Nine Energy Service, Inc. (NINE) Stock Recommendation | Score, Valuation, Technicals & Financial Trend

Score

Click here to find our call on this stock

Strong Sell

Sell

Hold

Buy

Strong Buy

Comparison

Company

Score

Quality

Valuation

Financial

Technical

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Nine Energy Service, Inc.

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Why is Nine Energy Service, Inc. ?

With a Negative Book Value, the company has a Weak Long Term Fundamental Strength

Low ability to service debt as the company has a high Debt to EBITDA ratio of 6.87 times
The company has reported losses and also has negative networth. This is not a good sign for the investors. Either company will have to raise fresh capital or report profits to sustain going forward

Negative results in Jun 25

OPERATING CASH FLOW(Y) Lowest at USD 13.95 MM
DEBT-EQUITY RATIO (HY) Highest at -422.24 %
CASH AND EQV(HY) Lowest at USD 35.03 MM

Risky - Negative Book Value

The stock is trading risky as compared to its average historical valuations
Over the past year, while the stock has generated a return of -69.12%, its profits have fallen by -23.3%

Consistent Underperformance against the benchmark over the last 3 years

Along with generating -69.12% returns in the last 1 year, the stock has also underperformed S&P 500 in each of the last 3 annual periods

Real-Time Research Report

Verdict Report

How much should you sell?

All quantity irrespective of whether you are making profits or losses

(If sector exposure > 30%, please use optimiser tool to see which are the best stocks to hold in Oil)

When to re-enter? - We will constantly monitor the company and review our call based on new data

Is Nine Energy Service, Inc. for you?

High Risk, Low Return

Absolute

Risk Adjusted

Volatility

Nine Energy Service, Inc.

-98.82%

-0.62

123.25%

S&P 500

13.68%

0.70

20.15%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

6.74%

EBIT Growth (5y)

16.84%

EBIT to Interest (avg)

-0.32

Debt to EBITDA (avg)

6.87

Net Debt to Equity (avg)

-4.39

Sales to Capital Employed (avg)

2.09

Tax Ratio

0.40%

Dividend Payout Ratio

Pledged Shares

Institutional Holding

36.50%

ROCE (avg)

5.75%

ROE (avg)

Valuation

Valuation Scorecard

Valuation grade scale :

Very Risky, Risky, Very Expensive, Expensive, Fair, Attractive, Very Attractive

Valuation Key Factors

Factor

Value

P/E Ratio

NA (Loss Making)

Industry P/E

Price to Book Value

-0.01

EV to EBIT

27.72

EV to EBITDA

5.50

EV to Capital Employed

1.40

EV to Sales

0.59

PEG Ratio

Dividend Yield

ROCE (Latest)

5.06%

ROE (Latest)

Negative BV

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bearish

Mildly Bullish

RSI

No Signal

Bollinger Bands

Sideways

Moving Averages

Bearish (Daily)

KST

Bearish

Dow Theory

No Trend

OBV

Mildly Bearish

No Trend

Technical Indicator Scale: Bearish, Mildly Bearish, Sideways, Mildly Bullish, Bullish Turned

Technical Movement

Analyse All Technical Factors

Financial Trend

Financial Trend Scorecard

Financial Trend scale:

Very Negative, Negative, Flat, Positive, Very Positive, Outstanding

4What is working for the Company

NET PROFIT(HY)

Higher at USD -24.55 MM

DEBTORS TURNOVER RATIO(HY)

Highest at 7.06 times

-22What is not working for the Company

OPERATING CASH FLOW(Y)

Lowest at USD 9.86 MM

DEBT-EQUITY RATIO (HY)

Highest at -374.93 %

INTEREST COVERAGE RATIO(Q)

Lowest at 84.2

RAW MATERIAL COST(Y)

Grown by 23.67% (YoY

CASH AND EQV(HY)

Lowest at USD 34.23 MM

NET SALES(Q)

Lowest at USD 132.03 MM

OPERATING PROFIT(Q)

Lowest at USD 11.55 MM

OPERATING PROFIT MARGIN(Q)

Lowest at 8.75 %

PRE-TAX PROFIT(Q)

Lowest at USD -14.46 MM

NET PROFIT(Q)

Lowest at USD -14.52 MM

EPS(Q)

Lowest at USD -0.35

Here's what is working for Nine Energy Service, Inc.

Debtors Turnover Ratio

Highest at 7.06 times

in the last five Semi-Annual periods

MOJO Watch

Company has been able to sell its Debtors faster

Debtors Turnover Ratio

Depreciation

Highest at USD 12.52 MM

in the last five periods

MOJO Watch

The expenditure on assets done by the company may have gone into operation

Depreciation (USD MM)

Here's what is not working for Nine Energy Service, Inc.

Pre-Tax Profit

At USD -14.46 MM has Fallen at -61.45%

over average net sales of the previous four periods of USD -8.96 MM

MOJO Watch

Near term Pre-Tax Profit trend is very negative

Pre-Tax Profit (USD MM)

Net Profit

At USD -14.52 MM has Fallen at -64.03%

over average net sales of the previous four periods of USD -8.85 MM

MOJO Watch

Near term Net Profit trend is very negative

Net Profit (USD MM)

Operating Cash Flow

Lowest at USD 9.86 MM and Fallen

In each year in the last three years

MOJO Watch

The company's cash revenues from business operations are falling

Operating Cash Flows (USD MM)

Interest Coverage Ratio

Lowest at 84.2

in the last five periods

MOJO Watch

The company's ability to manage interest payments is deteriorating

Operating Profit to Interest

Debt-Equity Ratio

Highest at -374.93 % and Grown

In each half year in the last five Semi-Annual periods

MOJO Watch

The company is borrowing more to fund its operations; it's liquidity situation may be stressed

Debt-Equity Ratio

Net Sales

Lowest at USD 132.03 MM

in the last five periods

MOJO Watch

Near term sales trend is negative

Net Sales (USD MM)

Net Sales

At USD 132.03 MM has Fallen at -8.52%

over average net sales of the previous four periods of USD 144.32 MM

MOJO Watch

Near term sales trend is negative

Net Sales (USD MM)

Operating Profit

Lowest at USD 11.55 MM

in the last five periods

MOJO Watch

Near term Operating Profit trend is negative

Operating Profit (USD MM)

Operating Profit Margin

Lowest at 8.75 %

in the last five periods

MOJO Watch

Company's profit margin has deteriorated

Operating Profit to Sales

Pre-Tax Profit

Lowest at USD -14.46 MM

in the last five periods

MOJO Watch

Near term Pre-Tax Profit trend is negative

Pre-Tax Profit (USD MM)

Net Profit

Lowest at USD -14.52 MM

in the last five periods

MOJO Watch

Near term Net Profit trend is negative

Net Profit (USD MM)

EPS

Lowest at USD -0.35

in the last five periods

MOJO Watch

Declining profitability; company has created lower earnings for shareholders

EPS (USD)

Cash and Eqv

Lowest at USD 34.23 MM

in the last six Semi-Annual periods

MOJO Watch

Short Term liquidity is deteriorating

Cash and Cash Equivalents

Raw Material Cost

Grown by 23.67% (YoY)

MOJO Watch

The company's ability to pass on the cost of raw materials to customers has deteriorated; this may lead to a fall in profit margin

Raw Material Cost as a percentage of Sales