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Natural Gas Services Group
(NYSE:NGS)
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Rating:69Neutral
Price Target:
$42.00
▲(15.16% 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
Sustained revenue and profitability recovery
NGS has moved from losses to sustained profitability while growing revenue from $72.4M in 2021 to $189.4M TTM. Higher gross margins indicate improved pricing, scale and fleet mix, supporting earnings durability over the medium term.
Negative Factors
Materially higher leverage
Debt has increased sharply alongside expansion and the Flatrock acquisition, reducing financial flexibility. Higher leverage makes NGS more dependent on stable utilization and cash generation, particularly if customer spending weakens.
Read all positive and negative factors
Positive Factors
Negative Factors
Sustained revenue and profitability recovery
NGS has moved from losses to sustained profitability while growing revenue from $72.4M in 2021 to $189.4M TTM. Higher gross margins indicate improved pricing, scale and fleet mix, supporting earnings durability over the medium term.
Read all positive factors
Natural Gas Services Group (NGS) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$484.85M
Dividend Yield1.5%
Average Volume (3M)137.49K
Price to Earnings (P/E)21.6
Beta (1Y)1.10
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. Volume125,394
30 Day Avg. Volume137,485
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 Cap<0.01
Enterprise Value/Revenue<0.01
Enterprise Value/Gross Profit<0.01
Enterprise Value/Ebitda<0.01
Forecast
1Y Price Target
$52.25Price Target Upside43.27% Upside
Rating ConsensusStrong Buy
Number of Analyst Covering4
EPS Forecast (FY)1.97
Revenue Forecast (FY)$214.39M
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 oilfield-related equipment and services to natural gas and oil producers under commercial service arrangements. Key revenue streams include: (1) Fees from field services provided to customers that operate pro...
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
Positive
36.47
Price Trends
39.50
Negative
39.68
Negative
36.82
Positive
Market Momentum
-0.49
Negative
48.26
Neutral
87.53
Negative
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For NGS, the sentiment is Positive. The current price of 36.47 is below the 20-day moving average (MA) of 36.99, below the 50-day MA of 39.50, and below the 200-day MA of 36.82, indicating a neutral trend. The MACD of -0.49 indicates Negative momentum. The RSI at 48.26 is Neutral, neither overbought nor oversold. The STOCH value of 87.53 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive 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 | $927.93M | -580.69 | -0.55% | ― | 3.93% | 99.16% | |
69 Neutral | $484.85M | 21.61 | 7.31% | 1.29% | 15.42% | 13.10% | |
65 Neutral | $15.17B | 7.61 | 4.09% | 5.20% | 3.87% | -62.32% | |
63 Neutral | $978.68M | 23.66 | 32.27% | ― | 36.77% | 125.54% | |
51 Neutral | $410.71M | 28.47 | 4.87% | 1.53% | 6.08% | -38.85% | |
47 Neutral | $541.09M | -4.74 | -17.80% | ― | -2.80% | -1752.76% | |
46 Neutral | $76.97M | -1.80 | -24.22% | ― | -20.50% | -191.37% |
* Energy Sector Average
NGS
Natural Gas Services Group
35.22
10.14
40.45%
FTK
Flotek
25.17
13.66
118.68%
FET
Forum Energy Tech
81.42
58.24
251.25%
OIS
Oil States International
8.88
3.84
76.19%
GEOS
Geospace Technologies
5.53
-11.79
-68.07%
RNGR
Ranger Energy Services
17.51
4.91
38.98%
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...
Business Operations and StrategyM&A Transactions
Natural Gas Services Group Closes Flatrock Compression Acquisition
Positive
Jun 17, 2026
On June 15, 2026, Natural Gas Services Group announced it had closed the acquisition of Flatrock Compression Holdings, a rental compression provider with about 86,000 rented horsepower and roughly 95% utilization concentrated in the Permian and Ea...
Business Operations and StrategyM&A TransactionsPrivate Placements and Financing
Natural Gas Services Group Closes Flatrock Compression Acquisition
Positive
Jun 15, 2026
On June 12, 2026, Natural Gas Services Group completed the acquisition of Flatrock Compression Holdings, buying 100% of its membership interests for $110 million in cash and $10 million in NGS stock. Flatrock adds a 95% utilized rental compression...
Business Operations and StrategyExecutive/Board ChangesShareholder Meetings
Natural Gas Services Shareholders Approve Redomestication and Board
Positive
Jun 11, 2026
On June 10, 2026, Natural Gas Services Group, Inc. held its annual meeting of shareholders, at which approximately 84% of outstanding common shares were represented. Shareholders elected three directors, including John E. Jackson, each to three-ye...
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.