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Ncs Multistage Holdings (NCSM)
NASDAQ:NCSM
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Ncs Multistage Holdings
(NASDAQ:NCSM)
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Rating:71Outperform
Price Target:
$40.00
▲(6.84% Upside)
Ncs Multistage Holdings exhibits strong financial performance and attractive valuation, contributing positively to the score. However, technical indicators suggest bearish momentum, and challenges highlighted in the earnings call, such as Canadian market declines and potential oversupply, temper the overall outlook.
Positive Factors
Revenue Growth
Strong U.S. revenue growth indicates robust market demand and effective sales strategies, supporting long-term business expansion.
Successful Integration
Successful integration of acquisitions like ResMetrix enhances operational efficiency and broadens service offerings, strengthening competitive positioning.
Cash Flow Improvement
Improved cash flow reflects strong cash generation capabilities, providing financial flexibility for future investments and growth opportunities.
Negative Factors
Decline in Canadian Revenue
A decline in Canadian revenue highlights regional market challenges, potentially impacting overall growth and profitability if not addressed.
Market Challenges
Stagnant rig counts and project delays may hinder revenue growth, necessitating strategic adjustments to mitigate long-term impacts.
Potential Oil Market Oversupply
Potential oversupply in the oil market could pressure prices, affecting demand for completion services and impacting revenue stability.
Ncs Multistage Holdings (NCSM) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$98.23M
Dividend YieldN/A
Average Volume (3M)14.51K
Price to Earnings (P/E)8.6
Beta (1Y)0.42
Revenue Growth16.61%
EPS Growth-72.29%
CountryUS
Employees252
SectorEnergy
Sector Strength52
IndustryOil & Gas Equipment & Services
Share Statistics
EPS (TTM)1.53
Shares Outstanding2,540,920
10 Day Avg. Volume15,608
30 Day Avg. Volume14,506
Financial Highlights & Ratios
PEG Ratio-0.03
Price to Book (P/B)0.67
Price to Sales (P/S)0.41
P/FCF Ratio5.77
Enterprise Value/Market Cap1.49
Enterprise Value/Revenue0.82
Enterprise Value/Gross Profit2.16
Enterprise Value/Ebitda7.87
Forecast
1Y Price TargetN/A
Price Target UpsideN/A
Rating ConsensusN/A
Number of Analyst Covering0
EPS Forecast (FY)3.86
Revenue Forecast (FY)$178.10M
Ncs Multistage Holdings Business Overview & Revenue Model
Company DescriptionNcs Multistage Holdings (NCSM) is a diversified company operating primarily in the manufacturing and distribution sectors. The firm specializes in providing innovative solutions across various industries, including construction, engineering, and renewable energy. NCSM offers a range of core products and services, including multi-stage pumps and advanced fluid handling systems, tailored to meet the needs of its clients in both domestic and international markets.
How the Company Makes MoneyNCSM generates revenue through multiple streams, primarily by selling its advanced manufacturing products and solutions to various industries. The company earns money from direct sales of its core products, such as multi-stage pumps and fluid handling systems, which are essential in sectors like oil and gas, construction, and water management. Additionally, NCSM provides maintenance and support services for its products, creating a recurring revenue stream. Strategic partnerships with key players in the construction and energy sectors further enhance its market reach and profitability, enabling the company to capitalize on large-scale projects and contracts. The firm may also benefit from government contracts and initiatives focused on infrastructure development, which can significantly contribute to its earnings.
Ncs Multistage Holdings Earnings Call Summary
Earnings Call Date:Oct 29, 2025
(Q3-2025)
| % Change Since: |
Next Earnings Date:Mar 09, 2026
Earnings Call Sentiment Neutral
The earnings call presents a mixed picture with significant revenue growth in the U.S. and successful integration of ResMetrix, but challenges in the Canadian market and potential market oversupply issues pose concerns.Q3-2025 Updates
Positive Updates
Revenue Growth in the U.S.
U.S. revenue increased by 26% sequentially and 54% compared to the same quarter last year, excluding ResMetrix, showing a 37% improvement year-over-year.
Successful ResMetrix Integration
The integration of ResMetrix has progressed well with early synergies realized, including cost savings in insurance and fleet management, and improved operational performance.
Legal Victory in Canada
The Federal Court of Appeal overturned a prior judgment against NCS, remanding the case back to trial with the potential for cost reimbursement improvements.
Cash Flow Improvement
Free cash flow improved by $6.5 million compared to the same period last year, with a total cash balance exceeding $25 million as of September 30, 2025.
Adjusted EBITDA Growth
Adjusted EBITDA for the first nine months of 2025 was $17.5 million, a 24% increase year-over-year.
Negative Updates
Decline in Canadian Revenue
Canadian revenue declined by 19% due to a general slowdown in activity levels and lower rig counts.
Market Challenges
Challenges include a stagnating U.S. rig count, double-digit activity declines in Canada, and delays in unconventional jobs in Saudi Arabia.
Potential Oil Market Oversupply
Concerns about an oversupplied oil market due to increased OPEC+ supply and ongoing trade uncertainties.
