Latest Ratios: P/E Ratio 28.0x · EV/EBITDA 10.2x · ROE 7.5%. (2001–2025 historical series)
Price-based multiples — how expensive the stock is relative to earnings, sales, book value, and cash flow
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Market Cap | $554M | $427M | $336M | $199M | $141M | $137M | $126M | $161M | $213M | $343M | $416M |
| Enterprise Value | $785M | $658M | $504M | $362M | $163M | $115M | $98M | $150M | $161M | $275M | $352M |
| P/E Ratio → | 28.02 | 21.43 | 19.56 | 42.32 | — | — | 67.71 | — | 499.70 | 17.35 | 64.30 |
| P/S Ratio | 3.22 | 2.48 | 2.15 | 1.64 | 1.66 | 1.89 | 1.85 | 2.05 | 3.26 | 5.07 | 5.80 |
| P/B Ratio | 2.03 | 1.56 | 1.32 | 0.84 | 0.61 | 0.58 | 0.50 | 0.65 | 0.82 | 1.33 | 1.79 |
| P/FCF | 8.54 | 6.58 | — | — | — | 53.16 | 7.23 | — | — | 86.67 | 14.61 |
| P/OCF | 8.81 | 6.79 | 5.14 | 11.04 | 5.08 | 4.85 | 3.85 | 5.47 | 9.10 | 19.68 | 12.69 |
P/E links to full P/E history page with 30-year chart
Enterprise-value multiples — capital-structure-neutral measures of total business value
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| EV / Revenue | — | 3.82 | 3.22 | 2.98 | 1.92 | 1.58 | 1.44 | 1.91 | 2.46 | 4.06 | 4.92 |
| EV / EBITDA | 10.18 | 8.53 | 7.80 | 9.77 | 6.64 | 8.82 | 4.52 | 8.00 | 7.08 | 12.01 | 11.65 |
| EV / EBIT | 19.40 | 16.26 | 15.02 | 33.79 | 504.62 | — | — | — | — | 169.88 | 41.57 |
| EV / FCF | — | 10.13 | — | — | — | 44.38 | 5.62 | — | — | 69.31 | 12.37 |
Margins and return-on-capital ratios measuring operating efficiency
Full margin charts and quarterly trend are on the Earnings History page
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Gross Margin | 37.1% | 37.1% | 36.1% | 26.5% | 16.9% | 2.3% | 10.9% | 13.9% | 14.9% | 17.2% | 25.1% |
| Operating Margin | 23.5% | 23.5% | 21.3% | 8.6% | 0.5% | -17.1% | -5.3% | -5.7% | 1.0% | 2.3% | 11.8% |
| Net Profit Margin | 11.6% | 11.6% | 11.0% | 3.9% | -0.7% | -12.7% | 2.7% | -17.7% | 0.7% | 29.3% | 9.0% |
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| ROE | 7.5% | 7.5% | 7.0% | 2.0% | -0.2% | -3.8% | 0.7% | -5.5% | 0.2% | 8.1% | 2.8% |
| ROA | 3.7% | 3.7% | 3.5% | 1.2% | -0.2% | -3.0% | 0.6% | -4.7% | 0.1% | 6.7% | 2.2% |
| ROIC | 6.5% | 6.5% | 6.1% | 2.4% | 0.1% | -4.3% | -1.2% | -1.5% | 0.2% | 0.7% | 3.5% |
| ROCE | 7.8% | 7.8% | 7.2% | 2.8% | 0.1% | -4.3% | -1.2% | -1.6% | 0.2% | 0.5% | 3.0% |
Solvency and debt-coverage ratios — lower is generally safer
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Debt / Equity | 0.84 | 0.84 | 0.67 | 0.70 | 0.11 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Debt / EBITDA | 2.99 | 2.99 | 2.63 | 4.47 | 1.03 | 0.02 | 0.04 | 0.05 | 0.02 | 0.02 | 0.01 |
| Net Debt / Equity | — | 0.84 | 0.66 | 0.69 | 0.10 | -0.10 | -0.11 | -0.04 | -0.20 | -0.27 | -0.27 |
| Net Debt / EBITDA | 2.99 | 2.99 | 2.60 | 4.39 | 0.90 | -1.74 | -1.30 | -0.56 | -2.30 | -3.01 | -2.11 |
| Debt / FCF | — | 3.55 | — | — | — | -8.78 | -1.61 | — | — | -17.36 | -2.24 |
| Interest Coverage | 2.98 | 2.98 | 2.82 | 2.62 | 0.89 | -180.32 | -212.14 | -969.47 | -4.71 | 115.50 | 1059.13 |
Short-term solvency ratios and asset-utilisation metrics
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Current Ratio | 2.33 | 2.33 | 2.78 | 2.33 | 1.78 | 3.21 | 6.70 | 7.70 | 8.81 | 14.52 | 15.35 |
| Quick Ratio | 1.49 | 1.49 | 1.74 | 1.67 | 1.01 | 2.26 | 4.86 | 3.87 | 5.98 | 11.00 | 11.37 |
| Cash Ratio | — | — | 0.12 | 0.08 | 0.11 | 1.13 | 2.66 | 2.10 | 4.81 | 9.29 | 9.86 |
| Asset Turnover | — | 0.29 | 0.32 | 0.25 | 0.26 | 0.24 | 0.22 | 0.27 | 0.21 | 0.23 | 0.24 |
| Inventory Turnover | 5.25 | 5.25 | 5.55 | 4.11 | 3.01 | 3.66 | 3.04 | 3.21 | 1.80 | 2.14 | 2.08 |
| Days Sales Outstanding | — | 68.95 | 62.66 | 152.80 | 112.76 | 110.51 | 63.74 | 42.37 | 40.24 | 46.02 | 37.58 |
Earnings, FCF, buyback, and dividend yields — total returns to shareholders
Full dividend history and growth charts are on the Dividend History page
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Dividend Yield | 0.5% | 0.6% | — | — | — | — | — | — | — | — | — |
| Payout Ratio | 13.2% | 13.2% | — | — | — | — | — | — | — | — | — |
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Earnings Yield | 3.6% | 4.7% | 5.1% | 2.4% | — | — | 1.5% | — | 0.2% | 5.8% | 1.6% |
| FCF Yield | 11.7% | 15.2% | — | — | — | 1.9% | 13.8% | — | — | 1.2% | 6.8% |
| Buyback Yield | 0.0% | 0.0% | 0.0% | 0.5% | 4.7% | 5.7% | 0.1% | 0.3% | 0.3% | 0.2% | 0.2% |
| Total Shareholder Yield | 0.5% | 0.6% | 0.0% | 0.5% | 4.7% | 5.7% | 0.1% | 0.3% | 0.3% | 0.2% | 0.2% |
| Shares Outstanding | — | $13M | $13M | $12M | $12M | $13M | $13M | $13M | $13M | $13M | $13M |
