio less than the Energy Services industry average (and greater than 0)? (1 check)
  5. Nine Energy Service has a total score of 2/6, see the detailed checks below.

    Note: We use GAAP Earnings per Share in all our calculations including PE and PEG Ratio.

    Full details on the Value part of the Simply Wall St company analysis model.

NINE Future Performance

 How is Nine Energy Service expected to perform in the next 1 to 3 years based on estimates from 8 analysts?

The future performance of a company is measured in the same way as past performance, by looking at estimated growth and how much profit it is expected to make.

Future estimates come from professional analysts. Just like forecasting the weather, they don’t always get it right!
Annual Growth Rate
61.2%
Expected annual growth in earnings.
Earnings growth vs Low Risk Savings
Is Nine Energy Service expected to grow at an attractive rate?
  • Nine Energy Service's earnings growth is expected to exceed the low risk savings rate of 2.7%.
Growth vs Market Checks
  • Nine Energy Service's earnings growth is expected to exceed the United States of America market average.
  • Nine Energy Service's revenue growth is expected to exceed the United States of America market average.
Annual Growth Rates Comparison
Raw Data
NYSE:NINE Future Growth Rates Data Sources
Data Point Source Value (per year)
NYSE:NINE Future Earnings Growth Rate Line of Best Fit* through Consensus Estimate Earnings of 8 Analysts 61.2%
NYSE:NINE Future Revenue Growth Rate Line of Best Fit* through Consensus Estimate Revenue of 8 Analysts 15.2%
United States of America Energy Services Industry Earnings Growth Rate Market Cap Weighted Average 40.3%
United States of America Energy Services Industry Revenue Growth Rate Market Cap Weighted Average 8.5%
United States of America Market Earnings Growth Rate Market Cap Weighted Average 14%
United States of America Market Revenue Growth Rate Market Cap Weighted Average 7.4%

*Line of best fit is calculated by linear regression .

Industry and Market average data is calculated daily.

Learn more about our growth rate calculations in Simply Wall St’s analysis model.

Analysts growth expectations
Raw Data
NYSE:NINE Analysts Growth Expectations Data Sources
Data Point Source Value
Past Financials Company Filings (2 months ago) See Below
Future Estimates Average of up to 8 Analyst Estimates (S&P Global) See Below
All numbers in USD Millions and using Trailing twelve months (TTM) annual period rather than quarterly.
NYSE:NINE Future Estimates Data
Date (Data in USD Millions) Revenue Cash Flow Net Income * Avg. No. Analysts
2021-12-31 1,289 129 48 2
2020-12-31 1,145 132 73 8
2019-12-31 963 117 43 8
NYSE:NINE Past Financials Data
Date (Data in USD Millions) Revenue Cash Flow Net Income *
2019-03-31 883 78 -37
2018-12-31 827 90 -53
2018-09-30 752 53 -5
2018-06-30 682 52 -24
2018-03-31 612 33 -45
2017-12-31 544 6 -68
2017-09-30 469 -1 -64
2017-06-30 395 -23 -73
2017-03-31 322 -18 -76
2016-12-31 282 -3 -71

*GAAP earnings excluding extraordinary items.

Super high growth metrics
High Growth Checks
  • Nine Energy Service's earnings are expected to grow significantly at over 20% yearly.
  • Nine Energy Service's revenue is expected to grow by 15.2% yearly, however this is not considered high growth (20% yearly).
Past and Future Earnings per Share
The accuracy of the analysts who estimate the future performance data can be gauged below. We look back 3 years and see if they were any good at predicting what actually occurred. We also show the highest and lowest estimates looking forward to see if there is a wide range.
Raw Data
NYSE:NINE Past and Future Earnings per Share
Data Point Source Value
Past Financials Company Filings (2 months ago) See Below
Future Estimates Average of up to 8 Analyst Estimates (S&P Global) See Below

All data from Nine Energy Service Company Filings, last reported 2 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

NYSE:NINE Future Estimates Data
Date (Data in USD Millions) EPS * EPS High Estimate EPS Low Estimate Avg. No. Analysts
2021-12-31 1.61 1.61 1.61 1.00
2020-12-31 2.45 3.65 1.38 5.00
2019-12-31 1.42 2.04 0.95 5.00
NYSE:NINE Past Financials Data
Date (Data in USD Millions) EPS *
2019-03-31 -1.42
2018-12-31 -2.17
2018-09-30 -0.25
2018-06-30 -1.26
2018-03-31 -2.68
2017-12-31 -4.55
2017-09-30 -4.48
2017-06-30 -5.32
2017-03-31 -5.69
2016-12-31 -5.34

*GAAP earnings excluding extraordinary items.

