NexTier Oilfield Solutions Inc.
NexTier Oilfield Solutions Inc. Fundamental Analysis
NexTier Oilfield Solutions Inc. (NEX) shows moderate financial fundamentals with a PE ratio of 8.20, profit margin of 9.71%, and ROE of 47.12%. The company generates $3.0B in annual revenue with N/A year-over-year growth of N/A.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 62.5/100 based on profitability, valuation, growth, and balance sheet metrics. The C+ grade reflects average fundamentals, with notable risks in certain areas.
Fundamental Health Score
We analyze NEX's fundamental strength across five key dimensions:
Efficiency Score
ExcellentNEX demonstrates superior asset utilization.
Valuation Score
ExcellentNEX trades at attractive valuation levels.
Growth Score
ModerateNEX shows steady but slowing expansion.
Financial Health Score
ExcellentNEX maintains a strong and stable balance sheet.
Profitability Score
ModerateNEX maintains healthy but balanced margins.
Key Financial Metrics
Is NEX Expensive or Cheap?
P/E Ratio
NEX trades at 8.20 times earnings. This suggests potential undervaluation.
PEG Ratio
When adjusting for growth, NEX's PEG of 0.08 indicates potential undervaluation.
Price to Book
The market values NexTier Oilfield Solutions Inc. at 3.27 times its book value. This suggests the stock is fully valued or overvalued on an asset basis.
EV/EBITDA
Enterprise value stands at 5.65 times EBITDA. This is generally considered low.
How Well Does NEX Make Money?
Net Profit Margin
For every $100 in sales, NexTier Oilfield Solutions Inc. keeps $9.71 as profit after all expenses.
Operating Margin
Core operations generate 5.10 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $47.12 in profit for every $100 of shareholder equity.
ROA
NexTier Oilfield Solutions Inc. generates $18.24 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
NexTier Oilfield Solutions Inc. produces operating cash flow of $426.74M, showing steady but balanced cash generation.
Free Cash Flow
NexTier Oilfield Solutions Inc. produces free cash flow of $215.32M, offering steady but limited capital for shareholder returns and expansion.
FCF Per Share
Each share generates $0.94 in free cash annually.
FCF Yield
NEX converts 9.45% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
8.20
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
0.08
vs 25 benchmark
P/B Ratio
Price to book value ratio
3.27
vs 25 benchmark
P/S Ratio
Price to sales ratio
0.75
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
0.52
vs 25 benchmark
Current Ratio
Current assets to current liabilities
1.31
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.47
vs 25 benchmark
ROA
Return on assets percentage
0.18
vs 25 benchmark
ROCE
Return on capital employed
0.14
vs 25 benchmark
How NEX Stacks Against Its Sector Peers
| Metric | NEX Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 8.20 | 20.19 | Better (Cheaper) |
| ROE | 47.12% | 1019.00% | Weak |
| Net Margin | 9.71% | -44017.00% (disorted) | Weak |
| Debt/Equity | 0.52 | -0.65 (disorted) | Distorted |
| Current Ratio | 1.31 | 4.60 | Neutral |
| ROA | 18.24% | -11655350.00% (disorted) | Strong |
NEX outperforms its industry in 2 out of 6 key metrics, particularly excelling in ROA, but lagging in ROE.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews NexTier Oilfield Solutions Inc.'s 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
N/A
Industry Style: Cyclical, Value, Commodity
EPS CAGR
N/A
Industry Style: Cyclical, Value, Commodity
FCF CAGR
N/A
Industry Style: Cyclical, Value, Commodity