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Natural Gas Services Group Inc

Natural Gas Services Group Inc

NGS
$38.77USD↓-2.12%-0.84 today

MARKET CAP

489.8M

P/E (TTM)

22.8x

FWD P/E

17.6x

DAY RANGE

$38 – $40

52W RANGE

$23
$45

AI Summary

Stalk
StalkMedium

Despite short-term overbought conditions, the medium-term trajectory remains bullish within an advancing Stage 2 structure. Price is supported by rising EMAs and has repaired through a corrective reset, but timing suggests patience for a pullback into the 20 EMA‐50 SMA support zone before committing. The long-term uptrend anchors overall polarity.

  • ↑Q1 rental revenue $47.1M, +21% YoY; utilization levels high.
  • ↑Raised full-year adjusted EBITDA guidance to $92.5–97.5M.
  • ↓Management expects ongoing inflation to pressure profit margins.
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The case for & against

Bull & Bear analysis

Bullish

Natural Gas Services Group Incorporated (NYSE: NGS) is a leading provider of natural gas compression services, primarily focused on rental compression equipment to facilitate oil and gas industry operations. The company operates in vital regions like the Permian Basin, where demand for gas compression services is increasing due to rising natural gas production and enhanced midstream infrastructure. As a significant player in a sector that reflects ongoing energy transition trends, NGS is well-positioned to capitalize on growing demand related to LNG exports and sustainable energy practices.

Bull says

  • ↑Q1 rental revenue $47.1M, +21% YoY; utilization levels high.
  • ↑Raised full-year adjusted EBITDA guidance to $92.5–97.5M.
  • ↑36% dividend increase to $0.15/share spotlights strong cash flow.
  • ↑Debt/EBITDA ratio of 2.33x supports financial stability.
  • ↑Rented horsepower rose 14%, boosting market share in key basins.
  • ↑High pricing power offsets inflation, benefiting from LNG export demand.

Bear says

  • ↓Management expects ongoing inflation to pressure profit margins.
  • ↓Negative earnings yield (~–0.22) raises ROI concerns for investors.
  • ↓Weak analyst revisions suggest downward earnings forecasts and price risk.
  • ↓Extended equipment lead times could delay revenue and growth.
  • ↓Revenue concentration among few major customers increases contract risk.
  • ↓Elevated short interest signals market skepticism and potential volatility.

Earnings Call · Q1 2026 · Mgmt. Guidance

Updated 05-13-2026neutral

Transcript signals

Bull points

  • Rental revenue was a record $47.1 million, up $8.2 million, or 21.1% in the first quarter of 2025.
  • Total revenue was $48.5 million, up $7.1 million, or approximately 17% from the prior year quarter.
  • Our leverage at quarter end was 2.33 times, which remained the lowest of the public comparable set.

Bear points

  • And we do not assume that cadence will repeat consistently throughout the year.
  • And we expect inflationary pressure associated with recent geopolitical developments to begin impacting the big business in the second quarter.
  • accounts receivable increased during the first quarter, and DSO was above the level we expect from the business as a result of a few discrete collection and process-related items.
Read full transcript analysis ›