📊 NCSM Key Takeaways
Is NCS Multistage Holdings, Inc. (NCSM) a Good Investment?
NCSM shows encouraging revenue growth (+13% YoY) and dramatic EPS improvement (+239.2%), supported by a fortress balance sheet and strong liquidity. However, the company remains unprofitable with razor-thin operating margins (1.9%), weak interest coverage (0.7x), and minimal cash generation relative to revenue, raising questions about sustainable profitability in a cyclical sector.
NCSM shows solid fundamentals with net cash, strong liquidity, and robust free cash flow despite a cyclical end market. Revenue is growing and core operations are profitable, but thin gross margins and a net income level boosted by non-operating items temper the quality of earnings. Upside hinges on sustaining cash generation and improving core margins.
Why Buy NCS Multistage Holdings, Inc. Stock? NCSM Key Strengths
- Revenue growing 13% YoY in oil & gas services sector
- Exceptional balance sheet strength: 0.04x debt/equity with only $4.9M long-term debt
- Excellent liquidity: 5.35x current ratio and $34.5M cash provides substantial downside protection
- Significant EPS improvement trajectory (+239.2% YoY), indicating margin recovery in progress
- Positive free cash flow generation ($689K) despite operational challenges
- Net-cash balance sheet with very low leverage and ample liquidity (current ratio 4.27x, D/E 0.04x)
- Strong cash generation and low capex needs (FCF margin 11.4%)
- Attractive ROE/ROA and positive operating margin despite sector cyclicality
NCSM Stock Risks: NCS Multistage Holdings, Inc. Investment Risks
- Company remains unprofitable (net income -$371K, net margin -0.8%, ROE -0.3%)
- Operating margins critically thin at 1.9% with no room for operational errors
- Interest coverage ratio of 0.7x indicates operating earnings cannot adequately service debt obligations
- Operating cash flow only $1.3M on $45.6M revenue (2.8% conversion) suggests working capital strain
- Cyclical industry exposure and thin margins create vulnerability to revenue contraction or cost inflation
- Thin gross margin (6.1%) increases sensitivity to cost inflation and pricing pressure
- Net income above operating income suggests reliance on non-operating items; YoY net income decline
- Cyclical oilfield activity and potential customer concentration could pressure volumes
Key Metrics to Watch
- Operating margin expansion toward positive net profitability threshold
- Operating cash flow growth rate relative to revenue growth sustainability
- Gross margin stability and SG&A efficiency improvements
- Interest coverage ratio improvement as profitability scales
- Backlog visibility and revenue sustainability in energy cycle downturn scenarios
- Gross margin trend
- Operating cash flow and FCF conversion
NCS Multistage Holdings, Inc. (NCSM) Financial Metrics & Key Ratios
💡 AI Analyst Insight
The relatively thin 1.5% FCF margin may limit capital allocation flexibility. Strong liquidity with a 5.35x current ratio provides a solid financial cushion.
NCSM Profit Margin, ROE & Profitability Analysis
NCSM vs Energy Sector: How NCS Multistage Holdings, Inc. Compares
How NCS Multistage Holdings, Inc. compares to Energy sector averages
Sector benchmarks are approximate industry averages. Actual sector performance may vary.
Is NCS Multistage Holdings, Inc. Stock Overvalued? NCSM Valuation Analysis 2026
Based on fundamental analysis, NCS Multistage Holdings, Inc. has mixed fundamental signals relative to the Energy sector in 2026.
Note: This is a fundamental analysis based on SEC filings. For P/E ratio, price targets, and market-based valuation, consult financial data providers. This is not investment advice.
NCS Multistage Holdings, Inc. Balance Sheet: NCSM Debt, Cash & Liquidity
NCSM Revenue & Earnings Growth: 5-Year Financial Trend
5-Year Trend Summary: NCS Multistage Holdings, Inc.'s revenue has grown significantly by 13% over the 5-year period, indicating strong business expansion. The most recent EPS of $2.55 reflects profitable operations.
