Nine Energy Service (NINE) AI Stock Analysis

• Market Cap: $23.81M
• Dividend Yield: N/A
• Average Volume (3M): 819.70K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.90
• Revenue Growth: -4.38%
• EPS Growth: -3.77%
• Country: US
• Employees: 1,077
• Sector: Energy
• Sector Strength: 45
• Industry: Oil & Gas Equipment & Services
• EPS (TTM): -0.18
• Shares Outstanding: 42,348,644
• 10 Day Avg. Volume: 1,151,915
• 30 Day Avg. Volume: 819,703
• PEG Ratio: -0.10
• Price to Book (P/B): -0.41
• Price to Sales (P/S): 0.00
• P/FCF Ratio: -18.32
• Enterprise Value/Market Cap: 15.10
• Enterprise Value/Revenue: 0.16
• Enterprise Value/Gross Profit: 5.93
• Enterprise Value/Ebitda: 1.53
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0

Nine Energy Service's overall score reflects significant financial risks due to high leverage and ongoing losses. While there was some revenue and EBITDA growth in Q1 2025, challenges such as pricing pressures, tariffs, and potential delisting from the NYSE present ongoing concerns. The technical indicators show bearish momentum, and the valuation metrics highlight significant challenges, all contributing to a lower score.

Nine Energy Service Business Overview & Revenue Model

Company Description

Nine Energy Service, Inc. operates as an onshore completion services provider that targets unconventional oil and gas resource development across North American basins and internationally. It offers cementing services, which consist of blending high-grade cement and water with various solid and liquid additives to create a cement slurry that is pumped between the casing and the wellbore of the well. The company also provides a portfolio of completion tools, such as liner hangers and accessories, fracture isolation packers, frac sleeves, stage one prep tools, frac plugs, casing flotation tools, specialty open hole float equipment, disk subs, composite cement retainers, and centralizers that provide pinpoint frac sleeve system technologies. In addition, it offers wireline services consisting of plug-and-perf completions, which is a multistage well completion technique for cased-hole wells that consists of deploying perforating guns and isolation tools to a specified depth; and coiled tubing services, which perform wellbore intervention operations utilizing a continuous steel pipe that is transported to the wellsite wound on a large spool in lengths of up to 30,000 feet. The company was formerly known as NSC-Tripoint, Inc. and changed its name to Nine Energy Service, Inc. in October 2011. Nine Energy Service, Inc. was incorporated in 2011 and is headquartered in Houston, Texas.

How the Company Makes Money

Nine Energy Service generates revenue primarily through its service offerings in the oilfield services sector. The company's key revenue streams include cementing services, which involve preparing and securing the casing in oil and gas wells; wireline services, which include providing tools and techniques for well evaluation and intervention; and completion tools, which are utilized in the hydraulic fracturing process. These services are essential for the exploration and production phases of oil and gas extraction. Nine Energy Service's earnings are influenced by factors such as oil and gas industry activity levels, commodity prices, and the company's ability to secure contracts with major exploration and production companies. Additionally, partnerships or long-term agreements with key clients can contribute significantly to its revenue stability and growth.

Nine Energy Service Financial Statement Overview

Summary

Nine Energy Service faces significant financial challenges with declining revenues, negative net income, and high leverage. While there is some capacity to generate operating cash flow, the company's financial stability is at risk, requiring strategic adjustments to improve profitability and reduce debt.

Income Statement

The income statement reveals declining revenue with a negative net income in recent years. Gross profit margin increased from the previous year, but the net profit margin is negative, indicating challenges in converting revenue into profit. The EBIT margin has also decreased significantly compared to past performance.

Balance Sheet

The balance sheet shows a high debt-to-equity ratio due to negative stockholders' equity, indicating financial stress. The equity ratio is also negative, signaling high leverage. This situation presents significant financial risk.

Cash Flow

The cash flow statement shows negative free cash flow growth, highlighting operational challenges. The operating cash flow to net income ratio is favorable, suggesting some ability to generate cash, but free cash flow remains a concern.

