Natural Gas Services Group, Inc.
Natural Gas Services Group, Inc. Fundamental Analysis
Natural Gas Services Group, Inc. (NGS) shows moderate financial fundamentals with a PE ratio of 25.31, profit margin of 11.20%, and ROE of 7.10%. The company generates $0.2B in annual revenue with strong year-over-year growth of 29.36%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 51.7/100 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 NGS's fundamental strength across five key dimensions:
Efficiency Score
WeakNGS struggles to generate sufficient returns from assets.
Valuation Score
WeakNGS trades at a premium to fair value.
Growth Score
ModerateNGS shows steady but slowing expansion.
Financial Health Score
ExcellentNGS maintains a strong and stable balance sheet.
Profitability Score
WeakNGS struggles to sustain strong margins.
Key Financial Metrics
Is NGS Expensive or Cheap?
P/E Ratio
NGS trades at 25.31 times earnings. This indicates a fair valuation.
PEG Ratio
When adjusting for growth, NGS's PEG of 6.08 indicates potential overvaluation.
Price to Book
The market values Natural Gas Services Group, Inc. at 1.74 times its book value. This may indicate undervaluation.
EV/EBITDA
Enterprise value stands at 3.70 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 $11.20 as profit after all expenses.
Operating Margin
Core operations generate 21.72 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $7.10 in profit for every $100 of shareholder equity.
ROA
Natural Gas Services Group, Inc. generates $3.32 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 $57.32M, reflecting robust business health.
Free Cash Flow
Natural Gas Services Group, Inc. generates weak or negative free cash flow of $-44.35M, restricting financial flexibility.
FCF Per Share
Each share generates $-3.53 in free cash annually.
FCF Yield
NGS converts -9.29% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
25.31
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
6.08
vs 25 benchmark
P/B Ratio
Price to book value ratio
1.74
vs 25 benchmark
P/S Ratio
Price to sales ratio
2.84
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
0.77
vs 25 benchmark
Current Ratio
Current assets to current liabilities
1.83
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 | 25.31 | 20.19 | Worse (Expensive) |
| ROE | 7.10% | 1019.00% | Weak |
| Net Margin | 11.20% | -44017.00% (disorted) | Strong |
| Debt/Equity | 0.77 | -0.65 (disorted) | Distorted |
| Current Ratio | 1.83 | 4.60 | Neutral |
| ROA | 3.32% | -11655350.00% (disorted) | Weak |
NGS outperforms its industry in 1 out of 6 key metrics, particularly excelling in Net Margin, but lagging in P/E Ratio.
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
111.11%
Industry Style: Cyclical, Value, Commodity
High GrowthEPS CAGR
231.28%
Industry Style: Cyclical, Value, Commodity
High GrowthFCF CAGR
138.75%
Industry Style: Cyclical, Value, Commodity
High Growth