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Nine Energy Service

DB:NEJ
Snowflake Description

Fair value with mediocre balance sheet.

The Snowflake is generated from 30 checks in 5 different areas, read more below.
NEJ
DB
$26M
Market Cap
  1. Home
  2. DE
  3. Energy
Company description

Nine Energy Service, Inc. operates as an onshore completion services provider that targets unconventional oil and gas resource development across North American basins and internationally. The last earnings update was 28 days ago. More info.


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  • Nine Energy Service has significant price volatility in the past 3 months.
NEJ Share Price and Events
7 Day Returns
3.1%
DB:NEJ
8.1%
Europe Energy Services
-0.6%
DE Market
1 Year Returns
-96.8%
DB:NEJ
-57.2%
Europe Energy Services
-20.9%
DE Market
NEJ Shareholder Return
  7 Day 30 Day 90 Day 1 Year 3 Year 5 Year
Nine Energy Service (NEJ) 3.1% -74.8% -92.3% -96.8% - -
Europe Energy Services 8.1% -27.8% -50.1% -57.2% -65.6% -87.6%
DE Market -0.6% -16.6% -26% -20.9% -25.8% -31.8%
1 Year Return vs Industry and Market
  • NEJ underperformed the Energy Services industry which returned -57.2% over the past year.
  • NEJ underperformed the Market in Germany which returned -20.9% over the past year.
Price Volatility
NEJ
Industry
5yr Volatility vs Market

Value

 Is Nine Energy Service undervalued based on future cash flows and its price relative to the stock market?

Value is all about what a company is worth versus what price it is available for. If you went into a grocery store and all the bananas were on sale at half price, they could be considered undervalued.
INTRINSIC VALUE BASED ON FUTURE CASH FLOWS
Here we compare the current share price of Nine Energy Service to its discounted cash flow analysis.value.

The discounted cash flow value is simply looking at what the company is worth today, based on estimates of how much money it is expected to make in the future.
Raw Data

Below are the data sources, inputs and calculation used to determine the intrinsic value for Nine Energy Service.

DB:NEJ Discounted Cash Flow Data Sources
Data Point Source Value
Valuation Model 2 Stage Free Cash Flow to Equity
Levered Free Cash Flow Average of 5 Analyst Estimates (S&P Global) See below
Discount Rate (Cost of Equity) See below 10.5%
Perpetual Growth Rate 10-Year DE Government Bond Rate -0.4%

An important part of a discounted cash flow is the discount rate, below we explain how it has been calculated.

Calculation of Discount Rate/ Cost of Equity for DB:NEJ
Data Point Calculation/ Source Result
Risk-Free Rate 10-Year DE Govt Bond Rate -0.4%
Equity Risk Premium S&P Global 5.4%
Energy Services Unlevered Beta Simply Wall St/ S&P Global 0.91
Re-levered Beta = Unlevered beta (1 + (1- tax rate) (Debt/Equity))
= 0.912 (1 + (1- 21%) (1518.77%))
8.268
Levered Beta Levered Beta limited to 0.8 to 2.0
(practical range for a stable firm)
2
Discount Rate/ Cost of Equity = Cost of Equity = Risk Free Rate + (Levered Beta * Equity Risk Premium)
= -0.39% + (2 * 5.44%)
10.49%

Discounted Cash Flow Calculation for DB:NEJ using 2 Stage Free Cash Flow to Equity Model

The calculations below outline how an intrinsic value for Nine Energy Service is arrived at by discounting future cash flows to their present value using the 2 stage method. We try to start with analysts estimates of free cash flow, however if these are not available we use the most recent financial results. In the 1st stage we continue to grow the free cash flow over a 10 year period, with the growth rate trending towards the perpetual growth rate used in the 2nd stage. The 2nd stage assumes the company grows at a stable rate into perpetuity.

Note: Free cash flow to equity valuations ignore the company's cash or debt.

