National Energy Services Reunited Corp Ordinary Shares (NESR)

FairStock Score: 30/100 — RISKY

Key Financials

Strengths

• Generates $91 million in annual free cash flow (3.8% yield on market cap)
• Conservative balance sheet with debt-to-equity of just 0.35, providing financial flexibility
• Revenue growth of 15.9% demonstrates strong top-line momentum

Concerns

• Trades significantly above Graham Number ($11) with negative 123% margin of safety—limited downside protection

AI Analysis

National Energy Services Reunited Corp Ordinary Shares is a small-cap energy company valued at $2.4 billion. The business generates $1.3 billion in annual revenue with a 0.6% net margin and $91 million in free cash flow. From a quality standpoint, National shows solid Piotroski F-Score of 6/9 and Altman Z-Score of 2.0 in the grey zone. On valuation, the stock is commanding a steep 45.4x multiple, with trades far above its Graham Number ($11) with no margin of safety. Growth dynamics show revenue growing at 15.9% and profit growth of -70.9%. Our composite FairStock Score of 30/100 reflects below-average fundamentals overall. Investors should weigh the business quality against the current price and their own margin of safety requirements.

Bull Case

National's 16% revenue growth trajectory could accelerate as it captures additional market share in the energy sector. With $91 million in annual free cash flow (3.8% yield), management has ample capital for buybacks, dividends, or accretive acquisitions.

Bear Case

At 45x earnings, any growth disappointment triggers rapid multiple compression—a 20% earnings miss plus multiple contraction to 20x implies 40%+ downside. Regulatory changes, input cost inflation, or demand normalization represent underappreciated risks that could materially impact forward estimates.

Data from SEC filings. AI analysis is for educational purposes only — not investment advice. Scoring methodology · Disclaimer