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Natural Gas Services Group
(NYSE:NGS)
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Rating:69Neutral
Price Target:
$36.00
▲(3.63% Upside)
Action:Reiterated
Date:08/17/26
The score is driven primarily by strong operating momentum and a notably positive earnings call with raised EBITDA guidance and improved working-capital execution. This is tempered by financial risk from higher leverage and very weak recent free-cash-flow conversion, plus mixed technical signals with negative MACD and the stock below key medium-term moving averages.
Positive Factors
Revenue and Profitability Rebound
The multi-year revenue increase and return to roughly 11% net profitability indicate a meaningful operating turnaround. Gross-margin expansion provides evidence of stronger economics, while continued scale can support reinvestment and sustain improved earnings power over the next several quarters.
Negative Factors
Higher Leverage
The sharp increase in debt reduces balance-sheet flexibility and makes consistent operating cash generation more important. Greater leverage can constrain future capital allocation and leave NGS less room to absorb weaker customer activity or unexpected execution demands.
Read all positive and negative factors
Positive Factors
Negative Factors
Revenue and Profitability Rebound
The multi-year revenue increase and return to roughly 11% net profitability indicate a meaningful operating turnaround. Gross-margin expansion provides evidence of stronger economics, while continued scale can support reinvestment and sustain improved earnings power over the next several quarters.
Read all positive factors
Natural Gas Services Group (NGS) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$427.84M
Dividend Yield1.57%
Average Volume (3M)107.91K
Price to Earnings (P/E)20.3
Beta (1Y)1.03
Revenue Growth15.42%
EPS Growth13.10%
CountryUS
Employees259
SectorEnergy
Sector Strength52
IndustryOil & Gas Equipment & Services
Share Statistics
EPS (TTM)1.63
Shares Outstanding12,898,285
10 Day Avg. Volume111,414
30 Day Avg. Volume107,908
Financial Highlights & Ratios
PEG Ratio1.47
Price to Book (P/B)1.54
Price to Sales (P/S)2.45
P/FCF Ratio-7.20
Enterprise Value/Market Cap2.06
Enterprise Value/Revenue4.66
Enterprise Value/Gross Profit10.55
Enterprise Value/Ebitda8.48
Forecast
1Y Price Target
$53.50Price Target Upside54.00% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering2
EPS Forecast (FY)1.97
Revenue Forecast (FY)$214.38M
Natural Gas Services Group Business Overview & Revenue Model
Company Description
Natural Gas Services Group, Inc. (NGS) is a U.S.-based company that specializes in providing natural gas compression solutions and equipment to the energy sector. NGS's activities encompass the full lifecycle of natural gas compressors and associa...
How the Company Makes Money
NGS makes money primarily by providing natural gas compression equipment and related services to exploration and production (E&P) customers. Key revenue streams include: (1) rental/contract operations of compression units, where customers pay recu...
Natural Gas Services Group Earnings Call Summary
Earnings Call Date:Aug 10, 2026
(Q2-2026)
| % Change Since: |
Next Earnings Date:Nov 16, 2026
Earnings Call Sentiment Positive
The call was predominantly positive: the company reported record revenue, adjusted EBITDA, utilization, strong fleet growth and mix shift toward large-horsepower and electric units, improved working capital and cash generation, and an accretive acquisition that expands scale and capabilities. Challenges cited (inflationary cost pressure, extended equipment lead times, one-time tax and transaction costs, and integration/synergy uncertainty) are real but appear manageable relative to the company’s operational momentum, liquidity, and raised guidance.Positive Updates
Record Quarterly Revenue
Rental revenue was a record $49.4 million in Q2, up $9.9 million or ~25% year-over-year and up ~5% sequentially.
Negative Updates
Inflationary Cost Pressures
Inflation impacted labor, parts, and lubricants; management expects continued pressure (lubricants noted as likely materially higher) which could weigh on margins despite offsetting actions.
Read all updates
Q2-2026 Updates
Positive
Negative
Record Quarterly Revenue
Rental revenue was a record $49.4 million in Q2, up $9.9 million or ~25% year-over-year and up ~5% sequentially.
