NCS Multistage Holdings Inc. Common Stock (NCSM)

FairStock Score: 81/100 — HIGH CONVICTION

Key Financials

AI Analysis

AI-generated, general educational analysis — not personal investment advice.

I look for businesses that earn good returns on capital and sell at a sensible price. NCS Multistage is a small oil-field equipment and service provider with 272 employees, selling frac systems and downhole tools. Its provided revenue growth figure is 5.24%, but the provided profit growth figure is -598.48%, and in the latest reported quarter (2026-Q2), revenue was $38.4M with a net loss of $4.6M, a -12.01% margin. That tells me demand is cyclical and recent results are poor. The balance sheet is a strength: debt-to-equity is only 0.09. Trailing free cash flow is $17.9M, an 8.6% FCF yield on the $209.3M market cap. At the 2026-09-02 close of $53.35, FairStock calculates P/E of 10.8, P/B of 1.16, ROE of 14.04%, and ROCE of only 1.37%. The low ROCE suggests weak returns on capital employed, so I see no clear durable moat. The Graham Number of $71.35 implies a 25.23% margin of safety, and FairStock's score is 81/100, but Piotroski is just 2/9 and Altman is 2.24, signaling financial fragility. Growth is the problem. A single quarter's loss and a steep profit decline matter more than a modest revenue increase. At 12.11 times EV/EBITDA, the price is not demanding, but this is a commodity-linked, tiny firm with lumpy results. I would want evidence that returns on capital and profits are recovering before trusting the apparent cheapness.

In plain English: NCS Multistage sells engineered tools and services used to complete and develop oil and gas wells. The business looks mixed: it still generates cash, has little debt, and sells for less than the value of its net assets, but it lost money in the latest reported quarter and recent profits have fallen sharply. Compared with its earnings and net assets, the stock looks inexpensive, though the weak recent results make that bargain uncertain.

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Data as of 2026-09-02 close · note generated 2026-10-15 · model deepseek-flash

Fundamentals from company filings and market-data providers; prices are end-of-day, not real-time. AI-generated analysis is general and educational — not personal investment advice. Scoring methodology · Score test · Disclaimer