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Ncs Multistage Holdings (NCSM)
:NCSM
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Ncs Multistage Holdings
(NASDAQ:NCSM)
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Select Model
Rating:73Outperform
Price Target:
$57.00
▲(11.33% Upside)
NCS Multistage Holdings demonstrates strong financial performance and positive earnings call outcomes, particularly with revenue exceeding expectations and strategic acquisitions. Technical indicators suggest caution due to overbought conditions, and valuation is reasonable but not compelling. The absence of a dividend yield is a minor drawback.
Ncs Multistage Holdings (NCSM) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$129.16M
Dividend YieldN/A
Average Volume (3M)18.08K
Price to Earnings (P/E)10.7
Beta (1Y)0.50
Revenue Growth19.15%
EPS Growth-71.62%
CountryUS
Employees252
SectorEnergy
Sector Strength52
IndustryOil & Gas Equipment & Services
Share Statistics
EPS (TTM)-0.10
Shares Outstanding2,540,849
10 Day Avg. Volume18,914
30 Day Avg. Volume18,083
Financial Highlights & Ratios
PEG RatioN/A
Price to Book (P/B)N/A
Price to Sales (P/S)N/A
P/FCF RatioN/A
Enterprise Value/Market Cap0.67
Enterprise Value/Revenue0.49
Enterprise Value/Gross Profit1.26
Enterprise Value/Ebitda5.04
Forecast
1Y Price Target
$57.00Price Target Upside11.33% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering1
Ncs Multistage Holdings Business Overview & Revenue Model
Company DescriptionNCS Multistage Holdings, Inc. provides engineered products and support services for oil and natural gas well completions and field development strategies in the United States, Canada, and internationally. It offers fracturing systems, which include casing-installed sliding sleeves, downhole frac isolation assemblies, sand jet perforating products, accelus sliding sleeves, injection control devices, repeat precision products, chemical and radioactive tracer diagnostics, and well construction products. The company also provides tracer diagnostics services for well completion and reservoir characterization that utilize downhole chemical and radioactive tracers. It offers its products and services primarily to exploration and production companies for use in onshore wells through technically-trained direct sales force, and operating partners or sales representatives. The company was formerly known as Pioneer Super Holdings, Inc. and changed its name to NCS Multistage Holdings, Inc. in December 2016. NCS Multistage Holdings, Inc. was founded in 2006 and is headquartered in Houston, Texas.
How the Company Makes MoneyNCS Multistage Holdings generates revenue through the sale and rental of its multistage fracturing systems and associated services to oil and gas operators. The company typically charges clients on a per-stage basis for its completion services, which can include equipment rentals, technical support, and consulting. Key revenue streams include direct sales of proprietary technologies, service contracts for completion operations, and potential licensing agreements for its patented technologies. Significant partnerships with major oil and gas companies enhance its market reach and contribute to consistent revenue growth, as these collaborations often lead to long-term contracts and repeat business.
Ncs Multistage Holdings Earnings Call Summary
Earnings Call Date:Jul 31, 2025
(Q2-2025)
| % Change Since: |
Next Earnings Date:Nov 03, 2025
Earnings Call Sentiment Neutral
The earnings call reflected a strong performance in the first half of 2025, driven by higher-than-expected revenue and successful acquisition of ResMetrics. However, there were concerns about declines in international revenues and market uncertainties affecting the second half of the year.Q2-2025 Updates
Positive Updates
Revenue Exceeds Expectations
Second quarter revenue of $36 million exceeded the high end of the guided range by more than $7 million, with strong performance in Canada. First half of 2025 revenue was over $86 million, 18% higher than the first half of 2024.
Acquisition of ResMetrics
NCS announced the acquisition of ResMetrics, a provider of tracer diagnostics technologies, expected to contribute an additional $4 million to $5 million of revenue and $1 million to $1.5 million of adjusted EBITDA for the last 5 months of 2025.
Improved Adjusted EBITDA
Adjusted EBITDA of $2.2 million for Q2 2025 exceeded the guided range and showed a year-over-year improvement of $1.3 million. Adjusted EBITDA for the first half of 2025 increased by 49% compared to the first half of 2024.
Strong Canadian Market Performance
Revenue from Canada for the first half of 2025 was $56 million, increasing 27% compared to the same period in 2024, driven by increased sales of fracturing systems and composite plugs.
Negative Updates
Decline in International Revenues
International revenues decreased by 17% primarily due to timing delays in tracer diagnostic projects in the Middle East.
Decreased Adjusted Gross Margin
Adjusted gross margin for Q2 2025 was 36%, down from 40% a year ago, mainly due to the mix of products sold and services provided.
Concerns About Market Conditions
The company expressed caution about the second half of 2025 due to deteriorating market and industry conditions, including a decline in the U.S. rig count and slower-than-normal recovery in Canada.
