Natural Gas Services (NGS)
NYSE:NGS
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Natural Gas Services Group
(NYSE:NGS)
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Rating:67Neutral
Price Target:
$45.00
▲(18.11% Upside)
Action:Reiterated
Date:06/17/26
NGS scores highest on improving fundamentals and a strong, guidance-raising earnings call with record operating performance and a dividend increase. The overall score is held back by higher leverage and notably volatile free cash flow, while technical signals are neutral-to-constructive and valuation support is moderate given the ~23.8 P/E and ~1.14% yield.
Positive Factors
Recurring rental revenue and high utilization
Strong, recurring contract-compression revenue and record utilization (86.9%) indicate durable demand and high asset productivity. High rental revenue per HP and scale in the fleet support predictable cash flows, pricing power on renewals, and the ability to leverage fixed-cost base over time.
Negative Factors
Higher post-acquisition leverage
The Flatrock acquisition and revolver expansion raise pro forma leverage materially (~3x), increasing interest, covenant and refinancing risk. Sustained high leverage reduces financial flexibility for further M&A or downturns and heightens dependence on stable cash generation to avoid distress.
Read all positive and negative factors
Positive Factors
Negative Factors
Recurring rental revenue and high utilization
Strong, recurring contract-compression revenue and record utilization (86.9%) indicate durable demand and high asset productivity. High rental revenue per HP and scale in the fleet support predictable cash flows, pricing power on renewals, and the ability to leverage fixed-cost base over time.
Read all positive factors
Natural Gas Services Group (NGS) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$525.73M
Dividend Yield0.63%
Average Volume (3M)107.93K
Price to Earnings (P/E)23.8
Beta (1Y)1.21
Revenue Growth11.28%
EPS Growth27.38%
CountryUS
Employees245
SectorEnergy
Sector Strength52
IndustryOil & Gas Equipment & Services
Share Statistics
EPS (TTM)1.75
Shares Outstanding12,598,365
10 Day Avg. Volume104,077
30 Day Avg. Volume107,927
Financial Highlights & Ratios
PEG Ratio1.47
Price to Book (P/B)1.54
Price to Sales (P/S)2.45
P/FCF Ratio6.50
Enterprise Value/Market Cap1.42
Enterprise Value/Revenue4.15
Enterprise Value/Gross Profit10.92
Enterprise Value/Ebitda9.13
Forecast
1Y Price Target
$51.67Price Target Upside35.61% Upside
Rating ConsensusStrong Buy
Number of Analyst Covering3
EPS Forecast (FY)2.05
Revenue Forecast (FY)$199.73M
Natural Gas Services Group Business Overview & Revenue Model
Company Description
Natural Gas Services Group, Inc. (NGS) is a U.S.-based company that specializes in providing natural gas compression solutions and equipment to the energy sector. NGS's activities encompass the full lifecycle of natural gas compressors and associa...
How the Company Makes Money
NGS generates revenue primarily by providing compression-related products and services to oil and gas producers and midstream operators. A key revenue stream is contract compression, where NGS supplies, operates, and maintains natural gas compress...
Natural Gas Services Group Earnings Call Summary
Earnings Call Date:May 11, 2026
(Q1-2026)
| % Change Since: |
Next Earnings Date:Aug 17, 2026
Earnings Call Sentiment Positive
The call presented a strong operational and financial start to 2026 with multiple quarterly records (rental revenue, adjusted EBITDA, utilization), a dividend increase, fleet optimization actions and raised EBITDA guidance. These positives are tempered by emerging inflationary pressures (parts, lubes, labor), supply-chain and lead-time risks for certain components, elevated DSO in Q1 and management's caution that Q1 margins may not be a sustainable run rate. On balance, the company appears well-positioned with healthy liquidity and a disciplined capital allocation approach, while facing manageable market and cost headwinds.Positive Updates
Record Rental Revenue
Rental revenue reached $47.1 million in Q1, up $8.2 million or 21.1% year-over-year, marking a quarterly record and primary indicator of scalable business performance.
Negative Updates
Emerging Inflationary Pressures
Company expects meaningful inflationary pressure across parts, lube oils and labor driven by geopolitical events and tight labor markets; management expects these pressures to accelerate into Q2 and potentially the balance of the year, which could compress margins.
Read all updates
Q1-2026 Updates
Positive
Negative
Record Rental Revenue
Rental revenue reached $47.1 million in Q1, up $8.2 million or 21.1% year-over-year, marking a quarterly record and primary indicator of scalable business performance.
