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RISK CONCERN
Investment Strategy, Risk Analysis, and Insights by Chartered Professionals
NESR
Primary Facts
Oil & Gas Equipment & Services
Name:
-
Sector:
-
Industry:
7.14
CEO:
Mr. Sherif Foda
Total Employees:
Small Cap
Our Technological Advancement Rating
Our Rating:
-
National Energy Services Reunited Corp. (XNAS:NESR) In-Depth Stock/Fundamental/Options Analysis Today
Primary Targets/Price Insights
Previous Close ($) :
National Energy Services Reunited Corp. (XNAS:NESR)
One Month Price Target:
Six Month Price Target :
$7.17
Likely Price in One Year's Time:
Ticker:
$7.33
Likely Trading Range Today Under (Normal Volatility)
$7.19
Price Upper limit ($) :
$7.53
Price Lower limit ($) :
Crash Risk Prep/Key Price Levels (High Volatility/Risk)
Price, as per data analysis, isn't likely to fall below:
Today:
P494
This week:
$6.56
This month :
$5.85
Other Primary facts
Market Cap:
91.36M
Market Cap Classification:
614.86M
Number of Shares
IPO Date:
-
Best/Worst Daily Performance (Last 3+ Years)
Highest Daily Appreciation:
-14.59%
$4.56
Worst Daily Decline:
Our Options Trading Entry Points
Iron Condor entry points for options expiring in 1 week's time
Low risk (<2%) entry points
Buy Call:
Sell Call:
Buy Put:
Sell Put:
$8.59
34.26%
$5.69
$9.82
Medium risk (<10%) entry points
Buy Call
Sell Call
$7.93
Buy Put:
Sell Put:
$4.46
$6.35
$8.19
These entry points can be used for other strategies, such as butterflies, straddles, etc.
Risk-Adjusted returns (Sharpe Ratio) of
Oil & Gas Equipment & Services
Sharpe Ratio:
NESR, is amongst the top 60% highest yielding stocks in terms of daily returns
Comparison:
1.51%
-0.348109581
Sharpe ratio is -34.81% lower than the industry
Average Returns/Yield of
Oil & Gas Equipment & Services
Daily returns:
1
Weekly returns:
0.05%
Monthly returns:
0.24%
Yearly returns:
11.47%
Comparison of returns:
-0.402163048
Classification:
Average annual returns/yield (last 3 years) is -40.22% below industry average
Results of T-Test of Returns:
NESR is a riskier investment compared to Nasdaq (IXIC)
Statistical test of Returns:
0.85
Volatility (measured by Standard Deviation)
Daily Volatility:
& is -56.79% lower than the market/S&P 500 average
Weekly Volatility:
3.95%
Monthly Volatility:
8.84%
Yearly Volatility:
17.68%
Volitlilty of last five days (Measured by Standard Deviation)
Average Volatility of this Week:
77.08%
-64.73%
Value at Risk Analysis (VaR)
Daily VaR:
Volatility in last five trading days has been -64.73% below long-term volatility
Weekly VaR:
-8.07%
Monthly VaR:
-18.05%
How Much Can the price of
Oil & Gas Equipment & Services
Decline in a Recession?
Likely price decline in a recession:
Base case (decline):
Risk of crash in next 6/12 months: Medium (<50%)
Worst case (decline):
$4.90
This translates to price declining to:
-31%
This translates to price declining to:
>85%
Severe Crash Probability
-36.10%
What is Value at Risk (VaR)?
