Is Nine Energy Stock a Good Investment?
Nine Energy Investment Advice | NINE |
- Examine Nine Energy's financial health by looking at its balance sheet, income statement, and cash flow statement. Analyze key financial ratios, such as Price-to-Earnings (P/E), Price-to-Sales (P/S), and Price-to-Book (P/B), to determine whether the stock is fairly valued or over/undervalued.
- Research Nine Energy's leadership team and their track record. Good management can help Nine Energy navigate difficult times and make strategic decisions that benefit shareholders and increases its net worth.
- Consider the overall health of the Oil & Gas Equipment & Services space and any emerging trends that could impact Nine Energy's business and its evolving consumer preferences.
- Compare Nine Energy's performance and market position to its competitors. Analyze how Nine Energy is positioned in terms of product offerings, innovation, and market share.
- Check if Nine Energy pays a dividend and its dividend yield and payout ratio.
- Review what financial analysts are saying about Nine Energy's stock and their price targets. However, remember that analysts' opinions can vary, and their predictions may not always be accurate.
It's important to note that investing in Nine Energy Service stock, carries risks, and you should carefully consider your investment goals and risk tolerance before making any investment decisions. Also, remember that it's important for investors to have a long-term perspective and a well-diversified portfolio to manage the impact of stock market volatility on their investments. Below is a detailed guide on how to decide if Nine Energy Service is a good investment.
Sell | Buy |
Cautious Hold
Market Performance | Modest | Details | |
Volatility | Abnormally volatile | Details | |
Hype Condition | Stale | Details | |
Current Valuation | Overvalued | Details | |
Odds Of Distress | Quite High | Details | |
Economic Sensitivity | Very regressive towards the market | Details | |
Investor Sentiment | Impartial | Details | |
Analyst Consensus | Strong Sell | Details | |
Financial Leverage | Not Rated | Details | |
Reporting Quality (M-Score) | Unavailable | Details |
Examine Nine Energy Stock
Researching Nine Energy's stock involves analyzing various aspects of the company and its industry to make an informed investment decision. The key areas to focus on are fundamentals, business model and competitive advantage. It is also important to analyze trends in revenue, net income, and cash flow, as well as key financial ratios, such as price-to-earnings (P/E), price-to-sales (P/S), and debt-to-equity (D/E). About 16.0% of the company outstanding shares are owned by corporate insiders. The company recorded a loss per share of 1.11. Nine Energy Service had not issued any dividends in recent years.
To determine if Nine Energy is a good investment, evaluating the company's potential for future growth is also very important. This may include expanding into new markets, launching new products or services, or improving operational efficiency. Companies with strong growth prospects can be more attractive investments. This aspect of the research should be conducted in the context of the overall market and industry in which the company operates and should include an analysis of growth potential, competitive landscape, and any regulatory or economic factors that could impact the business. Some of the essential points regarding Nine Energy's research are outlined below:
| Nine Energy Service is way too risky over 90 days horizon | |
| Nine Energy Service may become a speculative penny stock | |
| Nine Energy Service appears to be risky and price may revert if volatility continues | |
| Nine Energy Service has high likelihood to experience some financial distress in the next 2 years | |
| The company reported the previous year's revenue of 554.1 M. Net Loss for the year was (41.08 M) with profit before overhead, payroll, taxes, and interest of 97.38 M. | |
| About 16.0% of the company outstanding shares are owned by corporate insiders | |
| Latest headline from zacks.com: 3 Penny Stocks to Buy Now for Big Gains in the Energy Market |
Nine Energy uses earnings reports to provide investors with an update of all three financial statements, including the income statement, the balance sheet, and the cash flow statement. Therefore, it is also crucial when considering investing in Nine Energy Service. Every quarterly earnings report provides investors with an overview of sales, expenses, and net income for the most recent period. It also may provide a comparison to Nine Energy's previous reporting period. The quarterly earnings reports are usually disseminated to the public via Form 10-Q, which is a legal document filed with the Securities and Exchange Commission every quarter.
| 7th of March 2024 Upcoming Quarterly Report | View | |
| 13th of May 2024 Next Financial Report | View | |
| 31st of December 2023 Next Fiscal Quarter End | View | |
| 7th of March 2024 Next Fiscal Year End | View | |
| 30th of September 2023 Last Quarter Report | View | |
| 31st of December 2022 Last Financial Announcement | View |
Earnings surprises can significantly impact Nine Energy's stock price both in the short term and over time. Negative earnings surprises usually result in a price decline. However, it has been seen that positive earnings surprises lead to an immediate rise in a stock's price and a gradual increase over time. This is why we often hear news about some companies beating earning projections. Financial analysts spend a large amount of time predicting earnings per share (EPS) along with other important future indicators. Many analysts use forecasting models, management guidance, and additional fundamental information to derive an EPS estimate. Below are the table of largest EPS Surprises Nine Energy's investors have experienced.