DB:NEJ DCF 1st Stage: Next 10 year cash flow forecast
Levered FCF (USD, Millions) Source Present Value
Discounted (@ 10.49%)
2020 40.07 Analyst x3 36.27
2021 36.14 Analyst x3 29.60
2022 77.30 Analyst x1 57.31
2023 88.48 Est @ 14.46% 59.37
2024 97.33 Est @ 10.01% 59.11
2025 104.03 Est @ 6.89% 57.18
2026 108.93 Est @ 4.7% 54.18
2027 112.39 Est @ 3.18% 50.60
2028 114.75 Est @ 2.11% 46.76
2029 116.31 Est @ 1.36% 42.89
Present value of next 10 years cash flows $493.00
DB:NEJ DCF 2nd Stage: Terminal Value
Calculation Result
Terminal Value = FCF2029 × (1 + g) ÷ (Discount Rate – g)
= $116.31 × (1 + -0.39%) ÷ (10.49% – -0.39%)
$1,064.86
Present Value of Terminal Value = Terminal Value ÷ (1 + r)10
= $1,064.86 ÷ (1 + 10.49%)10
$392.70
DB:NEJ Total Equity Value
Calculation Result
Total Equity Value = Present value of next 10 years cash flows + Terminal Value
= $493.00 + $392.70
$885.70
Equity Value per Share
(USD)
= Total value / Shares Outstanding
= $885.70 / 30.49
$29.05
DB:NEJ Discount to Share Price
Calculation Result
Non-primary Listing Adjustment Factor 1 share in DB:NEJ represents 0.785x of NYSE:NINE
(This could be a different class, a depositary receipt, a different currency, or all of these things.)
0.785x
Value per Share
(Listing Adjusted, EUR)
= Value per Share (USD) x Listing Adjustment Factor
= $ 29.05 x 0.785
€22.80
Value per share (EUR) From above. €22.80
Current discount Discount to share price of €0.67
= -1 x (€0.67 - €22.80) / €22.80
97.1%

Learn more about our DCF calculations in Simply Wall St’s analysis model .

Current Discount
Amount off the current price Nine Energy Service is available for.
Intrinsic value
>50%
Share price is €0.67 vs Future cash flow value of €22.8
Current Discount Checks
For Nine Energy Service to be considered undervalued it must be available for at least 20% below the current price. Less than 40% is even better.
  • Nine Energy Service's share price is below the future cash flow value, and at a moderate discount (> 20%).
  • Nine Energy Service's share price is below the future cash flow value, and at a substantial discount (> 40%).
PRICE RELATIVE TO MARKET
We can also value a company based on what the stock market is willing to pay for it. This is similar to the price of fruit (e.g. Mangoes or Avocados) increasing when they are out of season, or how much your home is worth.

The amount the stock market is willing to pay for Nine Energy Service's earnings, growth and assets is considered below, and whether this is a fair price.
Price based on past earnings
Are Nine Energy Service's earnings available for a low price, and how does this compare to other companies in the same industry?
Raw Data
DB:NEJ PE (Price to Earnings) Ratio Data Sources
Data Point Source Value
Earnings Per Share * Company Filings (2019-12-31) in USD $-7.43
NYSE:NINE Share Price ** NYSE (2020-04-06) in USD $0.85
Europe Energy Services Industry PE Ratio Median Figure of 31 Publicly-Listed Energy Services Companies 8.85x
Germany Market PE Ratio Median Figure of 401 Publicly-Listed Companies 16.45x

* Trailing twelve months (TTM) annual GAAP earnings per share excluding extraordinary items.

** Primary Listing of Nine Energy Service.

DB:NEJ PE (Price to Earnings) Ratio Calculation
Calculation Outcome
PE Ratio

= NYSE:NINE Share Price ÷ EPS (both in USD)

= 0.85 ÷ -7.43

-0.11x

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Nine Energy Service is loss making, we can't compare its value to the Europe Energy Services industry average.
  • Nine Energy Service is loss making, we can't compare the value of its earnings to the Germany market.
Price based on expected Growth
Does Nine Energy Service's expected growth come at a high price?
Raw Data
DB:NEJ PEG (Price to Earnings to Growth) Ratio Data Sources
Data Point Source Value
PE Ratio See PE Ratio Section -0.11x
Net Income Annual Growth Rate See Future Growth Section.
Line of Best Fit* through Consensus Estimate Earnings of 5 Analysts
82.2%per year
Europe Energy Services Industry PEG Ratio Median Figure of 20 Publicly-Listed Energy Services Companies 0.51x
Germany Market PEG Ratio Median Figure of 256 Publicly-Listed Companies 1.16x

*Line of best fit is calculated by linear regression .