Risk Fundamentals
118.31%
NESR is a 154.82% riskier investment compared to the market/S&P 500 & is 118.31% riskier than Nasdaq (IXIC)
NESR is a 154.82% riskier investment compared to the market/S&P 500
Beta Examination of
Oil & Gas Equipment & Services
0.803
Expected beta in 1 year's time:
0.57
Expected beta in 3 year's time:
0.918
Unlevered (debt free) Beta:
Beta in relation to market/S&P 500--0.80
Beta in relation to Nasdaq (XNAS):
Returns are right (positive) skewed; mean returns are greater than median and mode returns
Beta in relation to all global stocks::
Beta is -96.65% below industry average
Beta Comparison & Analysis
Beta of competitors/peers::
0.483
-0.508
Average Industry Beta:
Beta is -50.77% lower than peers
-0.96646975
Sustainable Growth Rate Analysis
Sustainable growth rate for this stock/firm:
-
-56.64%
Alpha provided | Alpha Analysis
Alpha provided:
1.298
-1.019
1.794
Analysis of Cost of Capital of
Oil & Gas Equipment & Services
Equity cost of capital:
Alpha is 179% higher than market/& is unsustainably high
-0.948
Unlevered (without debt) cost of capital:
Equity cost of capital is -94.83% below industry mean WACC
Before-tax cost of debt:
5.20%
After-tax cost of debt:
-
Overall debt rating:
-
Weighted average cost of capital (WACC):
-
-
Key Per-Share Metrics & Analysis
Revenue per share:
-
Revenue growth rate per share of (3Y):
Price to sales ratio is -51.22% below the industry mean
-
EPS:
Thirty-Seven Million Four Hundred Fifty-Eight Thousand Ten Dollars
Expected Annual growth rate of EPS (3Y):
Price to free cash flow ratio is -64.19% lower than the industry
-87.20%
Free cash flow (FCF) per share:
Price to book ratio is -67.22% below the industry mean
-
-
Debt per share
-
EBITDA per share
Each employee generates -5% less EBITDA than industry average revenue per employee
Valuation Analysis Today of
Oil & Gas Equipment & Services
P/E Ratio:
Sustainable growth rate is -56.64% below industry average
P/E Ratio of Competitors/Peers:
17.11
-0.326783714
10.4191805
-0.314725376
-
-
P/S (Price to Sales ratio):
$9.62
-0.512246099
P/B (Price to book value ratio):
Price to sales ratio is -51.22% below the industry mean
-
-0.641864388
Net income growth rate (3Y):
-
-
Dividend Analysis
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Dividend History:
-
--$0.00
--$0.00
--$0.00
--$0.00
--$0.00
-
In-depth Debt & Leverage Analysis
Debt to equity ratio:
-
Net debt to equity ratio:
The remaining useful life of property plant & equipment is: 3.1 years
Debt to assets ratio:
-
Net debt to assets ratio:
78.63%
-20.42%
Ability to repay debt:
Interest coverage ratio:
Debt-to-asset ratio is -20.42% below industry average
3.50
Looking forward:
Debt growth rate:
1.8x
-
-
Analysis of Key Statistics
Correlation of price movement with the market:
9.739998011
Statistical significance of correlation:
-0.62%
Average Correlation of the industry with the market:
0.349
-16.21%
R Squared (percentage of price movement explained by movement of the market):
0.349
Correlation of price movement with Nasdaq (^IXIC):
0.122
Covariance of price movement with the market:
0
Kurtosis
-0.001
11.158
Skewness of returns:
Returns have a significant fat-tails (leptokurtic), i.e., returns considerably higher or lower than the mean returns are more probable, compared to assets with normally distributed returns
1.427
Fundamental Analysis & Dupont Analysis of
Oil & Gas Equipment & Services
Gross Profit Margin Ratio:
128.83M
Operating Profit Margin Ratio:
Net profit margin is -273.52% lower than the industry
-331.50%
Net Profit Margin Ratio:
128.83M
Effective Tax Rate:
-
-0.666625951
Dupont Method
Net Profit Margin
Return on Equity Ratio (ROE):
×
ROA
=
×