Breakdown
Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement		Total Revenue
554.10M	609.53M	593.38M	349.42M	310.85M
	Gross Profit
60.60M	78.12M	96.04M	-3.59M	-40.20M
	EBIT
8.94M	17.57M	43.57M	-48.57M	-383.17M
	EBITDA
8.94M	72.67M	96.34M	20.97M	-286.85M
	Net Income Common Stockholders
-41.08M	-32.21M	14.39M	-64.58M	-378.95M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
27.88M	30.84M	17.45M	21.51M	68.86M
	Total Assets
360.08M	401.98M	426.83M	381.61M	442.60M
	Total Debt
358.79M	366.32M	377.80M	372.07M	384.25M
	Net Debt
330.91M	335.48M	360.36M	350.56M	315.39M
	Total Liabilities
426.14M	437.61M	450.34M	420.88M	422.19M
	Stockholders Equity
-66.06M	-35.63M	-23.51M	-39.27M	20.41M
Cash Flow		Free Cash Flow
-1.57M	20.91M	-11.88M	-55.83M	-14.32M
	Operating Cash Flow
13.20M	45.51M	16.67M	-40.42M	-4.90M
	Investing Cash Flow
-14.18M	-23.16M	-25.42M	-11.92M	-1.78M
	Financing Cash Flow
-1.68M	-8.89M	4.85M	5.05M	-17.39M

Nine Energy Service Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 0.56
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

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 0.56 is below the 20-day moving average (MA) of 0.74, below the 50-day MA of 0.93, and below the 200-day MA of 1.15, indicating a bearish trend. The MACD of -0.08 indicates Positive momentum. The RSI at 30.26 is Neutral, neither overbought nor oversold. The STOCH value of 6.02 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for NINE.

Nine Energy Service Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
RNGR	70 Outperform	$251.08M	12.83	7.41%	1.87%	-7.56%	30.51%
GFR	69 Neutral	$316.05M	2.36	25.10%	―	38.46%	―
DTI	64 Neutral	$87.56M	26.47	-1.66%	―	8.19%	-110.61%
OIS	60 Neutral	$282.74M	52.71	0.75%	―	-9.04%	―
Sector *	57 Neutral	$7.13B	3.45	-3.67%	5.68%	0.46%	-50.35%
PUMP	53 Neutral	$590.21M	―	-16.24%	―	-13.32%	-309.35%
NINE	42 Neutral	$23.81M	―	73.91%	―	-4.38%	-3.77%

Nine Energy Service Corporate Events

Nine Energy Service Secures New Credit Facility Agreement

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.

Spark’s Take on NINE Stock

According to Spark, TipRanks’ AI Analyst, NINE is a Neutral.

Nine Energy Service’s overall stock score reflects significant financial risks due to high leverage and ongoing losses. While technical analysis indicates bearish momentum, strategic initiatives and corporate restructuring provide some positive outlook. However, current valuation challenges and market conditions present ongoing risks.

To see Spark’s full report on NINE stock, click here.

Nine Energy Service Faces NYSE Noncompliance Notice

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.

Spark’s Take on NINE Stock

According to Spark, TipRanks’ AI Analyst, NINE is a Neutral.

Nine Energy Service’s overall score reflects significant financial risks due to high leverage and ongoing losses. While technical analysis indicates bearish momentum, strategic initiatives and corporate restructuring provide some positive outlook. However, current valuation challenges and market conditions present ongoing risks.

To see Spark’s full report on NINE stock, click here.

Nine Energy Service Restructures Board Amid Revenue Growth

In the first quarter of 2025, Nine Energy Service’s Board of Directors decided to reduce its size from eight to six members, resulting in the resignation of three directors and the appointment of two new ones, effective March and May 2025. The company reported a 2% increase in Q4 2024 revenue despite a flat US rig count, with full-year revenue of $554.1 million. Nine’s strategic focus on market share gains and cost reductions helped drive profitability amid challenging conditions, with significant growth in cementing revenue and continued innovation in completion tools.