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Unable to calculate PEG ratio for Nine Energy Service, we can't assess if its growth is good value.
Price based on value of assets
What value do investors place on Nine Energy Service's assets?
Raw Data
DB:NEJ PB (Price to Book) Ratio Data Sources
Data Point Source Value
Book Value per Share Company Filings (2019-12-31) in USD $12.76
NYSE:NINE Share Price * NYSE (2020-04-06) in USD $0.85
Europe Energy Services Industry PB Ratio Median Figure of 70 Publicly-Listed Energy Services Companies 0.4x
Germany Market PB Ratio Median Figure of 572 Publicly-Listed Companies 1.44x
DB:NEJ PB (Price to Book) Ratio Calculation
Calculation Outcome
PB Ratio

= NYSE:NINE Share Price ÷ Book Value per Share (both in USD)

= 0.85 ÷ 12.76

0.07x

* Primary Listing of Nine Energy Service.

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Nine Energy Service is good value based on assets compared to the Europe Energy Services industry average.
X
Value checks
We assess Nine Energy Service's value by looking at:
  1. Is the discounted cash flow value less than 20%, or 40% of the share price? (2 checks) ( Click here or on bar chart for details of DCF calculation. )
  2. Is the PE ratio less than the market average, and/ or less than the Energy Services industry average (and greater than 0)? (2 checks)
  3. Is the PEG ratio within a reasonable range (0 to 1)? (1 check)
  4. Is the PB ratio less than the Energy Services industry average (and greater than 0)? (1 check)
  5. Nine Energy Service has a total score of 3/6, see the detailed checks below.

    Note: We use GAAP Earnings per Share in all our calculations including PE and PEG Ratio.

    Full details on the Value part of the Simply Wall St company analysis model.

Future Performance

 How is Nine Energy Service expected to perform in the next 1 to 3 years based on estimates from 5 analysts?

The future performance of a company is measured in the same way as past performance, by looking at estimated growth and how much profit it is expected to make.

Future estimates come from professional analysts. Just like forecasting the weather, they don’t always get it right!
Annual Growth Rate
82.2%
Expected annual growth in earnings.
Earnings growth vs Low Risk Savings
Is Nine Energy Service expected to grow at an attractive rate?
  • Unable to compare Nine Energy Service's earnings growth to the low risk savings rate as it is expected to be loss making during the next 1-3 years.
Growth vs Market Checks
  • Unable to compare Nine Energy Service's earnings growth to the Germany market average as it is expected to be loss making during the next 1-3 years.
  • Nine Energy Service's revenues are expected to decrease over the next 1-3 years, this is below the Germany market average.
Annual Growth Rates Comparison
Raw Data
DB:NEJ Future Growth Rates Data Sources
Data Point Source Value (per year)
DB:NEJ Future Earnings Growth Rate Line of Best Fit* through Consensus Estimate Earnings of 5 Analysts 82.2%
DB:NEJ Future Revenue Growth Rate Line of Best Fit* through Consensus Estimate Revenue of 5 Analysts -22.1%
Europe Energy Services Industry Earnings Growth Rate Market Cap Weighted Average 21.1%
Europe Energy Services Industry Revenue Growth Rate Market Cap Weighted Average -0.4%
Germany Market Earnings Growth Rate Market Cap Weighted Average 14.1%
Germany Market Revenue Growth Rate Market Cap Weighted Average 4%

*Line of best fit is calculated by linear regression .

Industry and Market average data is calculated daily.

Learn more about our growth rate calculations in Simply Wall St’s analysis model.

Analysts growth expectations
Raw Data
DB:NEJ Analysts Growth Expectations Data Sources
Data Point Source Value
Past Financials Company Filings (3 months ago) See Below
Future Estimates Average of up to 5 Analyst Estimates (S&P Global) See Below
All numbers in USD Millions and using Trailing twelve months (TTM) annual period rather than quarterly.
DB:NEJ Future Estimates Data
Date (Data in USD Millions) Revenue Cash Flow Net Income * Avg. No. Analysts
2022-12-31 562 103 -6 1
2021-12-31 527 92 -64 5
2020-12-31 481 68 -68 4
2020-04-07
DB:NEJ Past Financials Data
Date (Data in USD Millions) Revenue Cash Flow Net Income *
2019-12-31 833 101 -218
2019-09-30 899 126 -75
2019-06-30 915 82 -40
2019-03-31 883 78 -37
2018-12-31 827 90 -53
2018-09-30 752 53 -5
2018-06-30 682 52 -24
2018-03-31 612 33 -45
2017-12-31 544 6 -68
2017-09-30 469 -1 -64
2017-06-30 395 -23 -73
2017-03-31 322 -18 -76

*GAAP earnings excluding extraordinary items.

