📊 NGS Key Takeaways
Is Natural Gas Services Group Inc. (NGS) a Good Investment?
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.
NGS shows solid top-line growth with strong operating profitability and ample interest coverage, supported by healthy liquidity and moderate leverage. However, heavy capital spending has driven materially negative free cash flow and reported cash is minimal, elevating execution and funding risk. Sustained utilization and successful conversion of growth capex into cash-generating assets are needed to translate earnings strength into durable free cash flow.
Why Buy Natural Gas Services Group Inc. Stock? 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)
- Robust operating margin (21.6%) with double-digit net income growth
- Strong liquidity (2.33x current, 1.49x quick) and manageable leverage (0.59x D/E)
- High interest coverage (12.7x) indicating comfortable debt service capacity
NGS Stock Risks: Natural Gas Services Group Inc. Investment Risks
- 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
- Negative free cash flow driven by elevated capex; zero reported cash heightens funding risk
- Cyclical oilfield services demand could pressure utilization, pricing, and margins
- Modest returns (ROE 7.3%, ROA 3.4%) for an asset-intensive model
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
- FCF margin
- Capex as % of revenue
Natural Gas Services Group Inc. (NGS) Financial Metrics & Key Ratios
💡 AI Analyst Insight
Strong liquidity with a 2.33x current ratio provides a solid financial cushion.
NGS Profit Margin, ROE & Profitability Analysis
NGS vs Energy Sector: How Natural Gas Services Group Inc. Compares
How Natural Gas Services Group Inc. compares to Energy sector averages
Sector benchmarks are approximate industry averages. Actual sector performance may vary.
Is Natural Gas Services Group Inc. Stock Overvalued? NGS Valuation Analysis 2026
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.
Natural Gas Services Group Inc. Balance Sheet: NGS Debt, Cash & Liquidity
NGS Revenue & Earnings Growth: 5-Year Financial Trend
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 Revenue Growth, EPS Growth & YoY Performance
NGS Quarterly Earnings & 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.
Natural Gas Services Group Inc. Dividends, Buybacks & Capital Allocation
NGS SEC Filings: Latest 10-K & 10-Q 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 a Combined AI Rating of HOLD from Claude (HOLD) and ChatGPT (HOLD) with 66% combined 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. ChatGPT: Robust operating margin (21.6%) with double-digit net income growth. Strong liquidity (2.33x current, 1.49x quick) and manageable leverage (0.59x D/E).
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. ChatGPT: Negative free cash flow driven by elevated capex; zero reported cash heightens funding risk. Cyclical oilfield services demand could pressure utilization, pricing, and margins.
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 66% 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).