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Nine Energy Service Inc (NINE)
NYSE:NINE
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Nine Energy Service
(NYSE:NINE)
47Neutral
Nine Energy Service (NINE) vs. S&P 500 (SPY)
Market Cap
$48.70M
Dividend YieldN/A
Average Volume (3M)641.48K
Price to Earnings (P/E)―
Beta (1Y)1.23
Revenue Growth-9.09%
EPS Growth-15.47%
CountryUS
Employees1,077
SectorEnergy
Sector Strength87
IndustryOil & Gas Equipment & Services
Share Statistics
EPS (TTM)-1.11
Shares Outstanding42,348,644
10 Day Avg. Volume496,204
30 Day Avg. Volume641,480
Financial Highlights & Ratios
PEG RatioN/A
Price to Book (P/B)N/A
Price to Sales (P/S)0.09
Price to Cash Flow (P/CF)0.90
P/FCF Ratio0.20
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price TargetN/A
Price Target UpsideN/A
Rating ConsensusN/A
Number of Analyst Covering0
Nine Energy Service Business Overview & Revenue Model
Company DescriptionNine Energy Service, Inc. is a Houston, Texas-based oilfield services company that provides comprehensive completion solutions to the oil and gas industry. The company specializes in offering a suite of services related to well completion, including cementing, wireline, and other related services. Nine Energy Service operates primarily in the United States and Canada, focusing on unconventional resource development in areas such as shale formations.
How the Company Makes MoneyNine Energy Service generates revenue primarily through its service offerings in the oilfield services sector. The company's key revenue streams include cementing services, which involve preparing and securing the casing in oil and gas wells; wireline services, which include providing tools and techniques for well evaluation and intervention; and completion tools, which are utilized in the hydraulic fracturing process. These services are essential for the exploration and production phases of oil and gas extraction. Nine Energy Service's earnings are influenced by factors such as oil and gas industry activity levels, commodity prices, and the company's ability to secure contracts with major exploration and production companies. Additionally, partnerships or long-term agreements with key clients can contribute significantly to its revenue stability and growth.
Nine Energy Service Financial Statement Overview
Summary
Nine Energy Service faces significant financial challenges with declining revenues, negative net income, and high leverage. Despite some capacity to generate operating cash flow, the company's financial stability is at risk, requiring strategic adjustments to improve profitability and reduce debt.Income Statement
The income statement reveals declining revenue with a negative net income in recent years. Gross profit margin increased from the previous year, but the net profit margin is negative, indicating challenges in converting revenue into profit. The EBIT margin has also decreased significantly compared to past performance.45
Neutral
Balance Sheet
The balance sheet shows a high debt-to-equity ratio due to negative stockholders' equity, indicating financial stress. The equity ratio is also negative, signaling high leverage. This situation presents significant financial risk.35
Negative
Cash Flow
The cash flow statement shows negative free cash flow growth, highlighting operational challenges. The operating cash flow to net income ratio is favorable, suggesting some ability to generate cash, but free cash flow remains a concern.50
Neutral
| Breakdown | ||||
| Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|
| Income Statement | Total Revenue | |||
| 554.10M | 609.53M | 593.38M | 349.42M | 310.85M | Gross Profit |
| 60.60M | 78.12M | 96.04M | -3.59M | -40.20M | EBIT |
| 8.94M | 17.57M | 43.57M | -48.57M | -383.17M | EBITDA |
| 8.94M | 72.67M | 96.34M | 20.97M | -286.85M | Net Income Common Stockholders |
| -41.08M | -32.21M | 14.39M | -64.58M | -378.95M |
| Balance Sheet | Cash, Cash Equivalents and Short-Term Investments | |||
| 27.88M | 30.84M | 17.45M | 21.51M | 68.86M | Total Assets |
| 360.08M | 401.98M | 426.83M | 381.61M | 442.60M | Total Debt |
| 358.79M | 366.32M | 377.80M | 372.07M | 384.25M | Net Debt |
| 330.91M | 335.48M | 360.36M | 350.56M | 315.39M | Total Liabilities |
| 426.14M | 437.61M | 450.34M | 420.88M | 422.19M | Stockholders Equity |
| -66.06M | -35.63M | -23.51M | -39.27M | 20.41M |
| Cash Flow | Free Cash Flow | |||
| -1.57M | 20.91M | -11.88M | -55.83M | -14.32M | Operating Cash Flow |
| 13.20M | 45.51M | 16.67M | -40.42M | -4.90M | Investing Cash Flow |
| -14.18M | -23.16M | -25.42M | -11.92M | -1.78M | Financing Cash Flow |
| -1.68M | -8.89M | 4.85M | 5.05M | -17.39M |
Nine Energy Service Technical Analysis
Negative
1.15
Price Trends
1.22
Negative
1.23
Negative
1.30
Negative
Market Momentum
0.01
Negative
46.09
Neutral
40.44
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For NINE, the sentiment is Negative. The current price of 1.15 is below the 20-day moving average (MA) of 1.19, below the 50-day MA of 1.22, and below the 200-day MA of 1.30, indicating a bearish trend. The MACD of 0.01 indicates Negative momentum. The RSI at 46.09 is Neutral, neither overbought nor oversold. The STOCH value of 40.44 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for NINE.
