Natural Gas Services Group Inc. Common Stock (NGS)

FairStock Score: 57/100 — STEADY

Key Financials

Concerns

• Altman Z-Score of 1.5 places it in the financial distress zone—elevated bankruptcy risk

AI Analysis

Natural Gas Services Group Inc. Common Stock is a micro-cap energy company valued at $487 million. The business generates $172 million in annual revenue with a 2.4% net margin. From a quality standpoint, Natural shows distressed Altman Z-Score of 1.5 warrants caution and modest 8% ROE. On valuation, the stock is reasonably priced at 24.5x earnings, with trades above its Graham Number with a negative 39% margin. Growth dynamics show revenue growing at 13.5% and profit growth of 43.2%. Our composite FairStock Score of 57/100 reflects mixed fundamentals overall. Investors should weigh the business quality against the current price and their own margin of safety requirements.

Bull Case

Improving fundamentals and sector tailwinds could drive meaningful earnings growth, compressing the effective multiple for patient investors. Operational leverage in the business model means incremental revenue growth could disproportionately boost bottom-line profitability.

Bear Case

Macro headwinds or sector-specific disruption could pressure margins, particularly if competitive intensity increases in the energy space. 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