Performance in 3 years
In the same way as past performance we look at the future estimated return (profit) compared to the available funds. We do this looking forward 3 years.
  • Nine Energy Service is not expected to efficiently use shareholders’ funds in the future (Return on Equity less than 20%).
X
Future performance checks
We assess Nine Energy Service's future performance by looking at:
  1. Is the annual earnings growth rate expected to beat the low risk savings rate, plus a premium to keep pace with inflation?
  2. Is the annual earnings growth rate expected to beat the average growth rate in earnings of the United States of America market? (1 check)
  3. Is the annual revenue growth rate expected to beat the average growth rate in revenue of the United States of America market? (1 check)
  4. Is the annual earnings growth rate expected to be above 20%? (1 check)
  5. Is the annual revenue growth rate expected to be above 20%? (1 check)
  6. Is the Return on Equity in 3 years expected to be over 20%? (1 check)
Some of the above checks will fail if the company is expected to be loss making in the relevant year.
Nine Energy Service has a total score of 4/6, see the detailed checks below.

Note 1: We use GAAP Net Income Excluding Exceptional Items for our Earnings in all our calculations.

Full details on the Future part of the Simply Wall St company analysis model.

NINE Past Performance

  How has Nine Energy Service performed over the past 5 years?

The past performance of a company can be measured by how much growth it has experienced and how much profit it makes relative to the funds and assets it has available.
Past earnings growth
Below we compare Nine Energy Service's growth in the last year to its industry (Energy Services).
Past Earnings growth analysis
We also check if the company has grown in the past 5 years, and whether it has maintained that growth in the year.
  • Nine Energy Service does not make a profit and their year on year earnings growth rate was negative over the past 5 years.
  • Unable to compare Nine Energy Service's 1-year earnings growth to the 5-year average as it is not currently profitable.
  • Unable to compare Nine Energy Service's 1-year growth to the US Energy Services industry average as it is not currently profitable.
Earnings and Revenue History
Nine Energy Service's revenue and profit over the past 5 years is shown below, any years where they have experienced a loss will show up in red.
Raw Data

All data from Nine Energy Service Company Filings, last reported 2 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

NYSE:NINE Past Revenue, Cash Flow and Net Income Data
Date (Data in USD Millions) Revenue Net Income * G+A Expenses R&D Expenses
2019-03-31 883.07 -37.35 67.98
2018-12-31 827.17 -52.98 62.40
2018-09-30 752.01 -5.46 59.88
2018-06-30 681.75 -24.17 50.73
2018-03-31 612.11 -45.29 47.20
2017-12-31 543.66 -67.68 45.52
2017-09-30 469.37 -63.62 48.67
2017-06-30 394.79 -73.20 44.86
2017-03-31 321.74 -76.26 41.74
2016-12-31 282.35 -70.91 37.65
2015-12-31 478.52 -38.18 42.86
2014-12-31 425.87 52.75 34.83

*GAAP earnings excluding extraordinary items.

Performance last year
We want to ensure a company is making the most of what it has available. This is done by comparing the return (profit) to a company's available funds, assets and capital.
  • It is difficult to establish if Nine Energy Service has efficiently used shareholders’ funds last year (Return on Equity greater than 20%) as it is loss-making.
  • It is difficult to establish if Nine Energy Service has efficiently used its assets last year compared to the US Energy Services industry average (Return on Assets) as it is loss-making.
  • It is difficult to establish if Nine Energy Service improved its use of capital last year versus 3 years ago (Return on Capital Employed) as it is currently loss-making.
X
Past performance checks
We assess Nine Energy Service's performance over the past 5 years by checking for:
  1. Has earnings increased in past 5 years? (1 check)
  2. Has the earnings growth in the last year exceeded that of the Energy Services industry? (1 check)
  3. Is the recent earnings growth over the last year higher than the average annual growth over the past 5 years? (1 check)
  4. Is the Return on Equity (ROE) higher than 20%? (1 check)
  5. Is the Return on Assets (ROA) above industry average? (1 check)
  6. Has the Return on Capital Employed (ROCE) increased from 3 years ago? (1 check)
The above checks will fail if the company has reported a loss in the most recent earnings report. Some checks require at least 3 or 5 years worth of data.
Nine Energy Service has a total score of 0/6, see the detailed checks below.

