National Energy Services Reunited (NESR) AI Stock Analysis

• Market Cap: $1.36B
• Dividend Yield: N/A
• Average Volume (3M): 797.33K
• Price to Earnings (P/E): 18.6
• Beta (1Y): 0.60
• Revenue Growth: N/A
• EPS Growth: N/A
• Country: US
• Employees: 6,554
• Sector: Energy
• Sector Strength: 52
• Industry: Oil & Gas Equipment & Services
• EPS (TTM): N/A
• Shares Outstanding: 96,452,965
• 10 Day Avg. Volume: 911,046
• 30 Day Avg. Volume: 797,326
• PEG Ratio: 0.02
• Price to Book (P/B): 0.94
• Price to Sales (P/S): 0.66
• P/FCF Ratio: 6.88
• Enterprise Value/Market Cap: 0.61
• Enterprise Value/Revenue: 0.64
• Enterprise Value/Gross Profit: 4.31
• Enterprise Value/Ebitda: 3.49
• 1Y Price Target: $15.40
• Price Target Upside: 24.80% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 5

• Rating: 74 Outperform
• Price Target: $13.00 ▲(5.35% Upside)

NESR's overall stock score is driven by its strong financial performance and positive earnings call outlook. Technical analysis suggests caution due to overbought conditions, and valuation metrics indicate moderate attractiveness. The company's exposure to the volatile oil and gas sector remains a key risk factor.

Positive Factors

Strong Financial Position

Maintaining a low net debt to EBITDA ratio highlights NESR's robust financial health, providing flexibility for future investments and growth.

Contract Wins

Securing a five-year contract with Aramco supports NESR's growth in unconventional gas development, aligning with Saudi Arabia's Vision 2030.

Revenue Growth

Consistent revenue growth indicates strong demand for NESR's services, enhancing its market position and supporting long-term business stability.

Negative Factors

Challenges in Saudi Arabia

Declining revenue in a key market like Saudi Arabia could impact NESR's overall growth, highlighting the need for diversification.

Delayed Tender Awards

Delays in tender awards may hinder future revenue recognition, affecting NESR's ability to plan and execute strategic initiatives.

High Accounts Receivable

Rising accounts receivable can strain cash flow, potentially limiting NESR's operational flexibility and investment capacity.

National Energy Services Reunited Business Overview & Revenue Model

Company Description

National Energy Services Reunited (NESR) is a leading provider of integrated energy services in the Middle East and North Africa (MENA) region. The company specializes in offering a comprehensive suite of services, including pressure pumping, wireline, and other oilfield services, aimed at enhancing the productivity and efficiency of energy exploration and production. NESR is committed to delivering innovative solutions that support its clients in navigating the complexities of the energy sector while maintaining a strong focus on safety and sustainability.

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	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	1.31B	1.30B	1.15B	909.52M	876.73M	834.15M
Gross Profit	193.93M	208.67M	129.88M	46.61M	-15.26M	62.09M
EBITDA	239.69M	278.16M	217.90M	120.17M	76.72M	165.70M
Net Income	73.05M	76.31M	12.58M	-36.42M	-64.57M	16.55M
Balance Sheet
Total Assets	1.83B	1.77B	1.80B	1.83B	1.83B	1.69B
Cash, Cash Equivalents and Short-Term Investments	131.80M	107.96M	67.82M	78.85M	205.77M	75.01M
Total Debt	379.51M	409.13M	484.75M	566.41M	595.84M	398.47M
Total Liabilities	890.19M	865.45M	976.25M	1.03B	1.01B	742.64M
Stockholders Equity	936.90M	908.23M	821.49M	802.35M	821.03M	944.43M
Cash Flow
Free Cash Flow	123.73M	124.22M	108.77M	-29.84M	20.67M	51.82M
Operating Cash Flow	236.02M	229.33M	176.96M	92.58M	127.74M	134.45M
Investing Cash Flow	-116.87M	-111.13M	-83.46M	-146.71M	-164.54M	-96.44M
Financing Cash Flow	-62.36M	-78.06M	-104.53M	-72.80M	167.54M	-36.24M

National Energy Services Reunited Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 12.34
• 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 12.34 is above the 20-day moving average (MA) of 11.09, above the 50-day MA of 10.31, and above the 200-day MA of 7.94, indicating a bullish trend. The MACD of 0.80 indicates Negative momentum. The RSI at 85.60 is Negative, neither overbought nor oversold. The STOCH value of 92.68 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	―	$964.31M	7.84	53.71%	―	0.17%	7307.20%
NESR	―	$1.36B	18.61	8.17%	―	―	―
HLX	―	$989.85M	23.83	2.71%	―	-1.95%	530.91%
RES	―	$1.10B	19.33	4.92%	3.20%	-2.74%	-54.52%
Sector *	―	$15.17B	7.61	4.09%	5.20%	3.87%	-62.32%
GEOS	―	$355.65M	―	-9.95%	―	-10.77%	-229.81%
OIS	―	$413.24M	60.73	0.95%	―	-12.15%	―

National Energy Services Reunited Corporate Events

National Energy Services Reunited Corp. Reports Strong Q2 2025 Financial Results

On August 20, 2025, National Energy Services Reunited Corp. reported its financial results for the second quarter of 2025, showcasing significant growth and operational improvements. The company achieved a revenue of $327.4 million, marking an 8.0% sequential increase, and a net income of $15.2 million, a 46.3% improvement from the previous quarter. NESR’s operational performance was bolstered by enhanced processes and internal controls, leading to a decrease in net debt to an all-time low. The company also successfully remediated a material weakness identified in its 2024 Annual Report, completing all undertakings required under its settlement with the SEC. These results underscore NESR’s strategic focus on countercyclical investments and its commitment to maintaining strong financial performance amid global challenges.

National Energy Services Reunited Reports Strong Interim Financials for June 2025

National Energy Services Reunited Corp. released its unaudited condensed consolidated interim financial statements for the period ending June 30, 2025. The financial report shows an increase in total assets from $1,773,678 to $1,827,090, indicating a positive financial trajectory. The company’s cash and cash equivalents rose significantly, and there was a notable increase in accounts receivable, reflecting improved operational performance. These developments suggest a strengthening financial position, which could enhance the company’s competitiveness in the energy services market.