Nine Energy Service (NINE) AI Stock Analysis

• Market Cap: $20.05M
• Dividend Yield: N/A
• Average Volume (3M): 2.11M
• Price to Earnings (P/E): ―
• Beta (1Y): 0.77
• Revenue Growth: 2.59%
• EPS Growth: 16.02%
• Country: US
• Employees: 1,077
• Sector: Energy
• Sector Strength: 52
• Industry: Oil & Gas Equipment & Services
• EPS (TTM): -0.35
• Shares Outstanding: 43,361,340
• 10 Day Avg. Volume: 604,948
• 30 Day Avg. Volume: 2,106,310
• PEG Ratio: -0.07
• Price to Book (P/B): -0.63
• Price to Sales (P/S): 0.08
• P/FCF Ratio: -26.55
• Enterprise Value/Market Cap: 19.22
• Enterprise Value/Revenue: 0.67
• Enterprise Value/Gross Profit: 5.87
• Enterprise Value/Ebitda: 6.24
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0
• EPS Forecast (FY): -1.07
• Revenue Forecast (FY): $568.02M

• Rating: 41 Neutral
• Price Target: $0.43 ▼(-4.89% Downside)

Nine Energy Service's overall stock score is low due to significant financial challenges, including declining revenues and negative profitability. The technical analysis indicates a bearish trend, and the valuation suggests the stock is overvalued given its current financial performance. The earnings call further underscores the company's difficulties, with revenue falling short of guidance and market share losses.

Positive Factors

International Revenue Growth

The significant growth in international revenue indicates successful expansion into new markets, which can diversify income streams and reduce reliance on domestic operations, enhancing long-term stability.

Technical Achievement in Cementing Division

Innovative technical solutions in cementing improve operational efficiency and client satisfaction, potentially leading to increased demand and competitive advantage in challenging extraction environments.

Stable Revenue Base from Long-term Contracts

Long-term contracts provide a stable revenue base, reducing volatility and ensuring predictable cash flows, which supports financial planning and investment in growth opportunities.

Negative Factors

High Leverage and Financial Risk

High leverage and negative equity pose significant financial risks, limiting the company's ability to invest in growth and increasing vulnerability to economic downturns.

Decline in U.S. Rig Count

A declining rig count reduces demand for Nine Energy's services, impacting revenue and market share, and reflecting broader industry challenges that could persist.

Liquidity and Borrowing Base Reduction

Reduction in borrowing capacity limits financial flexibility, constraining the company's ability to respond to market opportunities or challenges, and potentially affecting operational stability.

Nine Energy Service Business Overview & Revenue Model

Company Description

Nine Energy Service (NINE) is a leading provider of completion services to onshore oil and natural gas exploration and production companies in North America. The company operates primarily in the Permian Basin, the Williston Basin, and the Rocky Mountain regions, offering a range of services that include hydraulic fracturing, wireline services, and coiled tubing services. Nine Energy Service is focused on delivering innovative solutions and advanced technologies to enhance the efficiency and effectiveness of its clients' operations.

How the Company Makes Money

Nine Energy Service generates revenue primarily through its service offerings, which include hydraulic fracturing, wireline services, and coiled tubing. The company typically charges clients on a fee-for-service basis, with pricing determined by the complexity and scale of the projects undertaken. Key revenue streams come from long-term contracts with major oil and gas companies, which provide a stable income source. Additionally, Nine Energy Service benefits from partnerships with equipment manufacturers and technology providers, enhancing its service capabilities and operational efficiency. Market demand for oil and natural gas, as well as fluctuations in commodity prices, significantly influence the company's earnings, as higher prices generally lead to increased exploration and production activities by its clients.

Nine Energy Service Financial Statement Overview

Summary

Nine Energy Service is experiencing financial difficulties with declining revenues, negative profitability, and a highly leveraged balance sheet. Although there are some improvements in cash flow metrics, the company needs to address its capital structure and improve profitability to enhance financial stability.

Income Statement

The income statement shows a challenging financial position for Nine Energy Service. The company has experienced a decline in revenue growth, with a negative growth rate of -1.06% in the TTM period. Gross profit margins have decreased, and net profit margins are negative, indicating ongoing losses. Despite some improvement in EBIT and EBITDA margins, the overall profitability remains weak.

