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Nine Energy Service Inc (NINE)
NYSE:NINE
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Nine Energy Service (NINE) AI Stock Analysis

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NINE

Nine Energy Service

(NYSE:NINE)

Rating:44Neutral
Price Target:
$1.00
▲(29.87%Upside)
Nine Energy Service's overall stock score is impacted primarily by its weak financial performance and valuation. While there are areas of operational improvement, the company's high leverage and financial instability, coupled with negative corporate events, present substantial risks. Technical indicators and earnings call insights provide some positive aspects, but these are outweighed by the challenges faced.

Nine Energy Service (NINE) vs. SPDR S&P 500 ETF (SPY)

Nine Energy Service Business Overview & Revenue Model

Company DescriptionNine Energy Service, Inc. (NINE) is a Houston-based oilfield services company that provides comprehensive completion solutions to the oil and gas industry. The company specializes in serving customers in unconventional resource plays, offering a range of services including cementing, wireline, and coiled tubing. Nine Energy Service focuses on enhancing wellbore integrity and performance, delivering innovative and efficient technologies that help optimize drilling and production processes.
How the Company Makes MoneyNine Energy Service generates revenue primarily through the provision of oilfield services to exploration and production companies. Its key revenue streams include the sale of completion tools and services such as cementing, wireline, and coiled tubing operations, which are critical for well completion and intervention. The company leverages its operational expertise and proprietary technologies to offer cost-effective solutions that improve well performance. Additionally, Nine Energy Service benefits from strategic partnerships and long-term contracts with major oil and gas operators, which provide a steady flow of income. Fluctuations in oil prices and drilling activity can significantly impact its revenue, as demand for its services is closely tied to exploration and production activities in the energy sector.

Nine Energy Service Earnings Call Summary

Earnings Call Date:May 07, 2025
(Q1-2025)
|
% Change Since: 26.23%|
Next Earnings Date:Aug 05, 2025
Earnings Call Sentiment Neutral
While the company achieved revenue and EBITDA growth and executed a successful refinancing, significant challenges such as pricing pressures, tariffs, and uncertain market conditions are expected to impact future performance. The outlook for Q2 indicates a decline in revenue and EBITDA amidst a backdrop of economic and industry uncertainties.
Q1-2025 Updates
Positive Updates
Revenue and EBITDA Growth
Revenue for Q1 2025 was $150.5 million, an increase of approximately 6% versus Q4. Adjusted EBITDA increased by approximately 17% quarter-over-quarter with incremental adjusted EBITDA margins at approximately 26%.
Market Share Gains in Cementing
Cementing business increased its revenue by approximately 4% and jobs completed by approximately 11% despite a flat rig count environment.
Coiled Tubing Revenue Surge
Coiled tubing revenue increased by approximately 16% quarter-over-quarter, with utilization significantly higher than in Q4.
Successful Refinancing of ABL Credit Facility
The new asset-based revolving credit facility provides $125 million of commitments and extends the previous maturity by approximately 9 months to November 2027.
Negative Updates
Pricing Pressure in Wireline Operations
Saw stage price reductions in the Northeast due to lower natural gas prices during bidding in 2024.
Tariffs and Commodity Price Uncertainty
Tariffs on steel and aluminum impact the wireline and coiled tubing divisions. Declining oil prices and tariffs create uncertainty for customer plans and U.S. activity levels.
Expected Revenue and EBITDA Decline
Q2 revenue projected to decline between $138 million and $148 million compared to Q1, with anticipated adjusted EBITDA decrease.
Increased Annual Cash Interest Expense
The new ABL facility is expected to increase annual cash interest expense by approximately $1 million.
Company Guidance
During the first quarter of 2025, Nine Energy Service reported revenue of $150.5 million, which was within their guidance range of $146 million to $152 million, reflecting a 6% increase from the previous quarter. Adjusted EBITDA for the quarter was $16.5 million, up approximately 17% quarter-over-quarter, with incremental adjusted EBITDA margins at 26%. The company saw revenue growth across all service lines despite a flat U.S. rig count, with notable increases in cementing revenue by 4% and coiled tubing revenue by 16%. The completion tools segment also experienced growth, driven by market share gains in the Permian Basin. Nine Energy Service provided Q2 guidance with projected revenue between $138 million and $148 million, reflecting ongoing market uncertainties, tariff impacts, and fluctuating oil prices, which are influencing customer plans and activity levels.

