(NGS) Natural Gas - Ratings and Ratios

Natural Gas Services Group, Inc. (NGS) is a leading provider of natural gas compression equipment and services to the energy industry, primarily in the United States. The company specializes in engineering, fabricating, operating, renting, and maintaining natural gas compressors for oil and natural gas production facilities. Its product portfolio includes custom-designed compressor units for both rental and sale, as well as a range of reciprocating natural gas compressor frames, cylinders, and parts. Additionally, NGS offers flare stacks and ignition and control systems for the safe incineration of gas compounds like hydrogen sulfide, carbon dioxide, and natural gas. The company also provides aftermarket services, including maintenance, repairs, and a rebuild program for small horsepower screw compressors. NGS primarily serves exploration and production (E&P) companies that rely on artificial lift applications for oil and natural gas extraction. Headquartered in Midland, Texas, the company has been operational since its incorporation in 1998.

From a financial perspective, Natural Gas Services Group, Inc. (NGS) operates with a market capitalization of $313.76 million USD, reflecting its established presence in the oil and gas equipment and services sector. The companys price-to-earnings (P/E) ratio stands at 19.63, with a forward P/E of 11.88, indicating expectations of improved profitability. The price-to-book (P/B) ratio of 1.26 suggests that the stock is fairly valued relative to its book value. With a price-to-sales (P/S) ratio of 2.06, the company demonstrates moderate revenue multiples. The return on equity (RoE) of 6.40% highlights its ability to generate profits from shareholders equity. Technically, NGS is trading at $25.71, with short-term moving averages (SMA 20: $26.50, SMA 50: $26.63) slightly above its current price, while the SMA 200 ($22.60) reflects a longer-term upward trend. The average true range (ATR) of 1.16 indicates moderate volatility over the past 20 trading days.

Over the next three months, NGS is expected to experience a sideways trading range between $24 and $28, supported by its current technical setup and fundamental outlook. The stocks proximity to its SMA 20 and moderate volume suggest a period of consolidation. However, any upside could be driven by improving energy demand and higher oil prices, which would benefit the companys equipment rental and aftermarket services segments. The forward P/E of 11.88 suggests that investors are pricing in modest earnings growth, aligning with the energy sectors recovery trajectory. The companys focus on environmental compliance through its flare stack solutions could also attract additional demand, particularly as E&P companies prioritize emissions control. Overall, NGS is well-positioned to capitalize on the gradual rebound in energy activity, though near-term price action may remain range-bound.