Nine Energy Service, Inc.
Nine Energy Service, Inc. Fundamental Analysis
Nine Energy Service, Inc. (NINE) shows moderate financial fundamentals with a PE ratio of 2.36, profit margin of 11.52%, and ROE of -1.57%. The company generates $1.7B in annual revenue with weak year-over-year growth of 0.00%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of -131.6/100 based on profitability, valuation, growth, and balance sheet metrics. The F grade reflects weak fundamentals and significant financial concerns.
Fundamental Health Score
We analyze NINE's fundamental strength across five key dimensions:
Efficiency Score
ExcellentNINE demonstrates superior asset utilization.
Valuation Score
ExcellentNINE trades at attractive valuation levels.
Growth Score
WeakNINE faces weak or negative growth trends.
Financial Health Score
ExcellentNINE maintains a strong and stable balance sheet.
Profitability Score
WeakNINE struggles to sustain strong margins.
Key Financial Metrics
Is NINE Expensive or Cheap?
P/E Ratio
NINE trades at 2.36 times earnings. This suggests potential undervaluation.
PEG Ratio
When adjusting for growth, NINE's PEG of -0.01 indicates potential undervaluation.
Price to Book
The market values Nine Energy Service, Inc. at 1.10 times its book value. This may indicate undervaluation.
EV/EBITDA
Enterprise value stands at 8.50 times EBITDA. This is generally considered low.
How Well Does NINE Make Money?
Net Profit Margin
For every $100 in sales, Nine Energy Service, Inc. keeps $11.52 as profit after all expenses.
Operating Margin
Core operations generate -2.17 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $-1.57 in profit for every $100 of shareholder equity.
ROA
Nine Energy Service, Inc. generates $19.13 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
Nine Energy Service, Inc. generates limited operating cash flow of $-44.70M, signaling weaker underlying cash strength.
Free Cash Flow
Nine Energy Service, Inc. generates weak or negative free cash flow of $-101.82M, restricting financial flexibility.
FCF Per Share
Each share generates $-2.35 in free cash annually.
FCF Yield
NINE converts -7.21% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
2.36
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
-0.01
vs 25 benchmark
P/B Ratio
Price to book value ratio
1.10
vs 25 benchmark
P/S Ratio
Price to sales ratio
0.84
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
0.94
vs 25 benchmark
Current Ratio
Current assets to current liabilities
2.13
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
-1.57
vs 25 benchmark
ROA
Return on assets percentage
0.19
vs 25 benchmark
ROCE
Return on capital employed
-0.05
vs 25 benchmark
How NINE Stacks Against Its Sector Peers
| Metric | NINE Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 2.36 | 21.39 | Better (Cheaper) |
| ROE | -157.31% | 922.00% | Weak |
| Net Margin | 11.52% | -57637.00% (disorted) | Strong |
| Debt/Equity | 0.94 | -0.49 (disorted) | Distorted |
| Current Ratio | 2.13 | 5.04 | Strong Liquidity |
| ROA | 19.13% | -1987.00% (disorted) | Strong |
NINE outperforms its industry in 4 out of 6 key metrics, particularly excelling in Net Margin, but lagging in ROE.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews Nine Energy Service, Inc.'s 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
0.00%
Industry Style: Cyclical, Value, Commodity
DecliningEPS CAGR
0.00%
Industry Style: Cyclical, Value, Commodity
DecliningFCF CAGR
0.00%
Industry Style: Cyclical, Value, Commodity
Declining