Super high growth metrics
High Growth Checks
  • Nine Energy Service is not considered high growth as it is expected to be loss making for the next 1-3 years.
  • Nine Energy Service's revenue is expected to decrease over the next 1-3 years, this is not considered high growth.
Past and Future Earnings per Share
The accuracy of the analysts who estimate the future performance data can be gauged below. We look back 3 years and see if they were any good at predicting what actually occurred. We also show the highest and lowest estimates looking forward to see if there is a wide range.
Raw Data
DB:NEJ Past and Future Earnings per Share
Data Point Source Value
Past Financials Company Filings (3 months ago) See Below
Future Estimates Average of up to 5 Analyst Estimates (S&P Global) See Below

All data from Nine Energy Service Company Filings, last reported 3 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

DB:NEJ Future Estimates Data
Date (Data in USD Millions) EPS * EPS High Estimate EPS Low Estimate Avg. No. Analysts
2022-12-31 -0.20 -0.20 -0.20 1.00
2021-12-31 -2.18 -1.29 -3.07 2.00
2020-12-31 -2.33 -1.98 -2.67 2.00
2020-04-07
DB:NEJ Past Financials Data
Date (Data in USD Millions) EPS *
2019-12-31 -7.43
2019-09-30 -2.58
2019-06-30 -1.46
2019-03-31 -1.42
2018-12-31 -2.17
2018-09-30 -0.25
2018-06-30 -1.26
2018-03-31 -2.68
2017-12-31 -4.55
2017-09-30 -4.48
2017-06-30 -5.32
2017-03-31 -5.69

*GAAP earnings excluding extraordinary items.

Performance in 3 years
In the same way as past performance we look at the future estimated return (profit) compared to the available funds. We do this looking forward 3 years.
  • Unable to establish if Nine Energy Service will efficiently use shareholders’ funds in the future without estimates of Return on Equity.
X
Future performance checks
We assess Nine Energy Service's future performance by looking at:
  1. Is the annual earnings growth rate expected to beat the low risk savings rate, plus a premium to keep pace with inflation?
  2. Is the annual earnings growth rate expected to beat the average growth rate in earnings of the Europe market? (1 check)
  3. Is the annual revenue growth rate expected to beat the average growth rate in revenue of the Europe market? (1 check)
  4. Is the annual earnings growth rate expected to be above 20%? (1 check)
  5. Is the annual revenue growth rate expected to be above 20%? (1 check)
  6. Is the Return on Equity in 3 years expected to be over 20%? (1 check)
Some of the above checks will fail if the company is expected to be loss making in the relevant year.
Nine Energy Service has a total score of 0/6, see the detailed checks below.

Note 1: We use GAAP Net Income Excluding Exceptional Items for our Earnings in all our calculations.

Full details on the Future part of the Simply Wall St company analysis model.

Past Performance

  How has Nine Energy Service performed over the past 5 years?

The past performance of a company can be measured by how much growth it has experienced and how much profit it makes relative to the funds and assets it has available.
Past earnings growth
Below we compare Nine Energy Service's growth in the last year to its industry (Energy Services).
Past Earnings growth analysis
We also check if the company has grown in the past 5 years, and whether it has maintained that growth in the year.
  • Nine Energy Service does not make a profit and their year on year earnings growth rate was negative over the past 5 years.
  • Unable to compare Nine Energy Service's 1-year earnings growth to the 5-year average as it is not currently profitable.
  • Unable to compare Nine Energy Service's 1-year growth to the Europe Energy Services industry average as it is not currently profitable.
Earnings and Revenue History
Nine Energy Service's revenue and profit over the past 5 years is shown below, any years where they have experienced a loss will show up in red.
Raw Data

All data from Nine Energy Service Company Filings, last reported 3 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

DB:NEJ Past Revenue, Cash Flow and Net Income Data
Date (Data in USD Millions) Revenue Net Income * G+A Expenses R&D Expenses
2019-12-31 832.94 -217.75 79.73
2019-09-30 898.98 -74.57 71.55
2019-06-30 915.10 -40.28 74.33
2019-03-31 883.07 -37.35 67.98
2018-12-31 827.17 -52.98 73.08
2018-09-30 752.01 -5.46 60.15
2018-06-30 681.75 -24.17 50.73
2018-03-31 612.11 -45.29 47.20
2017-12-31 543.66 -67.68 49.51
2017-09-30 469.37 -63.62 48.67
2017-06-30 394.79 -73.20 44.86
2017-03-31 321.74 -76.26 41.74
2016-12-31 282.35 -70.91 37.65
2015-12-31 478.52 -38.18 42.86
2014-12-31 425.87 52.75 34.83

*GAAP earnings excluding extraordinary items.

