Natural Gas Services Group (NGS) AI Stock Analysis

• Market Cap: $320.64M
• Dividend Yield: N/A
• Average Volume (3M): 69.41K
• Price to Earnings (P/E): 18.9
• Beta (1Y): 1.13
• Revenue Growth: 22.64%
• EPS Growth: 78.46%
• Country: US
• Employees: 245
• Sector: Energy
• Sector Strength: 55
• Industry: Oil & Gas Equipment & Services
• EPS (TTM): 0.38
• Shares Outstanding: 12,529,929
• 10 Day Avg. Volume: 75,604
• 30 Day Avg. Volume: 69,405
• PEG Ratio: 2.65
• Price to Book (P/B): 0.61
• Price to Sales (P/S): 0.00
• P/FCF Ratio: -3.77
• Enterprise Value/Market Cap: 0.51
• Enterprise Value/Revenue: 0.27
• Enterprise Value/Gross Profit: 2.14
• Enterprise Value/Ebitda: 0.65
• 1Y Price Target: $36.25
• Price Target Upside: 41.55% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 4

• Rating: 76 Outperform
• Price Target: $28.00 ▲(9.33%Upside)

Natural Gas Services Group shows strong financial performance with robust revenue growth and profitability. Technical indicators suggest upward momentum, although caution is advised due to overbought signals. The stock is fairly valued, albeit without a dividend. Positive earnings call and corporate events further bolster the company's outlook. Overall, NGS is well-positioned for continued success in the oil and gas equipment and services sector.

Positive Factors

Earnings

NGS reported 1Q25 results above expectations and slightly increased the midpoint of 2025 EBITDA guidance.

Financial Performance

NGS ended 4Q24 with a leverage ratio well below the covenant, indicating strong financial health.

Growth Expectations

NGS introduced 2025 EBITDA guidance of $74M-$78M, which is higher than the previous year, indicating positive growth expectations.

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, 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 primarily makes money through the rental and sales of natural gas compression equipment. The company's revenue model is based on long-term rental agreements with clients, providing a stable and recurring revenue stream. Additionally, NGS earns revenue from the sales of its compression units and related aftermarket services, such as maintenance and repair. Key factors contributing to its earnings include the demand for natural gas, advancements in extraction technologies, and its ability to maintain strong relationships with key players in the energy sector.

Natural Gas Services Group Financial Statement Overview

Summary

Natural Gas Services Group demonstrates solid financial performance with strong revenue and profitability growth. The income statement shows impressive performance, the balance sheet is healthy with moderate leverage, and cash flows are robust, reflecting excellent cash generation capabilities.

Income Statement

The company shows strong revenue growth, with a significant increase from $68.06M in 2020 to $161.22M in TTM. The gross profit margin improved to 47.3% TTM, indicating efficient cost management. Net profit margin is healthy at 10.5% TTM, showcasing profitability. EBIT and EBITDA margins are robust at 20.8% and 35.5% respectively, illustrating operational efficiency.

Balance Sheet

The balance sheet is stable with an equity ratio of 51.9% TTM, indicating a strong equity base. The debt-to-equity ratio at 0.65 is moderate, suggesting controlled leverage. Return on equity is a decent 6.5% TTM, reflecting effective use of equity to generate profits. The balance sheet strength is supported by a consistent increase in stockholders' equity.

Cash Flow

The operating cash flow to net income ratio is 4.78 TTM, indicating strong cash flow generation compared to net income. Free cash flow grew significantly to $20.80M TTM from negative figures, reflecting improved cash management. The free cash flow to net income ratio of 1.22 TTM further supports the company's strong cash flow position.