Read all positive updates
Company Guidance
NGS raised full‑year 2026 adjusted EBITDA guidance to $103–$108 million (from $92.5–$97.5M), driven by roughly 6.5 months of Flatrock contribution; it also increased 2026 growth capex to $60–$80M (from $55–$70M) and maintenance capex to $15–$19M (excludes acquisition consideration). Management now expects to deploy at least 55,000 organic horsepower in 2026 (up from a prior 50,000 outlook) after adding ~5,000 HP in Q2 and ~22,000 HP in H1, with H1 growth capex of $27.6M (Q2 capex $18.8M: $15.3M growth, $3.4M maintenance). They reiterated a full‑year effective tax rate of ~25–26%, reported pro‑forma DSO of ~33 days, and emphasized strong liquidity and covenant headroom (quarter‑end leverage ~2.77x vs 3.5x covenant, ~$328M drawn, ~$172M unused commitments and ~$135M borrowing capacity) while maintaining a $0.15 quarterly dividend (50% above the $0.10 start a year ago).Natural Gas Services Group Financial Statement Overview
Summary
Income Statement
84
Very Positive
Balance Sheet
63
Positive
Cash Flow
52
Neutral
| Breakdown | TTM | Dec 2025 | Dec 2024 | Mar 2024 | Mar 2023 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 189.42M | 172.31M | 156.74M | 121.17M | 84.83M | 72.42M |
| Gross Profit | 83.74M | 63.88M | 56.64M | 32.16M | 14.35M | 1.66M |
| EBITDA | 104.11M | 76.75M | 64.94M | 37.25M | 24.44M | 13.68M |
| Net Income | 20.48M | 19.93M | 17.23M | 4.75M | -569.00K | -9.18M |
Balance Sheet | ||||||
| Total Assets | 718.34M | 586.79M | 492.53M | 478.73M | 328.25M | 306.49M |
| Cash, Cash Equivalents and Short-Term Investments | 84.00K | 0.00 | 2.14M | 2.75M | 3.37M | 22.94M |
| Total Debt | 328.00M | 230.46M | 170.15M | 165.26M | 25.35M | 285.00K |
| Total Liabilities | 423.86M | 312.07M | 237.47M | 242.84M | 98.17M | 70.58M |
| Stockholders Equity | 294.49M | 274.72M | 255.06M | 235.89M | 230.08M | 235.91M |
Cash Flow | ||||||
| Free Cash Flow | -31.32M | -58.56M | -5.43M | -135.91M | -37.36M | 2.58M |
| Operating Cash Flow | 79.13M | 62.93M | 66.46M | 18.03M | 27.76M | 28.29M |
| Investing Cash Flow | -219.01M | -121.30M | -71.44M | -153.89M | -65.08M | -25.66M |
| Financing Cash Flow | 139.64M | 56.23M | 4.37M | 135.23M | 17.75M | -8.61M |
Natural Gas Services Group Technical Analysis
Negative
34.74
Price Trends
35.52
Negative
38.30
Negative
37.43
Negative
Market Momentum
-1.01
Positive
40.45
Neutral
32.83
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For NGS, the sentiment is Negative. The current price of 34.74 is below the 20-day moving average (MA) of 34.77, below the 50-day MA of 35.52, and below the 200-day MA of 37.43, indicating a bearish trend. The MACD of -1.01 indicates Positive momentum. The RSI at 40.45 is Neutral, neither overbought nor oversold. The STOCH value of 32.83 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for NGS.
Natural Gas Services Group Peers Comparison
UnderperformOutperform
Sector (65)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
73 Outperform | $953.84M | -592.96 | -0.55% | ― | 3.93% | 99.16% | |
71 Outperform | $1.12B | 29.08 | 32.27% | ― | 36.77% | 125.54% | |
69 Neutral | $427.84M | 20.35 | 7.31% | 1.57% | 15.42% | 13.10% | |
66 Neutral | $366.48M | 25.46 | 4.87% | 1.53% | 6.08% | -38.85% | |
65 Neutral | $15.17B | 7.61 | 4.09% | 5.20% | 3.87% | -62.32% | |
56 Neutral | $496.46M | -4.39 | -17.80% | ― | -2.80% | -1752.76% | |
46 Neutral | $62.09M | -1.56 | -35.80% | ― | -20.50% | -191.37% |
* Energy Sector Average
NGS
Natural Gas Services Group
33.17
6.37
23.76%
FTK
Flotek
30.94
13.27
75.10%
FET
Forum Energy Tech
83.14
57.45
223.63%
OIS
Oil States International
8.23
1.93
30.63%
GEOS
Geospace Technologies
4.80
-17.13
-78.11%
RNGR
Ranger Energy Services
15.66
1.98
14.46%
Natural Gas Services Group Corporate Events
Business Operations and StrategyFinancial Disclosures
Natural Gas Services Group Reports Record Second-Quarter Growth
Positive
Aug 12, 2026
In its second-quarter 2026 earnings call held on August 11, 2026, Natural Gas Services Group Inc. highlighted a record quarter and a milestone first half, driven by a strategic focus on fleet optimization, asset utilization, organic growth and acc...
Business Operations and StrategyDividendsFinancial DisclosuresM&A Transactions
Natural Gas Services Group lifts 2026 EBITDA outlook
Positive
Aug 10, 2026
On August 10, 2026, Natural Gas Services Group reported second-quarter 2026 results showing rental revenue up 24.9% year over year to $49.4 million and total revenue up 24.2% to $51.4 million, driven by contracted fleet expansion and strong pricin...
Business Operations and StrategyRegulatory Filings and Compliance
Natural Gas Services Updates Executive Indemnification Agreements
Neutral
Jul 24, 2026
On July 20, 2026, Natural Gas Services Group, Inc. entered into new indemnification agreements with each of its directors and executive officers, replacing all prior arrangements that covered these individuals. The updated agreements provide for i...
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.