Return on Retained Earnings (RORE) is an indicator of a company's growth potential, it shows how much a company earns by reinvesting its retained earnings, i.e. profits after dividend payments.
Natural Gas Services Group's 3-Year RORE % for the quarter that ended in Mar. 2026 was 26.52%.
The industry rank for Natural Gas Services Group's 3-Year RORE % or its related term are showing as below:
NGS's 3-Year RORE % is ranked better than 69.23% of 923
companies
in the Oil & Gas industry
Industry Median: 1.23
vs NGS: 26.52
Natural Gas Services Group (NYSE:NGS) 3-Year RORE % Explanation
Return on Retained Earnings (RORE) is important to investors because it reveals a company's efficiency and growth potential. A higher RORE indicates a higher return. A high RORE indicates that the company should reinvest profits into the business. A lower RORE suggests that the company should distribute profits to shareholders by paying out dividends, since those dollars aren't generating much additional growth for the company.
There are a several different ways to arrive at the Return on Retained Earnings. The simplest way to calculate it is by using published information on Earnings per Share (EPS) and Dividend per Share (DPS) over a selected period. Here, 3-year period is chosen.
Be Aware
Please keep in mind that the RORE is relative to the nature of the business and its competitors. If another company in the same sector is producing a lower return on retained earnings, it doesn’t necessarily mean it’s a bad investment. It may just suggest the company is older and no longer in a high growth stage. At such a stage in the business cycle, it would be expected to see a lower RORE and higher dividend payout.
Natural Gas Services Group 3-Year RORE % Related Terms
Natural Gas Services Group 3-Year RORE % 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.
For the Oil & Gas Equipment & Services subindustry, Natural Gas Services Group's 3-Year RORE %, along with its competitors' market caps and 3-Year RORE % 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 3-Year RORE % vs Oil & Gas Industry
For the Oil & Gas industry and Energy sector, Natural Gas Services Group's 3-Year RORE % distribution charts can be found below:
* The bar in red indicates where Natural Gas Services Group's 3-Year RORE % 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 3-Year RORE %, the most recent and first period EPS (Diluted) is the trailing twelve months (TTM) data ended in Mar. 2026 and 3-year before.
Natural Gas Services Group (NGS) has a 3-Year RORE % of 26.52 as of Mar. 2026. 3-Year RORE % shows how much a company earns by reinvesting its retained earnings in 3-year. View historical data on Natural Gas Services Group and its competitors. According to the industry distribution chart, Natural Gas Services Group ranks #284 out of 923 companies in the Oil & Gas industry, placing it in the top 30.8%.
Is Natural Gas Services Group's 3-Year RORE % too high?
Natural Gas Services Group's current 3-Year RORE % is 26.52. The Oil & Gas industry median 3-Year RORE % is 1.23. Natural Gas Services Group's value of 26.52 is 2056.1% above this industry median. Based on the distribution chart, Natural Gas Services Group ranks #284 out of 923 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 3-Year RORE % compare to FET and EROK?
According to the Oil & Gas industry distribution chart, Natural Gas Services Group ranks #284 out of 923 companies for 3-Year RORE %. This puts Natural Gas Services Group in the upper half of its industry. The industry median 3-Year RORE % is 1.23. Natural Gas Services Group's value of 26.52 is 2056.1% above this benchmark. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good 3-Year RORE % for an Oil & Gas company?
The median 3-Year RORE % among Oil & Gas companies is 1.23, based on 923 companies in the industry. Companies in the top quartile (top 25%) have a 3-Year RORE % significantly above this median, while those in the bottom quartile fall well below. However, 3-Year RORE % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Natural Gas Services Group's current 3-Year RORE % of 26.52 is 2056.1% 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 3-Year RORE % mean?
A high 3-Year RORE % can signal that a stock is expensive relative to its fundamentals. 3-Year RORE % shows how much a company earns by reinvesting its retained earnings in 3-year. View historical data on Natural Gas Services Group and its competitors. For the Oil & Gas industry, the median 3-Year RORE % is 1.23 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Natural Gas Services Group's current 3-Year RORE % is 26.52. 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 $28.25, compared to a current price of $40.93 — trading 44.9% above its estimated fair value. The current 3-Year RORE % is 26.52 and 2056.1% above the Oil & Gas industry median of 1.23. 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 3-Year RORE % calculated?
3-Year RORE % is calculated from a company's financial statements. For Natural Gas Services Group (NGS), the current 3-Year RORE % is 26.52 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 $40.93 is trading 44.9% above its estimated GF Value™ of $28.25.
GuruFocus considers Natural Gas Services Group to be Significantly Overvalued.
Key valuation signals for NGS:
3-Year RORE %: 26.52
GF Value™: $28.25 vs. price of $40.93 (44.9% above fair value)
Industry Position: 2056.1% above the Oil & Gas median (#284 of 923)
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.
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