Read all positive updates
Company Guidance
Management raised full‑year 2026 adjusted EBITDA guidance to $92.5–$97.5 million (from $90.5–$95.5M) while keeping full‑year growth CapEx at $55–$70M and maintenance CapEx at $15–$18M and committing to deploy at least 50,000 horsepower in 2026. The revision follows a strong Q1: rented horsepower ~575,000 (+17% YoY) with 86.9% utilization, rental revenue $47.1M (total revenue $48.5M), adjusted EBITDA $24.3M, rental adjusted gross margin $30.0M (63.7%), rental revenue/HP/month $27.51; Q1 CapEx was $15.2M (growth $12.3M, maintenance $3.0M), ~17,000 HP added and 17,700 HP retired, receipt of a $12.3M tax refund (~$1/share), dividend raised 36% to $0.15/share (from $0.11), and the company ended the quarter with $226M drawn on the revolver, $174M available and 2.33x leverage—management emphasized continued high utilization and pricing discipline, noted inflationary pressures (parts, lubes, labor), and maintained balance‑sheet flexibility for organic growth and opportunistic M&A.Natural Gas Services Group Financial Statement Overview
Summary
Income Statement
78
Positive
Balance Sheet
66
Positive
Cash Flow
54
Neutral
| Breakdown | TTM | Dec 2025 | Dec 2024 | Mar 2024 | Mar 2023 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 179.40M | 172.31M | 156.74M | 121.17M | 84.83M | 72.42M |
| Gross Profit | 68.18M | 63.88M | 56.64M | 32.16M | 14.35M | 1.66M |
| EBITDA | 81.55M | 76.75M | 64.94M | 37.25M | 24.44M | 13.68M |
| Net Income | 21.84M | 19.93M | 17.23M | 4.75M | -569.00K | -9.18M |
Balance Sheet | ||||||
| Total Assets | 588.91M | 586.79M | 492.53M | 478.73M | 328.25M | 306.49M |
| Cash, Cash Equivalents and Short-Term Investments | 2.31M | 0.00 | 2.14M | 2.75M | 3.37M | 22.94M |
| Total Debt | 226.47M | 230.46M | 170.15M | 165.26M | 25.35M | 285.00K |
| Total Liabilities | 308.38M | 312.07M | 237.47M | 242.84M | 98.17M | 70.58M |
| Stockholders Equity | 280.53M | 274.72M | 255.06M | 235.89M | 230.08M | 235.91M |
Cash Flow | ||||||
| Free Cash Flow | -57.00M | 64.90M | -6.39M | -135.91M | -37.36M | 2.58M |
| Operating Cash Flow | 63.42M | 62.93M | 65.50M | 18.03M | 27.76M | 28.29M |
| Investing Cash Flow | -117.25M | -121.30M | -71.44M | -153.89M | -65.08M | -25.66M |
| Financing Cash Flow | 54.00M | 56.23M | 5.33M | 135.23M | 17.75M | -8.61M |
Natural Gas Services Group Technical Analysis
Positive
38.10
Price Trends
40.32
Positive
38.70
Positive
34.17
Positive
Market Momentum
0.29
Negative
51.18
Neutral
54.62
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 38.1 is below the 20-day moving average (MA) of 41.40, below the 50-day MA of 40.32, and above the 200-day MA of 34.17, indicating a neutral trend. The MACD of 0.29 indicates Negative momentum. The RSI at 51.18 is Neutral, neither overbought nor oversold. The STOCH value of 54.62 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
UnderperformOutperform
Sector (65)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
69 Neutral | $867.90M | 28.18 | 28.83% | ― | 24.72% | 72.35% | |
67 Neutral | $525.73M | 23.81 | 7.99% | 0.63% | 11.28% | 27.38% | |
67 Neutral | $579.23M | ― | -2.09% | ― | -0.05% | 94.53% | |
65 Neutral | $15.17B | 7.61 | 4.09% | 5.20% | 3.87% | -62.32% | |
61 Neutral | $370.21M | 24.33 | 5.12% | 1.71% | 0.25% | -27.15% | |
54 Neutral | $493.59M | -4.18 | -17.52% | ― | -4.50% | -2286.91% | |
45 Neutral | $95.08M | -3.18 | -24.22% | ― | -13.43% | -78.10% |
* Energy Sector Average
NGS
Natural Gas Services Group
41.31
15.03
57.16%
FTK
Flotek
23.27
8.37
56.17%
FET
Forum Energy Tech
50.34
30.27
150.82%
OIS
Oil States International
8.00
2.27
39.62%
GEOS
Geospace Technologies
7.18
-2.22
-23.62%
RNGR
Ranger Energy Services
15.15
2.63
21.04%
Natural Gas Services Group Corporate Events
Business Operations and StrategyM&A Transactions
Natural Gas Services Group Closes Flatrock Compression Acquisition
Positive
Jun 17, 2026
On June 15, 2026, Natural Gas Services Group announced it had closed the acquisition of Flatrock Compression Holdings, a rental compression provider with about 86,000 rented horsepower and roughly 95% utilization concentrated in the Permian and Ea...
Business Operations and StrategyM&A TransactionsPrivate Placements and Financing
Natural Gas Services Group Closes Flatrock Compression Acquisition
Positive
Jun 15, 2026
On June 12, 2026, Natural Gas Services Group completed the acquisition of Flatrock Compression Holdings, buying 100% of its membership interests for $110 million in cash and $10 million in NGS stock. Flatrock adds a 95% utilized rental compression...
Business Operations and StrategyExecutive/Board ChangesShareholder Meetings
Natural Gas Services Shareholders Approve Redomestication and Board
Positive
Jun 11, 2026
On June 10, 2026, Natural Gas Services Group, Inc. held its annual meeting of shareholders, at which approximately 84% of outstanding common shares were represented. Shareholders elected three directors, including John E. Jackson, each to three-ye...
Business Operations and StrategyDividendsFinancial Disclosures
Natural Gas Services Reports Record Q1 Rental Performance
Positive
May 13, 2026
Natural Gas Services Group reported that its first-quarter 2026 performance delivered record rental revenue, adjusted gross margin, adjusted EBITDA and horsepower utilization, driven by additions to its large-horsepower fleet, high utilization and...
Business Operations and StrategyDividendsFinancial Disclosures
Natural Gas Services Posts Strong Q1 Results, Raises Guidance
Positive
May 11, 2026
Natural Gas Services Group reported strong first-quarter 2026 results on May 11, 2026, with rental revenue rising 21.1% year over year to $47.1 million and net income increasing to $6.8 million, or $0.53 per diluted share. Adjusted EBITDA climbed ...
Business Operations and StrategyDividendsFinancial Disclosures
Natural Gas Services Highlights Record Growth and Dividend Expansion
Positive
Mar 18, 2026
Natural Gas Services Group Inc., a leading U.S. provider of rental natural gas compression equipment and services for oil and gas production and processing facilities, operates from its Southlake, Texas headquarters with engineering and service lo...
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
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.