Natural Gas Services Group (NGS) AI Stock Analysis

• Market Cap: $304.23M
• Dividend Yield: N/A
• Average Volume (3M): 66.50K
• Price to Earnings (P/E): 18.0
• Beta (1Y): 1.14
• Revenue Growth: 22.64%
• EPS Growth: 78.46%
• Country: US
• Employees: 245
• Sector: Energy
• Sector Strength: 48
• Industry: Oil & Gas Equipment & Services
• EPS (TTM): 0.38
• Shares Outstanding: 12,529,929
• 10 Day Avg. Volume: 49,721
• 30 Day Avg. Volume: 66,504
• PEG Ratio: -12.33
• Price to Book (P/B): 1.17
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 14.67
• Enterprise Value/Market Cap: 1.55
• Enterprise Value/Revenue: 0.77
• Enterprise Value/Gross Profit: 6.16
• Enterprise Value/Ebitda: 1.89
• 1Y Price Target: $36.25
• Price Target Upside: 48.87% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 4

• Rating: 78 Outperform
• Price Target: $27.00 ▲(10.88%Upside)

Natural Gas Services Group exhibits strong financial performance and positive strategic initiatives, which are the key drivers of its high stock score. While technical indicators show some bearish signals, the company's solid earnings and strategic advancements, including corporate leadership changes and record rental revenues, contribute to its overall positive outlook.

Positive Factors

Earnings

NGS reported first quarter results above expectations and slightly increased the midpoint of EBITDA guidance for 2025.

Financial Performance

The company ended the fourth quarter with a leverage ratio well below the covenant, indicating strong financial health.

Negative Factors

Market Demand

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 in the energy sector, specializing in the fabrication, rental, and sale of natural gas compression equipment. The company caters primarily to the upstream and midstream segments of the oil and gas industry, offering essential equipment and services that facilitate the efficient extraction and transportation of natural gas. With a focus on innovation and customer service, NGS supports its clients in enhancing their operational capabilities and addressing their specific gas compression needs.

How the Company Makes Money

Natural Gas Services Group generates revenue through multiple streams, primarily focusing on the rental and sales of natural gas compression equipment. The company's rental business involves leasing compression units to customers, which provides a steady and recurring revenue stream. This model allows customers to access necessary equipment without the upfront capital expenditure of purchasing, while NGS benefits from long-term rental agreements. Additionally, NGS sells new and used compression equipment, contributing to its revenue. The company also offers maintenance and support services, which enhance customer relationships and provide additional income. These revenue streams are supported by a strategy of maintaining a diverse fleet of equipment and fostering strong customer relationships, ensuring adaptability to market demands and conditions.

Natural Gas Services Group Financial Statement Overview

Summary

Natural Gas Services Group demonstrates solid financial performance with impressive revenue and profitability growth. The balance sheet is healthy with moderate leverage and strong equity. Cash flows are robust, reflecting excellent cash generation capabilities. The company is well-positioned for future growth with manageable risks.

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

Natural Gas Services Group Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 24.35
• 50DMA: Negative
• 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 24.35 is below the 20-day moving average (MA) of 24.81, below the 50-day MA of 25.05, and above the 200-day MA of 23.88, indicating a neutral trend. The MACD of -0.23 indicates Positive momentum. The RSI at 46.66 is Neutral, neither overbought nor oversold. The STOCH value of 51.87 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	$304.23M	17.99	6.77%	―	22.64%	78.46%
RNGR	71 Outperform	$277.63M	14.09	7.41%	1.78%	-7.56%	30.51%
FTK	70 Outperform	$375.27M	27.05	12.80%	―	11.97%	188.31%
Sector *	67 Neutral	$15.27B	9.94	6.24%	5.21%	4.47%	-70.67%
TTI	63 Neutral	$500.35M	4.43	55.55%	―	-4.08%	429.70%
OIS	59 Neutral	$355.75M	66.32	0.75%	―	-9.04%	―
FET	58 Neutral	$247.27M	―	-32.34%	―	7.31%	-326.94%

Natural Gas Services Group Corporate Events

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.

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 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.