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Natural Gas Services Group (NYSE:NGS) Financial Strength

: 5 (As of Sep. 2023)
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Natural Gas Services Group has the Financial Strength Rank of 5.

GuruFocus Financial Strength Rank measures how strong a company's financial situation is. It is based on these factors:

1. The debt burden that the company has as measured by its Interest Coverage (current year). The higher, the better.
2. Debt to revenue ratio. The lower, the better.
3. Altman Z-Score.

Natural Gas Services Group's Interest Coverage for the quarter that ended in Sep. 2023 was 3.07. Natural Gas Services Group's debt to revenue ratio for the quarter that ended in Sep. 2023 was 1.02. As of today, Natural Gas Services Group's Altman Z-Score is 1.28.


Competitive Comparison

For the Oil & Gas Equipment & Services subindustry, Natural Gas Services Group's Financial Strength, along with its competitors' market caps and Financial Strength 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 Financial Strength Distribution

For the Oil & Gas industry and Energy sector, Natural Gas Services Group's Financial Strength distribution charts can be found below:

* The bar in red indicates where Natural Gas Services Group's Financial Strength falls into.



Natural Gas Services Group Financial Strength Calculation

GuruFocus Financial Strength Rank measures how strong a company's financial situation is. It is based on these factors

A company ranks high with financial strength is likely to withstand any business slowdowns and recessions.

1. The debt burden that the company has as measured by its Interest Coverage (current year). The higher, the better.

Note: If both Interest Expense and Interest Income are empty, while Net Interest Income is negative, then use Net Interest Income as Interest Expense.

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:

Natural Gas Services Group's Interest Expense for the months ended in Sep. 2023 was $-1.6 Mil. Its Operating Income for the months ended in Sep. 2023 was $4.9 Mil. And its Long-Term Debt & Capital Lease Obligation for the quarter that ended in Sep. 2023 was $128.2 Mil.

Natural Gas Services Group's Interest Coverage for the quarter that ended in Sep. 2023 is

Interest Coverage=-1*Operating Income (Q: Sep. 2023 )/Interest Expense (Q: Sep. 2023 )
=-1*4.904/-1.6
=3.07

The higher the ratio, the stronger the company's financial strength is.

2. Debt to revenue ratio. The lower, the better.

Natural Gas Services Group's Debt to Revenue Ratio for the quarter that ended in Sep. 2023 is

Debt to Revenue Ratio=Total Debt (Q: Sep. 2023 ) / Revenue
=(Short-Term Debt & Capital Lease Obligation + Long-Term Debt & Capital Lease Obligation) / Revenue
=(0.098 + 128.163) / 125.476
=1.02

3. Altman Z-Score.

Z-Score model is an accurate forecaster of failure up to two years prior to distress. It can be considered the assessment of the distress of industrial corporations.

The zones of discrimination were as such:

When Z-Score is less than 1.81, it is in Distress Zones.
When Z-Score is greater than 2.99, it is in Safe Zones.
When Z-Score is between 1.81 and 2.99, it is in Grey Zones.

Natural Gas Services Group has a Z-score of 1.28, indicating it is in Distress Zones. This implies bankrupcy possibility in the next two years.

Warning Sign:

Altman Z-score of 1.28 is in distress zone. This implies bankruptcy possibility in the next two years.

* 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  (NYSE:NGS) Financial Strength Explanation

The maximum rank is 10. Companies with rank 7 or higher will be unlikely to fall into distressed situations. Companies with rank of 3 or less are likely in financial distress.

Natural Gas Services Group has the Financial Strength Rank of 5.


Natural Gas Services Group Financial Strength Related Terms

Thank you for viewing the detailed overview of Natural Gas Services Group's Financial Strength provided by GuruFocus.com. Please click on the following links to see related term pages.


Natural Gas Services Group (NYSE:NGS) Business Description

Traded in Other Exchanges
N/A
Address
404 Veterans Airpark Lane, Suite 300, Midland, TX, USA, 79705
Natural Gas Services Group Inc provides natural gas compression equipment and services to the energy industry. The company manufacture, fabricate, rent, sell and maintain natural gas compressors and flare systems for oil and natural gas production and plant facilities. Its operating units include Gas Compressor Rental, Engineered Equipment Sales, Service, and Maintenance. 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.
Executives
Donald J Tringali director C/O INFORMATION ANALYSIS INCORPORATED, 11240 WAPLES MILL RD STE 201, FAIRFAX VA 22030
Justin Jacobs director 382 GREENWICH AVE, SUITE ONE, GREENWICH CT 06830
James D Faircloth officer: Interim CFO 404 VETERANS AIRPARK LANE, SUITE 300, MIDLAND TX 79705
Micah C. Foster officer: Chief Financial Officer 404 VETERANS AIRPARK LANE, SUITE 300, MIDLAND TX 79705
Nigel Jenvey director 404 VETERANS AIRPARK LANE, SUITE 300, MIDLAND TX 79705
Leslie Ann Beyer director C/O NATURAL GAS SERVICES GROUP., INC., 404 VETERANS AIRPARK LANE, SUITE 300, MIDLAND TX 79705
James R Lawrence officer: VP & Chief Financial Officer C/O NATURAL GAS SERVICES GROUP, INC., 404 VETERANS AIRPARK LANE, SUITE 300, MIDLAND TX 79705
Hughes William F Jr director 42921 NORMANDY LANE, LANCASTER CA 93536
David L Bradshaw director 508 WEST WALL STREET, SUITE 550, MIDLAND TX 79701
John Chisholm director C/O FLOTEK INDUSTRIES, INC., 2930 W. SAM HOUSTON PARKWAY N., STE. 300, HOUSTON TX 77043
Stephen Charles Taylor director, officer: President and CEO 404 VETERANS AIRPARK LANE, SUITE 300, MIDLAND TX 79705
G Larry Lawrence officer: Chief Financial Officer C/O LEGACY RESERVES GP, LLC, 303 W. WALL STREET, SUITE 1600, MIDLAND TX 79701
Charles G Curtis director
James R Hazlett officer: Vice President-Technical Svcs. 404 VETERANS AIRPARK LANE, SUITE 300, MIDLAND TX 79705
Kenneth V Huseman director 801 CHERRY STREET, SUITE 2100, FORT WORTH TX 76102