Natural Gas Services Group, Inc. (NGS) Company Bio
Natural Gas Services Group, Inc. provides small to medium horsepower compression equipment to the natural gas industry in the United States. The company rents small to medium horsepower compression equipment to non-conventional gas and oil production businesses, which include coal bed methane, gas shale, tight gas, and oil shales. The company was founded in 1998 and is based in Midland, Texas.
NGS Price Forecast Based on DCF Valuation
DCF Fair Value Target:
Below please find a table outlining a discounted cash flow forecast for NGS, in which we model out valuation assuming a variety of terminal growth rates. To summarize, we found that Natural Gas Services Group Inc ranked in the 40th percentile in terms of potential gain offered. Our DCF analysis suggests the stock is overvalued by about 35.33%. As for the metrics that stood out in our discounted cash flow analysis of Natural Gas Services Group Inc, consider:
As a business, NGS is generating more cash flow than only 5.89% of positive cash flow stocks in the Energy.
The business' balance sheet suggests that 1% of the company's capital is sourced from debt; this is greater than only 6.05% of the free cash flow producing stocks we're observing.
Natural Gas Services Group Inc's interest coverage rate -- a measure of gross earnings relative to interest payments -- comes in at -207.31. This coverage rate is greater than that of only 1.19% of stocks we're observing for the purpose of forecasting via discounted cash flows.
Terminal Growth Rate in Free Cash Flow
Return Relative to Current Share Price
FGPRQ, CVX, MMP, NNA, and NOV can be thought of as valuation peers to NGS, in the sense that they are in the Energy sector and have a similar price forecast based on DCF valuation.
Midland, TX, Nov. 17, 2020 (GLOBE NEWSWIRE) -- Natural Gas Services Group, Inc. (“NGS” or the “Company”) (NYSE:NGS), a leading provider of natural gas compression equipment and services to the energy industry, today announced financial results for the three and nine months ended September 30, 2020.Third Quarter 2020 Highlights * Company generated exceptional cash flow and steady utilization despite market turmoil * Cash balance increased 78% to $27.6 million in Q3 from $15.5 million in Q2 due to strong operating cash flow, reduced CAPEX, and a federal income tax refund of $3.9 million. * Cash flows from operating activities increased 31% to $27.9 million during the first nine months of 2020 compared to $21.3 million during the same period in 2019. * Utilization remaine...
Shares of Natural Gas Services Gr (NYSE:NGS) were flat after the company reported Q3 results.Quarterly Results Earnings per share fell 140.00% year over year to ($0.04), which beat the estimate of ($0.07).Revenue of $15,765,000 declined by 24.40% year over year, which beat the estimate of $14,950,000.Outlook Natural Gas Services Gr hasn't issued any earnings guidance for the time being.View more earnings on NGSNatural Gas Services Gr hasn't issued any revenue guidance for the time being.Price Action Company's 52-week high was at $13.1452-week low: $2.62Price action over last quarter: Up 6.98%Company Profile Natural Gas Services Group Inc is an oil and gas equipment and services company. Its operations focus on the manufacturing, rental, and sale of natural gas compression equipment. Its...
Palm Valley Capital recently released its Q2 2020 Investor Letter, a copy of which you can download here. The fund posted a return of 10.74% for the quarter, underperforming its benchmark, the S&P Small Cap 600 Index which returned 21.94% in the same quarter. You should check out Palm Valley Capital's top 5 stock picks […]
The latest 13F reporting period has come and gone, and Insider Monkey is again at the forefront when it comes to making use of this gold mine of data. We at Insider Monkey have plowed through 821 13F filings that hedge funds and well-known value investors are required to file by the SEC. The 13F […]