Natural Gas Services Group Inc logo

Natural Gas Services Group Inc(NGS)

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EXPLORE ADVISORIES AND THEIR HISTORY
QUALITY SIGNAL
3-STAR RATING
PASS
LAST CLOSE
$33.18
10/08/2026
(24-hour delay)

Advisory History & Simulated Performance *

*as per simulation (see disclosures)
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Upturn Stock price based on last close iconStock price based on last close
Simulated performance—not actual client returns. Results depend on calculation assumptions and do not guarantee future outcomes. See Disclosures for methodology, assumptions, and limitations.

Advisory Performance History (Simulated)Advisory Performance History info

Simulated performance—not actual client returns. Results depend on calculation assumptions and do not guarantee future outcomes. See Disclosures for methodology, assumptions, and limitations.

Upturn Advisory & Investor View for NGS

10/08/2026: NGS (3-star) is currently NOT-A-BUY. Pass it for now.

Natural Gas Services Group Inc is a specialized provider of natural gas compression services, primarily focusing on rental equipment for energy producers. The company benefits from its niche technical expertise and flexible service model, which allow it to operate effectively in key U.S. shale basins. While the firm has a stable operational history, it faces significant risks linked to the cyclical nature of energy commodity prices and intense competition from larger, well-capitalized providers. Investors should monitor rig count trends and company-specific efforts to modernize its fleet. The stock is generally more suitable for investors with a higher tolerance for energy sector volatility rather than those seeking consistent income.

How to Read the Upturn Advisory

The Upturn Star Rating and the current BUY, SELL, or PASS advisory are generated by Upturn’s AI advisory engine based on proprietary signal analysis, price behavior, advisory history, and historical signal performance.

Company fundamentals, valuation, risks, and news provide supporting context about the business.

Investor Fit

Investor styleFitWhy
Growth investorMixed fitGrowth is highly dependent on cyclical energy market tailwinds rather than consistent secular expansion.
Momentum investorStrong fit while signal remains positiveMomentum strategies may benefit when energy prices and production activity signal an upturn in industry demand.
Value investorMixed fitValuation fluctuates significantly with commodity price cycles, making entry timing critical.
Dividend investorWeak fitThe company does not provide a consistent dividend income stream.
Low-risk investorWeak fitExposure to energy industry volatility creates substantial price risk.

Risk Profile

Risk factorLevelWhy it matters
Price volatilityHighThe stock price is highly sensitive to fluctuations in natural gas prices and rig counts.
Valuation riskMedium / highMarket valuations for oilfield services can swing based on speculative outlooks for energy production.
Competition risk (Compression services)HighIntense competition from larger players limits pricing power and market share growth.
Business qualityMediumThe business model relies on capital-intensive assets that require constant reinvestment.
Dividend incomeLow / noneInvestors should not rely on the stock for regular income payouts.
Execution riskMediumOperational efficiency in maintaining the rental fleet is critical to profitability.

Price Behavior

Rolling Over
PRICE PATH

Rolling Over

The price momentum is slowing down and beginning to turn downward.

Moderately Choppy
PRICE STABILITY

Moderately Choppy

The stock has experienced noticeable price swings while retaining some directional structure.

Analysis of Past Performance

Type Stock
Historic Profit 127.53%
Avg. Invested days 72
Today’s Advisory PASS
Upturn Advisory Rating upturn star rating icon
Upturn Advisory Performance Upturn Advisory Performance icon 3.0
Stock Returns Performance Upturn Returns Performance icon 5.0
Upturn Profits based on simulation icon Profits based on simulation
Upturn last close icon Last Close 10/08/2026

Upturn Scorecard

Upturn Star Rating

★★★★★
NGS receives a 3-star rating based on the available scored pillars. The rating is constrained by soft unit economics, and weak price momentum.

Company Fundamentals

★★★★★
NGS has moderate overall fundamentals (3 stars), with moderate financial health, moderate growth momentum, and solid ownership. In FY2025 versus FY2024, solid earnings growth (+15.7%) and solid profitability (net margin 11.6%) are partially offset by weak cash generation (FCF margin -34.0%), moderate revenue growth (+9.9%), modest insider ownership of 3.20%.

Financial Health Rating

★★★★★
NGS's financial health is supported by solid profitability, including gross margin of 37.1% and operating margin of 23.5%. Liquidity is soft (2 stars), which helps explain the 3-star overall score.

Growth Momentum Score

★★★★★
Earnings growth is NGS's strongest growth driver at +15.7% FY2025 versus FY2024 (solid, 4 stars). By comparison, while free-cash-flow growth (-978.3%, negative) holds the profile back, so recent growth is not broad-based across the business.

Ownership

★★★★★
Institutional ownership is 94.2% and approximately 97.6% of outstanding shares are publicly tradable, supporting liquidity and institutional participation. Insider ownership of 3.20% provides only moderate management-shareholder alignment.

Top 5 Institutional Investors

BlackRock Inc 7.46%
Dimensional Fund Advisors, Inc. 6.59%
Arnhold & S. Bleichroeder Advisers, LLC 5.39%
Aegis Financial Corporation 4.53%
Vanguard Capital Management, LLC 3.98%

Unit Economics (Per $1K Revenue)

★★★★★
NGS generates approximately $371 of gross profit, $235 of operating income, and $-340 of free cash flow for every $1,000 of revenue. Based on FY2025 results. Negative free cash flow explains the 2-star rating, with weak cash conversion and soft capital efficiency.

