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Ncs Multistage Holdings (NCSM)
:NCSM

Ncs Multistage Holdings (NCSM) AI Stock Analysis

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Ncs Multistage Holdings

(NASDAQ:NCSM)

Rating:74Outperform
Price Target:
$33.00
▲(9.89%Upside)
NCS Multistage Holdings exhibits a solid financial foundation supported by strong cash flow and profitability improvements. Technical analysis presents some short-term bearish signals, and while valuation remains attractive, external challenges outlined in the earnings call could affect future performance. The overall stock score reflects these strengths and risks, positioning NCSM as a stock with solid fundamentals but facing potential headwinds.

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

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 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: 1.76%|
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 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
82
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
78
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
85
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.
BreakdownTTMDec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income Statement
Total Revenue168.90M162.56M142.47M155.63M118.50M106.98M
Gross Profit67.87M62.15M50.99M56.09M43.97M38.18M
EBITDA13.89M13.98M1.86M4.73M1.72M-39.20M
Net Income8.58M6.59M-3.15M-952.00K-3.78M-39.11M
Balance Sheet
Total Assets155.12M152.81M152.03M138.60M142.32M138.68M
Cash, Cash Equivalents and Short-Term Investments23.00M25.88M16.72M16.23M22.17M15.54M
Total Debt8.59M14.63M13.51M12.88M13.15M11.60M
Total Liabilities34.28M36.70M42.64M29.34M31.66M25.19M
Stockholders Equity103.17M98.84M91.62M91.03M92.58M93.61M
Cash Flow
Free Cash Flow11.43M11.42M2.58M-2.55M10.75M32.96M
Operating Cash Flow12.96M12.72M4.77M-1.42M11.58M35.12M
Investing Cash Flow164.00K479.00K-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
Negative
Last Price30.03
Price Trends
50DMA
30.91
Negative
100DMA
30.34
Negative
200DMA
26.96
Positive
Market Momentum
MACD
-0.19
Positive
RSI
45.67
Neutral
STOCH
22.52
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 30.03 is below the 20-day moving average (MA) of 30.75, below the 50-day MA of 30.91, and above the 200-day MA of 26.96, indicating a neutral trend. The MACD of -0.19 indicates Positive momentum. The RSI at 45.67 is Neutral, neither overbought nor oversold. The STOCH value of 22.52 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

Overall Rating
UnderperformOutperform
Sector (52)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
74
Outperform
$76.30M9.338.71%18.03%-39.52%
DTDTI
67
Neutral
$105.00M26.47-1.66%8.19%-110.61%
SNSND
57
Neutral
$86.84M28.65-9.09%-0.94%-353.00%
56
Neutral
$179.62M-11.88%-14.52%-204.65%
52
Neutral
C$2.91B-1.09-3.26%6.12%5.32%-43.41%
49
Neutral
$43.38M-39.40%-40.77%-14.13%
47
Neutral
$34.23M-375.26%-16.38%-359.80%
* Energy Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
NCSM
Ncs Multistage Holdings
30.03
13.87
85.83%
DWSN
Dawson Geophysical Company
1.40
-0.48
-25.53%
GEOS
Geospace Technologies
14.02
5.05
56.30%
SND
Smart Sand
1.97
-0.04
-1.99%
KLXE
KLX Energy Services Holdings
1.95
-2.95
-60.20%
DTI
Drilling Tools International
2.95
-3.38
-53.40%

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: Jun 28, 2025