| Reported | Fiscal Date | Estimated EPS | Reported EPS | Surprise | |||
|---|---|---|---|---|---|---|---|
2023-08-03 | 2023-06-30 | -0.04 | -0.06 | -0.02 | 50 | ||
2019-11-08 | 2019-09-30 | -0.25 | -0.22 | 0.03 | 12 | ||
2024-10-31 | 2024-09-30 | -0.3 | -0.25 | 0.05 | 16 | ||
2023-05-08 | 2023-03-31 | 0.08 | 0.03 | -0.05 | 62 | ||
2023-03-07 | 2022-12-31 | 0.34 | 0.29 | -0.05 | 14 | ||
2019-05-07 | 2019-03-31 | 0.22 | 0.28 | 0.06 | 27 | ||
2024-03-07 | 2023-12-31 | -0.35 | -0.28 | 0.07 | 20 | ||
2025-03-06 | 2024-12-31 | -0.3 | -0.2238 | 0.0762 | 25 |
Know Nine Energy's Top Institutional Investors
Have you ever been surprised when a price of an equity instrument such as Nine Energy is soaring high without any particular reason? This is usually happening because many institutional investors are aggressively trading Nine Energy Service backward and forwards among themselves. Nine Energy's institutional investor refers to the entity that pools money to purchase Nine Energy's securities or originate loans. Institutional investors include commercial and private banks, credit unions, insurance companies, pension funds, hedge funds, endowments, and mutual funds. Operating companies that invest excess capital in these types of assets may also be included in the term and may influence corporate governance by exercising voting rights in their investments.
| Shares | Morgan Stanley - Brokerage Accounts | 2024-12-31 | 150.2 K | Marshall Wace Asset Management Ltd | 2024-12-31 | 150.2 K | Group One Trading, Lp | 2024-12-31 | 148.5 K | Amvescap Plc. | 2024-12-31 | 142.3 K | Bank Of America Corp | 2024-12-31 | 132.2 K | Goldman Sachs Group Inc | 2024-12-31 | 124.7 K | Mackay Shields Llc | 2024-12-31 | 120.2 K | Essex Investment Management Company, Llc | 2024-12-31 | 113 K | Bank Of New York Mellon Corp | 2024-12-31 | 103.6 K | Gendell Jeffrey L | 2024-12-31 | 4.2 M | Simmons L E & Associates Inc | 2024-12-31 | 2.8 M |
Nine Energy's market capitalization trends
The company currently falls under 'Micro-Cap' category with a current market capitalization of 50.82 M.Market Cap |
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Nine Energy's profitablity analysis
| Last Reported | Projected for Next Year | ||
| Return On Tangible Assets | (0.15) | (0.15) | |
| Return On Capital Employed | 0.03 | 0.03 | |
| Return On Assets | (0.11) | (0.12) | |
| Return On Equity | 0.62 | 0.65 |
Determining Nine Energy's profitability involves analyzing its financial statements and using various financial metrics to determine if Nine Energy is a good buy. For example, gross profit margin measures Nine Energy's profitability after accounting for the cost of goods sold, while net profit margin measures profitability after accounting for all expenses. Other important metrics include return on assets, return on equity, and free cash flow. By reviewing multiple sources and metrics, you can gain a complete picture of Nine Energy's profitability and make more informed investment decisions.
Please note, the presentation of Nine Energy's financial position, as portrayed in its financial statements, is often influenced by management's estimates, judgments, and sometimes even manipulations. In the best case, Nine Energy's management is honest, while the outside auditors are strict and uncompromising. Please utilize our Beneish M Score to check the likelihood of Nine Energy's management manipulating its earnings.
Evaluate Nine Energy's management efficiency
Nine Energy Service has return on total asset (ROA) of 0.0153 % which means that it generated a profit of $0.0153 on every $100 spent on assets. This is way below average. Similarly, it shows a return on stockholder's equity (ROE) of (5.8338) %, meaning that it created substantial loss on money invested by shareholders. Nine Energy's management efficiency ratios could be used to measure how well Nine Energy manages its routine affairs as well as how well it operates its assets and liabilities. At present, Nine Energy's Return On Equity is projected to slightly decrease based on the last few years of reporting. At present, Nine Energy's Non Current Assets Total are projected to decrease significantly based on the last few years of reporting. The current year's Other Current Assets is expected to grow to about 12.6 M, whereas Non Currrent Assets Other are forecasted to decline to about 2.4 M.| Last Reported | Projected for Next Year | ||
| Book Value Per Share | (1.78) | (1.69) | |
| Tangible Book Value Per Share | (3.91) | (3.71) | |
| Enterprise Value Over EBITDA | 41.67 | 27.37 | |
| Price Book Value Ratio | (0.63) | (0.66) | |
| Enterprise Value Multiple | 41.67 | 27.37 | |
| Price Fair Value | (0.63) | (0.66) | |
| Enterprise Value | 372.5 M | 717.6 M |
Leadership effectiveness at Nine Energy Service is a strong indicator of its financial stability. We analyze various metrics to provide insights into the stock's investment viability.
