Ncs Multistage Holdings (NCSM) AI Stock Analysis

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Ncs Multistage Holdings

(NASDAQ:NCSM)

Rating:80Outperform

Price Target:―

NCSM's overall stock score reflects a solid financial foundation, supported by strong profitability and efficient cash flow management. The stock's valuation is appealing, with a low P/E ratio indicating potential undervaluation. Despite challenges highlighted in the earnings call, such as US revenue decline and increased expenses, the company's strategic initiatives and market performance contribute to a positive outlook.

Ncs Multistage Holdings (NCSM) vs. SPDR S&P 500 ETF (SPY)

Market Cap

$81.26M

Dividend YieldN/A

Average Volume (3M)8.36K

Price to Earnings (P/E)9.9

Beta (1Y)0.55

Revenue Growth18.03%

EPS Growth-39.52%

CountryUS

Employees252

SectorEnergy

Sector Strength42

IndustryOil & Gas Equipment & Services

Share Statistics

EPS (TTM)1.51

Shares Outstanding2,540,849

10 Day Avg. Volume5,768

30 Day Avg. Volume8,363

Financial Highlights & Ratios

PEG Ratio0.36

Price to Book (P/B)0.85

Price to Sales (P/S)0.00

P/FCF Ratio7.63

Enterprise Value/Market CapN/A

Enterprise Value/RevenueN/A

Enterprise Value/Gross ProfitN/A

Enterprise Value/EbitdaN/A

Forecast

1Y Price TargetN/A

Price Target UpsideN/A

Rating ConsensusN/A

Number of Analyst Covering0

Ncs Multistage Holdings Business Overview & Revenue Model

Company DescriptionNCS Multistage Holdings, Inc. provides engineered products and support services for oil and natural gas well completions and field development strategies in the United States, Canada, and internationally. It offers fracturing systems, which include casing-installed sliding sleeves, downhole frac isolation assemblies, sand jet perforating products, accelus sliding sleeves, injection control devices, repeat precision products, chemical and radioactive tracer diagnostics, and well construction products. The company also provides tracer diagnostics services for well completion and reservoir characterization that utilize downhole chemical and radioactive tracers. It offers its products and services primarily to exploration and production companies for use in onshore wells through technically-trained direct sales force, and operating partners or sales representatives. The company was formerly known as Pioneer Super Holdings, Inc. and changed its name to NCS Multistage Holdings, Inc. in December 2016. NCS Multistage Holdings, Inc. was founded in 2006 and is headquartered in Houston, Texas.

How the Company Makes MoneyNCS Multistage Holdings makes money by selling its engineered products and providing related services to oil and gas companies. The company generates revenue through the sale of its proprietary well completion technologies, which are designed to improve the efficiency of hydraulic fracturing and other extraction techniques. Additionally, NCSM earns income by offering diagnostic services that assist clients in optimizing well performance, thereby enhancing resource recovery rates and reducing operational costs. The company's revenue streams are significantly influenced by the level of activity in the oil and gas industry, which can be affected by factors such as energy prices and exploration budgets.

Ncs Multistage Holdings Financial Statement Overview

Summary

NCS Multistage Holdings demonstrates a solid financial performance with strong recovery in profitability, improved margins, and efficient cash flow management. While the balance sheet is stable, growth constraints due to asset base limitations should be monitored.

Income Statement

Very Positive

Ncs Multistage Holdings has shown a strong recovery and growth trajectory in its TTM (Trailing-Twelve-Months) income statement. The gross profit margin has improved, and there is a notable increase in revenue, demonstrating a positive upward trend. The net profit margin and EBIT margin have also significantly improved, indicating efficient operational management. However, historical fluctuations in net income are a point of concern.

Balance Sheet

Positive

The company's balance sheet reflects a stable equity position with a good equity ratio, indicating financial stability. The debt-to-equity ratio is low, suggesting manageable leverage. Return on equity has improved, showcasing enhanced profitability. Despite these strengths, the overall asset base has not grown significantly, which may limit growth potential.

Cash Flow

Very Positive

Cash flow metrics are robust, with strong free cash flow growth and positive operating cash flow in the TTM. The company has maintained a healthy operating cash flow to net income ratio, reflecting efficient cash generation relative to reported profits. This strong cash position provides a solid foundation for future investments and debt management.

TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Breakdown
Income Statement		Total Revenue
168.90M	162.56M	142.47M	155.63M	118.50M	106.98M
	Gross Profit
67.87M	62.15M	50.99M	56.09M	43.97M	38.18M
	EBIT
6.31M	4.33M	-5.53M	697.00K	-3.07M	-21.25M
	EBITDA
13.89M	13.98M	1.86M	4.73M	1.72M	-39.20M
	Net Income Common Stockholders
8.58M	6.59M	-3.15M	-952.00K	-3.78M	-39.11M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
23.00M	25.88M	16.72M	16.23M	22.17M	15.54M
	Total Assets
155.12M	152.81M	152.03M	138.60M	142.32M	138.68M
	Total Debt
8.59M	14.63M	13.51M	12.88M	13.15M	11.60M
	Net Debt
-14.41M	-11.24M	-3.21M	-3.35M	-9.02M	-3.94M
	Total Liabilities
34.28M	36.70M	42.64M	29.34M	31.66M	25.19M
	Stockholders Equity
103.17M	98.84M	91.62M	91.03M	92.58M	93.61M
Cash Flow		Free Cash Flow
11.43M	11.42M	2.58M	-2.55M	10.75M	32.96M
	Operating Cash Flow
12.96M	12.72M	4.77M	-1.42M	11.58M	35.12M
	Investing Cash Flow
164.00K	479.00K	-1.68M	-698.00K	-444.00K	-1.06M
	Financing Cash Flow
-4.43M	-4.27M	-2.44M	-2.74M	-4.26M	-29.77M

