Natural Gas Services Group (NGS) AI Stock Analysis

• Market Cap: $339.90M
• Dividend Yield: 0.37%
• Average Volume (3M): 56.73K
• Price to Earnings (P/E): 18.4
• Beta (1Y): 1.22
• Revenue Growth: 14.77%
• EPS Growth: 34.74%
• Country: US
• Employees: 245
• Sector: Energy
• Sector Strength: 67
• Industry: Oil & Gas Equipment & Services
• EPS (TTM): 0.41
• Shares Outstanding: 12,542,314
• 10 Day Avg. Volume: 53,153
• 30 Day Avg. Volume: 56,732
• 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: 1.49
• Enterprise Value/Revenue: 3.09
• Enterprise Value/Gross Profit: 6.49
• Enterprise Value/Ebitda: 7.33
• 1Y Price Target: $32.00
• Price Target Upside: 20.75% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 3

• Rating: 74 Outperform
• Price Target: $28.00 ▲(5.66% Upside)

Natural Gas Services Group's overall stock score of 74 reflects its strong financial performance and positive earnings call sentiment. The company's robust cash flow generation and strategic initiatives, such as dividends and share repurchases, highlight its solid market position. While the valuation is moderate, the technical indicators suggest a stable trend, supporting a positive outlook.

Positive Factors

Dividends

NGS announced the company's first quarterly dividend of $0.10, equating to an annualized dividend yield of 1.6%.

Financial Guidance

Management raised 2025 EBITDA guidance to $76M–$80M, up 9.4%–15.1% year-over-year.

Negative Factors

Market Dependency

Demand for NGS’s compression services is closely linked to exploration and production activity levels and the price of natural gas.

Natural Gas Services Group Business Overview & Revenue Model

Company Description

Natural Gas Services Group (NGS) is a leading provider of natural gas services and equipment, primarily catering to the oil and gas industry. The company specializes in the rental and sale of natural gas compression equipment and related services, which are essential for the efficient transportation and processing of natural gas. NGS operates across various sectors within the energy industry, focusing on providing innovative solutions that enhance operational efficiency and reduce environmental impact.

How the Company Makes Money

NGS generates revenue primarily through the rental and sale of natural gas compression equipment and services. The company has a diversified revenue model that includes long-term rentals, short-term rentals, and outright sales of equipment. Key revenue streams come from contracts with oil and gas producers and midstream companies that require compression services to move natural gas through pipelines. Additionally, NGS may engage in maintenance and support services for its equipment, which can provide recurring revenue. Strategic partnerships with energy companies and involvement in large-scale natural gas projects further enhance its earnings potential, as these collaborations can lead to long-term contracts and increased market share.

Natural Gas Services Group Financial Statement Overview

Summary

Natural Gas Services Group demonstrates solid financial health with strong revenue growth and improved profitability margins. The balance sheet is stable with moderate leverage, and the company shows strong cash flow generation. While there are areas for improvement in profitability and operational efficiency, the overall financial position is positive, with a strong trajectory for future growth.

Income Statement

Natural Gas Services Group shows strong revenue growth with a TTM increase of 1.79%. The gross profit margin has improved significantly to 53.14% in TTM, reflecting better cost management. However, the net profit margin remains relatively stable at around 10.92%, indicating room for improvement in profitability. The EBIT and EBITDA margins have decreased slightly in TTM, suggesting potential pressure on operational efficiency.

Balance Sheet

The company's debt-to-equity ratio is moderate at 0.68, indicating a balanced approach to leveraging. Return on equity has improved to 6.94% in TTM, showing better utilization of equity. The equity ratio stands at 50.65%, reflecting a solid equity base. Overall, the balance sheet is stable with manageable leverage.