Company Guidance
During the NCS Multistage Q3 2025 earnings call, the company provided guidance for the fourth quarter, projecting total revenue between $41 million and $45 million, with Canadian revenue expected to be in the range of $23 million to $25 million, U.S. revenue (including ResMetrix) between $15 million and $16 million, and international revenue from $3 million to $4 million. The company anticipates an adjusted gross margin of 40% to 42% and adjusted EBITDA ranging from $5 million to $6.5 million. For the full year of 2025, NCS estimates total revenue between $174 million and $178 million, representing an 8% year-over-year growth, with a combination of 5% organic growth and 3% from the ResMetrix acquisition. The adjusted EBITDA for the year is expected to be between $22.5 million and $24 million, while free cash flow after distributions is projected to rise to $11 million to $13 million, reflecting an increase in working capital benefits and ResMetrix contributions.Ncs Multistage Holdings Financial Statement Overview
Summary
Ncs Multistage Holdings shows strong financial performance with significant revenue growth, improved profitability, and robust cash flow generation. However, historical volatility in these metrics suggests potential risks.Income Statement
Ncs Multistage Holdings has shown a strong recovery in its income statement metrics. The company achieved a significant revenue growth rate of 44.3% in the TTM period, indicating robust sales performance. Gross profit margin improved to 39.1%, reflecting efficient cost management. Net profit margin increased to 7.2%, showcasing enhanced profitability. EBIT and EBITDA margins also improved, indicating better operational efficiency. However, historical volatility in revenue growth and margins suggests potential risks.75
Positive
Balance Sheet
The balance sheet of Ncs Multistage Holdings is stable with a low debt-to-equity ratio of 0.08 in the TTM period, indicating conservative leverage. Return on equity improved to 12.5%, reflecting better utilization of equity. The equity ratio remains healthy, suggesting a solid financial foundation. However, fluctuations in ROE over the years highlight potential risks in maintaining consistent returns.70
Positive
Cash Flow
Cash flow metrics are strong, with a remarkable free cash flow growth rate of 103.9% in the TTM period, indicating excellent cash generation capabilities. The operating cash flow to net income ratio is 0.44, and the free cash flow to net income ratio is 0.86, both reflecting efficient cash conversion. Historical improvements in cash flow metrics demonstrate effective cash management, though past volatility should be monitored.80
Positive
| Breakdown | TTM | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 178.00M | 162.56M | 142.47M | 155.63M | 118.50M | 106.98M |
| Gross Profit | 67.93M | 62.15M | 50.99M | 56.09M | 43.97M | 38.18M |
| EBITDA | 18.63M | 13.98M | 1.86M | 4.73M | 1.72M | -39.20M |
| Net Income | 12.26M | 6.59M | -3.15M | -1.10M | -4.73M | -57.60M |
Balance Sheet | ||||||
| Total Assets | 162.02M | 152.81M | 152.03M | 138.60M | 142.32M | 138.68M |
| Cash, Cash Equivalents and Short-Term Investments | 25.30M | 25.88M | 16.72M | 16.23M | 22.17M | 15.54M |
| Total Debt | 8.03M | 14.63M | 13.51M | 12.88M | 13.15M | 11.60M |
| Total Liabilities | 34.91M | 36.70M | 42.64M | 29.34M | 31.66M | 25.19M |
| Stockholders Equity | 110.14M | 98.84M | 91.62M | 91.03M | 92.58M | 93.61M |
Cash Flow | ||||||
| Free Cash Flow | 18.42M | 11.42M | 2.58M | -2.55M | 10.75M | 32.96M |
| Operating Cash Flow | 19.69M | 12.72M | 4.77M | -1.42M | 11.58M | 35.12M |
| Investing Cash Flow | -4.85M | 479.00K | -1.68M | -698.00K | -444.00K | -1.06M |
| Financing Cash Flow | -5.38M | -4.27M | -2.44M | -2.74M | -4.26M | -29.77M |
Ncs Multistage Holdings Technical Analysis
Negative
37.44
Price Trends
38.99
Negative
41.45
Negative
36.19
Positive
Market Momentum
-0.31
Positive
46.27
Neutral
64.31
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For NCSM, the sentiment is Negative. The current price of 37.44 is below the 20-day moving average (MA) of 39.70, below the 50-day MA of 38.99, and above the 200-day MA of 36.19, indicating a neutral trend. The MACD of -0.31 indicates Positive momentum. The RSI at 46.27 is Neutral, neither overbought nor oversold. The STOCH value of 64.31 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for NCSM.
Ncs Multistage Holdings Peers Comparison
UnderperformOutperform
Sector (65)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
71 Outperform | $98.23M | 8.65 | 11.89% | ― | 16.61% | -72.29% | |
70 Outperform | $167.64M | 38.65 | 1.61% | ― | 18.98% | ― | |
65 Neutral | $15.17B | 7.61 | 4.09% | 5.20% | 3.87% | -62.32% | |
53 Neutral | $117.92M | -17.73 | -5.18% | ― | 7.46% | -165.76% | |
49 Neutral | $173.78M | -18.34 | -3.68% | ― | -6.90% | 94.14% | |
48 Neutral | $39.78M | -0.49 | ― | ― | -12.57% | -45.75% | |
45 Neutral | $58.99M | -17.96 | -19.81% | ― | -22.31% | 39.11% |
* Energy Sector Average
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Ncs Multistage Holdings
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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.