Permian Basin consolidation risk
Based on current market data, NGS trades at a P/E of 28.02, which appears to price in significant future earnings expansion relative to its historical averages and suggests that investors are paying a premium for the company's specialized niche position within the Permian Basin compression market.
The forward P/E of 21.46 indicates that the market anticipates meaningful earnings growth, yet the PEG ratio of 0.45 suggests the stock may be undervalued if those growth targets are met. Investors should monitor whether this valuation is supported by sustained rental rate increases or if it reflects an overly optimistic outlook on the company's ability to scale its proprietary fabrication model.
As reported in recent financial statements, the company's ROIC has hovered near 2.0% in 2026Q1, a figure that suggests NGS is struggling to generate returns on invested capital that meaningfully exceed its cost of capital, despite the recent uptick in operational margins and fleet utilization.
The persistent low ROIC indicates that the heavy capital intensity required to maintain and expand the rental fleet is currently diluting shareholder value creation. This trend warrants further investigation into whether the company's recent shift toward larger horsepower units will eventually improve capital efficiency or simply increase the depreciation burden on the balance sheet.
According to quarterly data, the cash conversion cycle has fluctuated significantly, reaching 78 days in 2026Q1, which suggests that NGS faces ongoing challenges in managing its inventory and collection cycles compared to the more streamlined operations of larger, midstream-focused compression service providers in the sector.
The high DIO of 67 days indicates that the company may be carrying excessive inventory, potentially due to the fabrication-heavy nature of its business model. This inefficiency ties up liquidity that could otherwise be deployed for fleet expansion, suggesting that management needs to optimize its supply chain to improve overall asset turnover.
Based on reported figures, the company maintains a debt-to-equity ratio of 0.81 as of 2026Q1, which appears to provide a fortress-like balance sheet that protects NGS from the interest rate sensitivity and refinancing risks that currently plague more highly leveraged peers in the oilfield services industry.
While this conservative capital structure limits the potential for aggressive, debt-funded growth, it provides a critical buffer against the cyclical downturns inherent in the Permian Basin. Investors should monitor whether management maintains this discipline as they pivot toward larger, more capital-intensive compression projects in the coming quarters.
The P/E ratio is frequently misapplied to NGS because it fails to account for the massive non-cash depreciation charges inherent in the compression business, which significantly depress reported net income and mask the company's true ability to generate recurring cash flow from its rental fleet.
Analysts should prioritize EV/EBITDA or P/FCF metrics to better evaluate the company's performance, as these ratios normalize for the capital-intensive nature of the equipment. Relying solely on P/E risks misinterpreting the company's earnings power and may lead to an incorrect assessment of its valuation relative to peers.
Includes 30+ ratios · 25 years · Updated daily
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Quick answers to the most common questions about buying NGS stock.
Natural Gas Services Group, Inc.'s current P/E ratio is 28.0x. The historical average is 27.0x. This places it at the 70th percentile of its historical range.
Natural Gas Services Group, Inc.'s current EV/EBITDA is 10.2x. This enterprise value multiple compares the company's total value (equity + debt - cash) to its EBITDA. The historical average is 8.2x.
Natural Gas Services Group, Inc.'s return on equity (ROE) is 7.5%. The historical average is 6.2%.
Based on historical data, Natural Gas Services Group, Inc. is trading at a P/E of 28.0x. This is at the 70th percentile of its historical P/E range. Compare with industry peers and growth rates for a complete picture.
Natural Gas Services Group, Inc.'s current dividend yield is 0.47% with a payout ratio of 13.2%.
Natural Gas Services Group, Inc. has 37.1% gross margin and 23.5% operating margin. Operating margin above 20% indicates strong pricing power and cost efficiency.
Natural Gas Services Group, Inc.'s Debt/EBITDA ratio is 3.0x, indicating moderate leverage. A ratio between 2-4x is manageable but warrants monitoring.