Note: We use GAAP Net Income excluding extraordinary items in all our calculations.

Full details on the Past part of the Simply Wall St company analysis model.

NINE Health

 How is Nine Energy Service's financial health and their level of debt?

A company's financial position is much like your own financial position, it includes everything you own (assets) and owe (liabilities).

The boxes below represent the relative size of what makes up Nine Energy Service's finances.

The net worth of a company is the difference between its assets and liabilities.
Net Worth
  • Nine Energy Service is able to meet its short term (1 year) commitments with its holdings of cash and other short term assets.
  • Nine Energy Service's long term commitments exceed its cash and other short term assets.
Balance sheet
This treemap shows a more detailed breakdown of Nine Energy Service's finances. If any of them are yellow this indicates they may be out of proportion and red means they relate to one of the checks below.
Assets
Liabilities and shares
The 'shares' portion represents any funds contributed by the owners (shareholders) and any profits.
  • High level of physical assets or inventory.
  • Debt is not covered by short term assets, assets are 0.8x debt.
Historical Debt
Nearly all companies have debt. Debt in itself isn’t bad, however if the debt is too high, or the company can’t afford to pay the interest on its debts this may have impacts in the future.

The graphic below shows equity (available funds) and debt, we ideally want to see the red area (debt) decreasing.

If there is any debt we look at the companies capability to repay it, and whether the level has increased over the past 5 years.
Raw Data

All data from Nine Energy Service Company Filings, last reported 2 months ago.

NYSE:NINE Past Debt and Equity Data
Date (Data in USD Millions) Total Equity Total Debt Cash & Short Term Investments
2019-03-31 615.47 405.50 31.16
2018-12-31 594.82 424.98 63.62
2018-09-30 490.63 114.05 86.53
2018-06-30 472.18 113.88 70.86
2018-03-31 459.44 113.71 72.90
2017-12-31 287.36 241.51 17.51
2017-09-30 315.99 239.71 30.17
2017-06-30 298.88 254.99 12.13
2017-03-31 308.41 250.08 27.04
2016-12-31 288.19 244.53 4.07
2015-12-31 352.68 249.64 18.88
2014-12-31
  • Nine Energy Service's level of debt (66.5%) compared to net worth is high (greater than 40%).
  • Unable to establish if Nine Energy Service's debt level has increased without past 5-year debt data.
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.

  • Whilst loss making Nine Energy Service has sufficient cash runway for more than 3 years if it maintains the current positive free cash flow level.
  • Whilst loss making Nine Energy Service has sufficient cash runway for more than 3 years, even with free cash flow being positive and shrinking by -119.8% per year.
X
Financial health checks
We assess Nine Energy Service's financial health by checking for:
  1. Are short term assets greater than short term liabilities? (1 check)
  2. Are short term assets greater than long term liabilities? (1 check)
  3. Has the debt to equity ratio increased in the past 5 years? (1 check)
  4. Is the debt to equity ratio over 40%? (1 check)
  5. Is the debt covered by operating cash flow? (1 check)
  6. Are earnings greater than 5x the interest on debt (if company pays interest at all)? (1 check)
  7. Nine Energy Service has a total score of 3/6, see the detailed checks below.
For companies that are loss making and have been so on average in the past we replace the last 2 checks with:
  1. Does cash and short term investments cover stable operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)
  2. Does cash and short term investments cover growing operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)


Full details on the Health part of the Simply Wall St company analysis model.

NINE Dividends

 What is Nine Energy Service's current dividend yield, its reliability and sustainability?