Beta 3.583 |
Basic technical analysis of Nine Stock
As of the 24th of March, Nine Energy secures the Risk Adjusted Performance of 0.0518, downside deviation of 5.52, and Mean Deviation of 5.55. In connection with fundamental indicators, the technical analysis model lets you check existing technical drivers of Nine Energy Service, as well as the relationship between them. Please verify Nine Energy Service treynor ratio, as well as the relationship between the downside variance and kurtosis to decide if Nine Energy Service is priced some-what accurately, providing market reflects its recent price of 1.23 per share. Given that Nine Energy Service is a hitting penny stock territory we strongly suggest to closely look at its total risk alpha.Nine Energy's insider trading activities
Some recent studies suggest that insider trading raises the cost of capital for securities issuers and decreases overall economic growth. Trading by specific Nine Energy insiders, such as employees or executives, is commonly permitted as long as it does not rely on Nine Energy's material information that is not in the public domain. Local jurisdictions usually require such trading to be reported in order to monitor insider transactions. In many U.S. states, trading conducted by corporate officers, key employees, directors, or significant shareholders must be reported to the regulator or publicly disclosed, usually within a few business days of the trade. In these cases Nine Energy insiders are required to file a Form 4 with the U.S. Securities and Exchange Commission (SEC) when buying or selling shares of their own companies.
Nine Energy's Outstanding Corporate Bonds
Nine Energy issues bonds to finance its operations. Corporate bonds make up one of the largest components of the U.S. bond market, which is considered the world's largest securities market. Nine Energy Service uses the proceeds from bond sales for a wide variety of purposes, including financing ongoing mergers and acquisitions, buying new equipment, investing in research and development, buying back their own stock, paying dividends to shareholders, and even refinancing existing debt. Most Nine bonds can be classified according to their maturity, which is the date when Nine Energy Service has to pay back the principal to investors. Maturities can be short-term, medium-term, or long-term (more than ten years). Longer-term bonds usually offer higher interest rates but may entail additional risks.
| Dana 575 percent Corp BondUS235822AB96 | View | |
| Morgan Stanley 3971 Corp BondUS61744YAL20 | View | |
| AerCap Global Aviation Corp BondUS00773HAA59 | View |
Understand Nine Energy's technical and predictive indicators
Using predictive indicators to make investment decisions involves analyzing Nine Energy's various financial and market-based factors to help forecast future trends and identify investment opportunities. Select the indicators that are most relevant to your investment strategy. Each indicator has its own strengths and weaknesses, so it's essential to combine multiple indicators to get a more comprehensive view of the market and reduce the risk of making poor decisions based on limited data.
| Risk Adjusted Performance | 0.0518 | |||
| Market Risk Adjusted Performance | 0.1431 | |||
| Mean Deviation | 5.55 | |||
| Semi Deviation | 5.13 | |||
| Downside Deviation | 5.52 | |||
| Coefficient Of Variation | 2059.21 | |||
| Standard Deviation | 7.28 | |||
| Variance | 53.06 | |||
| Information Ratio | 0.0564 | |||
| Jensen Alpha | 0.5176 | |||
| Total Risk Alpha | 0.897 | |||
| Sortino Ratio | 0.0745 | |||
| Treynor Ratio | 0.1331 | |||
| Maximum Drawdown | 37.41 | |||
| Value At Risk | (9.17) | |||
| Potential Upside | 13.13 | |||
| Downside Variance | 30.43 | |||
| Semi Variance | 26.36 | |||
| Expected Short fall | (7.98) | |||
| Skewness | 1.13 | |||
| Kurtosis | 2.1 |
| Risk Adjusted Performance | 0.0518 | |||
| Market Risk Adjusted Performance | 0.1431 | |||
| Mean Deviation | 5.55 | |||
| Semi Deviation | 5.13 | |||
| Downside Deviation | 5.52 | |||
| Coefficient Of Variation | 2059.21 | |||
| Standard Deviation | 7.28 | |||
| Variance | 53.06 | |||
| Information Ratio | 0.0564 | |||
| Jensen Alpha | 0.5176 | |||
| Total Risk Alpha | 0.897 | |||
| Sortino Ratio | 0.0745 | |||
| Treynor Ratio | 0.1331 | |||
| Maximum Drawdown | 37.41 | |||
| Value At Risk | (9.17) | |||
| Potential Upside | 13.13 | |||
| Downside Variance | 30.43 | |||
| Semi Variance | 26.36 | |||
| Expected Short fall | (7.98) | |||
| Skewness | 1.13 | |||
| Kurtosis | 2.1 |
Consider Nine Energy's intraday indicators
Nine Energy intraday indicators are useful technical analysis tools used by many experienced traders. Just like the conventional technical analysis, daily indicators help intraday investors to analyze the price movement with the timing of Nine Energy stock daily movement. By combining multiple daily indicators into a single trading strategy, you can limit your risk while still earning strong returns on your managed positions.
