Last Updated: 19 Sep 2024
Executive Summary
Nine Energy Service Inc. (NINE) is an onshore completion service provider focusing on the development of unconventional oil and gas resources in North America and internationally. Despite recent challenges in the energy sector, NINE has maintained a strong financial position and is well-positioned for future growth.
Company Overview
NINE provides a range of completion services, including pressure pumping, coiled tubing, and nitrogen services. The company operates in major oil and gas basins across the United States, Canada, and the Middle East. NINE has a strong track record of innovation and is committed to delivering high-quality services to its customers.
Fundamental Analysis
Revenue: NINE reported revenue of $559.2 million in the last twelve months, a decrease of 0.18% year-over-year.
Earnings: The company reported a loss per share of $1.35 in the last twelve months.
Profitability: NINE has a negative profit margin of -0.0817% and an operating margin of -0.0092%.
Balance Sheet: The company has a strong balance sheet with $43.8 million in EBITDA and $481.6 million in market capitalization.
Valuation: NINE is currently trading at $1.23 per share, with a price-to-sales ratio of 0.0861 and a price-to-book ratio of 5.01.
Technical Analysis
Technical Indicators: NINE's 50-day moving average is $1.444, and its 200-day moving average is $1.99. The stock is currently trading below both moving averages.
Chart Patterns: NINE has been trading in a downtrend since early 2022. The stock recently broke below its support level at $1.30, indicating further weakness.
Short Term Outlook
In the short term, NINE's stock price is likely to remain under pressure due to the ongoing challenges in the energy sector. The company's financial performance is expected to remain weak, and the stock could continue to decline.
Long Term Outlook
In the long term, NINE has the potential to recover as the energy sector improves. The company's strong balance sheet and focus on innovation position it well for future growth. However, the timing of a recovery is uncertain.
Analyst Recommendations
The majority of analysts have a "Sell" rating on NINE. The consensus analyst target price is $1.00, which represents a potential downside of 18.7% from the current price.