Dividends are regular cash payments to you from the company, similar to a bank paying you interest on a savings account.
Annual Dividend Income
Dividend payments
0%
Current annual income from Nine Energy Service dividends. Estimated to be 0% next year.
If you bought $2,000 of Nine Energy Service shares you are expected to receive $0 in your first year as a dividend.
Dividend Amount
Here we look how much dividend is being paid, if any. Is it above what you can get in a savings account? It is up there with the best dividend paying companies?
  • Unable to evaluate Nine Energy Service's dividend yield against the bottom 25% of dividend payers as the company has not reported any payouts.
  • Unable to evaluate Nine Energy Service's dividend against the top 25% market benchmark as the company has not reported any payouts.
Annualized Historical and Future Dividends
It is important to see if the dividend for a company is stable, and not wildly increasing/decreasing each year. This graph shows you the historical rate to count toward your assessment of the stock.

We also check to see if the dividend has increased in the past 10 years.
Raw Data
NYSE:NINE Annualized Past and Future Dividends
Data Point Source Value
Past Annualized Dividend Yield S&P Global Market Data See Below
Past Dividends per Share Company Filings/ Annualized Dividend Payments See Below
Future Dividends per Share Estimates Average of up to 8 Analyst Estimates (S&P Global) See Below
United States of America Energy Services Industry Average Dividend Yield Market Cap Weighted Average of 16 Stocks 3.7%
United States of America Market Average Dividend Yield Market Cap Weighted Average of 2012 Stocks 2.4%
United States of America Minimum Threshold Dividend Yield 10th Percentile 0.8%
United States of America Bottom 25% Dividend Yield 25th Percentile 1.4%
United States of America Top 25% Dividend Yield 75th Percentile 3.7%

Industry and Market average data is calculated daily.

Note all dividend per share amounts are annualized and not quarterly or other period.

NYSE:NINE Future Dividends Estimate Data
Date (Data in $) Dividend per Share (annual) Avg. No. Analysts
2021-12-31 0.00 2.00
2020-12-31 0.00 4.00
2019-12-31 0.00 4.00

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Unable to perform a dividend volatility check as Nine Energy Service has not reported any payouts.
  • Unable to verify if Nine Energy Service's dividend has been increasing as the company has not reported any payouts.
Current Payout to shareholders
What portion of Nine Energy Service's earnings are paid to the shareholders as a dividend.
  • Unable to calculate sustainability of dividends as Nine Energy Service has not reported any payouts.
Future Payout to shareholders
  • No need to calculate the sustainability of Nine Energy Service's dividends in 3 years as they are not expected to pay a notable one for United States of America.
X
Income/ dividend checks
We assess Nine Energy Service's dividend by checking for:
  1. Firstly is the company paying a notable dividend (greater than 0.8%) - if not then the rest of the checks are ignored.
  2. Is current dividend yield above the bottom 25% of dividend payers? (1 check)
  3. Is current dividend yield above the top 25% of dividend payers? (1 check)
  4. Have they paid a dividend for 10 years, and during this period has the dividend been volatile (drop of more than 25%)? (1 check)
  5. If they have paid a dividend for 10 years has it increased in this time? (1 check)
  6. How sustainable is the dividend, can Nine Energy Service afford to pay it from its earnings today and in 3 years (Payout ratio less than 90%)? (2 checks)
  7. Nine Energy Service has a total score of 0/6, see the detailed checks below.


Full details on the Dividends part of the Simply Wall St company analysis model.

NINE Management

 What is the CEO of Nine Energy Service's salary, the management and board of directors tenure and is there insider trading?

