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NPK International (NPKI)
NYSE:NPKI
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NPK International
(NYSE:NPKI)
51Neutral
Positive Factors
Business Transformation
The business transformation process is now being executed with a heavy focus on ramping the matting rental segment to meet the healthy customer demand environment.
Share Buyback
The company has increased its share buyback program to $50M.
Negative Factors
Customer Priority Shift
Order activity has returned during September and October and the company is expecting a strong fourth quarter.
Revenue Impact
Revenues in the quarter were impacted mainly by certain customers shifting their priorities from scheduled transmission projects to renewable generation projects and unfavorable weather conditions in Southeast United States.
NPK International (NPKI) vs. S&P 500 (SPY)
Market Cap
$476.92M
Dividend YieldN/A
Average Volume (3M)882.72K
Price to Earnings (P/E)9.7
Beta (1Y)1.03
Revenue Growth-30.59%
EPS Growth56.68%
CountryUS
Employees460
SectorEnergy
Sector Strength74
IndustryOil & Gas Equipment & Services
Share Statistics
EPS (TTM)0.52
Shares Outstanding86,554,490
10 Day Avg. Volume578,169
30 Day Avg. Volume882,724
Financial Highlights & Ratios
PEG Ratio0.04
Price to Book (P/B)N/A
Price to Sales (P/S)1.12
Price to Cash Flow (P/CF)-30.40
P/FCF Ratio0.00
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
$11.50Price Target Upside127.72% Upside
Rating ConsensusStrong Buy
Number of Analyst Covering3
NPK International Business Overview & Revenue Model
Company DescriptionNewpark Resources, Inc., headquartered in The Woodlands, Texas, is a diversified oilfield services company primarily operating in the energy sector. The company offers drilling fluids systems and composite matting systems, catering to oil and gas exploration and production companies. Newpark Resources focuses on providing innovative and environmentally responsible solutions to its customers, enhancing operational efficiency and reducing environmental impact.
How the Company Makes MoneyNewpark Resources generates revenue primarily through two main segments: Fluids Systems and Mats and Integrated Services. The Fluids Systems segment provides drilling fluids products and services, which include designing and engineering drilling fluid solutions to optimize drilling performance and manage drilling waste. This segment primarily serves oil and gas exploration and production companies. The Mats and Integrated Services segment offers composite matting systems used to create temporary work sites and access roads, catering to industries beyond oil and gas, including construction and utilities. Revenue is generated through direct sales and rental of mats. The company's earnings are influenced by the level of oil and gas exploration activity, as well as infrastructure and construction projects requiring temporary ground protection solutions.
NPK International Financial Statement Overview
Summary
NPK International's financial performance is marked by declining revenues and profitability challenges, reflected in negative net income and shrinking margins. However, the balance sheet remains strong with low leverage and a high equity ratio, suggesting financial stability. Cash flows are positive but show signs of pressure, with declining free cash flow.Income Statement
NPK International shows a mixed financial performance with declining revenue trends and negative net income in the TTM. Gross profit margin has decreased to 20.77% in TTM from previous levels. The net profit margin is significantly negative at -28.46%, highlighting profitability challenges. Despite a positive EBITDA margin of 10.78%, the company faces pressure due to declining revenue and negative net income.45
Neutral
Balance Sheet
The balance sheet reveals a relatively stable equity position with an equity ratio of 81.22% in TTM. The debt-to-equity ratio is low at 0.08, indicating conservative leverage. However, the return on equity is concerning due to negative net income, impacting overall profitability. The company maintains a strong asset base relative to its liabilities, suggesting a solid financial foundation.60
Neutral
Cash Flow
Cash flow analysis indicates a positive operating cash flow in TTM, but the free cash flow has declined compared to previous periods. The operating cash flow to net income ratio is not favorable due to negative net income. Free cash flow to net income ratio is also impacted, reflecting challenges in converting income into cash. Despite these issues, the company manages to generate positive cash from operations.55
Neutral
| Breakdown | |||||
| TTM | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 | Dec 2019 |
|---|---|---|---|---|---|
| Income Statement | Total Revenue | ||||
| 560.14M | 749.60M | 815.59M | 614.78M | 492.63M | 820.12M | Gross Profit |
| 116.38M | 138.54M | 121.54M | 85.23M | 19.37M | 135.38M | EBIT |
| 36.53M | 33.63M | 28.29M | -8.82M | -63.91M | 21.82M | EBITDA |
| 60.39M | 64.73M | 29.19M | 32.80M | -36.28M | 58.35M | Net Income Common Stockholders |
| -159.44M | 14.52M | -20.83M | -25.53M | -80.70M | -12.95M |
| Balance Sheet | Cash, Cash Equivalents and Short-Term Investments | ||||
| 37.94M | 38.59M | 23.18M | 24.09M | 24.20M | 48.67M | Total Assets |
| 640.83M | 642.34M | 714.88M | 752.89M | 709.19M | 900.08M | Total Debt |
| 94.92M | 92.44M | 133.93M | 137.16M | 112.23M | 186.82M | Net Debt |
| 56.98M | 53.84M | 110.75M | 113.07M | 88.03M | 138.15M | Total Liabilities |
| 219.24M | 226.97M | 291.85M | 290.50M | 221.16M | 351.43M | Stockholders Equity |
| 421.59M | 415.36M | 423.03M | 462.39M | 488.03M | 548.64M |
| Cash Flow | Free Cash Flow | ||||
| 39.42M | 70.77M | -53.29M | -24.81M | 40.00M | 27.48M | Operating Cash Flow |
| 78.45M | 100.00M | -25.02M | -3.01M | 55.79M | 72.29M | Investing Cash Flow |
| 15.27M | -5.69M | 46.23M | -17.48M | -3.40M | -49.76M | Financing Cash Flow |
| -79.70M | -81.05M | -24.93M | 21.41M | -77.94M | -29.53M |
NPK International Technical Analysis
Negative
5.05
Price Trends
6.32
Negative
6.96
Negative
7.24
Negative
Market Momentum
-0.13
Negative
47.97
Neutral
33.33
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For NPKI, the sentiment is Negative. The current price of 5.05 is below the 20-day moving average (MA) of 5.89, below the 50-day MA of 6.32, and below the 200-day MA of 7.24, indicating a bearish trend. The MACD of -0.13 indicates Negative momentum. The RSI at 47.97 is Neutral, neither overbought nor oversold. The STOCH value of 33.33 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for NPKI.
