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

Reasonable growth potential and fair value.

Risks

  • Nine Energy Service has significant price volatility in the past 3 months.

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

-21.2%

NYSE:NINE

-5.5%

US Energy Services

-1.0%

US Market


1 Year Return

-73.9%

NYSE:NINE

-47.1%

US Energy Services

-0.4%

US Market

NINE underperformed the Energy Services industry which returned -47.2% over the past year.

NINE underperformed the Market in United States of America which returned -0.4% over the past year.


Share holder returns

NINEIndustryMarket
7 Day-21.2%-5.5%-1.0%
30 Day-42.7%-14.8%-3.3%
90 Day-63.7%-20.9%0.8%
1 Year-73.9%-73.9%-45.8%-47.1%1.9%-0.4%
3 Yearn/a-54.5%-59.9%39.4%30.4%
5 Yearn/a-71.0%-75.2%54.2%37.1%

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 based on future cash flows and its price relative to the stock market?

44%

Discount to future cash flow value


Intrinsic Value Based on Future Cash Flows

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 Based on Earnings

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

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

Nine Energy Service is good value based on assets compared to the US Energy Services industry average.


Next Steps

Future Growth

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

90.7%

Forecasted annual earnings growth


Earnings and Revenue Growth Estimates


Future Annual Growth Analysis

Nine Energy Service's revenue is expected to grow by 11.1% yearly, however this is not considered high growth (20% yearly).

Nine Energy Service's earnings are expected to grow significantly at over 20% yearly.

Nine Energy Service's revenue growth is expected to exceed the United States of America market average.

Nine Energy Service's earnings growth is expected to exceed the United States of America market average.

Nine Energy Service's earnings growth is expected to exceed the low risk savings rate of 2.7%.


Earnings per Share Growth Estimates


Future Return on Equity

Nine Energy Service is not expected to efficiently use shareholders’ funds in the future (Return on Equity less than 20%).


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

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.


Return on Equity

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.


Return on Assets

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.


Return on Capital Employed

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.


Next Steps

Financial Health

How is Nine Energy Service's financial position?


Financial Position Analysis

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.


Debt to Equity History and Analysis

Nine Energy Service's level of debt (62.6%) 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.


Balance Sheet

High level of physical assets or inventory.

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.

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 -112.3% per year.


Next Steps

Dividend

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


Dividend Yield and Payments Analysis

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.

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

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.


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?

2.0yrs

Average management tenure


CEO

Ann Fox (42yo)

4.1yrs

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

Ann's remuneration is higher than average for companies of similar size in United States of America.

Ann's compensation has been consistent with company performance over the past year, both up more than 20%.


Management Age and Tenure

2.0yrs

Average Tenure

45yo

Average Age

The tenure for the Nine Energy Service management team is about average.


Board Age and Tenure

2.5yrs

Average Tenure

56yo

Average Age

The average tenure for the Nine Energy Service board of directors is less than 3 years, this suggests a new board.


Insider Trading

No 3 month open market individual insider trading information.


Recent Insider Transactions

SellUS$583,70815 May 19
David Crombie
EntityIndividual
Role
Executive VP & COO
Shares27,011
Max PriceUS$21.61
SellUS$216,15813 May 19
Clinton Roeder
EntityIndividual
Role
Senior VP & CFO
Shares9,750
Max PriceUS$22.17
SellUS$500,08213 May 19
Ann Fox
EntityIndividual
Role
President
Member of the Board of Directors
Shares22,731
Max PriceUS$22.00
SellUS$107,50013 May 19
David Crombie
EntityIndividual
Role
Executive VP & COO
Shares5,000
Max PriceUS$21.50
SellUS$188,04413 May 19
Theodore Moore
EntityIndividual
Role
Senior VP
Shares8,730
Max PriceUS$21.54
SellUS$1,344,00014 Mar 19
David Crombie
EntityIndividual
Role
Executive VP & COO
Shares60,000
Max PriceUS$22.40
SellUS$354,33919 Nov 18
Ann Fox
EntityIndividual
Role
President
Member of the Board of Directors
Shares12,077
Max PriceUS$29.34
SellUS$1,754,40019 Nov 18
David Crombie
EntityIndividual
Role
Executive VP & COO
Shares60,000
Max PriceUS$29.24
SellUS$129,51523 Aug 18
Richard Woolston
EntityIndividual
Shares4,186
Max PriceUS$30.94
SellUS$617,87022 Aug 18
Edward Morgan
EntityIndividual
Role
President of Production Solutions
Shares20,500
Max PriceUS$30.14

Ownership Breakdown


Management Team

  • Ted Moore (41yo)

    Senior VP

    • Tenure: 2.4yrs
    • Compensation: $1.55m
  • David Crombie (45yo)

    Executive VP & COO

    • Tenure: 0.6yrs
    • Compensation: $2.48m
  • Heather Schmidt

    Vice President of Investor Relations & Marketing

    • Tenure: 2.4yrs
  • Edward Morgan (51yo)

    President of Production Solutions

    • Tenure: 2.4yrs
    • Compensation: $1.16m
  • Ann Fox (42yo)

    President

    • Tenure: 4.1yrs
    • Compensation: $3.92m
  • S. Luz

    Chief Accounting Officer

    • Tenure: 0.9yrs
  • Clinton Roeder (48yo)

    Senior VP & CFO

    • Tenure: 1.7yrs
    • Compensation: $1.86m
  • Nick Pottmeyer

    Senior Vice President of US Completion Tools

    • Tenure: 0.6yrs
  • James Holley

    Chief Technology Officer


Board Members

  • Gary Thomas (69yo)

    Director

    • Tenure: 6.4yrs
    • Compensation: $170.00k
  • Scott Schwinger (53yo)

    Director

    • Tenure: 2.3yrs
    • Compensation: $312.50k
  • Mark Baldwin (65yo)

    Director

    • Tenure: 6.3yrs
  • Darryl Willis (49yo)

    Independent Director

    • Tenure: 1.0yrs
    • Compensation: $159.99k
  • Andy Waite (59yo)

    Director

    • Tenure: 6.5yrs
    • Compensation: $170.00k
  • David Baldwin (56yo)

    Director

    • Tenure: 2.5yrs
    • Compensation: $170.00k
  • Ann Fox (42yo)

    President

    • Tenure: 4.9yrs
    • Compensation: $3.92m
  • Curtis Harrell (55yo)

    Director

    • Tenure: 2.5yrs
    • Compensation: $180.00k
  • Ernie Danner (64yo)

    Chairman of the Board

    • Tenure: 2.5yrs
    • Compensation: $249.99k

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$237.773m
  • Shares outstanding: 30.68m
  • Website: Click here

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 Analysis2019/08/18 00:53
End of Day Share Price2019/08/16 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.