Natural Gas Services Group (NGS) AI Stock Analysis

• Market Cap: $408.24M
• Dividend Yield: 0.65%
• Average Volume (3M): 94.98K
• Price to Earnings (P/E): 22.0
• Beta (1Y): 1.41
• Revenue Growth: 9.53%
• EPS Growth: 15.48%
• Country: US
• Employees: 245
• Sector: Energy
• Sector Strength: 52
• Industry: Oil & Gas Equipment & Services
• EPS (TTM): 0.46
• Shares Outstanding: 12,568,917
• 10 Day Avg. Volume: 103,469
• 30 Day Avg. Volume: 94,977
• PEG Ratio: 0.08
• Price to Book (P/B): 1.30
• Price to Sales (P/S): 2.12
• P/FCF Ratio: 4.81
• Enterprise Value/Market Cap: 1.38
• Enterprise Value/Revenue: 3.38
• Enterprise Value/Gross Profit: 7.06
• Enterprise Value/Ebitda: 7.82
• 1Y Price Target: $39.33
• Price Target Upside: 21.09% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 3
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 78 Outperform
• Price Target: $36.00 ▲(10.84% Upside)

Natural Gas Services Group is demonstrating strong financial performance and positive technical indicators, supported by a robust earnings call that highlighted record-breaking metrics and increased guidance. The valuation is moderate, with a recent dividend introduction indicating confidence in future cash flows. Overall, the stock shows a strong potential for growth, driven by strategic investments and market share gains.

Positive Factors

Revenue Growth

Consistent revenue growth in rental services indicates strong demand and market position, supporting long-term business expansion.

Cash Flow Generation

Robust cash flow generation enhances financial flexibility, enabling strategic investments and shareholder returns.

Market Share Gains

Gaining market share with large horsepower contracts strengthens competitive position and ensures stable future revenue streams.

Negative Factors

Supply Chain Constraints

Extended lead times could hinder the ability to meet customer demand, potentially impacting revenue and customer satisfaction.

Operational Efficiency

Decreasing margins suggest potential inefficiencies, which could affect profitability if not addressed through operational improvements.

Income Tax Receivable Delays

Delays in tax receivable could impact short-term cash flow, affecting liquidity and financial planning if prolonged.

Natural Gas Services Group Business Overview & Revenue Model

Company Description

Natural Gas Services Group, Inc. provides natural gas compression services and equipment to the energy industry in the United States. It fabricates, manufactures, rents, and sells natural gas compressors and related equipment. The company primarily engages in the rental of compression units that provide small, medium, and large horsepower applications for unconventional oil and natural gas production. As of December 31, 2021, the company had 2,023 natural gas compression units in its rental fleet with 418,041 horsepower. The company also engages in the design, fabrication, and assembly of compressor components into compressor units for rental or sale; engineers and fabricates natural gas compressors; and designs and manufactures a line of reciprocating compressor frames, cylinders, and parts. In addition, it is involved in the design, fabrication, sale, installation, and service of flare stacks and related ignition and control devices for the onshore and offshore incineration of gas compounds, such as hydrogen sulfide, carbon dioxide, natural gas, and liquefied petroleum gases. Further, the company offers customer support services for its compressor and flare sales business; and exchange and rebuild program for small horsepower screw compressors. Its primary customers are exploration and production(E&P) companies that utilize compressor units for artificial lift applications; E&P companies that focuses on natural gas-weighted production; and midstream companies. Natural Gas Services Group, Inc. was incorporated in 1998 and is headquartered in Midland, Texas.

How the Company Makes Money

Natural Gas Services Group generates revenue through multiple streams. Primarily, the company earns money by selling and renting natural gas compression equipment, which is essential for the processing and transportation of natural gas. Additional revenue comes from providing aftermarket services, which include maintenance, repairs, and replacement parts for their equipment. NGS also engages in engineering and consulting services, which further contribute to its income. Strategic partnerships with major energy companies enhance its market presence and create opportunities for long-term contracts, thereby stabilizing and increasing revenue. The demand for natural gas and the ongoing need for efficient energy solutions support NGS's earnings potential.

