Natural Gas Services Stock Analysis, Valuation (NYSE:NGS)

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$26.25 $0.3 (1.13%) NGS stock closing price Apr 23, 2018 (Closing)
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Natural Gas Services
Updated on : Apr 23, 2018
previous close
NGS 26.3 (0%)
S&P 500 2670.3 (0%)
Closing Price On: Apr 23, 2018
stock rating
RATING: ★★★★★★★★★★ (0/5)
Industry :
Oil Field Machines and equipment
Sector :
Oils-Energy
5 Quarter Revenue
Revenue Growth
2017-Q4
$million
%
YOY GROWTH
Compared to the industry
Long Term Growth
5 Year CAGR:
-6.3%
Operating Profit
Operating Margin:
2.3%
Sector Average:
5.8%
5 Quarter Net Profit
Net Margins
2017-Q4
%
LTM Margin
Compared to the industry
Debt/Equity Ratio
Debt:
0.4M
Debt/Equity Ratio:
 0
Compared to the industry
Cash Flow
Operating cash flow:
$3.3M
Net Income:
$18.7M
PROS      CONS
Net Margins
Low Debt Burden
ROE
Recent Growth
Long Term Growth
Cash Flow
FCF Margin
PE Valuation
PS Valuation
Rating: ★★★★★★★★★★ (0/5)
Relative Valuation
NGS PS :
5.1
Industry PS :
1.7
Sector:   Oils-Energy.   *PE adjusted for one time items.
Other Metrics
Return on Invested Capital:
0.6%
Return on Equity:
8.3%
Free Cash Flow Margin:
-32.9%
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NGS Stock Analysis

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View the Natural Gas Services stock analysis video on Amigobulls. This video puts forward our latest analysis highlighting the pros and cons for NGS stock.

Note: Amigobulls stock rating is our opinion based on the historical performance of the company's fundamentals. It is not indicative of the future performance of the stock.

Natural Gas Services Group, Inc. Stock Rating 2.7/5

Amigobulls NGS stock analysis takes into account various financial ratios like relative valuation, Natural Gas Services revenue, growth and return on equity based on latest quarter 2017 Q4 financial statements. We also check Natural Gas Services dividend performance. We also use relative valuation metrics like PE ratio and price to sales ratio for Natural Gas Services valuation analysis. Our Natural Gas Services stock rating is based on company's fundamentals like balance sheet risk and cash flow position.

Should you buy NGS stock?

  • Net margins came in at average 29.3% for Natural Gas Services over the last twelve months.
  • With a debt/equity ratio of  0, Natural Gas Services is comparatively less leveraged than its peers in the Oils-Energy sector.
  • The LTM ROE of 8.3% for Natural Gas Services is attractive.

Should you sell NGS stock?

  • Natural Gas Services revenue saw a decline of 0% YoY in 2017 Q4.
  • Revenue declined at a CAGR of -6.3% over the last 5 years.
  • Cash flow from operations is 0.2 times net income which is a negative signal.
  • Trading at a PE ratio of 218.8, NGS stock is overvalued in comparison to industry average multiple of 24.1.
  • The company is trading at a price to sales multiple of 5.1, which is higher in comparison to the Oil Field Machines and equipment industry average of 1.7, making NGS stock expensive.
  • The company has a negative free cash flow margin of -32.9%.

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Comments on this video and Natural Gas Services stock

Investors can use Amigobulls Natural Gas Services stock analysis as a tool to arrive at accurate conclusions regarding financial health of the company and its valuation. The fundamentals of a company are vital to identify long-term investment opportunities.

Natural Gas Services revenue growth is an indicator of the demand for a company's products while profit margin is indicative of company's pricing power and pricing strategy. Along with fundamentals, investors can utilize technical analysis to get a better idea about the price trend of Natural Gas Services stock.