Ranger Energy Services (97L) AI Stock Analysis

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Ranger Energy Services

(Frankfurt:97L)

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Positive Factors

Conservative balance sheet and cash generationVery low leverage and positive free cash flow give Ranger financial flexibility through oilfield-service cycles. Debt reduction lowers financing risk, while internally generated cash can support fleet investment, acquisitions, and shareholder returns without relying heavily on external capital.

Negative Factors

Sustained margin compressionMargin deterioration indicates that weaker activity, pricing pressure, labor costs, fuel costs, and inflation are reducing operating leverage. If these pressures persist, revenue growth may translate into limited earnings and cash-flow improvement, weakening returns on the asset base.

Ranger Energy Services (97L) vs. iShares MSCI Germany ETF (EWG)

Market Cap: EUR 286.91M
Dividend Yield: 1.85%
Average Volume (3M): ―
Price to Earnings (P/E): 18.3
Beta (1Y): -0.12
Revenue Growth: 10.97%
EPS Growth: -5.22%
Country: Germany
Employees: 2,300
Sector: Energy
Sector Strength: 65
Industry: Oil & Gas Equipment & Services

Ranger Energy Services Business Overview & Revenue Model

Company Description

Ranger Energy Services, Inc., founded in 2014 and based in Houston, Texas, delivers crucial onshore support to exploration and production companies throughout the United States. The company's operations are categorized into three main segments: High...

Ranger Energy Services Earnings Call Summary

Earnings Call Date:Nov 09, 2026(Q3-2026)|% Change Since:0.00%|Next Earnings Date:Mar 08, 2027

Earnings Call SentimentNeutral

The call was balanced. Ranger highlighted meaningful strategic progress through the STEP acquisition, ECHO fleet expansion, AWS synergy realization, strong liquidity, debt repayment, and shareholder returns. However, the third quarter experienced broad sequential declines in revenue, adjusted EBITDA, margins, and activity across segments, alongside pricing competition, cost inflation, labor-market tightening, and limited visibility into 2027. Management remained cautiously optimistic, but the positive strategic developments were offset by near-term operating pressure.

Positive Updates

STEP Coiled Tubing Acquisition Expands Scale and Capabilities

Ranger completed the STEP U.S. coiled tubing asset acquisition on October 8 for approximately $27.5 million, making it the second-largest coiled tubing provider in the Lower 48. STEP adds 13 units operating from the Bakken through South Texas, with its largest presence in the Permian Basin, and gives Ranger a multi-basin platform, differentiated COIL+ Extended Reach Technology, and the ability to offer customers either coiled tubing or high-specification rigs. The technology has reached total depth on more than 60 long-lateral wells, including a well exceeding 30,000 feet. Ranger expects the assets to contribute more than $10 million of adjusted EBITDA in 2027, with significant further upside expected in 2028.

Negative Updates

Sequential Revenue and Profitability Decline

Third-quarter revenue was $162.8 million, down 7.8% from $176.5 million in the second quarter. Net income declined to $2.5 million, or $0.10 per diluted share, from $6.9 million, or $0.29 per diluted share. Adjusted EBITDA declined to $20.1 million from $28.6 million, while the adjusted EBITDA margin fell to 12.3% from 16.2%.

Company Guidance

Ranger expects STEP’s coiled tubing assets to contribute more than $10 million of adjusted EBITDA in 2027, with significant further upside expected in 2028, while the contracted ECHO rig fleet is expected to reach 24 rigs by the end of 2027; 5 ECHO rigs have been delivered through the third quarter, with the balance of the fleet scheduled for delivery through the third quarter of 2027. Ranger expects the fourth quarter to provide improvement in Wireline from the third quarter, expects its pricing decision to pay off as the market normalizes and budgets reset next year, and expects the labor market to continue to tighten into next year. Ranger expects to allocate the majority of its cash flows in the next several quarters to ECHO delivery payments and repayments on the borrowings used to fund the STEP acquisition, and remains focused on achieving $100 million of annualized adjusted EBITDA; for 2027, management said it does not have a firm view, is cautiously optimistic, and believes it is too early to put firm numbers to anything.

Ranger Energy Services Risk Analysis

Ranger Energy Services disclosed 38 risk factors in its most recent earnings report. Ranger Energy Services reported the most risks in the "Finance & Corporate" category.

Finance & Corporate12
Tech & Innovation2
Legal & Regulatory11
Production7
Ability to Sell3
Macro & Political3

Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy

Latest Risks Added

0 New Risks

Ranger Energy Services Peers Comparison

Overall Rating

UnderperformOutperform

Sector (65)

Financial Indicators

DE:97L against its peers
Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
NESR	69Neutral	$2.08B	20.03	10.77%	―	44.02%	50.74%
Sector *	65Neutral	$15.17B	7.61	4.09%	5.20%	3.87%	-62.32%
WTTR	63Neutral	$1.97B	40.05	5.06%	1.73%	7.84%	107.18%
NINE	49Neutral	$101.28M	1.15	112.83%	―	-4.41%	―
PUMP	47Neutral	$840.38M	362.12	0.21%	―	-6.04%	―
ACDC	37Underperform	$642.89M	-1.49	-59.53%	―	-3.30%	-5.43%

* Energy Sector Average

Performance Comparison

DE:97L and its peers over the selected period
Ticker	Company Name	Price	Change	% Change
DE:97L	Ranger Energy Services	10.90	-0.62	-5.35%
PUMP	Propetro Holding	7.17	-2.54	-26.16%
WTTR	Select Energy Services	16.21	6.24	62.65%
NESR	National Energy Services Reunited	21.98	8.01	57.34%
ACDC	Profrac Holding Corp. Class A	3.43	-0.27	-7.30%
NINE	Nine Energy Service, Inc.	7.48	-0.72	-8.78%

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.

Ranger Energy Services AI Stock Analysis