Natural Gas Services Group Inc. Common Stock (NGS)

FairStock Score: 57/100 — STEADY

Key Financials

AI Analysis

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

I view Natural Gas Services as a small, asset-heavy operator in a cyclical energy-service niche. It rents and services natural gas compression equipment to U.S. producers. In the latest filed quarter, fiscal Q2 2026 ended 2026-06-30, revenue was $51.4M, up from $41.4M in fiscal Q2 2025. Yet net income fell to $3.8M from $5.2M, and diluted EPS declined to $0.30 from $0.41. For fiscal 2025, filed figures show revenue of $172.3M and net income of $19.9M, or $1.57 per diluted share. So sales are moving higher, but profit conversion is weakening. At the 2026-10-13 close of $33.34, FairStock calculates a P/E of 20.84 and P/B of 1.46. Its Graham Number is $28.67, giving a negative margin of safety of -16.29%. That suggests the price is already discounting a recovery. Returns are modest: ROE 7.31% and ROCE 4.39%, not the high-return profile I prefer. The balance sheet warrants caution: debt-to-equity is 1.12, Altman Z-Score is 1.14, and trailing free cash flow is -$31.3M. Piotroski F-Score is 3/9. The Lynch category is TURNAROUND, based on returning to profit after a loss within three years, but the business is not yet self-funding. A beta of 0.42 and a 1.70% dividend yield offer some stability. Still, I want a margin of safety. Here I see a fair-to-expensive small-cap with rising revenue, falling profits, negative cash flow, and only modest returns on capital. I would need evidence of durable cash generation before paying much above Graham value.

In plain English: Natural Gas Services rents and services equipment that helps energy companies move and process natural gas. Sales are rising, but profits and cash flow have weakened, and the company carries meaningful debt. At the recent price of $33.34, the stock looks a little expensive compared with its profits and accounting value.

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Data as of 2026-10-13 close · note generated 2026-10-15 · model deepseek-flash

Sources (SEC EDGAR): fiscal Q2 2026 10-Q (period ended 2026-06-30) · fiscal Q1 2026 10-Q (period ended 2026-03-31) · fiscal Q3 2025 10-Q (period ended 2025-09-30) · fiscal Q2 2025 10-Q (period ended 2025-06-30) · FY2025 10-K (period ended 2025-12-31) · FY2024 10-K (period ended 2024-12-31) · FY2023 10-K (period ended 2023-12-31)

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