Nine Energy Service (NINE) AI Stock Analysis

• Market Cap: $33.68M
• Dividend Yield: N/A
• Average Volume (3M): 6.11M
• Price to Earnings (P/E): ―
• Beta (1Y): 0.57
• Revenue Growth: -4.38%
• EPS Growth: -3.77%
• Country: US
• Employees: 1,077
• Sector: Energy
• Sector Strength: 48
• Industry: Oil & Gas Equipment & Services
• EPS (TTM): -0.18
• Shares Outstanding: 42,348,644
• 10 Day Avg. Volume: 677,049
• 30 Day Avg. Volume: 6,105,571
• PEG Ratio: -0.15
• Price to Book (P/B): -0.44
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 9.60
• Enterprise Value/Market Cap: 11.15
• Enterprise Value/Revenue: 0.17
• Enterprise Value/Gross Profit: 5.93
• Enterprise Value/Ebitda: 1.57
• 1Y Price Target: $1.00
• Price Target Upside: 29.87% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 0

• Rating: 44 Neutral
• 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 Business Overview & Revenue Model

Company Description

Nine 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 Money

Nine 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 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

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

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

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.

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
EBITDA	8.94M	72.67M	96.34M	20.97M	-286.85M
Net Income	-41.08M	-32.21M	14.39M	-64.58M	-378.95M
Balance Sheet
Total Assets	360.08M	401.98M	426.83M	381.61M	442.60M
Cash, Cash Equivalents and Short-Term Investments	27.88M	30.84M	17.45M	21.51M	68.86M
Total Debt	358.79M	366.32M	377.80M	372.07M	384.25M
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: 0.77
• 50DMA: Positive
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• 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 0.77 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

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
NCSM	80 Outperform	$78.08M	9.38	8.71%	―	18.03%	-39.52%
Sector *	67 Neutral	$15.27B	9.94	6.24%	5.21%	4.47%	-70.67%
DTI	63 Neutral	$81.15M	26.47	-1.66%	―	8.19%	-110.61%
SND	58 Neutral	$92.13M	28.65	-9.09%	―	-0.94%	-353.00%
DWSN	46 Neutral	$45.55M	―	-39.40%	―	-40.77%	-14.13%
NINE	44 Neutral	$33.68M	―	73.91%	―	-4.38%	-3.77%
KLXE	42 Neutral	$34.58M	―	-375.26%	―	-16.38%	-359.80%

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.

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.