Company Guidance
During the second quarter of 2025, NCS Multistage reported stronger-than-expected financial results, with revenue reaching $36 million, exceeding their guided range by over $7 million. This performance was driven by a 49% increase in Canadian revenue and a 15% rise in U.S. revenue, although international revenues decreased by 17%. Adjusted EBITDA for the quarter was $2.2 million, surpassing the guided range of negative $2 million to breakeven. NCS also announced the acquisition of ResMetrics, anticipated to add $4 million to $5 million in revenue and $1 million to $1.5 million in adjusted EBITDA for the remainder of 2025. Looking forward, NCS expects third-quarter revenue between $42 million and $46 million, with an adjusted gross margin of 40% to 42% and adjusted EBITDA ranging from $5.5 million to $7 million. For the full year 2025, revenue is projected to be between $172 million and $181 million, with adjusted EBITDA of $22 million to $25.5 million.Ncs Multistage Holdings Financial Statement Overview
Summary
NCS Multistage Holdings demonstrates strong revenue growth and profitability with improving margins. The balance sheet is robust with low leverage, and cash flows are positive, though efficiency in cash conversion can be enhanced. Historical fluctuations in net income and liabilities highlight areas for continued observation.Income Statement
The company shows strong revenue growth from 2024 to TTM, with a 7.9% increase. Gross and net profit margins indicate healthy profitability at 39.9% and 7.2% respectively for TTM. Notably, EBIT and EBITDA margins improved to 4.7% and 8.9%, indicating better operational efficiency. However, past years have shown volatility, particularly in net income, suggesting potential risks.78
Positive
Balance Sheet
The balance sheet displays a solid equity ratio of 67.4%, reflecting a stable financial structure. The debt-to-equity ratio is low at 0.08, indicating low leverage and reduced financial risk. ROE has improved to 11.8% in TTM, showcasing effective equity management. The company has maintained a strong equity base, but past fluctuations in total liabilities require monitoring.75
Positive
Cash Flow
Operating cash flow is positive and supports net income with a ratio of 0.83 for TTM. Free cash flow growth is notable, increasing from prior periods indicating improved cash management. However, the free cash flow to net income ratio is slightly lower at 0.72, suggesting room for efficiency improvements in converting income to cash.70
Positive
| Breakdown | TTM | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 175.47M | 162.56M | 142.47M | 155.63M | 118.50M | 106.98M |
| Gross Profit | 68.63M | 62.15M | 50.99M | 56.09M | 43.97M | 38.18M |
| EBITDA | 17.18M | 13.98M | 1.86M | 4.73M | 1.72M | -39.20M |
| Net Income | 12.60M | 6.59M | -3.15M | -1.10M | -4.73M | -57.60M |
Balance Sheet | ||||||
| Total Assets | 157.98M | 152.81M | 152.03M | 138.60M | 142.32M | 138.68M |
| Cash, Cash Equivalents and Short-Term Investments | 25.37M | 25.88M | 16.72M | 16.23M | 22.17M | 15.54M |
| Total Debt | 8.22M | 14.63M | 13.51M | 12.88M | 13.15M | 11.60M |
| Total Liabilities | 34.00M | 36.70M | 42.64M | 29.34M | 31.66M | 25.19M |
| Stockholders Equity | 106.44M | 98.84M | 91.62M | 91.03M | 92.58M | 93.61M |
Cash Flow | ||||||
| Free Cash Flow | 9.06M | 11.42M | 2.58M | -2.55M | 10.75M | 32.96M |
| Operating Cash Flow | 10.50M | 12.72M | 4.77M | -1.42M | 11.58M | 35.12M |
| Investing Cash Flow | 398.00K | 479.00K | -1.68M | -698.00K | -444.00K | -1.06M |
| Financing Cash Flow | -4.84M | -4.27M | -2.44M | -2.74M | -4.26M | -29.77M |
Ncs Multistage Holdings Technical Analysis
Positive
51.20
Price Trends
38.29
Positive
34.53
Positive
31.76
Positive
Market Momentum
3.48
Positive
67.86
Neutral
85.60
Negative
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For NCSM, the sentiment is Positive. The current price of 51.2 is above the 20-day moving average (MA) of 46.54, above the 50-day MA of 38.29, and above the 200-day MA of 31.76, indicating a bullish trend. The MACD of 3.48 indicates Positive momentum. The RSI at 67.86 is Neutral, neither overbought nor oversold. The STOCH value of 85.60 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for NCSM.
Ncs Multistage Holdings Peers Comparison
Overall Rating
UnderperformOutperform
Sector (65)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
73 Outperform | $129.16M | 10.73 | 12.76% | ― | 19.15% | -71.62% | |
62 Neutral | 261.73M | -18.82 | -4.89% | ― | -10.77% | -229.81% | |
61 Neutral | 73.46M | -17.96 | -3.72% | ― | 9.74% | -132.61% | |
49 Neutral | 92.78M | 117.58 | 0.33% | ― | 3.43% | -36.73% | |
47 Neutral | 62.72M | -7.36 | -47.38% | ― | -38.69% | -30.53% | |
46 Neutral | 35.32M | -0.50 | 149.58% | ― | -13.29% | -106.14% | |
65 Neutral | $15.17B | 7.61 | 4.09% | 5.20% | 3.87% | -62.32% |
* Energy Sector Average
Performance Comparison
NCSM
Ncs Multistage Holdings
51.20
31.86
164.74%
DWSN
Dawson Geophysical Company
1.85
0.26
16.35%
GEOS
Geospace Technologies
19.97
9.63
93.13%
SND
Smart Sand
2.14
0.35
19.55%
KLXE
KLX Energy Services Holdings
2.05
-3.31
-61.75%
DTI
Drilling Tools International
2.29
-1.46
-38.93%
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.