Natural Gas Services Group AI Stock Analysis
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Natural Gas Services Group (NGS) AI Stock Analysis
Natural Gas Services Group
(NYSE:NGS)
NGS scores a 66 driven primarily by materially improved operating performance and a strongly positive earnings call with raised 2026 EBITDA guidance. The score is tempered by elevated balance-sheet leverage and a clearly bearish technical setup (price below key moving averages with negative MACD). Valuation is reasonable (18.17 P/E) with a modest dividend yield (~1.88%), providing some support but not enough to offset the technical and leverage risks.
Natural Gas Services Group (NGS) vs. SPDR S&P 500 ETF (SPY)
- Market Cap
- $368.71M
- Dividend Yield
- 1.82%
- Average Volume (3M)
- 112.79K
- Price to Earnings (P/E)
- 17.9
- Beta (1Y)
- 0.94
- Revenue Growth
- 24.25%
- EPS Growth
- 6.99%
- Country
- US
- Employees
- 259
- Sector
- Energy
- Sector Strength
- 65
- Industry
- Oil & Gas Equipment & Services
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 associated...
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 recurri...
Natural Gas Services Group Earnings Call Summary
The call was strongly positive overall. NGS reported record rental revenue and adjusted EBITDA, improved rental margins despite inflation, high utilization, continued organic market-share gains, successful initial Flatrock integration, increased full-year EBITDA guidance, and continued demand for large-horsepower and electric compression. The main challenges were rising operating costs, remaining integration expenses, competitive conditions, some underutilized small- and medium-horsepower assets, and uncertainty around future inflation, elections, and data-center demand.
Q3-2026 Updates
Positive Updates
Negative Updates
Company Guidance
For full year 2026, NGS raised adjusted EBITDA guidance to $105 million to $108 million from $103 million to $108 million, narrowed growth capital expenditure guidance to $60 million to $75 million from $60 million to $80 million, with no change to its horsepower expectations, and maintained maintenance capital expenditure guidance at $15 million to $19; it remains on track for 55,000 horsepower, while fleet utilization remained high at approximately 88%. The company expects the Tulsa facility sale to close by the end of November for $4.75 million, with a gain of approximately $3 million in the fourth quarter excluded from adjusted EBITDA, and increased its quarterly dividend to $0.16 per share. There is no formal guidance for 2027 at this point, but the company said it expects growth to be strong, is confident 2027 will be the fifth year of market share gains, and has significant quoting activity for the rest of '26 and 2027, with large requests for proposals for the second half of 2027 and into 2028.
Natural Gas Services Group Financial Statement Overview
Summary
Operations have improved materially with strong revenue growth and solid profitability (TTM gross margin ~50% and EBITDA margin ~36%). Operating cash flow is strong and supports earnings quality, with TTM free cash flow turning positive. The primary constraint is rising leverage (debt-to-equity ~1.14 in TTM) and historically volatile free cash flow, which increases risk in a cyclical industry.
Income Statement
78PositiveBalance Sheet
62PositiveCash Flow
67Positive| Breakdown | TTM | Dec 2025 | Dec 2024 | Mar 2024 | Mar 2023 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 207.27M | 172.31M | 156.74M | 121.17M | 84.83M | 72.42M |
| Gross Profit | 104.01M | 63.88M | 56.64M | 32.16M | 14.35M | 1.66M |
| EBITDA | 91.14M | 76.75M | 64.94M | 37.25M | 24.44M | 13.68M |
| Net Income | 20.30M | 19.93M | 17.23M | 4.75M | -569.00K | -9.18M |
Balance Sheet | ||||||
| Total Assets | 733.01M | 586.79M | 492.53M | 478.73M | 328.25M | 306.49M |
| Cash, Cash Equivalents and Short-Term Investments | 708.00K | 0 | 2.14M | 2.75M | 3.37M | 22.94M |
| Total Debt | 340.00M | 230.46M | 170.15M | 165.26M | 25.35M | 285.00K |
| Total Liabilities | 433.80M | 312.07M | 237.47M | 242.84M | 98.17M | 70.58M |
| Stockholders Equity | 299.22M | 274.72M | 255.06M | 235.89M | 230.08M | 235.91M |
Cash Flow | ||||||
| Free Cash Flow | 46.93M | -58.56M | -5.43M | -135.91M | -37.36M | 2.58M |
| Operating Cash Flow | 79.08M | 62.93M | 66.46M | 18.03M | 27.76M | 28.29M |
| Investing Cash Flow | -203.07M | -121.30M | -71.44M | -153.89M | -65.08M | -25.66M |
| Financing Cash Flow | 124.70M | 56.23M | 4.37M | 135.23M | 17.75M | -8.61M |
Natural Gas Services Group Technical Analysis
Price Trends
Market Momentum
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 28.57 is below the 20-day moving average (MA) of 30.54, below the 50-day MA of 32.84, and below the 200-day MA of 37.10, indicating a bearish trend. The MACD of -1.22 indicates Positive momentum. The RSI at 38.83 is Neutral, neither overbought nor oversold. The STOCH value of 34.83 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 Risk Analysis
Natural Gas Services Group disclosed 35 risk factors in its most recent earnings report. Natural Gas Services Group reported the most risks in the "Finance & Corporate" category.
- Finance & Corporate15
- Tech & Innovation1
- Legal & Regulatory6
- Production6
- Ability to Sell4
- Macro & Political3
Latest Risks Added
3 New RisksNatural Gas Services Group Peers Comparison
Overall Rating
FET76Outperform- NGS66Neutral
FTK62Neutral
RNGR62Neutral
OIS54Neutral
GEOS45Neutral
Financial Indicators
| Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
| FET | 76Outperform | $826.95M | 28.48 | 10.24% | ― | 10.59% | ― |
| NGS | 66Neutral | $370.91M | 17.86 | 7.07% | 1.82% | 24.25% | 6.99% |
| Sector * | 65Neutral | $15.17B | 7.61 | 4.09% | 5.20% | 3.87% | -62.32% |
| FTK | 62Neutral | $924.09M | 30.59 | 24.56% | ― | 59.31% | -9.88% |
| RNGR | 62Neutral | $263.27M | 18.30 | 5.17% | 1.96% | 16.94% | -0.36% |
| OIS | 54Neutral | $498.20M | -4.54 | -18.55% | ― | -0.74% | -595.12% |
| GEOS | 45Neutral | $47.09M | -1.15 | -35.80% | ― | -20.50% | -191.37% |
* Energy Sector Average
Performance Comparison
| Show on chart | Ticker | Company Name | Price | Change | % Change |
|---|---|---|---|---|---|
| NGS | Natural Gas Services | 28.57 | -0.60 | -2.05% | |
| FTK | Flotek Industries, Inc. | 26.43 | 11.59 | 78.10% | |
| FET | Forum Energy | 75.77 | 46.29 | 157.02% | |
| OIS | Oil States International | 8.49 | 2.36 | 38.50% | |
| GEOS | Geospace Technologies | 3.56 | -20.63 | -85.30% | |
| RNGR | Ranger Energy Services | 12.26 | -1.16 | -8.62% |
Natural Gas Services Group Corporate Events
Natural Gas Services Group Reports Strong Third-Quarter Growth, Declares Dividend
PositiveOn November 9, 2026, Natural Gas Services Group reported third-quarter results for the period ended September 30, 2026. Rental revenue increased 41.9% year over year to $58.9 million, while Adjusted EBITDA rose 42.2% to $29.6 million; the company had...
Natural Gas Services Group Reports Record Second-Quarter Growth
PositiveIn 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 accret...
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.
Date of analysis: Nov 10, 2026