NPK International Peers Comparison
Overall Rating
UnderperformOutperform
Sector (58)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
73 Outperform | $13.29B | 11.85 | 22.76% | 2.50% | -10.48% | -13.78% | |
72 Outperform | $795.37M | 13.06 | 20.44% | 8.98% | -22.91% | -64.68% | |
64 Neutral | $8.23B | 47.60 | 1.47% | 3.27% | -18.79% | -84.24% | |
63 Neutral | $4.86B | 14.36 | 9.02% | 5.96% | -5.36% | -74.25% | |
60 Neutral | $381.97M | ― | -36.73% | ― | -8.74% | -492.08% | |
58 Neutral | $9.12B | 5.24 | -7.59% | 7.51% | 0.53% | -65.25% | |
51 Neutral | $476.92M | 9.71 | 10.31% | ― | -30.59% | 56.68% |
* Energy Sector Average
Performance Comparison
NPKI
NPK International
5.05
-2.50
-33.11%
CF
Cf Industries Holdings
73.07
-4.75
-6.10%
UAN
CVR Partners
69.58
-4.21
-5.71%
FMC
FMC
35.44
-22.06
-38.37%
IPI
Intrepid Potash
25.86
5.07
24.39%
MOS
Mosaic Co
23.45
-8.08
-25.63%
NPK International Earnings Call Summary
Earnings Call Date: Feb 26, 2025 | % Change Since: -20.47% | Next Earnings Date: May 6, 2025
Earnings Call Sentiment Positive
The earnings call highlighted strong revenue and gross margin growth, record product sales, and a successful fleet expansion, indicating a positive performance. However, challenges included a decline in service revenues and currency fluctuations. Despite these issues, the overall sentiment is positive given the strategic growth and financial improvements.Highlights
Strong Fourth Quarter Performance
Fourth quarter revenue increased 24% year-over-year to $58 million, with rental revenues increasing by 28% year-over-year. Gross margin improved by nearly 500 basis points to 39.2%, and adjusted EBITDA increased by 35% compared to the prior year.
Record Product Sales
Product sales increased by 24% year-over-year to a record $72 million in 2024, driven by the adoption of the DURA-BASE composite matting solution.
Successful Fleet Expansion
In 2024, $33 million was invested in the rental fleet, expanding it by approximately 13% from the end of 2023.
Improved Financial Position
Ended the year with $18 million in cash and $8 million in total debt, resulting in a net cash position of $10 million.
Positive Outlook for 2025
Anticipated total revenues in the $230 million to $250 million range and adjusted EBITDA in the $60 million to $70 million range for 2025.
Lowlights
Decline in Service Revenues
Service revenues declined by 15% year-over-year, impacted by a strategic move away from service-intensive projects.
Seasonal Slowdown Impact
Fourth quarter operating cash flow used $4 million, influenced by the revenue-driven growth in receivables and $12 million in net CapEx.
Currency Fluctuations
Fourth quarter FX loss was $700,000, primarily driven by U.S. dollar to British pound currency fluctuations.
Company Guidance
During the Newpark Resources Fourth Quarter and Full Year 2024 Results Conference Call, the company reported a strong finish to the year with a 24% year-over-year increase in fourth-quarter revenue to $58 million. Rental revenues surged by 28%, setting a new quarterly record. Gross margin improved by nearly 500 basis points to 39.2%, while adjusted EBITDA rose to $17.1 million, marking a 35% increase from the previous year. For the full year, total revenue grew by 5%, driven by a 7% rise in rental revenue and a 24% increase in product sales, despite a 15% decline in service revenues. The company invested $33 million in expanding its rental fleet and ended the year with a net cash position of $10 million. Looking ahead to 2025, Newpark anticipates revenues between $230 million and $250 million and adjusted EBITDA in the range of $60 million to $70 million, with a continued focus on expanding its high-return rental business and optimizing capital allocation.Glossary
OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.
NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.
UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.
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.