Nine Energy Service (NINE) AI Stock Analysis

• Market Cap: $21.69M
• Dividend Yield: N/A
• Average Volume (3M): 2.00M
• Price to Earnings (P/E): ―
• Beta (1Y): 0.47
• 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: 2,826,645
• 30 Day Avg. Volume: 2,000,499
• 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: 17.78
• Enterprise Value/Revenue: 0.88
• Enterprise Value/Gross Profit: 7.14
• Enterprise Value/Ebitda: 7.87
• 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: $0.50 ▼(-13.79% Downside)

Nine Energy Service's overall stock score is low due to significant financial challenges, including negative profitability and high leverage. Technical indicators are bearish, and the valuation is unattractive with a negative P/E ratio. Despite some international growth, the company's financial health and market position remain concerning.

Nine Energy Service Business Overview & Revenue Model

Company Description

Nine 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 Money

Nine 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 Financial Statement Overview

Summary

Nine Energy Service faces financial challenges with negative profitability and high leverage. Despite some revenue growth, the company struggles with operational efficiency and cash flow generation. The balance sheet's negative equity and high debt levels pose significant financial risks.

Income Statement

Nine Energy Service shows modest revenue growth in the TTM period, with a 2.64% increase. However, profitability remains a concern with negative net profit margins and declining gross profit margins over time. The EBIT and EBITDA margins are low, indicating challenges in operational efficiency and cost management.

Balance Sheet

The company's balance sheet is under pressure with negative stockholders' equity, leading to a high and negative debt-to-equity ratio. This indicates significant leverage and financial risk. Return on equity is volatile, reflecting inconsistent profitability and potential challenges in generating shareholder value.

Cash Flow

Cash flow analysis reveals a negative free cash flow growth rate, indicating cash flow challenges. The operating cash flow to net income ratio is positive but low, suggesting limited cash generation relative to net income. The free cash flow to net income ratio is negative, highlighting cash flow constraints.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	439.14M	554.10M	609.53M	593.38M	349.42M	310.85M
Gross Profit	53.96M	60.60M	78.12M	96.04M	-3.59M	-40.20M
EBITDA	49.00M	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: 0.58
• 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 0.58 is below the 20-day moving average (MA) of 0.60, below the 50-day MA of 0.63, and below the 200-day MA of 0.81, indicating a bearish trend. The MACD of -0.03 indicates Positive momentum. The RSI at 40.00 is Neutral, neither overbought nor oversold. The STOCH value of 11.11 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
NCSM	73 Outperform	$94.01M	8.15	11.89%	―	16.61%	-72.29%
Sector *	65 Neutral	$15.17B	7.61	4.09%	5.20%	3.87%	-62.32%
DWSN	51 Neutral	$60.54M	―	-38.69%	―	-38.69%	-30.53%
SND	51 Neutral	$93.22M	117.58	0.33%	―	3.43%	-36.73%
DTI	46 Neutral	$72.04M	―	-5.18%	―	7.46%	-165.76%
KLXE	45 Neutral	$31.22M	-0.43	―	―	-12.57%	-45.75%
NINE	41 Neutral	$21.69M	―	―	―	2.59%	16.02%

Nine Energy Service Corporate Events

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.

Nine Energy Service Reports Resilient Q2 2025 Results

Nine Energy Service is a Houston-based oilfield services company that provides completion solutions to the oil and gas industry across North America and internationally, known for its commitment to superior service quality and cutting-edge technology.

Nine Energy Service Balances Growth and Challenges in Earnings Call

The recent earnings call for Nine Energy Service presented a balanced sentiment, reflecting both positive developments and significant challenges. While the company reported revenue within the upper range of guidance and growth in international tools and wireline segments, it also faced rig declines, pricing pressures, and anticipated declines in Q3 revenue and EBITDA.