Management is one of the most important areas of a company. We look at unreasonable CEO compensation, how long the team and board of directors have been around for and insider trading.
CEO
Ann Fox
COMPENSATION $3,919,148
AGE 41
TENURE AS CEO 3.9 years
CEO Bio

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 Financial Officer and Vice President of Strategic Development at Nine Energy Service, Inc. since February 2013 until July 2015 and served as its Secretary. She served as the Interim Chief Financial Officer of the Nine Energy Service, Inc. from September 2017 to December 2017 and previously served in such capacity from July 2015 through April 2017. She joined Nine Energy Services in February 2013 and oversees the execution of a range of strategic initiatives, including new business line concept development and strategic acquisitions. She served as the Managing Director at SCF Partners since December 2012. She joined SCF Partners in 2008 where her responsibilities included the evaluation and execution of new investment opportunities as well as the support of ongoing portfolio company initiatives. She was previously a Vice President at the firm. She works closely with SCF's portfolio companies to monitor financial performance and pursue operational improvements. Ms. Fox joined the private sector immediately following graduation as an investment banking Analyst for both Prudential Securities and Warburg Dillon Read in New York. In 2001, she joined the United States Marine Corps. in Iraq. Ms. Fox worked with a small team embedded in the South of Iraq in order to ensure Iraqi Security Force combat operations were consistent with the application of the United States counterinsurgency tactics. She left active duty after several tours in Iraq to complete her M.B.A. degree and returned the call for service for an additional year upon completion of her M.B.A. She has been Director of Nine Energy Service, Inc. since September 24, 2015. She is currently a member of the Harvard Business School Alumni Board. Ms. Fox holds an M.B.A. from Harvard Business School and graduated from Georgetown University's Walsh School of Foreign Service with a Bachelor’s of Science in Diplomacy and Security in World Affairs.

CEO Compensation
  • Ann's compensation has been consistent with company performance over the past year, both up more than 20%.
  • Ann's remuneration is higher than average for companies of similar size in United States of America.
Management Team Tenure

Average tenure and age of the Nine Energy Service management team in years:

1.9
Average Tenure
44
Average Age
  • The average tenure for the Nine Energy Service management team is less than 2 years, this suggests a new team.
Management Team

Ann Fox

TITLE
President
COMPENSATION
$4M
AGE
41
TENURE
3.9 yrs

Clinton Roeder

TITLE
Senior VP & CFO
COMPENSATION
$2M
AGE
47
TENURE
1.5 yrs

David Crombie

TITLE
Executive VP & COO
COMPENSATION
$2M
AGE
44
TENURE
0.4 yrs

Ted Moore

TITLE
Senior VP
COMPENSATION
$2M
AGE
40
TENURE
2.3 yrs

Edward Morgan

TITLE
President of Production Solutions
COMPENSATION
$1M
AGE
50
TENURE
2.3 yrs

S. Luz

TITLE
Chief Accounting Officer
TENURE
0.8 yrs

James Holley

TITLE
Chief Technology Officer

Heather Schmidt

TITLE
Vice President of Investor Relations & Marketing
TENURE
2.3 yrs

Nick Pottmeyer

TITLE
Senior Vice President of US Completion Tools
TENURE
0.4 yrs
Board of Directors Tenure

Average tenure and age of the Nine Energy Service board of directors in years:

2.3
Average Tenure
55
Average Age
  • The average tenure for the Nine Energy Service board of directors is less than 3 years, this suggests a new board.
Board of Directors

