Natural Gas Services GroupNGS +0.87%80 Return-on-Tangible-Equity is 9.74% as of Mar. 2026, which is 601% above its 10-year median of 1.39. GuruFocus rates NGS with a GF Score™ of 80/100 and a GF Value™ of $28.34 (Significantly Overvalued). The stock has 8 warning signs investors should review. Among 945 Oil & Gas companies, Natural Gas Services Group ranks better than 53.44% on this metric.
Return-on-Tangible-Equity is calculated as Net Income divided by its average total shareholder tangible equity. Total shareholder tangible equity equals to Total Stockholders Equity minus Intangible Assets. Natural Gas Services Group's annualized net income for the quarter that ended in Mar. 2026 was $27.1 Mil. Natural Gas Services Group's average shareholder tangible equity for the quarter that ended in Mar. 2026 was $277.6 Mil. Therefore, Natural Gas Services Group's annualized Return-on-Tangible-Equity for the quarter that ended in Mar. 2026 was 9.74%.
The historical rank and industry rank for Natural Gas Services Group's Return-on-Tangible-Equity or its related term are showing as below:
NGS'
s Return-on-Tangible-Equity Range Over the Past 10 Years
Min: -5.61 Med: 1.39 Max: 8.48
Current: 8.07
During the past 13 years, Natural Gas Services Group's highest Return-on-Tangible-Equity was 8.48%. The lowest was -5.61%. And the median was 1.39%.
NGS's Return-on-Tangible-Equity is ranked better than 53.44% of 945
companies
in the Oil & Gas industry
Industry Median: 6.74
vs NGS: 8.07
Natural Gas Services Group (NYSE:NGS) Return-on-Tangible-Equity Explanation
Return-on-Tangible-Equity measures the rate of return on the ownership interest (shareholder's tangible equity) of the common stock owners. It measures a firm's efficiency at generating profits from every unit of shareholders' tangible equity (shareholders equity minus intangibles). Return-on-Tangible-Equity shows how well a company uses investment funds to generate earnings growth. Return-on-Tangible-Equitys between 15% and 20% are considered desirable.
Be Aware
Net Income is used.
Because a company can increase its Return-on-Tangible-Equity by having more financial leverage, it is important to watch the leverage ratio when investing in high Return-on-Tangible-Equity companies. Like Return-on-Tangible-Asset, Return-on-Tangible-Equity is calculated with only 12 months data. Fluctuations in company's earnings or business cycles can affect the ratio drastically. It is important to look at the ratio from a long term perspective.
Asset light businesses require very few assets to generate very high earnings. Their Return-on-Tangible-Equitys can be extremely high.
Natural Gas Services Group Return-on-Tangible-Equity Related Terms
Natural Gas Services Group Return-on-Tangible-Equity 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.
Natural Gas Services Group Return-on-Tangible-Equity Chart
NGS vs FET, EROK, CLB: Return-on-Tangible-Equity Comparison
For the Oil & Gas Equipment & Services subindustry, Natural Gas Services Group's Return-on-Tangible-Equity, along with its competitors' market caps and Return-on-Tangible-Equity 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 Return-on-Tangible-Equity vs Oil & Gas Industry
For the Oil & Gas industry and Energy sector, Natural Gas Services Group's Return-on-Tangible-Equity distribution charts can be found below:
* The bar in red indicates where Natural Gas Services Group's Return-on-Tangible-Equity falls into.
* 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.
In the calculation of annual Return-on-Tangible-Equity, the net income of the last fiscal year and the average total shareholder tangible equity over the fiscal year are used. In calculating the quarterly data,
the net income data used here is four times the quarterly (Mar. 2026) net income data.
Return-on-Tangible-Equity is displayed in the 10-year financial page.
What does a Return-on-Tangible-Equity of 9.74% mean?
Natural Gas Services Group (NGS) has a Return-on-Tangible-Equity of 9.74% as of Mar. 2026. Return on tangible equity is the ratio of current-period net income to average two-period tangible equity. View historical data on Natural Gas Services Group and its competitors. This is 601% above median its historical median of 1.39. According to the industry distribution chart, Natural Gas Services Group ranks #440 out of 945 companies in the Oil & Gas industry, placing it in the top 46.6%.
Is Natural Gas Services Group's Return-on-Tangible-Equity too high?
Natural Gas Services Group's current Return-on-Tangible-Equity of 9.74% is 601% above median its 10-year median of 1.39. The Oil & Gas industry median Return-on-Tangible-Equity is 6.74. Natural Gas Services Group's value of 9.74% is 44.5% above this industry median. Based on the distribution chart, Natural Gas Services Group ranks #440 out of 945 companies in the Oil & Gas industry, which is above the industry midpoint. Overall, Natural Gas Services Group has a GF Score™ of 80/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Natural Gas Services Group's Return-on-Tangible-Equity compare to FET and EROK?
According to the Oil & Gas industry distribution chart, Natural Gas Services Group ranks #440 out of 945 companies for Return-on-Tangible-Equity. This puts Natural Gas Services Group in the upper half of its industry. The industry median Return-on-Tangible-Equity is 6.74. Natural Gas Services Group's value of 9.74% is 44.5% above this benchmark. While the company's 10-year median is 1.39 vs. the industry median of 6.74, Natural Gas Services Group has consistently been above 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 Return-on-Tangible-Equity for an Oil & Gas company?
The median Return-on-Tangible-Equity among Oil & Gas companies is 6.74, based on 945 companies in the industry. Companies in the top quartile (top 25%) have a Return-on-Tangible-Equity significantly above this median, while those in the bottom quartile fall well below. However, Return-on-Tangible-Equity should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Natural Gas Services Group's current Return-on-Tangible-Equity of 9.74% is 44.5% above 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 Return-on-Tangible-Equity mean?
A high Return-on-Tangible-Equity can signal that a stock is expensive relative to its fundamentals. Return on tangible equity is the ratio of current-period net income to average two-period tangible equity. View historical data on Natural Gas Services Group and its competitors. For the Oil & Gas industry, the median Return-on-Tangible-Equity is 6.74 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Natural Gas Services Group's current Return-on-Tangible-Equity is 9.74%, which is 601% above median its own 10-year median of 1.39. 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 $28.34, compared to a current price of $43.14 — trading 52.2% above its estimated fair value. The current Return-on-Tangible-Equity is 9.74%, which is 601% above median its 10-year median of 1.39 and 44.5% above the Oil & Gas industry median of 6.74. Natural Gas Services Group's overall GF Score™ is 80/100 with 8 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Return-on-Tangible-Equity calculated?
Return-on-Tangible-Equity is calculated from a company's financial statements. For Natural Gas Services Group (NGS), the current Return-on-Tangible-Equity is 9.74% 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 $43.14 is trading 52.2% above its estimated GF Value™ of $28.34.
GuruFocus considers Natural Gas Services Group to be Significantly Overvalued.
Key valuation signals for NGS:
Return-on-Tangible-Equity: 9.74% (601% above median its 10-year median of 1.39)
GF Value™: $28.34 vs. price of $43.14 (52.2% above fair value)
Industry Position: 44.5% above the Oil & Gas median (#440 of 945)
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.
80GF Score
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