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Nine Energy Service Inc (NINE)
NYSE:NINE
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Nine Energy Service
(NYSE:NINE)
Rating:41Neutral
Price Target:
$0.50
▼(-24.24% Downside)
Nine Energy Service (NINE) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$28.51M
Dividend YieldN/A
Average Volume (3M)685.68K
Price to Earnings (P/E)―
Beta (1Y)0.41
Revenue Growth3.23%
EPS Growth31.76%
CountryUS
Employees1,077
SectorEnergy
Sector Strength59
IndustryOil & Gas Equipment & Services
Share Statistics
EPS (TTM)-0.25
Shares Outstanding43,340,550
10 Day Avg. Volume760,659
30 Day Avg. Volume685,684
Financial Highlights & Ratios
PEG RatioN/A
Price to Book (P/B)N/A
Price to Sales (P/S)N/A
P/FCF RatioN/A
Enterprise Value/Market Cap13.21
Enterprise Value/Revenue0.65
Enterprise Value/Gross Profit5.41
Enterprise Value/Ebitda5.77
Forecast
1Y Price Target
$0.50Price Target Upside-24.24% Downside
Rating ConsensusHold
Number of Analyst Covering1
Nine Energy Service Business Overview & Revenue Model
Company DescriptionNine Energy Service (NINE) is a leading provider of completions and production services in the North American oil and natural gas industry. The company specializes in offering a range of services including hydraulic fracturing, wireline, and other production-focused solutions that enhance the efficiency and effectiveness of oil and gas extraction. With a commitment to operational excellence, Nine Energy Service serves a diverse clientele, primarily focusing on onshore unconventional resource basins.
How the Company Makes MoneyNine Energy Service generates revenue through multiple key streams. The primary source of income comes from its hydraulic fracturing services, which are billed based on the volume of services rendered and the complexity of the operations. Additional revenue is derived from its wireline services, which include logging and completion operations essential for assessing and developing oil and gas wells. The company also engages in long-term contracts with major exploration and production companies, providing a stable revenue base. Significant partnerships with energy producers and strategic alliances enhance its market position and contribute to sustained earnings. Market dynamics, such as oil and gas prices, directly impact the demand for Nine's services, influencing overall revenue performance.
Nine Energy Service Earnings Call Summary
Earnings Call Date:Aug 05, 2025
(Q2-2025)
| % Change Since: |
Next Earnings Date:Nov 10, 2025
Earnings Call Sentiment Neutral
The earnings call presented a mixed outlook. While there were notable achievements in revenue and international market growth, challenges such as declining oil prices, rig reductions, and decreased revenues in key service lines were highlighted. The company anticipates further declines in revenue and EBITDA in Q3 due to continued market challenges.Q2-2025 Updates
Positive Updates
Revenue and EBITDA Achievement
Revenue for the quarter was $147.3 million, which was in the upper range of the original guidance of $138 million to $148 million. Adjusted EBITDA was $14.1 million.
Growth in International Tool Sales
International Tools revenue increased by approximately 20% compared to the first half of 2024, driven by increased sales of multi-cycle barrier valves in the Middle East and an overall increase in plug sales.
Wireline Revenue Increase
Wireline revenue increased by approximately 11% in Q2, driven by increased market share in the Northeast.
Completion Tool Revenue Growth
Completion Tool revenue grew by approximately 9%, supported by sales in the Northeastern Haynesville and increased International Tool sales.
Negative Updates
Oil Price Decline and Rig Reduction Impact
Oil prices declined from an average of $72 in Q1 to $65 in Q2, with a drop below $60. U.S. activity and CapEx plans were reduced, resulting in significant rate declines and a 10% reduction in rigs, particularly in the Permian Basin.
Cementing and Coiled Tubing Revenue Decline
Cementing revenue decreased by approximately 9%, and Coiled Tubing revenue decreased by approximately 16%, driven by activity and pricing declines in the Permian Basin.
Natural Gas Price Decline
Natural gas prices declined from an average of $4.14 in Q1 to $3.19 in Q2.
Anticipated Revenue and EBITDA Decline in Q3
Projected Q3 revenue is between $135 million and $145 million, with an expectation of reduced revenue and adjusted EBITDA compared to Q2.