Cash Flow

The cash flow statement reveals a robust free cash flow growth of 50.15% in TTM, indicating strong cash generation capabilities. The operating cash flow to net income ratio is healthy at 2.73, suggesting efficient cash conversion. However, the free cash flow to net income ratio has decreased to 0.46, which could indicate increased capital expenditures or other investments.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	164.11M	156.74M	121.17M	84.83M	72.42M	68.06M
Gross Profit	78.24M	56.64M	32.16M	14.35M	1.66M	7.43M
EBITDA	69.30M	64.94M	37.25M	24.44M	13.68M	22.23M
Net Income	17.92M	17.23M	4.75M	-569.00K	-9.18M	1.81M
Balance Sheet
Total Assets	525.53M	492.53M	478.73M	328.25M	298.51M	306.80M
Cash, Cash Equivalents and Short-Term Investments	325.00K	2.14M	2.75M	3.37M	22.94M	28.93M
Total Debt	182.16M	170.15M	164.00M	25.35M	285.00K	900.00K
Total Liabilities	259.31M	237.47M	242.84M	98.17M	62.60M	55.26M
Stockholders Equity	266.21M	255.06M	235.89M	230.08M	235.91M	251.54M
Cash Flow
Free Cash Flow	-1.31M	69.15M	-135.91M	-37.36M	2.82M	17.39M
Operating Cash Flow	67.61M	66.46M	18.03M	27.76M	28.53M	32.65M
Investing Cash Flow	-88.52M	-71.44M	-153.89M	-65.08M	-25.66M	-15.16M
Financing Cash Flow	17.62M	4.37M	135.23M	17.82M	-8.85M	-157.00K

Natural Gas Services Group Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 26.50
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For NGS, the sentiment is Positive. The current price of 26.5 is above the 20-day moving average (MA) of 25.67, above the 50-day MA of 25.01, and above the 200-day MA of 24.41, indicating a bullish trend. The MACD of 0.52 indicates Negative momentum. The RSI at 57.13 is Neutral, neither overbought nor oversold. The STOCH value of 77.50 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for NGS.

Natural Gas Services Group Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
TTI	82 Outperform	$635.74M	5.51	54.03%	―	-3.23%	1031.00%
NGS	74 Outperform	$339.90M	18.43	7.00%	0.37%	14.77%	34.74%
RNGR	74 Outperform	$313.24M	13.89	8.34%	1.63%	-3.22%	55.46%
FTK	66 Neutral	$357.70M	25.53	15.85%	―	21.72%	98.73%
Sector *	65 Neutral	$15.28B	7.48	3.19%	5.33%	4.10%	-60.58%
FET	60 Neutral	$316.87M	―	-28.21%	―	3.86%	-294.41%
OIS	53 Neutral	$348.41M	49.07	0.95%	―	-12.15%	―

Natural Gas Services Group Corporate Events

Natural Gas Services Group Initiates Dividend, Share Buyback

Natural Gas Services Group reported a record second quarter in 2025, driven by exceptional field service and the performance of its smart-enabled large horsepower fleet. The company achieved an all-time high in rented horsepower, with strong rental revenue and gross margin. Adjusted EBITDA for the second quarter was $19.7 million, contributing to a first-half adjusted EBITDA of $39 million. The company increased its 2025 adjusted EBITDA guidance to $76 to $80 million, supported by new large horsepower unit deployments. In July, NGS initiated its inaugural quarterly dividend and authorized a share repurchase program, highlighting its cash generation durability and confidence in its outlook. Despite ongoing market volatility, NGS remains optimistic about its growth prospects, driven by increasing demand for natural gas compression and a strong foundation for 2026.

Natural Gas Services Group Declares First Quarterly Dividend

On July 30, 2025, Natural Gas Services Group, Inc. announced its Board of Directors declared the company’s first-ever quarterly cash dividend of $0.10 per share, amounting to $0.40 annually. This dividend, payable on August 22, 2025, signifies a milestone reflecting the company’s strong financial performance and commitment to shareholder value. The announcement also included the release schedule for the company’s second quarter 2025 financial results, set for August 11, 2025, with a conference call to follow on August 12, 2025.

Natural Gas Services Group Appoints New Chairman

On June 16, 2025, Natural Gas Services Group announced the transition of Stephen C. Taylor from Chairman of the Board to Chairman Emeritus, with Donald J. Tringali appointed as the new Chairman. Taylor, who has been instrumental in the company’s growth and transformation over the past two decades, will continue to serve as a director. His leadership saw the expansion of NGS into a national compression platform with significant growth in EBITDA. The transition marks a significant milestone, positioning NGS for continued success with Tringali bringing valuable corporate governance experience to his new role.

Natural Gas Services Group Holds Key Shareholder Meeting

On June 5, 2025, Natural Gas Services Group held a shareholder meeting where several key proposals were voted on. The shareholders elected three directors for varying terms, approved executive compensation, amended the 2019 Equity Incentive Plan to increase shares and extend its term, and ratified the appointment of Ham, Langston & Brezina LLP as the independent registered public accounting firm for 2025.