Nine Energy Service, Inc. Fundamental Analysis
Nine Energy Service, Inc. (NINE) shows moderate financial fundamentals with a PE ratio of 7.15, profit margin of 11.52%, and ROE of -1.57%. The company generates $0.5B in annual revenue with weak year-over-year growth of 0.00%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of -129.3/100 based on profitability, valuation, growth, and balance sheet metrics. The F grade reflects weak fundamentals and significant financial concerns.
Fundamental Health Score
We analyze NINE's fundamental strength across five key dimensions:
Efficiency Score
ExcellentNINE demonstrates superior asset utilization.
Valuation Score
ExcellentNINE trades at attractive valuation levels.
Growth Score
WeakNINE faces weak or negative growth trends.
Financial Health Score
ExcellentNINE maintains a strong and stable balance sheet.
Profitability Score
WeakNINE struggles to sustain strong margins.
Key Financial Metrics
Is NINE Expensive or Cheap?
P/E Ratio
NINE trades at 7.15 times earnings. This suggests potential undervaluation.
PEG Ratio
When adjusting for growth, NINE's PEG of -0.05 indicates potential undervaluation.
Price to Book
The market values Nine Energy Service, Inc. at 3.33 times its book value. This suggests the stock is fully valued or overvalued on an asset basis.
EV/EBITDA
Enterprise value stands at 8.22 times EBITDA. This is generally considered low.
How Well Does NINE Make Money?
Net Profit Margin
For every $100 in sales, Nine Energy Service, Inc. keeps $11.52 as profit after all expenses.
Operating Margin
Core operations generate -2.17 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $-1.57 in profit for every $100 of shareholder equity.
ROA
Nine Energy Service, Inc. generates $19.13 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
Nine Energy Service, Inc. generates limited operating cash flow of $-14.39M, signaling weaker underlying cash strength.
Free Cash Flow
Nine Energy Service, Inc. generates weak or negative free cash flow of $-32.78M, restricting financial flexibility.
FCF Per Share
Each share generates $-0.76 in free cash annually.
FCF Yield
NINE converts -7.53% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
7.15
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
-0.05
vs 25 benchmark
P/B Ratio
Price to book value ratio
3.33
vs 25 benchmark
P/S Ratio
Price to sales ratio
0.82
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
0.94
vs 25 benchmark
Current Ratio
Current assets to current liabilities
2.13
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
-1.57
vs 25 benchmark
ROA
Return on assets percentage
0.19
vs 25 benchmark
ROCE
Return on capital employed
-0.05
vs 25 benchmark
How NINE Stacks Against Its Sector Peers
| Metric | NINE Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 7.15 | 21.16 | Better (Cheaper) |
| ROE | -157.31% | 984.00% | Weak |
| Net Margin | 11.52% | -59500.00% (disorted) | Strong |
| Debt/Equity | 0.94 | -0.48 (disorted) | Distorted |
| Current Ratio | 2.13 | 4.98 | Strong Liquidity |
| ROA | 19.13% | -11018321.00% (disorted) | Strong |
NINE outperforms its industry in 4 out of 6 key metrics, particularly excelling in Net Margin, but lagging in ROE.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews Nine Energy Service, Inc.'s 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
0.00%
Industry Style: Cyclical, Value, Commodity
DecliningEPS CAGR
0.00%
Industry Style: Cyclical, Value, Commodity
DecliningFCF CAGR
0.00%
Industry Style: Cyclical, Value, Commodity
Declining