Breakdown
TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement		Total Revenue
161.22M	156.74M	121.17M	84.83M	72.42M	68.06M
	Gross Profit
76.28M	56.64M	32.16M	14.35M	1.66M	7.43M
	EBIT
33.51M	33.33M	10.46M	431.00K	-8.63M	-2.68M
	EBITDA
57.24M	64.94M	37.25M	24.44M	13.68M	22.23M
	Net Income Common Stockholders
16.98M	17.23M	4.75M	-569.00K	-9.18M	1.81M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
2.15M	2.14M	2.75M	3.37M	22.94M	28.93M
	Total Assets
501.69M	492.53M	478.73M	328.25M	298.51M	306.80M
	Total Debt
168.00M	170.15M	164.00M	25.35M	285.00K	900.00K
	Net Debt
165.85M	168.01M	161.25M	21.98M	-22.66M	-28.02M
	Total Liabilities
241.43M	237.47M	242.84M	98.17M	62.60M	55.26M
	Stockholders Equity
260.26M	255.06M	235.89M	230.08M	235.91M	251.54M
Cash Flow		Free Cash Flow
20.80M	69.15M	-135.91M	-37.36M	2.82M	17.39M
	Operating Cash Flow
81.24M	66.46M	18.03M	27.76M	28.53M	32.65M
	Investing Cash Flow
-79.75M	-71.44M	-153.89M	-65.08M	-25.66M	-15.16M
	Financing Cash Flow
-5.46M	4.37M	135.23M	17.82M	-8.85M	-157.00K

Natural Gas Services Group Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 25.61
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Negative

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 25.61 is above the 20-day moving average (MA) of 24.71, above the 50-day MA of 21.65, and above the 200-day MA of 23.12, indicating a bullish trend. The MACD of 0.92 indicates Positive momentum. The RSI at 66.48 is Neutral, neither overbought nor oversold. The STOCH value of 82.13 is Negative, 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	76 Outperform	$320.64M	18.92	6.77%	―	22.64%	78.46%
FTK	72 Outperform	$494.05M	35.87	12.80%	―	11.97%	188.31%
TTI	72 Outperform	$477.73M	4.15	55.55%	―	-4.08%	429.70%
RNGR	72 Outperform	$290.90M	14.76	7.41%	1.88%	-7.56%	30.51%
OIS	63 Neutral	$321.10M	59.28	0.75%	―	-9.04%	―
FET	58 Neutral	$235.02M	―	-32.34%	―	7.31%	-326.94%
Sector *	58 Neutral	$7.47B	3.50	-4.45%	10.05%	0.81%	-49.42%

Natural Gas Services Group Corporate Events

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.

The most recent analyst rating on (NGS) stock is a Buy with a $27.00 price target. To see the full list of analyst forecasts on Natural Gas Services Group stock, see the NGS Stock Forecast page.

Natural Gas Services Group Reports Record Q1 Rental Revenue

Natural Gas Services Group reported a strong start to 2025, achieving record rental revenue of $38.9 million for the first quarter, a 15% increase from the previous year. The company maintained a robust competitive position despite market volatility, with all 2025 unit deliveries under long-term contracts and continued growth discussions for 2026. The company is focused on asset utilization, fleet expansion, and M&A to drive growth, with plans to monetize significant non-cash assets and expand its fleet with large horsepower units. Customer diversification remains a priority, with the largest customer accounting for 46% of revenue, down from 54% in 2024.

The most recent analyst rating on (NGS) stock is a Buy with a $27.00 price target. To see the full list of analyst forecasts on Natural Gas Services Group stock, see the NGS Stock Forecast page.

Natural Gas Services Group Appoints New Board Member

On April 1, 2025, Natural Gas Services Group appointed J. Anthony Gallegos, Jr. to its Board of Directors, filling the vacancy left by David Bradshaw’s retirement in December 2024. Mr. Gallegos, with over 30 years of experience in the drilling industry, brings significant expertise to the Board, serving on the Audit and Safety & Sustainability Committees. His appointment is expected to enhance the company’s strategic direction and shareholder value as NGS continues to focus on growth and innovation in the natural gas compression sector.

Natural Gas Services Group Reports Strong 2024 Financials

Natural Gas Services Group reported strong financial performance for the fourth quarter and full year 2024, with significant growth in revenue, net cash from operations, and adjusted EBITDA. The company achieved a 17% increase in rented horsepower compared to the previous year and a 55% increase over two years, reflecting a strategic focus on large horsepower compression. Rental revenue rose by 36% from 2023 and 94% from 2022, driven by an upgraded fleet and higher pricing. The company also improved its asset utilization, reducing accounts receivable and increasing cash flow to fund growth. Looking ahead, Natural Gas Services Group anticipates continued growth in 2025 and 2026, with plans to expand its large horsepower rented fleet and capitalize on market opportunities.