Nine Energy time-series forecasting models is one of many Nine Energy's stock analysis techniques aimed to predict future share value based on previously observed values. Time-series forecasting models ae widely used for non-stationary data. Non-stationary data are called the data whose statistical properties e.g. the mean and standard deviation are not constant over time but instead, these metrics vary over time. These non-stationary Nine Energy's historical data is usually called time-series. Some empirical experimentation suggests that the statistical forecasting models outperform the models based exclusively on fundamental analysis to predict the direction of the market movement and maximize returns from investment trading.
Nine Stock media impact
Far too much social signal, news, headlines, and media speculation about Nine Energy that are available to investors today. That information is available publicly through Nine media outlets and privately through word of mouth or via Nine internal channels. However, regardless of the origin, that massive amount of Nine data is challenging to quantify into actionable patterns, especially for investors that are not very sophisticated with ever-evolving tools and techniques used in the investment management field.
A primary focus of Nine Energy news analysis is to determine if its current price reflects all relevant headlines and social signals impacting the current market conditions. A news analyst typically looks at the history of Nine Energy relative headlines and hype rather than examining external drivers such as technical or fundamental data. It is believed that price action tends to repeat itself due to investors' collective, patterned thinking related to Nine Energy's headlines and news coverage data. This data is often completely overlooked or insufficiently analyzed for actionable insights to drive Nine Energy alpha.
Nine Energy Sentiment by Major News Outlets
Investor sentiment, mood or attitude towards Nine Energy can have a significant impact on its stock price or the market as a whole. This sentiment can be positive or negative, and various factors, such as economic indicators, news events, or market trends, can influence it. When investor sentiment is positive, investors are more likely to buy stocks, increasing demand and increasing the stock price. Positive investor sentiment can be driven by good news about the company or the broader market, such as solid earnings reports or positive economic data.
Note that negative investor sentiment can cause investors to sell stocks, leading to a decrease in demand and a drop in the stock price. Negative sentiment can be driven by factors such as poor earnings reports, negative news about the company or industry, or broader economic concerns. It's important to note that investor sentiment is just one of many factors that can affect stock prices. Other factors, such as company performance, industry trends, and global economic conditions, can also play a significant role in determining the value of a stock.
Nine Energy Corporate Directors
| Andrew Waite | Independent Director | Profile | |
| Curtis Harrell | Independent Director | Profile | |
| Scott Schwinger | Independent Director | Profile | |
| David Baldwin | Independent Director | Profile |
Check out Correlation Analysis to better understand how to build diversified portfolios, which includes a position in Nine Energy Service. Also, note that the market value of any company could be closely tied with the direction of predictive economic indicators such as signals in board of governors. You can also try the Portfolio Dashboard module to portfolio dashboard that provides centralized access to all your investments.
Is Oil & Gas Equipment & Services space expected to grow? Or is there an opportunity to expand the business' product line in the future? Factors like these will boost the valuation of Nine Energy. If investors know Nine will grow in the future, the company's valuation will be higher. The financial industry is built on trying to define current growth potential and future valuation accurately. All the valuation information about Nine Energy listed above have to be considered, but the key to understanding future value is determining which factors weigh more heavily than others.
Earnings Share (1.11) | Revenue Per Share | Quarterly Revenue Growth (0.02) | Return On Assets | Return On Equity |
The market value of Nine Energy Service is measured differently than its book value, which is the value of Nine that is recorded on the company's balance sheet. Investors also form their own opinion of Nine Energy's value that differs from its market value or its book value, called intrinsic value, which is Nine Energy's true underlying value. Investors use various methods to calculate intrinsic value and buy a stock when its market value falls below its intrinsic value. Because Nine Energy's market value can be influenced by many factors that don't directly affect Nine Energy's underlying business (such as a pandemic or basic market pessimism), market value can vary widely from intrinsic value.
In summary, please note that there is a difference between Nine Energy's value and its price, as these two are different measures arrived at by various means. Investors typically determine if Nine Energy is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Nine Energy's price is the amount at which it trades on the open market and represents the number that a seller and buyer find agreeable to each party.