Performance last year
We want to ensure a company is making the most of what it has available. This is done by comparing the return (profit) to a company's available funds, assets and capital.
  • It is difficult to establish if Nine Energy Service has efficiently used shareholders’ funds last year (Return on Equity greater than 20%) as it is loss-making.
  • It is difficult to establish if Nine Energy Service has efficiently used its assets last year compared to the Europe Energy Services industry average (Return on Assets) as it is loss-making.
  • It is difficult to establish if Nine Energy Service improved its use of capital last year versus 3 years ago (Return on Capital Employed) as it is currently loss-making.
X
Past performance checks
We assess Nine Energy Service's performance over the past 5 years by checking for:
  1. Has earnings increased in past 5 years? (1 check)
  2. Has the earnings growth in the last year exceeded that of the Energy Services industry? (1 check)
  3. Is the recent earnings growth over the last year higher than the average annual growth over the past 5 years? (1 check)
  4. Is the Return on Equity (ROE) higher than 20%? (1 check)
  5. Is the Return on Assets (ROA) above industry average? (1 check)
  6. Has the Return on Capital Employed (ROCE) increased from 3 years ago? (1 check)
The above checks will fail if the company has reported a loss in the most recent earnings report. Some checks require at least 3 or 5 years worth of data.
Nine Energy Service has a total score of 0/6, see the detailed checks below.

Note: We use GAAP Net Income excluding extraordinary items in all our calculations.

Full details on the Past part of the Simply Wall St company analysis model.

Health

 How is Nine Energy Service's financial health and their level of debt?

A company's financial position is much like your own financial position, it includes everything you own (assets) and owe (liabilities).

The boxes below represent the relative size of what makes up Nine Energy Service's finances.

The net worth of a company is the difference between its assets and liabilities.
Net Worth
  • Nine Energy Service is able to meet its short term (1 year) commitments with its holdings of cash and other short term assets.
  • Nine Energy Service's long term commitments exceed its cash and other short term assets.
Balance sheet
This treemap shows a more detailed breakdown of Nine Energy Service's finances. If any of them are yellow this indicates they may be out of proportion and red means they relate to one of the checks below.
Assets
Liabilities and shares
The 'shares' portion represents any funds contributed by the owners (shareholders) and any profits.
  • High level of physical assets or inventory.
  • Debt is not covered by short term assets, assets are 0.7x debt.
Historical Debt
Nearly all companies have debt. Debt in itself isn’t bad, however if the debt is too high, or the company can’t afford to pay the interest on its debts this may have impacts in the future.

The graphic below shows equity (available funds) and debt, we ideally want to see the red area (debt) decreasing.

If there is any debt we look at the companies capability to repay it, and whether the level has increased over the past 5 years.
Raw Data

All data from Nine Energy Service Company Filings, last reported 3 months ago.

DB:NEJ Past Debt and Equity Data
Date (Data in USD Millions) Total Equity Total Debt Cash & Short Term Investments
2019-12-31 389.88 392.06 92.99
2019-09-30 606.78 391.54 93.32
2019-06-30 624.31 391.02 16.89
2019-03-31 615.47 405.50 31.16
2018-12-31 594.82 424.98 63.62
2018-09-30 490.63 114.05 86.53
2018-06-30 472.18 113.88 70.86
2018-03-31 459.44 113.71 72.90
2017-12-31 287.36 241.51 17.51
2017-09-30 315.99 239.71 30.17
2017-06-30 298.88 254.99 12.13
2017-03-31 308.41 250.08 27.04
2016-12-31 288.19 244.53 4.07
2015-12-31 352.68 249.64 18.88
2014-12-31
  • Nine Energy Service's level of debt (100.6%) compared to net worth is high (greater than 40%).
  • Unable to establish if Nine Energy Service's debt level has increased without past 5-year debt data.
CASH RUNWAY ANALYSIS

For companies that have on average been loss making in the past we assess whether they have at least 1 year of cash runway.

