Nine Energy Service, Inc. Fundamental Analysis
Nine Energy Service, Inc. (NINEQ) shows moderate financial fundamentals with a PE ratio of -0.01, profit margin of 34.11%, and ROE of 1.29%. The company generates $-0.2B 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 54.7/100 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 NINEQ's fundamental strength across five key dimensions:
Efficiency Score
WeakNINEQ struggles to generate sufficient returns from assets.
Valuation Score
ExcellentNINEQ trades at attractive valuation levels.
Growth Score
WeakNINEQ faces weak or negative growth trends.
Financial Health Score
ExcellentNINEQ maintains a strong and stable balance sheet.
Profitability Score
ModerateNINEQ maintains healthy but balanced margins.
Key Financial Metrics
Is NINEQ Expensive or Cheap?
P/E Ratio
NINEQ trades at -0.01 times earnings. This suggests potential undervaluation.
PEG Ratio
When adjusting for growth, NINEQ's PEG of 0.00 indicates potential undervaluation.
Price to Book
The market values Nine Energy Service, Inc. at 0.00 times its book value. This may indicate undervaluation.
EV/EBITDA
Enterprise value stands at 11.47 times EBITDA. This signals the market has high growth expectations.
How Well Does NINEQ Make Money?
Net Profit Margin
For every $100 in sales, Nine Energy Service, Inc. keeps $34.11 as profit after all expenses.
Operating Margin
Core operations generate -1.56 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $1.29 in profit for every $100 of shareholder equity.
ROA
Nine Energy Service, Inc. generates $-15.74 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 $-7.88M, signaling weaker underlying cash strength.
Free Cash Flow
Nine Energy Service, Inc. generates strong free cash flow of $-25.08M, providing ample flexibility for dividends, buybacks, or growth.
FCF Per Share
Each share generates $-0.58 in free cash annually.
FCF Yield
NINEQ converts -44.73% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
-0.01
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
0.00
vs 25 benchmark
P/B Ratio
Price to book value ratio
0.004
vs 25 benchmark
P/S Ratio
Price to sales ratio
-0.00
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
1.29
vs 25 benchmark
ROA
Return on assets percentage
-0.16
vs 25 benchmark
ROCE
Return on capital employed
0.010
vs 25 benchmark
How NINEQ Stacks Against Its Sector Peers
| Metric | NINEQ Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | -0.01 | 20.85 | Better (Cheaper) |
| ROE | 129.46% | 1014.00% | Weak |
| Net Margin | 34.11% | -57829.00% (disorted) | Strong |
| Debt/Equity | 0.94 | -0.46 (disorted) | Distorted |
| Current Ratio | 2.13 | 4.93 | Strong Liquidity |
| ROA | -15.74% | -10983113.00% (disorted) | Weak |
NINEQ outperforms its industry in 3 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