Nine Energy Service Financial Statement Overview

Summary
Nine Energy Service faces significant financial challenges, with high leverage and negative equity causing instability. While there are some improvements in cost management and operational cash flow, overall profitability and financial health are weak.
Income Statement
45
Neutral
Nine Energy Service has shown a volatile revenue trend with a recent decline, and consistent net losses impacting net profit margins negatively. However, the gross profit margin has been improving, indicating better cost management. The EBIT and EBITDA margins show some recovery, but remain weak overall.
Balance Sheet
30
Negative
The company is heavily leveraged with a negative stockholders' equity, indicating financial instability and risk. The debt-to-equity ratio is not meaningful due to negative equity, and the equity ratio is negative as well. These factors highlight significant financial vulnerability.
Cash Flow
50
Neutral
Operating cash flow has been positive recently, showing some operational efficiency. However, free cash flow remains low, which limits reinvestment potential. The free cash flow to net income ratio indicates some alignment between cash flows and reported earnings, but overall cash flow stability is concerning.
BreakdownDec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income Statement
Total Revenue554.10M609.53M593.38M349.42M310.85M
Gross Profit60.60M78.12M96.04M-3.59M-40.20M
EBITDA8.94M72.67M96.34M20.97M-286.85M
Net Income-41.08M-32.21M14.39M-64.58M-378.95M
Balance Sheet
Total Assets360.08M401.98M426.83M381.61M442.60M
Cash, Cash Equivalents and Short-Term Investments27.88M30.84M17.45M21.51M68.86M
Total Debt358.79M366.32M377.80M372.07M384.25M
Total Liabilities426.14M437.61M450.34M420.88M422.19M
Stockholders Equity-66.06M-35.63M-23.51M-39.27M20.41M
Cash Flow
Free Cash Flow-1.57M20.91M-11.88M-55.83M-14.32M
Operating Cash Flow13.20M45.51M16.67M-40.42M-4.90M
Investing Cash Flow-14.18M-23.16M-25.42M-11.92M-1.78M
Financing Cash Flow-1.68M-8.89M4.85M5.05M-17.39M

Nine Energy Service Technical Analysis

Technical Analysis Sentiment
Negative
Last Price0.77
Price Trends
50DMA
0.71
Positive
100DMA
0.84
Negative
200DMA
1.02
Negative
Market Momentum
MACD
<0.01
Positive
RSI
47.97
Neutral
STOCH
33.00
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For NINE, the sentiment is Negative. The current price of 0.77 is below the 20-day moving average (MA) of 0.82, above the 50-day MA of 0.71, and below the 200-day MA of 1.02, indicating a neutral trend. The MACD of <0.01 indicates Positive momentum. The RSI at 47.97 is Neutral, neither overbought nor oversold. The STOCH value of 33.00 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for NINE.

Nine Energy Service Peers Comparison

Overall Rating
UnderperformOutperform
Sector (67)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
80
Outperform
$78.08M9.388.71%18.03%-39.52%
67
Neutral
$15.27B9.946.24%5.21%4.47%-70.67%
63
Neutral
$81.15M26.47-1.66%8.19%-110.61%
58
Neutral
$92.13M28.65-9.09%-0.94%-353.00%
46
Neutral
$45.55M-39.40%-40.77%-14.13%
44
Neutral
$33.68M73.91%-4.38%-3.77%
42
Neutral
$34.58M-375.26%-16.38%-359.80%
* Energy Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
NINE
Nine Energy Service
0.77
-1.07
-58.15%
DWSN
Dawson Geophysical Company
1.41
-0.62
-30.54%
SND
Smart Sand
2.01
0.03
1.52%
NCSM
Ncs Multistage Holdings
30.21
12.81
73.62%
KLXE
KLX Energy Services Holdings
1.89
-4.55
-70.65%
DTI
Drilling Tools International
2.22
-3.13
-58.50%

Nine Energy Service Corporate Events

Executive/Board ChangesPrivate Placements and FinancingShareholder MeetingsFinancial Disclosures
Nine Energy Service Secures New Credit Facility Agreement
Neutral
May 7, 2025

On May 1, 2025, Nine Energy Service entered into a new asset-based revolving credit facility agreement with White Oak Commercial Finance, replacing its previous facility. This new $125 million credit facility, which could increase by up to $50 million, aims to enhance the company’s financial flexibility and liquidity, supporting its strategic goals. Additionally, on May 2, 2025, the company announced changes to its board of directors, with Gary L. Thomas resigning and Richard A. Burnett joining. The company also held its annual meeting, where stockholders approved various proposals, including the election of directors and an incentive plan amendment. Nine Energy Service reported a 6% increase in revenue for the first quarter of 2025, reaching $150.5 million, despite a flat US rig count, and improved its net loss by 20%. The company anticipates challenges ahead due to declining oil prices and increased costs, but remains focused on executing its strategy and maintaining service quality.

Delistings and Listing ChangesStock SplitRegulatory Filings and Compliance
Nine Energy Service Faces NYSE Noncompliance Notice
Negative
May 2, 2025

On April 30, 2025, Nine Energy Service received a notification from the NYSE regarding noncompliance with the minimum share price requirement, as its stock price fell below $1.00 over 30 consecutive trading days. The company plans to address this issue within a six-month period, considering options like a reverse stock split, subject to stockholder approval. If compliance is not regained, the NYSE may delist the stock, potentially impacting the company’s liquidity and investor interest.

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.Date of analysis: Jul 16, 2025