  • Whilst loss making Nine Energy Service has sufficient cash runway for more than 3 years if it maintains the current positive free cash flow level.
  • Whilst loss making Nine Energy Service has sufficient cash runway for more than 3 years, even with free cash flow being positive and shrinking by -12.6% per year.
X
Financial health checks
We assess Nine Energy Service's financial health by checking for:
  1. Are short term assets greater than short term liabilities? (1 check)
  2. Are short term assets greater than long term liabilities? (1 check)
  3. Has the debt to equity ratio increased in the past 5 years? (1 check)
  4. Is the debt to equity ratio over 40%? (1 check)
  5. Is the debt covered by operating cash flow? (1 check)
  6. Are earnings greater than 5x the interest on debt (if company pays interest at all)? (1 check)
  7. Nine Energy Service has a total score of 3/6, see the detailed checks below.
For companies that are loss making and have been so on average in the past we replace the last 2 checks with:
  1. Does cash and short term investments cover stable operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)
  2. Does cash and short term investments cover growing operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)


Full details on the Health part of the Simply Wall St company analysis model.

Dividends

 What is Nine Energy Service's current dividend yield, its reliability and sustainability?

Dividends are regular cash payments to you from the company, similar to a bank paying you interest on a savings account.
Annual Dividend Income
Dividend payments
0%
Current annual income from Nine Energy Service dividends. Estimated to be 0% next year.
If you bought €2,000 of Nine Energy Service shares you are expected to receive €0 in your first year as a dividend.
Dividend Amount
Here we look how much dividend is being paid, if any. Is it above what you can get in a savings account? It is up there with the best dividend paying companies?
  • Unable to evaluate Nine Energy Service's dividend yield against the bottom 25% of dividend payers as the company has not reported any payouts.
  • Unable to evaluate Nine Energy Service's dividend against the top 25% market benchmark as the company has not reported any payouts.
Annualized Historical and Future Dividends
It is important to see if the dividend for a company is stable, and not wildly increasing/decreasing each year. This graph shows you the historical rate to count toward your assessment of the stock.

We also check to see if the dividend has increased in the past 10 years.
Raw Data
DB:NEJ Annualized Past and Future Dividends
Data Point Source Value
Past Annualized Dividend Yield S&P Global Market Data See Below
Past Dividends per Share Company Filings/ Annualized Dividend Payments See Below
Future Dividends per Share Estimates Average of up to 5 Analyst Estimates (S&P Global) See Below
Europe Energy Services Industry Average Dividend Yield Market Cap Weighted Average of 14 Stocks 6.8%
Germany Market Average Dividend Yield Market Cap Weighted Average of 315 Stocks 3.9%
Germany Minimum Threshold Dividend Yield 10th Percentile 0.9%
Germany Bottom 25% Dividend Yield 25th Percentile 1.7%
Germany Top 25% Dividend Yield 75th Percentile 4.9%

Industry and Market average data is calculated daily.

Note all dividend per share amounts are annualized and not quarterly or other period.

DB:NEJ Future Dividends Estimate Data
Date (Data in $) Dividend per Share (annual) Avg. No. Analysts
2022-12-31 0.00 1.00
2021-12-31 0.00 2.00
2020-12-31 0.00 2.00
2020-04-07

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Unable to perform a dividend volatility check as Nine Energy Service has not reported any payouts.
  • Unable to verify if Nine Energy Service's dividend has been increasing as the company has not reported any payouts.
Current Payout to shareholders
What portion of Nine Energy Service's earnings are paid to the shareholders as a dividend.
  • Unable to calculate sustainability of dividends as Nine Energy Service has not reported any payouts.
Future Payout to shareholders
  • No need to calculate the sustainability of Nine Energy Service's dividends in 3 years as they are not expected to pay a notable one for Germany.
X
Income/ dividend checks
We assess Nine Energy Service's dividend by checking for:
  1. Firstly is the company paying a notable dividend (greater than 0.9%) - if not then the rest of the checks are ignored.
  2. Is current dividend yield above the bottom 25% of dividend payers? (1 check)
  3. Is current dividend yield above the top 25% of dividend payers? (1 check)
  4. Have they paid a dividend for 10 years, and during this period has the dividend been volatile (drop of more than 25%)? (1 check)
  5. If they have paid a dividend for 10 years has it increased in this time? (1 check)
  6. How sustainable is the dividend, can Nine Energy Service afford to pay it from its earnings today and in 3 years (Payout ratio less than 90%)? (2 checks)
  7. Nine Energy Service has a total score of 0/6, see the detailed checks below.


