National Energy Services Reunited (NESR) AI Stock Analysis

• Market Cap: $1.46B
• Dividend Yield: N/A
• Average Volume (3M): 1.05M
• Price to Earnings (P/E): 20.2
• Beta (1Y): 0.60
• Revenue Growth: 0.31%
• EPS Growth: 33.08%
• Country: US
• Employees: 6,554
• Sector: Energy
• Sector Strength: 52
• Industry: Oil & Gas Equipment & Services
• EPS (TTM): 0.18
• Shares Outstanding: 100,777,756
• 10 Day Avg. Volume: 962,578
• 30 Day Avg. Volume: 1,052,462
• 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: 0.90
• Enterprise Value/Revenue: 1.04
• Enterprise Value/Gross Profit: 7.48
• Enterprise Value/Ebitda: 5.13
• 1Y Price Target: $19.00
• Price Target Upside: 31.31% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 5
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 79 Outperform
• Price Target: $14.00 ▼(-3.25% Downside)

National Energy Services Reunited's overall stock score reflects strong financial performance and technical momentum, supported by strategic wins and a solid growth outlook. However, valuation concerns and macroeconomic risks temper the score.

Positive Factors

Strong Financial Performance

The company's robust financial health, marked by improved profitability and cash flow, indicates a solid foundation for sustained growth and resilience against market fluctuations.

Strategic Contract Wins

Securing large contracts like the Jafurah frac tender enhances NESR's market position and provides long-term revenue stability, supporting strategic growth initiatives.

Operational Efficiency

Improved operational efficiency, as reflected in higher profit margins, strengthens NESR's competitive edge and ability to reinvest in growth opportunities.

Negative Factors

Revenue Decline

The decline in revenue highlights potential challenges in maintaining growth momentum, which could impact future profitability and market positioning.

Macroeconomic Volatility

Macroeconomic volatility poses risks to NESR's operations and profitability, as external factors can affect demand for energy services and pricing stability.

Delayed Cash Flow

Delayed cash flow impacts working capital efficiency, potentially straining financial flexibility and limiting the ability to fund strategic initiatives.

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 through multiple key streams, primarily by offering specialized services to oil and gas companies. The core revenue model includes contracts for well services, which encompass a variety of activities such as drilling, completion, and maintenance of oil and gas wells. Pressure pumping services, which involve hydraulic fracturing and cementing, also contribute significantly to the company's earnings. Additionally, NESR engages in integrated project management, providing comprehensive solutions that streamline operations for its clients. Strategic partnerships with major oil and gas operators enhance NESR's market presence and create opportunities for long-term contracts, further stabilizing its revenue. The company may also benefit from fluctuations in oil prices, as increased production activity typically leads to higher demand for its services.

National Energy Services Reunited Financial Statement Overview

Summary

National Energy Services Reunited has shown strong financial performance with significant improvements in revenue growth, profitability, and cash flow generation. The company's balance sheet is stable with prudent leverage, although the volatile nature of the oil and gas sector poses inherent risks.

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	1.27B	1.30B	1.15B	909.52M	876.73M	834.15M
Gross Profit	175.88M	208.67M	129.88M	46.61M	-15.26M	62.09M
EBITDA	256.54M	278.16M	217.90M	120.17M	76.72M	165.70M
Net Income	70.17M	76.31M	12.58M	-36.42M	-64.57M	16.55M
Balance Sheet
Total Assets	1.81B	1.77B	1.80B	1.83B	1.83B	1.69B
Cash, Cash Equivalents and Short-Term Investments	69.68M	107.96M	67.82M	78.85M	205.77M	75.01M
Total Debt	356.44M	409.13M	484.75M	566.41M	595.84M	398.47M
Total Liabilities	852.47M	865.45M	976.25M	1.03B	1.01B	746.81M
Stockholders Equity	956.65M	908.23M	821.49M	802.35M	821.03M	944.43M
Cash Flow
Free Cash Flow	46.23M	124.22M	108.77M	-29.84M	20.67M	51.82M
Operating Cash Flow	171.91M	229.33M	176.96M	92.58M	127.74M	134.45M
Investing Cash Flow	-133.77M	-111.13M	-83.46M	-146.71M	-164.54M	-96.44M
Financing Cash Flow	-86.64M	-78.06M	-104.53M	-72.80M	167.54M	-36.24M

National Energy Services Reunited Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 14.47
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

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 14.47 is above the 20-day moving average (MA) of 14.39, above the 50-day MA of 13.05, and above the 200-day MA of 8.74, indicating a bullish trend. The MACD of 0.47 indicates Positive momentum. The RSI at 56.73 is Neutral, neither overbought nor oversold. The STOCH value of 43.94 is Neutral, 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
NESR	79 Outperform	$1.46B	20.16	7.67%	―	0.31%	33.08%
TTI	77 Outperform	$1.17B	9.51	53.71%	―	0.17%	7307.20%
OIS	71 Outperform	$405.07M	18.19	3.31%	―	-11.02%	―
HLX	71 Outperform	$967.79M	23.58	2.71%	―	-1.95%	530.91%
RES	68 Neutral	$1.21B	24.94	4.31%	2.91%	4.20%	-59.96%
Sector *	65 Neutral	$15.17B	7.61	4.09%	5.20%	3.87%	-62.32%
GEOS	61 Neutral	$197.57M	―	-7.48%	―	-18.29%	-43.05%

National Energy Services Reunited Corporate Events

National Energy Services Reunited Corp. Releases Q3 2025 Financial Results

National Energy Services Reunited Corp. reported its unaudited condensed consolidated interim financial statements for the period ending September 30, 2025. The financial report highlights a decrease in cash and cash equivalents from $107,956,000 at the end of 2024 to $69,683,000 by September 2025, alongside an increase in accounts receivable and unbilled revenue. The company’s total assets increased to $1,809,123,000, reflecting a strategic focus on expanding its operational capacity. This financial update provides stakeholders with insights into the company’s current financial health and operational adjustments, which could influence future strategic decisions and market positioning.

National Energy Services Reunited Reports Q3 2025 Financial Results

On November 13, 2025, National Energy Services Reunited Corp. reported its financial results for the third quarter of 2025, highlighting a net income of $17.7 million, which marked a 16.7% increase from the previous quarter. Despite a decline in revenue to $295.3 million, the company maintained strong EBITDA margins through cost reduction and operational efficiency. The announcement also emphasized NESR’s strategic investments and readiness for new contracts, including a significant project with Saudi Aramco, positioning the company for future growth and enhanced shareholder value.