National Energy Services Reunited (NESR) AI Stock Analysis

• Market Cap: $841.07M
• Dividend Yield: N/A
• Average Volume (3M): 735.13K
• Price to Earnings (P/E): 11.5
• Beta (1Y): 0.59
• Revenue Growth: N/A
• EPS Growth: N/A
• Country: US
• Employees: 6,554
• Sector: Energy
• Sector Strength: 56
• Industry: Oil & Gas Equipment & Services
• EPS (TTM): 0.21
• Shares Outstanding: 96,452,965
• 10 Day Avg. Volume: 863,435
• 30 Day Avg. Volume: 735,135
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• Enterprise Value/Market Cap: 0.99
• Enterprise Value/Revenue: 1.23
• Enterprise Value/Gross Profit: 7.42
• Enterprise Value/Ebitda: 5.58
• 1Y Price Target: $11.88
• Price Target Upside: 31.56% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 4

• Rating: 77 Outperform
• Price Target: $9.50 ▲(5.20% Upside)

NESR's strong financial performance and positive earnings call outlook are the primary drivers of its score. The technical analysis indicates a strong trend, but overbought conditions could lead to a pullback. Valuation is reasonable, though the lack of a dividend yield is a minor drawback.

National Energy Services Reunited Business Overview & Revenue Model

Company Description

National 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 Money

NESR generates revenue primarily through the provision of oilfield services, which encompass a range of offerings such as pressure pumping, wireline services, and other specialized services tailored for oil and gas operators. The company's revenue model is based on both contract-based agreements and project-based work with clients in the energy sector. Key revenue streams include service contracts with major oil and gas companies, performance-based incentives tied to efficiency improvements, and partnerships with industry players that enhance service delivery capabilities. Additionally, NESR's focus on technological innovation and operational excellence contributes to its competitive edge, allowing the company to secure long-term contracts and foster client loyalty, ultimately driving sustained revenue growth.

National Energy Services Reunited Financial Statement Overview

Summary

NESR shows strong financial performance with significant revenue growth and improved profit margins. The balance sheet is stable with manageable leverage, and cash flow generation is robust. However, the company's exposure to the volatile oil and gas sector poses some risk.

Income Statement

National Energy Services Reunited has demonstrated strong revenue growth with a 13.6% increase from 2023 to 2024. The company's gross profit margin improved significantly to 16% in 2024, up from 11.3% in 2023, indicating enhanced operational efficiency. The net profit margin rose to 5.9% in 2024 from 1.1% in the previous year, showcasing improved profitability. EBIT and EBITDA margins also increased, reflecting better earnings performance. These positive trends highlight robust financial health, although the reliance on the volatile oil and gas sector poses some risk.

Balance Sheet

NESR's balance sheet indicates a stable financial position with a debt-to-equity ratio of 0.45 in 2024, showing manageable leverage. The equity ratio stands at 51.2%, reflecting a strong equity base. Return on equity improved to 8.4%, demonstrating effective use of equity to generate profits. While the company maintains a solid equity position, the industry’s inherent risks and economic fluctuations could impact future stability.

Cash Flow

The company's cash flow performance is commendable with a 14.2% growth in free cash flow in 2024. The operating cash flow to net income ratio is strong at 3.0, indicating efficient cash generation from operations. The free cash flow to net income ratio is 1.63, showcasing effective conversion of profits into cash. Despite these strengths, high capital expenditures could strain cash resources if not managed carefully.

Breakdown	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	1.30B	1.15B	909.52M	876.73M	834.15M
Gross Profit	208.67M	129.88M	46.61M	-15.26M	62.09M
EBITDA	278.16M	217.90M	120.17M	76.72M	165.70M
Net Income	76.31M	12.58M	-36.42M	-64.57M	16.55M
Balance Sheet
Total Assets	1.77B	1.80B	1.83B	1.83B	1.69B
Cash, Cash Equivalents and Short-Term Investments	107.96M	67.82M	78.85M	205.77M	75.01M
Total Debt	409.13M	484.75M	566.41M	595.84M	398.47M
Total Liabilities	865.45M	976.25M	1.03B	1.01B	742.64M
Stockholders Equity	908.23M	821.49M	802.35M	821.03M	944.43M
Cash Flow
Free Cash Flow	124.22M	108.77M	-29.84M	20.67M	51.82M
Operating Cash Flow	229.33M	176.96M	92.58M	127.74M	134.45M
Investing Cash Flow	-111.13M	-83.46M	-146.71M	-164.54M	-96.44M
Financing Cash Flow	-78.06M	-104.53M	-72.80M	167.54M	-36.24M

National Energy Services Reunited Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 9.03
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Negative
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For NESR, the sentiment is Positive. The current price of 9.03 is above the 20-day moving average (MA) of 7.35, above the 50-day MA of 6.71, and above the 200-day MA of 7.53, indicating a bullish trend. The MACD of 0.61 indicates Negative momentum. The RSI at 79.93 is Negative, neither overbought nor oversold. The STOCH value of 94.53 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for NESR.

National Energy Services Reunited Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
TTI	82 Outperform	$598.43M	5.19	54.03%	―	-3.23%	1031.00%
NESR	77 Outperform	$841.07M	11.51	8.17%	―	―	―
Sector *	65 Neutral	$15.26B	7.31	3.02%	5.32%	4.27%	-62.52%
MRC	64 Neutral	$1.28B	41.18	5.66%	―	-9.81%	-124.43%
CLB	61 Neutral	$521.46M	17.51	11.82%	0.36%	0.70%	5.97%
ACDC	50 Neutral	$645.93M	―	-25.45%	―	-4.14%	-39.14%
PUMP	48 Neutral	$504.24M	―	-16.86%	―	-10.91%	-580.59%