Return on assets (ROA) is -146.45% lower than the industry
-110.85%
Financial Leverage
Asset Turnover Ratio (ROA):
Operating profit margin is -331.50% lower than the industry
-146.45%
Financial Leverage:
Interest coverage ratio is 350.27% more than industry average
Current Ratio:
Return on equity (ROE) is -110.85% lower than the industry
-0.375430282
Cash Conversion Cycle (days):
-
-0.212759755
Current ratio is -37.54% below industry average
Stock based compensation to net income ratio:
-
In-depth Efficiency Analysis
Revenue generated per employee:
Cash conversion cycle is -21.28% below industry average
-0.406474779
EBITDA generated per employee:
Each employee generates -41% less revenue than industry average revenue per employee
-0.04672472
Profit generated per employee:
$2.01
31%
Free cash flow (FCF) generated per employee:
Each employee generates 31% more net income/profit than industry average revenue per employee
-
Assets/Capital per employee
-
-
Research & Development (R&D) Analysis
-
-
Competitors/Peer firms of
Oil & Gas Equipment & Services
$18.49
OASIS MIDSTREAM PARTNERS UNT (XNAS:OMP)
XOG
KINETIK HOLDINGS INC. (XNAS:KNTK)
Brooge Energy Ltd (XNAS:BROG)
NBLX
TELLURIAN INC. (XNYS:TELL)
DMC GLOBAL INC. (XNAS:BOOM)
CHORD ENERGY CORPORATION (XNAS:CHRD)
Current Analyst Ratings
$0.41
Strong buy�0%
Buy�4%
Hold�0%
Sell�0%
Strong sell�0%
Income Statement
Period:
9/30/2021
Date:
Value
Revenue:
TTM
Cost of Revenue:
Gross Profit:
R&D Expense
General & Admin Expenses:
Selling, General & Admin Expenses
Sales and Marketing Expenses
Other Expenses :
Operating Expenses :
Cost & Expenses :
Interest Income:
Interest Expenses:
Depreciation & Amortization:
EBITDA:
Operating Income:
Other Income Expenses:
Income Before Tax:
Income Tax Expense:
Net Income:
Balance Sheet
Date:
Calendar Year:
Period:
Cash & Cash Equivalents:
Short Term Investments:
Cash & Short Term Investments:
Net Receivables:
Inventory:
Other Current Assets:
Total Current Assets:
PP&E:
Goodwill:
Intangible Assets:
Long Term Investments:
Tax Assets:
Other Non-Current Assets:
Total Non-Current Assets:
Other Assets:
Total Assets:
Accounts Payable:
Short Term Debt:
Tax Payables:
Deferred Revenue:
Other Current Liabilities:
Total Current Liabilities:
Long Term Debt:
Other Non-Current Liabilities:
Total Non Current Liabilities:
Other Liabilities:
Total Liabilities:
Common Stock:
Retained Earnings:
Accumulated Other Comprehensive Loss:
Other Total Stockholders' Equity:
Total Stockholders' Equity:
Total Liabilities and Stockholders' Equity:
Total Investments:
Total Debt:
Net Debt:
878.52M
749.69M
59%
-
-
78.48M
-
-
828.17M
-
13.53M
125.33M
84%
6.98M
- 5627.00K
21%
6.98M
Statement of Cash Flow
Date:
Period:
-
Differed Income Tax :
-
Stock Based Compensation :
-
Change in Working Capital :
-
Accounts Receivables:
-
Other Working Capital:
-
Other Non-Cash Items:
-
Net Cash Provided by Operating Activities:
-
Investments in PP&E:
-
Net Acquisitions:
-
Purchases of Investments:
-
Sales/Maturities of Investments:
Other Investing Activities:
Net Cash Used for Investing Activities:
Debt Repayment:
Common Stock Issued:
Common Stock Repurchased:
Dividend Paid:
Other Financing Activities:
Net Cash Used Provided by Financing Activities:
Effect of FOREX on Changes in Cash:
Net Changes in Cash:
Cash at End of Period:
Cash at Beginning of Period:
Operating Cash Flow:
Capital Expenditure:
Free Cash Flow (FCF):
-
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78.48M
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Our Proprietary Portfolio Rating
Our Rating:
-
Price Forecast/Expected Price in Next 5 Years of
Oil & Gas Equipment & Services
2023
2024
2025
2026
2027
14.9812343
$7.57
$15.79
$16.64
$17.54