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	166.82M	156.74M	121.17M	84.83M	72.42M	68.06M
Gross Profit	79.85M	56.64M	32.16M	14.35M	1.66M	7.43M
EBITDA	72.00M	64.94M	37.25M	24.44M	13.68M	22.23M
Net Income	18.69M	17.23M	4.75M	-569.00K	-9.18M	1.81M
Balance Sheet
Total Assets	562.31M	492.53M	478.73M	328.25M	306.49M	306.80M
Cash, Cash Equivalents and Short-Term Investments	0.00	2.14M	2.75M	3.37M	22.94M	28.93M
Total Debt	208.00M	170.15M	165.26M	25.35M	285.00K	900.00K
Total Liabilities	290.89M	237.47M	242.84M	98.17M	70.58M	55.26M
Stockholders Equity	271.42M	255.06M	235.89M	230.08M	235.91M	251.54M
Cash Flow
Free Cash Flow	-44.26M	-6.39M	-135.91M	-37.36M	2.58M	17.39M
Operating Cash Flow	57.21M	65.50M	18.03M	27.76M	28.29M	32.65M
Investing Cash Flow	-101.58M	-71.44M	-153.89M	-65.08M	-25.66M	-15.16M
Financing Cash Flow	43.96M	5.33M	135.23M	17.75M	-8.61M	-157.00K

Natural Gas Services Group Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 32.48
• 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 NGS, the sentiment is Positive. The current price of 32.48 is above the 20-day moving average (MA) of 32.01, above the 50-day MA of 29.63, and above the 200-day MA of 25.28, indicating a bullish trend. The MACD of 0.83 indicates Positive momentum. The RSI at 58.18 is Neutral, neither overbought nor oversold. The STOCH value of 29.61 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
NGS	78 Outperform	$408.24M	21.95	7.15%	0.65%	9.53%	15.48%
FTK	76 Outperform	$488.74M	18.21	29.09%	―	23.56%	242.78%
OIS	71 Outperform	$410.45M	18.32	3.31%	―	-11.02%	―
RNGR	70 Neutral	$298.70M	21.09	5.54%	1.74%	-5.47%	2.24%
Sector *	65 Neutral	$15.17B	7.61	4.09%	5.20%	3.87%	-62.32%
FET	61 Neutral	$405.97M	-3.77	-31.11%	―	-1.29%	-123.25%
GEOS	61 Neutral	$195.13M	-19.95	-7.48%	―	-18.29%	-43.05%

Natural Gas Services Group Corporate Events

Natural Gas Services Group Reports Record Q3 2025 Results

Natural Gas Services Group reported record results for the third quarter of 2025, driven by strong field service execution and technology-enabled uptime. The company achieved significant increases in total rented horsepower, horsepower utilization, adjusted EBITDA, and earnings per share. This performance allowed NGS to raise its full-year 2025 adjusted EBITDA guidance and announce an inaugural quarterly dividend. The company continues to expand its market share in large-horsepower compression and is optimistic about future growth opportunities, supported by strong demand for compression in oil production and rising electricity demand.

Natural Gas Services Group Reports Strong Q3 2025 Results

On November 10, 2025, Natural Gas Services Group announced its third-quarter 2025 financial results, highlighting a strong performance with a 11.1% year-over-year increase in rental revenue and a 14.6% rise in Adjusted EBITDA. The company raised its full-year 2025 Adjusted EBITDA guidance to $78 – $81 million, reflecting continued business strength and increased demand for its large horsepower compression units. Additionally, the Board of Directors declared a quarterly cash dividend of $0.11 per share, payable on December 3, 2025, indicating confidence in cash generation and a disciplined capital allocation strategy.