Natural Gas Services Group, Inc. (NGS) AI Stock Analysis

Natural Gas Services Group, Inc. specializes in natural gas compression equipment and services for the energy industry in the United States. Its operations include the fabrication, manufacturing, rental, and sale of natural gas compressors. As of December 31, 2021, the company's rental fleet included 2,023 compression units totaling 418,041 horsepower. It also designs and fabricates custom compressors, frames, cylinders, and parts. Furthermore, the company designs, manufactures, sells, installs, and services flare stacks and ignition systems for onshore and offshore gas incineration. Headquartered in Midland, Texas, it serves exploration and production firms as well as midstream companies.

Between FY2020 and FY2025, revenue expanded at a 5-year CAGR of 20.4%, moving from $72.4M in FY2021 to $172.3M in FY2025. Gross margin expanded from 2.3% in FY2021 to 37.1% in FY2025, while operating margin rose from -17.1% to 23.5%. Net income reached $19.9M in FY2025, up from -$9.2M in FY2021. For the trailing twelve months, revenue was $189.4M with an operating margin of 19.3% and EPS of $1.61. In the latest quarter ended June 30, 2026, quarterly revenue grew 24.2% year-over-year, while quarterly earnings declined 26.8%.

As of June 30, 2026, the company held $84,000 in cash and short-term investments against total debt of $328.0M, resulting in net debt of $327.9M. Shareholders' equity was $294.5M, yielding a debt-to-equity ratio of 1.11, while the current ratio stood at 2.12. In FY2025, operating cash flow generated $62.9M, which was offset by $121.5M in capital expenditures, leading to free cash flow of -$58.6M. Capital returns included $2.6M in dividends paid, while share issuance was $168,000.

At a last close of $31.10, Natural Gas Services Group has a market cap of $401.1M and an enterprise value of $757.2M. The stock trades at a trailing P/E of 19.3x, above the 15.0x median of its US-listed Energy peers. Its forward P/E is 11.9x compared to the peer median of 12.7x, while EV/EBITDA is 9.2x versus the peer median of 8.0x. Over the past year, NGS delivered a return of 20.9%, outperforming the S&P 500 (SPY) return of 16.8%. Over 5 years, the stock returned 152.3% against 83.0% for the index.

Natural Gas Services Group pays a forward annual dividend of $0.60 per share, representing a 1.93% dividend yield. Dividends are paid quarterly, and the company has paid dividends for 2 consecutive years. The payout ratio stands at 26.1%, with the last ex-dividend date on August 19, 2026.

Wall Street coverage consists of 1 Strong Buy and 2 Buy ratings, with no Hold or Sell recommendations. The mean price target is $56.00, representing an 80.1% premium over the last close of $31.10. For the fiscal year ending December 31, 2026, consensus estimates project revenue of $211.9M and EPS of $1.88. For FY2027, 2 analysts expect revenue of $252.3M and EPS of $2.61. The company has beat EPS estimates in all 4 of the last 4 quarters, with its next earnings date scheduled for November 9, 2026.

This page is an AI-written research summary of Natural Gas Services Group, Inc. (NGS). The text was generated on October 30, 2026 from Quotelinks data as of October 16, 2026 (company profile, annual results, latest balance sheet, valuation, price performance and analyst estimates). An automatic check rejects any draft that contains a figure not found in that data. It is not investment advice; verify figures on the linked tabs before making decisions.

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