Balance Sheet

The balance sheet reveals significant financial leverage, with a high debt-to-equity ratio due to negative stockholders' equity. This indicates potential financial instability. The return on equity is positive, but this is primarily due to negative equity, which distorts the metric. The equity ratio is also negative, highlighting a concerning capital structure.

Cash Flow

Cash flow analysis shows some positive trends, with an improvement in free cash flow growth rate and operating cash flow to net income ratio. However, free cash flow remains negative, and the free cash flow to net income ratio is unfavorable, indicating challenges in generating sufficient cash flow to cover net losses.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	571.17M	554.10M	609.53M	593.38M	349.42M	310.85M
Gross Profit	65.70M	60.60M	78.12M	96.04M	-3.59M	-40.20M
EBITDA	61.81M	60.47M	72.67M	96.34M	20.97M	-286.85M
Net Income	-40.94M	-41.08M	-32.21M	14.39M	-64.58M	-378.95M
Balance Sheet
Total Assets	340.70M	360.08M	401.98M	426.83M	381.61M	442.60M
Cash, Cash Equivalents and Short-Term Investments	14.39M	27.88M	30.84M	17.45M	21.51M	68.86M
Total Debt	375.91M	358.79M	366.32M	377.80M	372.07M	384.25M
Total Liabilities	436.57M	426.14M	437.61M	450.34M	420.88M	422.19M
Stockholders Equity	-95.87M	-66.06M	-35.63M	-23.51M	-39.27M	20.41M
Cash Flow
Free Cash Flow	-6.70M	-1.57M	20.91M	-11.88M	-55.83M	-14.32M
Operating Cash Flow	9.86M	13.20M	45.51M	16.67M	-40.42M	-4.90M
Investing Cash Flow	-16.16M	-14.18M	-23.16M	-25.42M	-11.92M	-1.78M
Financing Cash Flow	6.99M	-1.68M	-8.89M	4.85M	5.05M	-17.39M

Nine Energy Service Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 0.45
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: 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 0.45 is below the 20-day moving average (MA) of 0.46, below the 50-day MA of 0.57, and below the 200-day MA of 0.76, indicating a bearish trend. The MACD of -0.04 indicates Negative momentum. The RSI at 43.07 is Neutral, neither overbought nor oversold. The STOCH value of 67.69 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

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
NCSM	71 Outperform	$95.28M	8.26	11.89%	―	16.61%	-72.29%
Sector *	65 Neutral	$15.17B	7.61	4.09%	5.20%	3.87%	-62.32%
SND	62 Neutral	$128.45M	30.16	1.61%	―	18.98%	―
DTI	54 Neutral	$85.18M	―	-5.18%	―	7.46%	-165.76%
DWSN	44 Neutral	$61.47M	―	-19.81%	―	-22.31%	39.11%
KLXE	44 Neutral	$31.22M	-0.43	―	―	-12.57%	-45.75%
NINE	41 Neutral	$20.05M	―	―	―	2.59%	16.02%

Nine Energy Service Corporate Events

Nine Energy Service Board Restructures After Resignation

On November 9, 2025, Richard A. Burnett resigned from the board of directors of Nine Energy Service, Inc., with no disagreements regarding the company’s operations or policies. Following his resignation, the board was reduced from six to five members, and Scott E. Schwinger was appointed as the Chair of the Board’s Audit Committee, effective November 10, 2025.

The most recent analyst rating on (NINE) stock is a Hold with a $0.50 price target. To see the full list of analyst forecasts on Nine Energy Service stock, see the NINE Stock Forecast page.

Nine Energy Service Faces Challenges Amid Revenue Decline

Nine Energy Service’s recent earnings call painted a picture of a challenging quarter, marked by significant revenue and market share declines. The company faced headwinds from rig count reductions, pricing pressures, and operational delays in the Northeast. Despite these hurdles, there were bright spots, including international revenue growth and technical achievements in the cementing division. The outlook remains cautious, with expectations of continued challenges in the fourth quarter.