Nine Energy Service Peers Comparison
Overall Rating
UnderperformOutperform
Sector (58)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
75 Outperform | $21.76B | 8.85 | 25.14% | 2.71% | -0.32% | -3.41% | |
70 Outperform | $1.18B | 12.84 | 8.55% | 2.93% | -12.52% | -52.79% | |
63 Neutral | $2.56B | 8.47 | 16.54% | 1.83% | -9.11% | -40.79% | |
58 Neutral | $761.38M | ― | -15.19% | ― | -11.42% | -278.57% | |
58 Neutral | $9.13B | 5.39 | -7.06% | 7.50% | -0.05% | -62.88% | |
47 Neutral | $48.70M | ― | 73.91% | ― | -9.09% | -15.47% |
* Energy Sector Average
Performance Comparison
NINE
Nine Energy Service
1.15
-1.07
-48.20%
HAL
Halliburton
25.07
-13.95
-35.75%
RES
RPC
5.46
-2.15
-28.25%
PUMP
Propetro Holding
7.38
-0.53
-6.70%
LBRT
Liberty Oilfield Services
15.80
-4.83
-23.41%
Nine Energy Service Earnings Call Summary
Earnings Call Date: Mar 5, 2025 | % Change Since: 12.75% | Next Earnings Date: May 12, 2025
Earnings Call Sentiment Neutral
The earnings call presented a mixed picture with significant achievements in revenue growth in the Cementing division, innovation in product lines, and effective cost-cutting measures. However, these were balanced by challenges such as a net loss for the year, impacts from low natural gas prices, and a decline in rig count. Despite these challenges, the company remains optimistic about the future, with potential growth in natural gas demand and international markets.Highlights
Cementing Division Growth
Cementing revenue increased by approximately 20% from Q2 to Q4 of 2024, with the Cementing division being the largest driver of revenue and profitability gains. Cementing market share increased by approximately 14% over Q4 2023.
Innovative Product Developments
Introduced new Pincer hybrid frac plug and added a frac start element to the Scorpion Plug. The Stinger dissolvable plug is expected to facilitate longer lateral lengths without compromising reliability.
Cost-Cutting and Efficiency Measures
Implemented cost-cutting measures and market share gains across service lines and basins, resulting in increased profitability even in a declining rig count environment.
Sustainability and Safety Achievements
Launched first sustainability report in 2024 and achieved a 22% decline in Total Recordable Incident Rate (TRIR) from 2023.
Lowlights
Net Loss for the Year
Reported a net loss of $41.1 million for 2024, or negative $1.11 per diluted share.
Challenges from Low Natural Gas Prices
Low natural gas prices averaging around $2.19 for the year led to lower activity levels and pricing pressure, particularly affecting gas-levered basins where Nine generates over 30% of total revenue.
Impact of Rig Count Decline
U.S. rig count declined by almost 25% over the last 2 years, with a decline of around 30 rigs in 2024, contributing to a challenging market environment.
Company Guidance
During the Nine Energy Service earnings call for Q4 and the full year 2024, the company highlighted several key metrics and strategic initiatives. Revenue for 2024 was reported at $554.1 million, with a net loss of $41.1 million, or negative $1.11 per diluted share. The company achieved an adjusted EBITDA of $53.2 million for the year. In Q4, revenue reached $141.4 million, aligning with their guidance range and representing a 2% increase from the previous quarter. Adjusted EBITDA for Q4 was $14.1 million, maintaining steady performance compared to Q3 despite seasonal challenges. Nine Energy Service's cementing division was a major contributor, with its revenue increasing by approximately 20% from Q2 to Q4. The company executed 1,121 cementing jobs in Q4, a 12% increase from Q3. Looking ahead to 2025, Nine Energy Service anticipates Q1 revenue between $146 million and $152 million, driven by market share gains and cost-cutting measures. The company also expects growth in the international tools market and plans to construct a new R&D facility in Texas to enhance their technology offerings.Nine Energy Service Corporate Events
Executive/Board ChangesBusiness Operations and StrategyFinancial Disclosures
Nine Energy Service Restructures Board Amid Revenue Growth
Positive
Mar 5, 2025
In the first quarter of 2025, Nine Energy Service’s Board of Directors decided to reduce its size from eight to six members, resulting in the resignation of three directors and the appointment of two new ones, effective March and May 2025. The company reported a 2% increase in Q4 2024 revenue despite a flat US rig count, with full-year revenue of $554.1 million. Nine’s strategic focus on market share gains and cost reductions helped drive profitability amid challenging conditions, with significant growth in cementing revenue and continued innovation in completion tools.
Glossary
OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.
NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.
UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.
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.