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National Energy Services Reunited (NESR)
NASDAQ:NESR
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National Energy Services Reunited
(NASDAQ:NESR)
Rating:67Neutral
Price Target:―
National Energy Services Reunited (NESR) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$558.37M
Dividend YieldN/A
Average Volume (3M)269.93K
Price to Earnings (P/E)―
Beta (1Y)0.64
Revenue GrowthN/A
EPS GrowthN/A
CountryUS
Employees6,554
SectorEnergy
Sector Strength45
IndustryOil & Gas Equipment & Services
Share Statistics
EPS (TTM)0.30
Shares Outstanding95,447,210
10 Day Avg. Volume330,876
30 Day Avg. Volume269,925
Financial Highlights & Ratios
PEG Ratio0.24
Price to Book (P/B)0.83
Price to Sales (P/S)0.00
P/FCF Ratio6.20
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
$14.50Price Target Upside147.86% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering2
National Energy Services Reunited Business Overview & Revenue Model
Company DescriptionNational Energy Services Reunited Corp. provides oilfield services to oil and gas companies in the Middle East, North Africa, and the Asia Pacific regions. It operates through two segments, Production Services; and Drilling and Evaluation Services. The Production Services segment offers hydraulic fracturing services; coiled tubing services, including nitrogen lifting, fishing, milling, clean-out, scale removal, and other well applications; stimulation and pumping services; primary and remedial cementing services; nitrogen services; filtration services, as well as frac tanks and pumping units; and pipeline services, such as water filling and hydro testing, nitrogen purging, and de-gassing and pressure testing, as well as cutting/welding and cooling down piping/vessels systems. It also provides production assurance chemicals; laboratory services; artificial lift services; and surface and subsurface safety systems, high-pressure packer systems, flow controls, service tools, expandable liner technology, vacuum insulated tubing technology, and engineering capabilities with manufacturing capacity and testing facilities, as well as sources, treats, and disposes water for oil and gas, municipal, and industrial use. The Drilling and Evaluation Services segment offers drilling and workover rigs; rig services; fishing and remedial solutions; directional and turbines drilling services; drilling fluid systems and related technologies; wireline logging services; slickline services for removal of scale, wax and sand build-up, setting plugs, changing out gas lift valves, and fishing and other well applications; and well testing services to measure solids, gas, and oil and water produced from a well, as well as rents drilling tools. It also provides oilfield solutions for thru-tubing intervention; tubular running services; and a range of wellhead products, flow control equipment, and frac equipment. The company was incorporated in 2017 and is headquartered in Houston, Texas.
How the Company Makes MoneyNESR generates revenue through its diverse range of services tailored to the oil and gas industry. Its key revenue streams include drilling services, where NESR provides the necessary equipment and expertise for efficient drilling operations, and evaluation services, which involve advanced data analysis and interpretation to optimize reservoir performance. The company also offers intervention and completion services that focus on maintaining and enhancing well productivity. Significant partnerships with major oil and gas companies contribute to NESR's earnings by ensuring a steady demand for its services. Additionally, NESR's investment in innovative technologies and solutions helps in expanding its market reach and client base, further solidifying its revenue model.
National Energy Services Reunited Financial Statement Overview
Summary
National Energy Services Reunited has demonstrated strong revenue growth and improved profitability over the past year. The balance sheet shows a stable capital structure with manageable leverage. Cash flow metrics highlight significant improvements in cash management, enhancing financial flexibility. While the company is on a positive trajectory, continued focus on operational efficiency and maintaining leverage will be crucial for sustained growth and stability.Income Statement
The company has shown strong revenue growth from 2022 to 2023 with a 26.0% increase. Gross profit margin improved significantly to 11.3% from 5.1% in the previous year. Net profit turned positive in 2023 with a margin of 1.1%, reflecting improved profitability. However, the EBIT margin is still moderate at 7.0%, indicating room for operational efficiency improvement.75
Positive
Balance Sheet
The debt-to-equity ratio stands at 0.59, indicating manageable leverage, but slightly increased from the previous year. Return on equity improved to 1.5% from negative in 2022, showing a return to profitability. The equity ratio of 45.7% is stable, suggesting a balanced capital structure. However, the company should monitor its debt levels to ensure continued financial stability.68
Positive
Cash Flow
The free cash flow turned positive with significant growth, indicating better cash management. Operating cash flow to net income ratio is high, reflecting efficient cash generation relative to net income. Free cash flow to net income is also strong, supporting sustainable financial health. The company has improved its cash flow position significantly, a positive sign for future operations.80
Positive
| Breakdown | |||||
| TTM | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 | Dec 2019 |
|---|---|---|---|---|---|
| Income Statement | Total Revenue | ||||
| 643.73M | 1.15B | 909.52M | 876.73M | 834.15M | 658.38M | Gross Profit |
| 97.83M | 129.88M | 46.61M | -15.26M | 62.09M | 135.65M | EBIT |
| 63.01M | 80.70M | -917.00K | -43.33M | 35.28M | 71.81M | EBITDA |
| 126.48M | 217.90M | 120.17M | 76.72M | 165.70M | 159.52M | Net Income Common Stockholders |
| 22.88M | 12.58M | -36.42M | -64.57M | 16.55M | 39.36M |
| Balance Sheet | Cash, Cash Equivalents and Short-Term Investments | ||||
| 28.88K | 67.82M | 78.85M | 205.77M | 75.01M | 73.20M | Total Assets |
| 235.35K | 1.80B | 1.83B | 1.83B | 1.69B | 1.52B | Total Debt |
| 137.81K | 484.75M | 566.41M | 595.84M | 398.47M | 383.53M | Net Debt |
| 108.94K | 416.93M | 487.56M | 390.07M | 323.46M | 310.33M | Total Liabilities |
| 216.09K | 976.25M | 1.03B | 1.01B | 742.64M | 635.89M | Stockholders Equity |
| 19.26K | 821.49M | 802.35M | 821.03M | 944.43M | 886.47M |
| Cash Flow | Free Cash Flow | ||||
| 77.59M | 108.77M | -29.84M | 20.67M | 51.82M | -18.85M | Operating Cash Flow |
| 107.31M | 176.96M | 92.58M | 127.74M | 134.45M | 89.09M | Investing Cash Flow |
| -29.42M | -83.46M | -146.71M | -164.54M | -96.44M | -107.34M | Financing Cash Flow |
| -29.20M | -104.53M | -72.80M | 167.54M | -36.24M | 66.58M |
National Energy Services Reunited Technical Analysis
Negative
5.85
Price Trends
6.66
Negative
7.75
Negative
8.36
Negative
Market Momentum
-0.11
Positive
35.28
Neutral
16.79
Positive
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For NESR, the sentiment is Negative. The current price of 5.85 is below the 20-day moving average (MA) of 6.32, below the 50-day MA of 6.66, and below the 200-day MA of 8.36, indicating a bearish trend. The MACD of -0.11 indicates Positive momentum. The RSI at 35.28 is Neutral, neither overbought nor oversold. The STOCH value of 16.79 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for NESR.