Economic Dimensions

★★★★★
Effective Tax Rate: 24.89%

Quantitative Style Profile

★★★★★
NGS has a liquid, relatively low-volatility profile. Weak momentum is the primary drawback.

Style Classification

Quality Focused

Value-OrientedLow VolatilitySmall / Mid Cap RiskHighly Liquid / Institution-Friendly

Key Highlights

Company Size Small-Cap Stock
Market Capitalization 428.74M USD
Price to earnings Ratio 21.17
1Y Target Price 56
Price to earnings Ratio 21.17
1Y Target Price 56
Volume (30-day avg) 109.0K shares
Beta 0.47
52 Weeks Range 25.18 - 44.43
Updated Date 10/08/2026
52 Weeks Range 25.18 - 44.43
Updated Date 10/08/2026
Dividends yield (FY) 1.38%
Basic EPS (TTM) 1.57

How Company Makes Money

Business areaWhat it includesRetail investor read
Rental Compression ServicesMonthly rental fees for compression equipment used in natural gas production.This is the primary revenue engine, performing best when gas production is high.
Equipment SalesRevenue from fabricating and selling custom compression units.These lumpy sales provide supplemental revenue but can be less predictable than rentals.

Analyzing Revenue: Products, Geography and Growth

Revenue by Products

Product revenue - Year on Year

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Valuation

Trailing PE 21.17
Forward PE 11.88
Enterprise Value 757.16M
Price to Sales(TTM) 2.26
Enterprise Value 757.16M
Price to Sales(TTM) 2.26
Enterprise Value to Revenue 4
Enterprise Value to EBITDA 9.18
Shares Outstanding 12.90M
Shares Floating 12.59M
Shares Outstanding 12.90M
Shares Floating 12.59M
Percent Insiders 3.2
Percent Institutions 94.21

Icon representing Upturn AI-generated SWOT analysis summary Upturn AI Summary

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Financial Metrics

🧭 Investment Snapshot

Total Revenue (Scale)

Information icon Total money earned from selling products or services before any costs. It is needed to understand the scale of the business and its ability to generate income.

Net Income (Profit)

Information icon Final profit after all expenses, interest, and taxes are deducted. It is needed to determine the overall profitability available to shareholders.

Free Cash Flow (Cash Strength)

Information icon Cash remaining after operating activities and capital expenditures, showing cash available for growth. It is needed to evaluate the company’s ability to invest, pay dividends, or reduce debt.

📈 Growth & Strength

Operating Income (Core Profit)

Information icon Profit from core operations after deducting all operating expenses. It is needed to measure how efficiently the company runs its primary business activities.

EBITDA (Cash Earnings)

Information icon Earnings before interest, taxes, depreciation, and amortization, indicating operating cash potential. It is needed to compare operating performance across companies without accounting or financing differences.

Gross Profit (Unit Profitability)

Information icon Revenue minus cost of revenue, showing profit after direct production costs. It is needed to evaluate core business profitability before overhead expenses.

🛡️ Financial Safety

Cash (Liquidity Buffer)

Information icon Total cash and cash equivalents on hand. It is needed to evaluate immediate liquidity and financial flexibility.

Total Debt (Leverage Risk)

Information icon Total debt including both short-term and long-term components. It is needed to assess the company’s leverage and financial risk.

Net Working Capital (Short-Term Health)

Information icon Current assets minus current liabilities, indicating short-term liquidity strength. It is needed to assess whether the company can meet its short-term obligations.

🧱 Balance Sheet Strength

Stockholder Equity (Net Worth)

Information icon Total equity value held by shareholders. It is needed to understand the net worth of the company from the owners’ perspective.

Total Assets (Asset Base)

Information icon The full value of everything the company owns, including cash, inventory, equipment, and investments. It is needed to understand the resource base used to generate revenue.

Income Before Tax (Pre-Tax Earnings)

Information icon Income before provision for income taxes. It is needed to analyze profitability independent of tax structures.

⚙️ Cost & Drag Factors

Cost of Revenue (Production Cost)

Information icon Direct costs required to produce and deliver the products or services sold. It is needed to assess efficiency in production and service delivery.

Total Operating Expenses (Operating Cost)

Information icon Indirect costs of running the business such as salaries, marketing, and administration. It is needed to understand how much it costs to sustain ongoing business operations.

Income Tax Expense (Tax Drag)

Information icon Amount of taxes paid or payable to the government. It is needed to evaluate the impact of taxation on overall profitability.

About Natural Gas Services Group Inc

Exchange NYSE
Headquarters Southlake, TX, United States
IPO Launch date 2002-10-22
CEO & Director Mr. Justin C. Jacobs
Sector Energy
Industry Oil & Gas Equipment & Services
Full time employees 259
Full time employees 259

Natural Gas Services Group, Inc. provides natural gas compression equipment, flares and related assets; and electric compression equipment, technology and services to the energy industry in the United States. The company rents, designs, installs, service, and maintains natural gas engine and electric motor drive compressors for oil and gas production and processing facilities. It also designs and assembles compressor units for rental; and designs, engineers, and sells compressor components. In addition, the company provides aftermarket services for its compressors; and services related to the installation and start-up of new compressor units. Natural Gas Services Group, Inc. was incorporated in 1998 and is headquartered in Southlake, Texas.

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