Ernie Danner

TITLE
Chairman of the Board
COMPENSATION
$250K
AGE
63
TENURE
2.3 yrs

Ann Fox

TITLE
President
COMPENSATION
$4M
AGE
41
TENURE
4.8 yrs

Mark Baldwin

TITLE
Director
COMPENSATION
$190K
AGE
64
TENURE
6.1 yrs

Scott Schwinger

TITLE
Director
COMPENSATION
$313K
AGE
52
TENURE
2.1 yrs

Andy Waite

TITLE
Director
COMPENSATION
$170K
AGE
58
TENURE
6.3 yrs

Gary Thomas

TITLE
Director
COMPENSATION
$170K
AGE
68
TENURE
6.3 yrs

David Baldwin

TITLE
Director
COMPENSATION
$170K
AGE
55
TENURE
2.3 yrs

Curtis Harrell

TITLE
Director
COMPENSATION
$180K
AGE
54
TENURE
2.3 yrs

Darryl Willis

TITLE
Independent Director
COMPENSATION
$160K
AGE
48
TENURE
0.8 yrs
Who owns this company?
Recent Insider Trading
  • Nine Energy Service individual insiders have only sold shares in the past 3 months.
Recent Insider Transactions
Announced Type Name Entity Role Start End Shares Max Price ($) Value ($)
15. May 19 Sell David Crombie Individual 14. May 19 14. May 19 -27,011 $21.61 $-583,708
13. May 19 Sell Clinton Roeder Individual 10. May 19 10. May 19 -9,750 $22.17 $-216,158
13. May 19 Sell Ann Fox Individual 10. May 19 10. May 19 -22,731 $22.00 $-500,082
13. May 19 Sell David Crombie Individual 10. May 19 10. May 19 -5,000 $21.50 $-107,500
13. May 19 Sell Theodore Moore Individual 10. May 19 10. May 19 -8,730 $21.54 $-188,044
14. Mar 19 Sell David Crombie Individual 12. Mar 19 13. Mar 19 -60,000 $22.40 $-1,344,000
19. Nov 18 Sell Ann Fox Individual 15. Nov 18 15. Nov 18 -12,077 $29.34 $-354,339
19. Nov 18 Sell David Crombie Individual 15. Nov 18 15. Nov 18 -60,000 $29.24 $-1,754,400
23. Aug 18 Sell Richard Woolston Individual 21. Aug 18 21. Aug 18 -4,186 $30.94 $-129,515
22. Aug 18 Sell Edward Morgan Individual 20. Aug 18 20. Aug 18 -20,500 $30.14 $-617,870
X
Management checks
We assess Nine Energy Service's management by checking for:
  1. Is the CEO's compensation unreasonable compared to market cap? (1 check)
  2. Has the CEO's compensation increased more than 20% whilst the EPS is down more then 20%? (1 check)
  3. Is the average tenure of the management team less than 2 years? (1 check)
  4. Is the average tenure of the board of directors team less than 3 years? (1 check)
  5. Nine Energy Service has a total score of 0/6, this is not included on the snowflake, see the detailed checks below.


Note: We use the top 6 management executives and board members in our calculations.

Note 2: Insider trading include any internal stakeholders and these transactions .

Full details on the Management part of the Simply Wall St company analysis model.

NINE News

Simply Wall St News

What Kind Of Investor Owns Most Of Nine Energy Service, Inc. (NYSE:NINE)?

As Nassim Nicholas Taleb said, 'Don’t tell me what you think, tell me what you have in your portfolio.' With a market capitalization of US$512m, Nine Energy Service is a small cap stock, so it might not be well known by many institutional investors. … See our latest analysis for Nine Energy Service NYSE:NINE Ownership Summary, June 6th 2019 What Does The Institutional Ownership Tell Us About Nine Energy Service? … We can see that Nine Energy Service does have institutional investors; and they hold 39% of the stock.

Simply Wall St -

Did Nine Energy Service, Inc. (NYSE:NINE) Insiders Sell Shares?

Unfortunately, there are also plenty of examples of share prices declining precipitously after insiders have sold shares. … So we'll take a look at whether insiders have been buying or selling shares in Nine Energy Service, Inc. … While insider selling is a negative, to us, it is more negative if the shares are sold at a lower price

Simply Wall St -

Is Nine Energy Service, Inc.'s (NYSE:NINE) Balance Sheet A Threat To Its Future?

(NYSE:NINE) is a small-cap stock with a market capitalization of US$660m. … While investors primarily focus on the growth potential and competitive landscape of the small-cap companies, they end up ignoring a key aspect, which could be the biggest threat to its existence: its financial health.

Simply Wall St -

Imagine Owning Nine Energy Service (NYSE:NINE) And Wondering If The 20% Share Price Slide Is Justified

Given that Nine Energy Service didn't make a profit in the last twelve months, we'll focus on revenue growth to form a quick view of its business development. … As you can imagine, fast revenue growth, when maintained, often leads to fast profit growth. … Nine Energy Service grew its revenue by 52% over the last year.

Simply Wall St -

What Kind Of Shareholder Appears On The Nine Energy Service, Inc.'s (NYSE:NINE) Shareholder Register?

If you want to know who really controls Nine Energy Service, Inc. … Nine Energy Service is a smaller company with a market capitalization of US$733m, so it may still be flying under the radar of many institutional investors. … Check out our latest analysis for Nine Energy Service

Simply Wall St -

Have Insiders Been Selling Nine Energy Service Inc (NYSE:NINE) Shares?