National Energy Services Reunited Peers Comparison
Overall Rating
UnderperformOutperform
Sector (57)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
67 Neutral | $558.37M | ― | 1.53% | ― | ― | ― | |
65 Neutral | $1.07B | 41.18 | 8.29% | ― | -9.84% | -111.71% | |
64 Neutral | $364.62M | 3.27 | 55.55% | ― | -4.08% | 429.70% | |
61 Neutral | $508.68M | 18.15 | 11.54% | 0.37% | 1.32% | -33.17% | |
57 Neutral | $1.04B | ― | -20.15% | ― | -6.13% | -76.84% | |
57 Neutral | $7.06B | 3.04 | -3.49% | 5.80% | 0.53% | -50.39% | |
53 Neutral | $579.82M | ― | -16.24% | ― | -13.32% | -309.35% |
* Energy Sector Average
Performance Comparison
NESR
National Energy Services Reunited
5.85
-3.85
-39.69%
CLB
Core Laboratories
10.85
-7.65
-41.35%
MRC
MRC Global
12.38
-0.73
-5.57%
TTI
Tetra Technologies
2.74
-1.05
-27.70%
PUMP
Propetro Holding
5.58
-4.24
-43.18%
ACDC
ProFrac Holding
6.48
-3.16
-32.78%
National Energy Services Reunited Earnings Call Summary
Earnings Call Date:Mar 12, 2025
(Q4-2024)
| % Change Since: -23.03%|
Next Earnings Date:Aug 12, 2025
Earnings Call Sentiment Positive
The earnings call reflects a strong performance for NESR in 2024, with record revenue, EBITDA, and cash flow, as well as significant market expansion and technological advancements. Despite macroeconomic and geopolitical uncertainties, and anticipated seasonal slowdowns and competitive pressures, the company maintains an optimistic outlook for 2025.Q4-2024 Updates
Positive Updates
Record-Breaking Revenue and Growth
NESR achieved record revenue of $343.7 million for Q4 2024, up 2.2% sequentially and 11.8% year-over-year, with full-year revenue reaching $1.3 billion, a 13.6% increase year-over-year.
Strong EBITDA and Cash Flow
Adjusted EBITDA for Q4 2024 was a record $87.2 million, with margins of 25.4%. Full-year adjusted EBITDA was $310.1 million, up 18.2% year-over-year. Free cash flow for the full year was $124 million, with a conversion rate of 40.1%.
Market Expansion and Operational Milestones
The company expanded its footprint in Saudi Arabia, Oman, Kuwait, UAE, Iraq, Algeria, and Egypt, achieving record revenue and growth in each. NESR gained market share in Saudi Arabia and introduced new technology platforms in Oman.
Technological Advancements
Successful execution of the ROYA direction drilling platform and the NEDA decarbonization portfolio, with key pilot milestones achieved and plans for commercialization.
Negative Updates
Macroeconomic and Geopolitical Uncertainty
Ongoing macro volatility worldwide and geopolitical uncertainty in the Middle East present challenges, although the company has managed to navigate these effectively so far.
Seasonal Slowdown and Competitive Pressures
The company anticipates a slower Q1 2025 due to fewer operating days and the full month of Ramadan, and increased competition is expected to pressure margins in 2025.
Company Guidance
During the NESR Fourth Quarter 2024 Financial Results call, Sherif Foda, Chairman and CEO of NESR, announced record achievements in revenue, EBITDA, and EPS for the fourth quarter of 2024, with revenue reaching $343.7 million, up 2.2% sequentially and 11.8% year-over-year. The full-year revenue for 2024 was $1.3 billion, marking a 13.6% increase compared to the previous year, driven by strong activity in the Gulf countries. The adjusted EBITDA for Q4 2024 was a record $87.2 million, with near-record margins of 25.4%, and the full-year adjusted EBITDA was $310.1 million, up 18.2% year-over-year. The company achieved a net debt-to-adjusted EBITDA ratio of 0.89 times by the year's end, significantly reduced from 2.8 times at the end of 2022. Foda also discussed NESR's strategic focus on expanding its technology portfolio and potential capital allocation for growth opportunities in 2025, with an emphasis on the MENA region's sustained activity.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.