Ncs Multistage Holdings (NCSM) AI Stock Analysis

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Ncs Multistage Holdings

(NASDAQ:NCSM)

Rating:80Outperform

Price Target:

$35.00

▲(15.86%Upside)

NCS Multistage Holdings scores well due to its robust financial performance and positive earnings call, highlighting record revenues and strong regional growth. Technical analysis indicates stability, while valuation suggests the stock is undervalued. Challenges such as US revenue decline and increased costs are notable but do not overshadow the overall positive outlook.

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

Market Cap

$76.75M

Dividend YieldN/A

Average Volume (3M)6.07K

Price to Earnings (P/E)9.4

Beta (1Y)0.47

Revenue Growth18.03%

EPS Growth-39.52%

CountryUS

Employees252

SectorEnergy

Sector Strength50

IndustryOil & Gas Equipment & Services

Share Statistics

EPS (TTM)1.51

Shares Outstanding2,540,849

10 Day Avg. Volume3,448

30 Day Avg. Volume6,074

Financial Highlights & Ratios

PEG Ratio0.31

Price to Book (P/B)0.75

Price to Sales (P/S)0.00

P/FCF Ratio6.71

Enterprise Value/Market Cap0.81

Enterprise Value/Revenue0.10

Enterprise Value/Gross Profit0.91

Enterprise Value/Ebitda1.58

Forecast

1Y Price Target

$35.00

Price Target Upside15.86% Upside

Rating ConsensusModerate Buy

Number of Analyst Covering0

Ncs Multistage Holdings Business Overview & Revenue Model

Company DescriptionNCS Multistage Holdings, Inc. is a provider of highly engineered products and support services that facilitate the optimization of oil and gas well completions and field development strategies. The company operates primarily in the energy sector, offering a range of technologies and solutions aimed at enhancing the efficiency and productivity of hydraulic fracturing and other completion techniques. NCS Multistage is recognized for its innovative approaches and strong technical expertise in the industry.

How the Company Makes MoneyNCS Multistage Holdings generates revenue primarily through the sale of its patented multistage fracturing tools and related services to oil and gas operators. Its key revenue streams include product sales, which involve the direct sale of completion tools and equipment, and service revenues derived from providing technical support and field services to assist clients in optimizing their well completion processes. Additionally, the company benefits from strategic partnerships with oil and gas companies that rely on its advanced technologies to enhance production efficiency. NCS Multistage's earnings are significantly influenced by the level of drilling and completion activity within the oil and gas sector, which can be affected by commodity prices and industry trends.

Ncs Multistage Holdings Earnings Call Summary

Earnings Call Date:Apr 30, 2025

(Q1-2025)

% Change Since: 2.37%|

Next Earnings Date:Jul 31, 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 Financial Statement Overview

Summary

NCS Multistage Holdings demonstrates a solid financial performance, with strong recovery in profitability and effective cash flow management. The improvement in gross and net profit margins, along with robust cash flow metrics, indicates efficient operational management. However, the limited growth in the asset base may pose potential constraints for future expansion.

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.

Breakdown	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	162.56M	142.47M	155.63M	118.50M	106.98M
Gross Profit	62.15M	50.99M	56.09M	43.97M	38.18M
EBITDA	13.98M	1.86M	4.73M	1.72M	-39.20M
Net Income	6.59M	-3.15M	-952.00K	-3.78M	-39.11M
Balance Sheet
Total Assets	152.81M	152.03M	138.60M	142.32M	138.68M
Cash, Cash Equivalents and Short-Term Investments	25.88M	16.72M	16.23M	22.17M	15.54M
Total Debt	14.63M	13.51M	12.88M	13.15M	11.60M
Total Liabilities	36.70M	42.64M	29.34M	31.66M	25.19M
Stockholders Equity	98.84M	91.62M	91.03M	92.58M	93.61M
Cash Flow
Free Cash Flow	11.42M	2.58M	-2.55M	10.75M	32.96M
Operating Cash Flow	12.72M	4.77M	-1.42M	11.58M	35.12M
Investing Cash Flow	479.00K	-1.68M	-698.00K	-444.00K	-1.06M
Financing Cash Flow	-4.27M	-2.44M	-2.74M	-4.26M	-29.77M

Ncs Multistage Holdings Technical Analysis

Technical Analysis Sentiment

Neutral

Last Price30.21

Price Trends

50DMA

30.64

Negative

100DMA

30.66

Negative

200DMA

27.73

Positive

Market Momentum

MACD

-0.07

Negative

RSI

48.57

Neutral

STOCH

38.88

Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For NCSM, the sentiment is Neutral. The current price of 30.21 is above the 20-day moving average (MA) of 30.12, below the 50-day MA of 30.64, and above the 200-day MA of 27.73, indicating a neutral trend. The MACD of -0.07 indicates Negative momentum. The RSI at 48.57 is Neutral, neither overbought nor oversold. The STOCH value of 38.88 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for NCSM.

Ncs Multistage Holdings Peers Comparison

Overall Rating

UnderperformOutperform

Sector (67)

Financial Indicators

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
NCSM	80 Outperform	$76.75M	9.38	8.71%	―	18.03%	-39.52%
Sector *	67 Neutral	$15.17B	9.89	6.22%	5.20%	4.47%	-70.67%
DTI	63 Neutral	$81.15M	26.47	-1.66%	―	8.19%	-110.61%
SND	58 Neutral	$88.61M	28.65	-9.09%	―	-0.94%	-353.00%
GEOS	56 Neutral	$165.47M	―	-11.88%	―	-14.52%	-204.65%
DWSN	46 Neutral	$43.69M	―	-39.40%	―	-40.77%	-14.13%
KLXE	42 Neutral	$33.18M	―	-375.26%	―	-16.38%	-359.80%

* Energy Sector Average

Performance Comparison

NCSM

Ncs Multistage Holdings

30.21

12.81

73.62%

DWSN

Dawson Geophysical Company

1.41

-0.62

-30.54%

GEOS

Geospace Technologies

12.92

4.03

45.33%

SND

Smart Sand

2.01

0.03

1.52%

KLXE

KLX Energy Services Holdings

1.89

-4.55

-70.65%

DTI

Drilling Tools International

2.22

-3.13

-58.50%

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

BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

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.Date of analysis: Jul 25, 2025