So we'll take a look at whether insiders have been buying or selling shares in Nine Energy Service Inc (NYSE:NINE). … The Last 12 Months Of Insider Transactions At Nine Energy Service. … Over the last year we saw more insider selling of Nine Energy Service shares, than buying.

Simply Wall St -

Can We See Significant Institutional Ownership On The Nine Energy Service Inc (NYSE:NINE) Share Register?

If you want to know who really controls Nine Energy Service Inc (NYSE:NINE), then you'll have to look at the makeup of its share registry. … Institutions will often hold stock in bigger companies, and we expect to see insiders owning a noticeable percentage of the smaller ones. … It has a market capitalization of US$868m, which means it would generally expect to see some institutions on the share registry.

Simply Wall St -

What does Nine Energy Service Inc's (NYSE:NINE) Balance Sheet Tell Us About Its Future?

While small-cap stocks, such as Nine Energy Service Inc (NYSE:NINE) with its market cap of US$737.24m, are popular for their explosive growth, investors should also be aware of their balance sheet to judge whether the company can survive a downturn. … Energy Services companies,.

Simply Wall St -

Who Are The Major Shareholders In Nine Energy Service Inc (NYSE:NINE)?

In this article, I'm going to take a look at Nine Energy Service Inc’s (NYSE:NINE) latest ownership structure, a non-fundamental factor which is important, but remains a less discussed subject among investors. … Although this is an important factor for long-term investors, many investors can also be impacted by institutional presence and their high-volume trading. … View out our latest analysis for Nine Energy Service

Simply Wall St -

Does Nine Energy Service Inc's (NYSE:NINE) Earnings Growth Make It An Outperformer?

Investors may find my commentary, albeit very high-level and brief, on Nine Energy Service Inc (NYSE:NINE) useful as an attempt to give more color around how Nine Energy Service is currently performing. … For Nine Energy Service, its latest trailing-twelve-month earnings is -US$45.29M, which, in comparison to the prior year's level, has become less negative. … This means that, although Nine Energy Service is currently unprofitable, it may have only just gained from the recent industry expansion, moving earnings in the right direction.What does this mean?

Simply Wall St -

NINE Company Info

Description

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 in two segments, Completion Solutions and Production Solutions. The Completion Solutions segment offers cementing services; completion tools, including liner hangers and accessories, fracture isolation packers, frac sleeves, stage one prep tools, fully-composite and dissolvable frac plugs, casing flotation tools, specialty open hole float equipment, disk subs, and centralizers; a portfolio of completion technologies; wireline services; and coiled tubing services. The Production Solutions segment provides production enhancement and well workover services through well servicing rigs and ancillary equipment. This segment offers well services to its customers through a fleet of 107 rigs. The company was formerly known as NSC-Tripoint, Inc. and changed its name to Nine Energy Service, Inc. in October 2011. Nine Energy Service, Inc. was incorporated in 2011 and is headquartered in Houston, Texas.

Details
Name: Nine Energy Service, Inc.
NINE
Exchange: NYSE
Founded: 2011
$536,457,928
30,707,380
Website: http://nineenergyservice.com
Address: Nine Energy Service, Inc.
2001 Kirby Drive,
Suite 200,
Houston,
Texas, 77019,
United States
Listings
Exchange Symbol Ticker Symbol Security Exchange Country Currency Listed on
NYSE NINE Common Stock New York Stock Exchange US USD 19. Jan 2018
DB NEJ Common Stock Deutsche Boerse AG DE EUR 19. Jan 2018
Number of employees
Current staff
Staff numbers
2,261
Nine Energy Service employees.
Industry
Oil and Gas Equipment and Services
Energy
Company Analysis and Financial Data Status
Area Date (UTC time)
Company Analysis updated: 2019/06/24 01:08
End of day share price update: 2019/06/21 00:00
Last estimates confirmation: 2019/06/20
Last earnings filing: 2019/05/08
Last earnings reported: 2019/03/31
Last annual earnings reported: 2018/12/31


All dates and times in UTC. All financial data provided by Standard & Poor’s Capital IQ.

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.