Full details on the Dividends part of the Simply Wall St company analysis model.

Management

 What is the CEO of Nine Energy Service's salary, the management and board of directors tenure and is there insider trading?

Management is one of the most important areas of a company. We look at unreasonable CEO compensation, how long the team and board of directors have been around for and insider trading.
CEO
Ann Fox
COMPENSATION $2,845,506
AGE 42
TENURE AS CEO 4.8 years
CEO Bio

Ms. Ann G. Fox serves as Director at Devon Energy Corporation since June 05, 2019. She has been Chief Executive Officer and President of Nine Energy Service, Inc. since July 2015. Ms. Fox served as Chief Financial Officer and Vice President of Strategic Development at Nine Energy Service, Inc. since February 2013 until July 2015 and served as its Secretary. She served as the Interim Chief Financial Officer of the Nine Energy Service, Inc. from September 2017 to December 2017 and previously served in such capacity from July 2015 through April 2017. She joined Nine Energy Services in February 2013 and oversees the execution of a range of strategic initiatives, including new business line concept development and strategic acquisitions. She served as the Managing Director at SCF Partners since December 2012. She joined SCF Partners in 2008 where her responsibilities included the evaluation and execution of new investment opportunities as well as the support of ongoing portfolio company initiatives. She was previously a Vice President at the firm. She works closely with SCF's portfolio companies to monitor financial performance and pursue operational improvements. Ms. Fox joined the private sector immediately following graduation as an investment banking Analyst for both Prudential Securities and Warburg Dillon Read in New York. In 2001, she joined the United States Marine Corps. in Iraq. Ms. Fox worked with a small team embedded in the South of Iraq in order to ensure Iraqi Security Force combat operations were consistent with the application of the United States counterinsurgency tactics. She left active duty after several tours in Iraq to complete her M.B.A. degree and returned the call for service for an additional year upon completion of her M.B.A. She has been Director of Nine Energy Service, Inc. since September 24, 2015. She is currently a member of the Harvard Business School Alumni Board. Ms. Fox holds an M.B.A. from Harvard Business School and graduated from Georgetown University's Walsh School of Foreign Service with a Bachelor’s of Science in Diplomacy and Security in World Affairs.

CEO Compensation
  • Ann's compensation has been consistent with company performance over the past year, both up more than 20%.
  • Ann's remuneration is higher than average for companies of similar size in Germany.
Management Team Tenure

Average tenure and age of the Nine Energy Service management team in years:

1.4
Average Tenure
43.5
Average Age
  • The average tenure for the Nine Energy Service management team is less than 2 years, this suggests a new team.
Management Team

Ann Fox

TITLE
President
COMPENSATION
$3M
AGE
42
TENURE
4.8 yrs

David Crombie

TITLE
Executive VP & COO
COMPENSATION
$2M
AGE
45
TENURE
1.3 yrs

Edward Morgan

TITLE
President of Administration & Operations
COMPENSATION
$685K
AGE
51
TENURE
0.6 yrs

Ted Moore

TITLE
Senior VP
COMPENSATION
$1M
AGE
41
TENURE
3.1 yrs

Guy Sirkes

TITLE
Senior VP & CFO
TENURE
0.1 yrs

S. Luz

TITLE
Chief Accounting Officer
TENURE
1.6 yrs

James Holley

TITLE
Chief Technology Officer

Heather Schmidt

TITLE
Vice President of Investor Relations & Marketing
TENURE
3.1 yrs

Nick Pottmeyer

TITLE
Senior Vice President of US Completion Tools
TENURE
1.3 yrs
Board of Directors Tenure

Average tenure and age of the Nine Energy Service board of directors in years:

3.2
Average Tenure
56
Average Age
  • The tenure for the Nine Energy Service board of directors is about average.
Board of Directors