NCSM Revenue Growth, EPS Growth & YoY Performance
NCSM Quarterly Earnings & Performance
| Quarter | Revenue | Net Income | EPS |
|---|---|---|---|
| Q1 2026 | $45.6M | -$371.0K | $-0.14 |
| Q3 2025 | $44.0M | $3.1M | $1.21 |
| Q2 2025 | $29.7M | $924.0K | $0.34 |
| Q1 2025 | $43.9M | $2.1M | $0.82 |
| Q3 2024 | $38.3M | $3.1M | $1.21 |
| Q2 2024 | $25.4M | -$1.0M | $-0.41 |
| Q1 2024 | $43.6M | $2.1M | $0.82 |
Data sourced from SEC EDGAR 10-Q quarterly filings. Figures may represent quarterly or cumulative values.
NCS Multistage Holdings, Inc. Dividends, Buybacks & Capital Allocation
NCSM SEC Filings: Latest 10-K & 10-Q Analysis
Access official SEC EDGAR filings for NCS Multistage Holdings, Inc. (CIK: 0001692427)
📋 Recent SEC Filings
❓ Frequently Asked Questions about NCSM
What is the AI rating for NCSM?
NCS Multistage Holdings, Inc. (NCSM) has a Combined AI Rating of BUY from Claude (HOLD) and ChatGPT (BUY) with 60% combined confidence, based on fundamental analysis of SEC EDGAR filings.
What are NCSM's key strengths?
Claude: Revenue growing 13% YoY in oil & gas services sector. Exceptional balance sheet strength: 0.04x debt/equity with only $4.9M long-term debt. ChatGPT: Net-cash balance sheet with very low leverage and ample liquidity (current ratio 4.27x, D/E 0.04x). Strong cash generation and low capex needs (FCF margin 11.4%).
What are the risks of investing in NCSM?
Claude: Company remains unprofitable (net income -$371K, net margin -0.8%, ROE -0.3%). Operating margins critically thin at 1.9% with no room for operational errors. ChatGPT: Thin gross margin (6.1%) increases sensitivity to cost inflation and pricing pressure. Net income above operating income suggests reliance on non-operating items; YoY net income decline.
What is NCSM's revenue and growth?
NCS Multistage Holdings, Inc. reported revenue of $45.6M.
Does NCSM pay dividends?
NCS Multistage Holdings, Inc. does not currently pay dividends.
Where can I find NCSM SEC filings?
Official SEC filings for NCS Multistage Holdings, Inc. (CIK: 0001692427) including 10-K, 10-Q, and 8-K reports are available on SEC EDGAR.
What is NCSM's EPS?
NCS Multistage Holdings, Inc. has a diluted EPS of $-0.14.
How is the AI analysis conducted?
Two independent AI systems — Claude (Anthropic) and ChatGPT (OpenAI) — analyze SEC EDGAR filings including 10-K annual reports and 10-Q quarterly reports. Each AI evaluates financial health, profitability ratios, balance sheet strength, and growth metrics. The combined rating reflects both perspectives for balanced insights.
Is NCSM a good stock to buy right now?
Based on our AI fundamental analysis in May 2026, NCS Multistage Holdings, Inc. has a BUY rating with 60% confidence. The AI analysis suggests favorable fundamentals based on SEC filings. This is not investment advice.
Is NCSM stock overvalued or undervalued?
Valuation metrics for NCSM: ROE of -0.3% (sector avg: 14%), net margin of -0.8% (sector avg: 12%). Compare these metrics with sector averages to assess valuation.
Should I buy NCSM stock in 2026?
Our dual AI analysis gives NCS Multistage Holdings, Inc. a combined BUY rating for 2026. Revenue is data pending, with profitability at or below sector average. Always conduct your own research.
What is NCSM's free cash flow?
NCS Multistage Holdings, Inc.'s operating cash flow is $1.3M, with capital expenditures of $591.0K. FCF margin is 1.5%.
How does NCSM compare to other Energy stocks?
Vs Energy sector averages: Net margin -0.8% (avg: 12%), ROE -0.3% (avg: 14%), current ratio 5.35 (avg: 1.3).