Nine Energy Service
Market Cap
US$88.1m
Last Updated
2021/01/26 01:19 UTC
Data Sources
Company Financials +
Executive Summary
Nine Energy Service, Inc. operates as an onshore completion services provider that targets unconventional oil and gas resource development across North American basins and internationally. More Details
Rewards
Risk Analysis
Currently unprofitable and not forecast to become profitable over the next 3 years
Snowflake Analysis
Imperfect balance sheet with concerning outlook.
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 is more volatile than 75% of US stocks over the past 3 months, typically moving +/- 17% a week.
Volatility Over Time: NINE's weekly volatility has decreased from 28% to 17% over the past year, but is still higher than 75% of US stocks.
Market Performance
7 Day Return
-5.4%
NINE
-3.5%
US Energy Services
2.3%
US Market
1 Year Return
-50.4%
NINE
-24.9%
US Energy Services
23.8%
US Market
Return vs Industry: NINE underperformed the US Energy Services industry which returned -24.9% over the past year.
Return vs Market: NINE underperformed the US Market which returned 23.8% over the past year.
Shareholder returns
| NINE | Industry | Market | |
|---|---|---|---|
| 7 Day | -5.4% | -3.5% | 2.3% |
| 30 Day | -0.7% | 9.8% | 4.8% |
| 90 Day | 146.9% | 63.8% | 16.7% |
| 1 Year | -50.4%-50.4% | -22.8%-24.9% | 26.6%23.8% |
| 3 Year | -89.2%-89.2% | -59.5%-62.8% | 45.0%35.4% |
| 5 Year | n/a | -48.7%-57.7% | 126.2%101.0% |
Long-Term 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 week ago | Simply Wall St
Is Nine Energy Service (NYSE:NINE) Using Debt Sensibly?2 months ago | Simply Wall St
If You Had Bought Nine Energy Service's (NYSE:NINE) Shares A Year Ago You Would Be Down 66%3 months ago | Simply Wall St
Is Nine Energy Service (NYSE:NINE) Using Too Much Debt?Valuation
Is Nine Energy Service undervalued compared to its fair value and its price relative to the market?
1.64x
Price to Book (PB) ratio
Share Price vs. Fair Value
Below Fair Value: NINE ($2.79) is trading above our estimate of fair value ($1.11)
Significantly Below Fair Value: NINE is trading above our estimate of fair value.
Price To Earnings Ratio
PE vs Industry: NINE is unprofitable, so we can't compare its PE Ratio to the US 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 overvalued based on its PB Ratio (1.6x) compared to the US Energy Services industry average (0.9x).
Next Steps
Future Growth
How is Nine Energy Service forecast to perform in the next 1 to 3 years based on estimates from 4 analysts?
68.2%
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 (17.2% per year) is forecast to grow faster than the US market (10.6% per year).
High Growth Revenue: NINE's revenue (17.2% per year) is forecast to grow slower than 20% per year.
Earnings per Share Growth Forecasts
Future Return on Equity
Future ROE: Insufficient data to determine if NINE's Return on Equity is forecast to be high in 3 years time
Next Steps
Past Performance
How has Nine Energy Service performed over the past 5 years?
-65.8%
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 65.8% 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 (-4%).
Return on Equity
High ROE: NINE has a negative Return on Equity (-1052.43%), as it is currently unprofitable.
Next Steps
Financial Health
How is Nine Energy Service's financial position?
Financial Position Analysis
Short Term Liabilities: NINE's short term assets ($188.6M) exceed its short term liabilities ($35.2M).
Long Term Liabilities: NINE's short term assets ($188.6M) do not cover its long term liabilities ($349.7M).
Debt to Equity History and Analysis
Debt Level: NINE's debt to equity ratio (641.6%) 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
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: NINE has sufficient cash runway for more than 3 years based on its current free cash flow.
Forecast Cash Runway: Insufficient data to determine if NINE has enough cash runway if its free cash flow continues to grow or shrink based on historical rates.
Next Steps
Dividend
What is Nine Energy Service current dividend yield, its reliability and sustainability?
Dividend Yield vs Market
Notable Dividend: Unable to evaluate NINE's dividend yield against the bottom 25% of dividend payers, as the company has not reported any recent payouts.
High Dividend: Unable to evaluate NINE's dividend yield against the top 25% of dividend payers, as the company has not reported any recent 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?
2.2yrs
Average management tenure
CEO
Ann Fox (43 yo)
5.5yrs
Tenure
US$2,845,506
Compensation
Ms. Ann G. Fox serves as Director at Devon Energy Corporation since June 05, 2019. She has been Chief Executive Officer and President of Nine Energy Service, Inc. since July 2015. Ms. Fox served as Chief F...
CEO Compensation Analysis
Compensation vs Market: Ann's total compensation ($USD2.85M) is above average for companies of similar size in the US market ($USD529.89K).
Compensation vs Earnings: Ann's compensation has been consistent with company performance over the past year.
Leadership Team
| Name | Position | Tenure | Compensation | Ownership |
|---|---|---|---|---|
| President | 5.5yrs | US$2.85m | 1.36% $ 1.2m | |
| Executive VP & COO | 2yrs | US$1.99m | 0.85% $ 751.5k | |
| Senior VP | 3.83yrs | US$1.23m | 0.43% $ 374.9k | |
| President of Wireline | no data | US$685.33k | 0.45% $ 394.3k | |
| Senior VP & CFO | 0.83yr | no data | 0.33% $ 292.0k | |
| Chief Accounting Officer | 2.33yrs | no data | 0.13% $ 117.9k | |
| Chief Technology Officer | no data | no data | no data | |
| Vice President of Strategic Development | 3.83yrs | no data | no data | |
| President of Completion Tools | 2yrs | no data | no data | |
| President of Cementing & Coiled Tubing | 1yr | no data | no data |
2.2yrs
Average Tenure
44.5yo
Average Age
Experienced Management: NINE's management team is considered experienced (2.2 years average tenure).
Board Members
| Name | Position | Tenure | Compensation | Ownership |
|---|---|---|---|---|
| President | 5.5yrs | US$2.85m | 1.36% $ 1.2m | |
| Independent Director | 3.92yrs | US$169.99k | 0.047% $ 41.8k | |
| Independent Director | 7.92yrs | US$169.99k | 0.047% $ 41.8k | |
| Independent Director | 3.92yrs | US$179.99k | 0.20% $ 174.7k | |
| Chairman of the Board | 3.92yrs | US$249.99k | 0.47% $ 412.6k | |
| Independent Director | 7.83yrs | US$179.99k | 0.17% $ 153.6k | |
| Independent Director | 7.67yrs | US$186.24k | 0.11% $ 96.9k | |
| Independent Director | 3.67yrs | US$183.74k | 0.086% $ 75.5k | |
| Independent Director | 2.42yrs | US$179.99k | 0.070% $ 62.0k |
3.9yrs
Average Tenure
57yo
Average Age
Experienced Board: NINE's board of directors are considered experienced (3.9 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.
Ownership Breakdown
Dilution of Shares: Shareholders have been diluted in the past year, with total shares outstanding growing by 3.2%.
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$88.057m
- Shares outstanding: 31.56m
- 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 services provider that targets unconventional oil and gas resource development across North American basins and internationally. It offers cement...
Company Analysis and Financial Data Status
| Data | Last Updated (UTC time) |
|---|---|
| Company Analysis | 2021/01/26 01:19 |
| End of Day Share Price | 2021/01/25 00:00 |
| Earnings | 2020/09/30 |
| Annual Earnings | 2019/12/31 |
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.