Ncs Multistage Holdings Technical Analysis

Technical Analysis Sentiment

Positive

Last Price30.95

Price Trends

50DMA

31.55

Negative

100DMA

29.91

Positive

200DMA

25.53

Positive

Market Momentum

MACD

0.38

Positive

RSI

48.76

Neutral

STOCH

25.52

Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For NCSM, the sentiment is Positive. The current price of 30.95 is below the 20-day moving average (MA) of 31.63, below the 50-day MA of 31.55, and above the 200-day MA of 25.53, indicating a neutral trend. The MACD of 0.38 indicates Positive momentum. The RSI at 48.76 is Neutral, neither overbought nor oversold. The STOCH value of 25.52 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for NCSM.

Ncs Multistage Holdings Peers Comparison

Overall Rating

UnderperformOutperform

Sector (57)

Financial Indicators

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
NCSM	80 Outperform	$81.26M	9.94	8.71%	―	18.03%	-39.52%
DTI	64 Neutral	$93.61M	26.47	-1.66%	―	8.19%	-110.61%
Sector *	57 Neutral	$7.06B	3.07	-3.45%	5.82%	0.59%	-50.58%
GEOS	50 Neutral	$75.56M	―	-11.88%	―	-14.52%	-204.65%
DWSN	49 Neutral	$40.28M	―	-39.40%	―	-40.77%	-14.13%
SND	47 Neutral	$81.11M	28.65	-9.09%	―	-0.94%	-353.00%
KLXE	42 Neutral	$32.65M	―	-375.26%	―	-16.38%	-359.80%

* Energy Sector Average

Performance Comparison

NCSM

Ncs Multistage Holdings

30.95

12.97

72.14%

DWSN

Dawson Geophysical Company

1.30

-0.70

-35.00%

GEOS

Geospace Technologies

5.90

-4.26

-41.93%

SND

Smart Sand

1.84

-0.24

-11.54%

KLXE

KLX Energy Services Holdings

1.88

-3.13

-62.48%

DTI

Drilling Tools International

2.63

-3.42

-56.53%

Ncs Multistage Holdings Earnings Call Summary

Earnings Call Date:Apr 30, 2025

(Q1-2025)

% Change Since: 4.88%|

Next Earnings Date:Aug 04, 2025

Earnings Call Sentiment Neutral

The earnings call reflects a strong first quarter with record revenue and growth in key segments like Canada and international markets. However, challenges such as a decline in US revenue, increased expenses, and tariff impacts contribute to a cautious outlook for the remainder of the year, especially in light of broader market uncertainties.

Q1-2025 Updates

Positive Updates

Record-Breaking Revenue

First quarter revenue of $50 million exceeded the high end of the guided range by $4 million, representing the highest quarterly revenue for NCS since Q1 2020.

Strong Canadian Performance

Q1 revenue in Canada of $38 million increased by 19% compared to Q1 2024, outpacing a 3% increase in the average rig count.

International and Offshore Growth

International revenue increased by 34%, with significant contributions from the Middle East and the North Sea.

Innovative Solutions

Introduction of new products, including a 7-inch sliding sleeve for Alaska, enhanced recovery systems in Argentina, and the Lumen8 multi-day automated sampler.

Improved Financial Metrics

Adjusted EBITDA of $8.2 million exceeded the estimated range and improved by $2.1 million year-over-year.

Negative Updates

US Revenue Decline

US revenue declined by 6%, partially offsetting growth in other regions.

Tariff Challenges

Guidance reflects impacts from tariffs on steel imports and products from China, with initiatives to mitigate cost increases.

Increased Expenses

Selling, general, and administrative costs increased by $2.4 million due to higher incentive bonus accruals and stock-based compensation.

Cash Flow Challenges

Free cash flow less distributions to non-controlling interest resulted in a cash use of $2.1 million for Q1.

Market Uncertainty

Heightened uncertainty related to trade, economic growth, and geopolitical factors affecting the market outlook.

Company Guidance

During the first quarter of 2025, NCS Multistage reported a revenue of $50 million, surpassing their guidance by $4 million and marking their highest quarterly revenue since Q1 2020. In Canada, revenue grew by 19% year-over-year to $38 million, significantly outpacing a 3% increase in the average rig count. The company's adjusted gross margin reached 44%, exceeding expectations, while adjusted EBITDA was $8.2 million, above the estimated range of $4.5 million to $6.5 million. Net income was $4.1 million, translating to a diluted earnings per share of $1.51, up from $2.1 million or 82 cents per share in Q1 2024. For Q2 2025, NCS projects revenues between $26 million and $29 million, with a gross margin of 37% to 39% and adjusted EBITDA ranging from negative $2 million to break-even. Full-year 2025 guidance includes revenue of $165 million to $175 million and adjusted EBITDA of $20 million to $24 million.

Ncs Multistage Holdings Corporate Events

Executive/Board ChangesShareholder Meetings

NCS Multistage Holds 2025 Annual Stockholder Meeting

Neutral

May 21, 2025

On May 21, 2025, NCS Multistage Holdings, Inc. conducted its 2025 Annual Meeting of Stockholders. During the meeting, stockholders voted on four key business items, including the election of two Class II Directors, the ratification of Grant Thornton LLP as the independent registered public accounting firm, approval of executive compensation, and the Amended and Restated 2017 Equity Incentive Plan. Approximately 87.5% of eligible votes were cast, reflecting significant shareholder engagement in the company’s governance.

Glossary

OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.

NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.

UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.