Ernie Danner

TITLE
Chairman of the Board
COMPENSATION
$250K
AGE
64
TENURE
3.2 yrs

Ann Fox

TITLE
President
COMPENSATION
$3M
AGE
42
TENURE
5.6 yrs

Mark Baldwin

TITLE
Independent Director
COMPENSATION
$186K
AGE
65
TENURE
6.9 yrs

Scott Schwinger

TITLE
Independent Director
COMPENSATION
$184K
AGE
53
TENURE
2.9 yrs

Andy Waite

TITLE
Independent Director
COMPENSATION
$170K
AGE
59
TENURE
7.2 yrs

Gary Thomas

TITLE
Independent Director
COMPENSATION
$180K
AGE
69
TENURE
7.1 yrs

David Baldwin

TITLE
Independent Director
COMPENSATION
$170K
AGE
56
TENURE
3.2 yrs

Curtis Harrell

TITLE
Independent Director
COMPENSATION
$180K
AGE
55
TENURE
3.2 yrs

Darryl Willis

TITLE
Independent Director
COMPENSATION
$180K
AGE
49
TENURE
1.7 yrs
Who owns this company?
Recent Insider Trading
  • No 3 month open market individual insider trading information.
Recent Insider Transactions
Announced Type Name Entity Role Start End Shares Max Price (€) Value (€)
15. May 19 Sell David Crombie Individual 14. May 19 14. May 19 -27,011 €19.28 €-520,784
13. May 19 Sell Clinton Roeder Individual 10. May 19 10. May 19 -9,750 €19.72 €-192,272
13. May 19 Sell Ann Fox Individual 10. May 19 10. May 19 -22,731 €19.57 €-444,823
13. May 19 Sell David Crombie Individual 10. May 19 10. May 19 -5,000 €19.12 €-95,621
13. May 19 Sell Theodore Moore Individual 10. May 19 10. May 19 -8,730 €19.16 €-167,265
X
Management checks
We assess Nine Energy Service's management by checking for:
  1. Is the CEO's compensation unreasonable compared to market cap? (1 check)
  2. Has the CEO's compensation increased more than 20% whilst the EPS is down more then 20%? (1 check)
  3. Is the average tenure of the management team less than 2 years? (1 check)
  4. Is the average tenure of the board of directors team less than 3 years? (1 check)
  5. Nine Energy Service has a total score of 0/6, this is not included on the snowflake, see the detailed checks below.


Note: We use the top 6 management executives and board members in our calculations.

Note 2: Insider trading include any internal stakeholders and these transactions .

Full details on the Management part of the Simply Wall St company analysis model.

News

Simply Wall St News

Company Info

Description

Nine Energy Service, Inc. operates as an onshore completion services provider that targets unconventional oil and gas resource development across North American basins and internationally. It offers cementing services, which consist of blending high-grade cement and water with various solid and liquid additives to create a cement slurry that is pumped between the casing and the wellbore of the well. The company also provides a portfolio of completion tools, such as liner hangers and accessories, fracture isolation packers, frac sleeves, stage one prep tools, frac plugs, casing flotation tools, specialty open hole float equipment, disk subs, composite cement retainers, and centralizers that provide pinpoint frac sleeve system technologies. In addition, it offers wireline services consisting of plug-and-perf completions, which is a multistage well completion technique for cased-hole wells that consists of deploying perforating guns and isolation tools to a specified depth; and coiled tubing services, which perform wellbore intervention operations utilizing a continuous steel pipe that is transported to the wellsite wound on a large spool in lengths of up to 30,000 feet. Nine Energy Service, Inc. operates 47 wireline pumpdown units and 14 coiled tubing units. The company was formerly known as NSC-Tripoint, Inc. and changed its name to Nine Energy Service, Inc. in October 2011. Nine Energy Service, Inc. was incorporated in 2011 and is headquartered in Houston, Texas.

Details
Name: Nine Energy Service, Inc.
NEJ
Exchange: DB
Founded: 2011
$24,065,060
30,491,766
Website: http://nineenergyservice.com
Address: Nine Energy Service, Inc.
2001 Kirby Drive,
Suite 200,
Houston,
Texas, 77019,
United States
Listings
Exchange Symbol Ticker Symbol Security Exchange Country Currency Listed on
NYSE NINE Common Stock New York Stock Exchange US USD 19. Jan 2018
DB NEJ Common Stock Deutsche Boerse AG DE EUR 19. Jan 2018
Number of employees
Current staff
Staff numbers
1,469
Nine Energy Service employees.
Industry
Oil and Gas Equipment and Services
Energy
Company Analysis and Financial Data Status
Area Date (UTC time)
Company Analysis updated: 2020/04/07 02:04
End of day share price update: 2020/04/06 00:00
Last estimates confirmation: 2020/04/06
Last earnings filing: 2020/03/10
Last earnings reported: 2019/12/31
Last annual earnings reported: 2019/12/31


All dates and times in UTC. All financial data provided by Standard & Poor’s Capital IQ.

Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.