Nine Energy Service, Inc. operates as an onshore completion and production services provider that targets unconventional oil and gas resource development in North America. It operates in two segments, Completion Solutions and Production Solutions. The company was formerly known as NSC-Tripoint, Inc. and changed its name to Nine Energy Service, Inc. in October 2011. Nine Energy Service, Inc. was incorporated in 2011 and is based in Houston, Texas.
NINE Price Forecast Based on DCF Valuation
DCF Fair Value Target:
Below please find a table outlining a discounted cash flow forecast for NINE, in which we model out valuation assuming a variety of terminal growth rates. To summarize, we found that Nine Energy Service Inc ranked in the 85th percentile in terms of potential gain offered. Moreover, under all the scenarios we modelled, the output consistently forecasted positive returns. In terms of the factors that were most noteworthy in this DCF analysis for NINE, they are:
9% of the company's capital comes from equity, which is greater than only 3.29% of stocks in our cash flow based forecasting set.
Nine Energy Service Inc's interest coverage rate -- a measure of gross earnings relative to interest payments -- comes in at -13.74. This coverage rate is greater than that of merely 7.04% of stocks we're observing for the purpose of forecasting via discounted cash flows.
The weighted average cost of capital for the company is 18. This value is greater than 89.86% stocks in the Energy sector that generate free cash flow.
Terminal Growth Rate in Free Cash Flow
Return Relative to Current Share Price
For other companies in the Energy that have a similar discounted cashflow valuation profile (and ensuing price forecasts) as NINE, try GPRK, MRC, SMLP, GEL, and BKEP.
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