NGSNatural Gas Services Group, Inc.
Is the business good?
A genuinely good business: earnings fully cash-backed (2.6×) and margins widening.
Operating profit is fully backed by cash. Conversion is improving vs a year ago.
Profits are tracking sales roughly one-for-one, limited operating leverage either way.
A balanced mix of margins, efficiency, and leverage. ROE 7% = margin × turnover × leverage.
Unless marked, from derived.
Where this answer is blind. The F-score rewards improvement, so an already-elite company can score mid-pack.
How good a business is NGS?
Natural Gas Services Group, Inc. earns 11% on the capital it employs against a 9.0% cost of capital, so the business is worth more the bigger it gets.
Return on invested capital · cost of capital 9.0% · 2.0 points above what the capital costs: growth creates value
- Operating margin
- 22%
Operating margin · Oil & Gas Equipment & Services median 10% · 12 months to Q2 2026
- Cash conversion
- 2.64×
Cash conversion · 2.45× a year ago · operating cash flow covers the operating profit after tax
- Share count, year on year
- +1.7%
Share count, year on year · shareholders own a smaller slice than a year ago
| Year | Operating margin |
|---|---|
| FY2020 | −5.3% |
| FY2021 | −17% |
| FY2022 | 0.51% |
| FY2023 | 8.6% |
| FY2024 | 21% |
| FY2025 | 22% |
Details›
- Gross margin12 months to Q2 2026
- 60%
- Operating margin12 months to Q2 2026
- 22%
- Net margin12 months to Q2 2026
- 11%
- Free cash flow margin
- −17%
- Revenue, trailing twelve months
- $189M
- Free cash flow, trailing twelve months
- −$31M
- Net income, trailing twelve months
- $20M
- Return on invested capitaloperating profit after tax ÷ debt + equity − cash
- 11%
Margins, capital and share counts from the statements as filed with the SEC; cash conversion is operating cash flow over operating profit after tax.