Company Guidance
During the Nine Energy Service Second Quarter 2025 Earnings Conference Call, the company reported revenue of $147.3 million, which was within their guidance range of $138 million to $148 million, despite a 10% decline in U.S. rig counts and reduced activity in oil-levered basins like the Permian. Adjusted EBITDA was $14.1 million, and the company highlighted the impact of lower oil prices, which dropped from an average of $72 in Q1 to $65 in Q2, with prices dipping below $60 for the first time in four years. The company saw growth in certain segments, with Completion Tool revenue increasing by 9% and Wireline revenue by 11% due to strong performance in natural gas-levered regions. Nine Energy Service's international sales rose by 20% in the first half of 2025 compared to the previous year, driven by increased sales in Argentina and the Middle East. Despite challenges, the company remains optimistic about the natural gas market and international opportunities, projecting Q3 revenue to be between $135 million and $145 million.Nine Energy Service Financial Statement Overview
Summary
Nine Energy Service is facing challenges with profitability and financial stability. Despite some improvements in cost management, the company remains under pressure due to high leverage and negative equity. Cash flow generation is a relative bright spot, but overall financial health requires significant improvement.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.45
Neutral
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.30
Negative
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.50
Neutral
| Breakdown | TTM | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 577.30M | 554.10M | 609.53M | 593.38M | 349.42M | 310.85M |
| Gross Profit | 69.64M | 60.60M | 78.12M | 96.04M | -3.59M | -40.20M |
| EBITDA | 65.31M | 60.47M | 72.67M | 96.34M | 20.97M | -286.85M |
| Net Income | -36.44M | -41.08M | -32.21M | 14.39M | -64.58M | -378.95M |
Balance Sheet | ||||||
| Total Assets | 361.17M | 360.08M | 401.98M | 426.83M | 381.61M | 442.60M |
| Cash, Cash Equivalents and Short-Term Investments | 17.75M | 27.88M | 30.84M | 17.45M | 21.51M | 68.86M |
| Total Debt | 362.88M | 358.79M | 366.32M | 377.80M | 372.07M | 384.25M |
| Total Liabilities | 442.90M | 426.14M | 437.61M | 450.34M | 420.88M | 422.19M |
| Stockholders Equity | -81.74M | -66.06M | -35.63M | -23.51M | -39.27M | 20.41M |
Cash Flow | ||||||
| Free Cash Flow | -2.54M | -1.57M | 20.91M | -11.88M | -55.83M | -14.32M |
| Operating Cash Flow | 13.95M | 13.20M | 45.51M | 16.67M | -40.42M | -4.90M |
| Investing Cash Flow | -15.83M | -14.18M | -23.16M | -25.42M | -11.92M | -1.78M |
| Financing Cash Flow | -6.43M | -1.68M | -8.89M | 4.85M | 5.05M | -17.39M |
Nine Energy Service Technical Analysis
Neutral
0.66
Price Trends
0.73
Negative
0.71
Negative
0.96
Negative
Market Momentum
-0.01
Negative
48.99
Neutral
69.81
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For NINE, the sentiment is Neutral. The current price of 0.66 is above the 20-day moving average (MA) of 0.63, below the 50-day MA of 0.73, and below the 200-day MA of 0.96, indicating a neutral trend. The MACD of -0.01 indicates Negative momentum. The RSI at 48.99 is Neutral, neither overbought nor oversold. The STOCH value of 69.81 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for NINE.
Nine Energy Service Peers Comparison
Overall Rating
UnderperformOutperform
Sector (65)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
79 Outperform | $107.73M | 9.13 | 12.76% | ― | 19.15% | -71.62% | |
65 Neutral | $15.28B | 7.48 | 3.19% | 5.33% | 4.10% | -60.58% | |
57 Neutral | $69.54M | 26.47 | -4.23% | ― | 9.74% | -132.61% | |
49 Neutral | $84.94M | 104.67 | 0.33% | ― | 3.43% | -36.73% | |
47 Neutral | $49.68M | ― | -38.69% | ― | -38.69% | -30.53% | |
47 Neutral | $34.79M | ― | -375.26% | ― | -13.29% | -106.14% | |
41 Neutral | $28.51M | ― | 73.91% | ― | 3.23% | 31.76% |
* Energy Sector Average
Performance Comparison
NINE
Nine Energy Service
0.66
-0.44
-40.00%
DWSN
Dawson Geophysical Company
1.61
0.03
1.90%
SND
Smart Sand
1.90
0.09
4.97%
NCSM
Ncs Multistage Holdings
43.55
22.00
102.09%
KLXE
KLX Energy Services Holdings
1.89
-3.97
-67.75%
DTI
Drilling Tools International
1.96
-1.74
-47.03%
Nine Energy Service Corporate Events
Executive/Board ChangesBusiness Operations and StrategyFinancial Disclosures
Nine Energy Service Board Changes Amidst Financial Challenges
Neutral
Aug 5, 2025
On August 1, 2025, Mark E. Baldwin resigned from Nine Energy Service‘s Board of Directors, and Jerome (Joey) D. Hall joined the board the following day. Despite a challenging second quarter in 2025, marked by significant rig declines and pricing pressures due to falling commodity prices, Nine Energy Service reported revenues at the upper end of its guidance range, with a net loss of $10.4 million. The company saw a 9% increase in Completion Tool revenue and an 11% rise in Wireline revenue quarter over quarter, driven by international sales and efficient operations. Nine Energy Service is focused on expanding its market share and international business while managing costs, anticipating a decline in Q3 revenue and earnings.
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.