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 Analysis

Fair value with moderate growth potential.


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

Stable Share Price: NINE's share price has been volatile over the past 3 months.


Market Performance


7 Day Return

-1.8%

NINE

-3.4%

US Energy Services

-1.1%

US Market


1 Year Return

-78.8%

NINE

-31.8%

US Energy Services

17.9%

US Market

Return vs Industry: NINE underperformed the US Energy Services industry which returned -31.8% over the past year.

Return vs Market: NINE underperformed the US Market which returned 17.9% over the past year.


Shareholder returns

NINEIndustryMarket
7 Day-1.8%-3.4%-1.1%
30 Day-9.7%-7.2%1.4%
90 Day8.0%-7.6%6.9%
1 Year-78.8%-78.8%-29.6%-31.8%20.3%17.9%
3 Yearn/a-55.2%-60.9%47.8%38.3%
5 Yearn/a-57.5%-64.7%71.9%53.0%

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

Below Fair Value: NINE ($5.42) is trading below our estimate of fair value ($31.73)

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 (0.6x).


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?

62.4%

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 (1.7%).

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's is expected to become profitable in the next 3 years.

Revenue vs Market: NINE's revenue is expected to decline over the next 3 years (-0.4% per year).

High Growth Revenue: NINE's revenue is forecast to decline over the next 3 years (-0.4% 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 (1.6%).


Next Steps

Past Performance

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

-19.8%

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 -19.8% 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 (-32.9%).


Return on Equity

High ROE: NINE has a negative Return on Equity (-12.29%), as it is currently unprofitable.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is Nine Energy Service's financial position?


Financial Position Analysis

Short Term Liabilities: NINE's short term assets ($292.5M) exceed its short term liabilities ($73.8M).

Long Term Liabilities: NINE's short term assets ($292.5M) do not cover its long term liabilities ($401.0M).


Debt to Equity History and Analysis

Debt Level: NINE's debt to equity ratio (64.5%) 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 5.1% per year.


Next Steps

Dividend

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


Dividend Yield vs Market

companyn/amarketbottom25%1.4%markettop25%3.7%industryaverage4.3%forecastin3Years0%

Current dividend yield vs market & industry

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.


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.


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

How experienced are the management team and are they aligned to shareholders interests?

1.8yrs

Average management tenure


CEO

Ann Fox (42yo)

4.6yrs

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: Ann's total compensation ($USD3.92M) is above average for companies of similar size in the US market ($USD1.11M).

Compensation vs Earnings: Ann's compensation has been consistent with company performance over the past year.


Leadership Team

NamePositionTenureCompensationOwnership
Ann Fox
President4.6yrsUS$3.92m0.73% $1.2m
Clinton Roeder
Senior VP & CFO2.2yrsUS$1.86m0.15% $247.9k
David Crombie
Executive VP & COO1.1yrsUS$2.48m0.40% $662.0k
Edward Morgan
President of Administration & Operations0.4yrsUS$1.16m0.36% $600.3k
Theodore Moore
Senior VP2.9yrsUS$1.55m0.17% $281.6k
S. Luz
Chief Accounting Officer1.4yrsno data0.056% $92.6k
James Holley
Chief Technology Officer0yrsno datano data
Heather Schmidt
Vice President of Investor Relations & Marketing2.9yrsno datano data
Nick Pottmeyer
Senior Vice President of US Completion Tools1.1yrsno datano data

1.8yrs

Average Tenure

45yo

Average Age

Experienced Management: NINE's management team is not considered experienced ( 1.8 years average tenure), which suggests a new team.


Board Members

NamePositionTenureCompensationOwnership
Ann Fox
President4.6yrsUS$3.92m0.73% $1.2m
David Baldwin
Independent Director3yrsUS$170.00k0.027% $45.1k
Andrew Waite
Independent Director7yrsUS$170.00k0.027% $45.1k
Curtis Harrell
Independent Director3yrsUS$180.00k0.17% $288.1k
Ernie Danner
Chairman of the Board3yrsUS$249.99k0.44% $736.9k
Gary Thomas
Independent Director6.9yrsUS$170.00k0.14% $226.3k
Mark Baldwin
Independent Director6.8yrsno data0.070% $116.1k
Scott Schwinger
Independent Director2.8yrsUS$312.50k0.045% $74.5k
Darryl Willis
Independent Director1.5yrsUS$159.99k0.029% $48.3k

3.0yrs

Average Tenure

56yo

Average Age

Experienced Board: NINE's board of directors are considered experienced (3 years average tenure).


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold 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 34.8%.


Top Shareholders

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$165.687m
  • Shares outstanding: 30.57m
  • 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 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. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/02/23 03:06
End of Day Share Price2020/02/21 00:00
Earnings2019/09/30
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.