Natural Gas Services GroupNGS -2.70%78 Interest Coverage is 3.62 as of Mar. 2026, which is 15% above its 10-year median of 3.14. GuruFocus rates NGS with a GF Score™ of 78/100 and a GF Value™ of $28.22 (Significantly Overvalued). The stock has 8 warning signs investors should review. Among 728 Oil & Gas companies, Natural Gas Services Group ranks worse than 65.93% on this metric.
Interest Coverage is a ratio that determines how easily a company can pay interest expenses on outstanding debt. It is calculated by dividing a company's
Operating Income
by its Interest Expense. Natural Gas Services Group's
Operating Income
for the
three
months ended in Mar. 2026 was $13.4 Mil. Natural Gas Services Group's Interest Expense for the
three
months ended in Mar. 2026 was $-3.7 Mil.
Natural Gas Services Group's interest coverage for the quarter that ended in Mar. 2026 was 3.62.
The higher the ratio, the stronger the company's financial strength is.
The historical rank and industry rank for Natural Gas Services Group's Interest Coverage or its related term are showing as below:
NGS'
s Interest Coverage Range Over the Past 10 Years
Min: 1.04 Med: 3.14 Max: 1053.75
Current: 3.24
NGS's Interest Coverage is ranked worse than 65.93% of 728
companies
in the Oil & Gas industry
Industry Median: 5.885
vs NGS: 3.24
Natural Gas Services Group (NYSE:NGS) Interest Coverage Explanation
Ben Graham requires that a company has a minimum interest coverage of 5 with the companies he invested. If the interest coverage is less than 2, the company is burdened by debt. Any business slow or recession may drag the company into a situation where it cannot pay the interest on its debt.
Interest Coverage is an important factor when GuruFocus ranks a company's overage Financial Strength .
Natural Gas Services Group Interest Coverage Related Terms
Natural Gas Services Group Interest Coverage Historical Data
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
Note: For Interest Coverage, "No debt" indicates no long-term debt. An indication of "No Debt" does not necessarily mean that the company has no long-term debt obligations; it could be due to missing data in the quarterly or annual report. Use caution when interpreting this information.
Natural Gas Services Group Interest Coverage Chart
NGS vs OIS, FET, EROK: Interest Coverage Comparison
For the Oil & Gas Equipment & Services subindustry, Natural Gas Services Group's Interest Coverage, along with its competitors' market caps and Interest Coverage data, can be viewed below:
* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.
Natural Gas Services Group Interest Coverage vs Oil & Gas Industry
For the Oil & Gas industry and Energy sector, Natural Gas Services Group's Interest Coverage distribution charts can be found below:
* The bar in red indicates where Natural Gas Services Group's Interest Coverage falls into.
Natural Gas Services Group Interest Coverage Calculation
Interest Coverage is a ratio that determines how easily a company can pay interest expenses on outstanding debt. It is calculated by dividing a company's Operating Income (EBIT) by its Interest Expense:
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
Natural Gas Services Group (NGS) has a Interest Coverage of 3.62 as of Mar. 2026. Interest Coverage measures a company's capability to pay interest expenses on its debt. View historical data on Natural Gas Services Group and its competitors. This is 15% above median its historical median of 3.14. Over the past decade, Natural Gas Services Group's Interest Coverage has ranged from 1.04 to 1,053.75. According to the industry distribution chart, Natural Gas Services Group ranks #480 out of 728 companies in the Oil & Gas industry, placing it in the top 65.9%.
Is Natural Gas Services Group's Interest Coverage too high?
Natural Gas Services Group's current Interest Coverage of 3.62 is 15% above median its 10-year median of 3.14. Over the past 10 years, this metric has ranged from a low of 1.04 to a high of 1,053.75. The Oil & Gas industry median Interest Coverage is 5.89. Natural Gas Services Group's value of 3.62 is 38.5% below this industry median. Based on the distribution chart, Natural Gas Services Group ranks #480 out of 728 companies in the Oil & Gas industry, which is below the industry midpoint. Overall, Natural Gas Services Group has a GF Score™ of 78/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Natural Gas Services Group's Interest Coverage compare to OIS and FET?
According to the Oil & Gas industry distribution chart, Natural Gas Services Group ranks #480 out of 728 companies for Interest Coverage. This places Natural Gas Services Group in the lower half of its industry. The industry median Interest Coverage is 5.89. Natural Gas Services Group's value of 3.62 is 38.5% below this benchmark. Historically, Natural Gas Services Group's own Interest Coverage has ranged from 1.04 to 1,053.75 over the past decade. While the company's 10-year median is 3.14 vs. the industry median of 5.89, Natural Gas Services Group has consistently been below the industry average. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Interest Coverage for an Oil & Gas company?
The median Interest Coverage among Oil & Gas companies is 5.89, based on 728 companies in the industry. Companies in the top quartile (top 25%) have a Interest Coverage significantly above this median, while those in the bottom quartile fall well below. However, Interest Coverage should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Natural Gas Services Group's current Interest Coverage of 3.62 is 38.5% below the industry median. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Interest Coverage mean?
A high Interest Coverage can signal that a stock is expensive relative to its fundamentals. Interest Coverage measures a company's capability to pay interest expenses on its debt. View historical data on Natural Gas Services Group and its competitors. For the Oil & Gas industry, the median Interest Coverage is 5.89 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Natural Gas Services Group's current Interest Coverage is 3.62, which is 15% above median its own 10-year median of 3.14. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Natural Gas Services Group stock overvalued right now?
Based on GuruFocus' analysis, Natural Gas Services Group (NGS) is currently considered Significantly Overvalued. The stock's GF Value™ is $28.22, compared to a current price of $42.94 — trading 52.2% above its estimated fair value. The current Interest Coverage is 3.62, which is 15% above median its 10-year median of 3.14 and 38.5% below the Oil & Gas industry median of 5.89. Natural Gas Services Group's overall GF Score™ is 78/100 with 8 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Interest Coverage calculated?
Interest Coverage is calculated from a company's financial statements. For Natural Gas Services Group (NGS), the current Interest Coverage is 3.62 as of Mar. 2026. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.
Is Natural Gas Services Group (NGS) Overvalued in 2026?
Based on GuruFocus' analysis, Natural Gas Services Group stock appears to be overvalued.
The current stock price of $42.94 is trading 52.2% above its estimated GF Value™ of $28.22.
GuruFocus considers Natural Gas Services Group to be Significantly Overvalued.
Key valuation signals for NGS:
Interest Coverage: 3.62 (15% above median its 10-year median of 3.14)
GF Value™: $28.22 vs. price of $42.94 (52.2% above fair value)
Industry Position: 38.5% below the Oil & Gas median (#480 of 728)
No single metric tells the full story. See the NGS stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Natural Gas Services Group Inc provides natural gas compression equipment and services to the energy industry. The company manufactures, fabricates, rents, sells, and maintains natural gas compressors and flare systems for oil and natural gas production and plant facilities. Its operating units include Rental, Sales, and Aftermarket services. It operates in one reporting segment. The company generates the majority of its revenue by renting out low- to medium-horsepower compression equipment to natural gas production companies in unconventional oil and gas regions of the United States.
78GF Score
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