📊 NGS Key Takeaways
Is NGS a Good Investment? Thesis Analysis
NGS demonstrates solid profitability growth (NI +15.7% YoY, margins 21.6% operating) and positive revenue momentum in the oil & gas services sector. However, significant operational challenges—negative FCF of -58.6M, zero cash reserves, and weak returns on capital (ROE 7.3%)—indicate the company's heavy capex spending is not yet generating adequate returns and creates financing dependency.
Why Buy NGS? Key Strengths
- Strong revenue and net income growth trajectory (9.9% and 15.7% YoY respectively)
- Solid profitability margins (21.6% operating, 11.6% net) demonstrating pricing power
- Excellent liquidity position (2.33x current ratio, 1.49x quick ratio) and robust interest coverage (12.7x)
NGS Investment Risks to Consider
- Severely negative free cash flow (-58.6M) driven by capex (121.5M) significantly exceeding operating cash flow (62.9M)
- Zero cash and equivalents despite 163.0M long-term debt creates financing vulnerability and limits strategic flexibility
- Persistently low returns on invested capital (7.3% ROE, 3.4% ROA) suggest capital deployment inefficiency despite substantial capex spending
Key Metrics to Watch
- Free cash flow trajectory and return to positive territory
- Cash balance build and maintenance of adequate reserves
- Return on invested capital and ROE improvement from capex investments
NGS Financial Metrics
💡 AI Analyst Insight
Strong liquidity with a 2.33x current ratio provides a solid financial cushion.
NGS Profitability Ratios
NGS vs Energy Sector
How NATURAL GAS SERVICES GROUP INC compares to Energy sector averages
Sector benchmarks are approximate industry averages. Actual sector performance may vary.
Is NGS Overvalued or Undervalued?
Based on fundamental analysis, NATURAL GAS SERVICES GROUP 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.
NGS Balance Sheet & Liquidity
NGS 5-Year Financial Trend & Growth Analysis
5-Year Trend Summary: NATURAL GAS SERVICES GROUP INC's revenue has declined by 31% over the 5-year period, indicating business contraction. The most recent EPS of $0.38 reflects profitable operations.
NGS Growth Metrics (YoY)
NGS Quarterly Performance
| Quarter | Revenue | Net Income | EPS |
|---|---|---|---|
| Q3 2024 | $3.3M | $370.0K | $0.18 |
| Q2 2024 | $2.9M | $370.0K | $0.04 |
| Q1 2024 | $3.2M | $370.0K | $0.03 |
| Q3 2023 | $3.4M | -$70.0K | $-0.01 |
| Q2 2023 | $1.8M | -$70.0K | $-0.01 |
| Q1 2023 | $3.2M | $337.0K | $0.03 |
| Q3 2022 | $2.1M | -$70.0K | $-0.01 |
| Q2 2022 | $1.8M | -$70.0K | $-0.01 |
Data sourced from SEC EDGAR 10-Q quarterly filings. Figures may represent quarterly or cumulative values.
NGS Capital Allocation
NGS SEC 10-K & 10-Q Filing Analysis
Access official SEC EDGAR filings for NATURAL GAS SERVICES GROUP INC (CIK: 0001084991)
📋 Recent SEC Filings
❓ Frequently Asked Questions about NGS
What is the AI rating for NGS?
NATURAL GAS SERVICES GROUP INC (NGS) has an AI rating of HOLD with 65% confidence, based on fundamental analysis of SEC EDGAR filings.
What are NGS's key strengths?
Claude: Strong revenue and net income growth trajectory (9.9% and 15.7% YoY respectively). Solid profitability margins (21.6% operating, 11.6% net) demonstrating pricing power.
What are the risks of investing in NGS?
Claude: Severely negative free cash flow (-58.6M) driven by capex (121.5M) significantly exceeding operating cash flow (62.9M). Zero cash and equivalents despite 163.0M long-term debt creates financing vulnerability and limits strategic flexibility.
What is NGS's revenue and growth?
NATURAL GAS SERVICES GROUP INC reported revenue of $172.3M.
Does NGS pay dividends?
NATURAL GAS SERVICES GROUP INC pays dividends, with $2.6M distributed to shareholders in the trailing twelve months.
Where can I find NGS SEC filings?
Official SEC filings for NATURAL GAS SERVICES GROUP INC (CIK: 0001084991) including 10-K, 10-Q, and 8-K reports are available on SEC EDGAR.
What is NGS's EPS?
NATURAL GAS SERVICES GROUP INC has a diluted EPS of $1.57.
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 NGS a good stock to buy right now?
Based on our AI fundamental analysis in April 2026, NATURAL GAS SERVICES GROUP INC has a HOLD rating with 65% confidence. Review the strengths and risks sections above before making a decision. This is not investment advice.
Is NGS stock overvalued or undervalued?
Valuation metrics for NGS: ROE of 7.3% (sector avg: 14%), net margin of 11.6% (sector avg: 12%). Compare these metrics with sector averages to assess valuation.
Should I buy NGS stock in 2026?
Our dual AI analysis gives NATURAL GAS SERVICES GROUP INC a combined HOLD rating for 2026. Revenue is data pending, with profitability at or below sector average. Always conduct your own research.
What is NGS's free cash flow?
NATURAL GAS SERVICES GROUP INC's operating cash flow is $62.9M, with capital expenditures of $121.5M. FCF margin is -34.0%.
How does NGS compare to other Energy stocks?
Vs Energy sector averages: Net margin 11.6% (avg: 12%), ROE 7.3% (avg: 14%), current ratio 2.33 (avg: 1.3).