Natural Gas Services Group, Inc. Fundamental Analysis (NYSE: NGS)
Natural Gas Services Group, Inc. Fundamental Analysis (NYSE: NGS)
Natural Gas Services Group, Inc. (NYSE: NGS) shows weak financial fundamentals with a PE ratio of 17.93, profit margin of 9.80%, and ROE of 7.07%. The company generates $0.2B in annual revenue with moderate year-over-year growth of 9.94%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 48.4/100 based on profitability, valuation, growth, and balance sheet metrics. The D grade reflects weak fundamentals and significant financial concerns.
Fundamental Health Score
We analyze NGS's fundamental strength across five key dimensions:
Efficiency Score
WeakNGS struggles to generate sufficient returns from assets.
Valuation Score
ModerateNGS shows balanced valuation metrics.
Growth Score
ExcellentNGS delivers strong and consistent growth momentum.
Financial Health Score
ModerateNGS shows balanced financial health with some risks.
Profitability Score
WeakNGS struggles to sustain strong margins.
Key Financial Metrics
Is NGS Expensive or Cheap?
P/E Ratio
NGS trades at 17.93 times earnings. This indicates a fair valuation.
PEG Ratio
When adjusting for growth, NGS's PEG of 2.69 indicates potential overvaluation.
Price to Book
The market values Natural Gas Services Group, Inc. at 1.24 times its book value. This may indicate undervaluation.
EV/EBITDA
Enterprise value stands at 0.34 times EBITDA. This is generally considered low.
How Well Does NGS Make Money?
Net Profit Margin
For every $100 in sales, Natural Gas Services Group, Inc. keeps $9.80 as profit after all expenses.
Operating Margin
Core operations generate 22.55 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $7.07 in profit for every $100 of shareholder equity.
ROA
Natural Gas Services Group, Inc. generates $2.77 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
Natural Gas Services Group, Inc. generates strong operating cash flow of $79.10M, reflecting robust business health.
Free Cash Flow
Natural Gas Services Group, Inc. generates strong free cash flow of $46.94M, providing ample flexibility for dividends, buybacks, or growth.
FCF Per Share
Each share generates $3.64 in free cash annually.
FCF Yield
NGS converts 12.66% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
17.93
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
2.69
vs 25 benchmark
P/B Ratio
Price to book value ratio
1.24
vs 25 benchmark
P/S Ratio
Price to sales ratio
1.79
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
1.14
vs 25 benchmark
Current Ratio
Current assets to current liabilities
2.45
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.07
vs 25 benchmark
ROA
Return on assets percentage
0.03
vs 25 benchmark
ROCE
Return on capital employed
0.07
vs 25 benchmark
How NGS Stacks Against Its Sector Peers
| Metric | NGS Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 17.93 | 20.60 | Better (Cheaper) |
| ROE | 7.07% | 1363.00% | Weak |
| Net Margin | 9.80% | 1351.00% | Weak |
| Debt/Equity | 1.14 | -1.64 (disorted) | Distorted |
| Current Ratio | 2.45 | 2.16 | Strong Liquidity |
| ROA | 2.77% | 2679.00% | Weak |
NGS outperforms its industry in 2 out of 6 key metrics, but lagging in ROE.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews Natural Gas Services Group, Inc.'s 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
167.05%
Industry Style: Cyclical, Value, Commodity
High GrowthEPS CAGR
1062.52%
Industry Style: Cyclical, Value, Commodity
High GrowthFCF CAGR
103.28%
Industry Style: Cyclical, Value, Commodity
High Growth