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Ncs Multistage Holdings (NCSM)
:NCSM
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Ncs Multistage Holdings
(NASDAQ:NCSM)
Rating:74Outperform
Price Target:
$33.00
▲(9.89%Upside)
Ncs Multistage Holdings (NCSM) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$76.30M
Dividend YieldN/A
Average Volume (3M)7.94K
Price to Earnings (P/E)9.3
Beta (1Y)0.52
Revenue Growth18.03%
EPS Growth-39.52%
CountryUS
Employees252
SectorEnergy
Sector Strength54
IndustryOil & Gas Equipment & Services
Share Statistics
EPS (TTM)1.51
Shares Outstanding2,540,849
10 Day Avg. Volume10,225
30 Day Avg. Volume7,941
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 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
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.82
Very Positive
Balance Sheet
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.78
Positive
Cash Flow
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.85
Very Positive
| Breakdown | TTM | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|---|---|
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 |
| EBITDA | 13.89M | 13.98M | 1.86M | 4.73M | 1.72M | -39.20M |
| Net Income | 8.58M | 6.59M | -3.15M | -952.00K | -3.78M | -39.11M |
Balance Sheet | ||||||
| Total Assets | 155.12M | 152.81M | 152.03M | 138.60M | 142.32M | 138.68M |
| Cash, Cash Equivalents and Short-Term Investments | 23.00M | 25.88M | 16.72M | 16.23M | 22.17M | 15.54M |
| Total Debt | 8.59M | 14.63M | 13.51M | 12.88M | 13.15M | 11.60M |
| 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
Negative
30.03
Price Trends
30.91
Negative
30.34
Negative
26.96
Positive
Market Momentum
-0.19
Positive
45.67
Neutral
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 | $76.30M | 9.33 | 8.71% | ― | 18.03% | -39.52% | |
67 Neutral | $105.00M | 26.47 | -1.66% | ― | 8.19% | -110.61% | |
57 Neutral | $86.84M | 28.65 | -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
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.