Stock fact sheet · data as of
Natural Gas Services Group, Inc. (NGS): fair value, margin of safety and Wheel Score
Energy · Oil & Gas Equipment & Services · United States · High Growth
Is NGS undervalued?
At 30.96 (close of 16 Oct 2026), NGS trades 28% under the GLS average fair value of 43.02. 3 of the 7 models that produced a value land above the price. A discount of this size counts as a positive margin of safety in every GLS screen; whether it is enough depends on the rest of the picture - the health score, the moat and the option premium below.
The 7 models disagree widely: DDM gives 7.65 while GLS Growth gives 99.00. A spread that wide means the average is sensitive to which methods you trust; the model table below shows where each one lands, and the Quote page lets you switch any of them off.
The nightly engine files NGS under High Growth: revenue and earnings growing fast enough that the growth-based models carry the valuation.
Nine valuation models for NGS
Each model turns the latest filed numbers into a value per share; the GLS fair value is the simple average of the ones that produce a positive number. The last two rows are shown for reference and never enter the average. The Quote page lets you switch any model off and add your own margin of safety.
| Model | Value | vs price | What it measures |
|---|---|---|---|
| DCF | - | - | Present value of the projected free cash flows, discounted at the cost of capital; no value tonight |
| Graham Number | 29.09 | -6% | The most a defensive investor pays for the earnings and book value per share |
| Graham Growth | 92.50 | +199% | Graham's growth formula: EPS × (8.5 + 2 × growth), adjusted for bond yields |
| Lynch | 40.43 | +31% | EPS × the earnings growth rate (PEG of 1), growth capped at 25% |
| GLS Growth | 99.00 | +220% | EPS compounded ten years at the blended growth rate, discounted back at 15% a year |
| 10 Cap | 14.54 | -53% | Owner's earnings (operating cash flow less maintenance capex) capitalised at 10% |
| Payback Time | - | - | Eight years of compounded free cash flow: the price at which the business pays for itself; no value tonight |
| DDM | 7.65 | -75% | Dividend discount model: next year's dividend ÷ (10% − 3% growth); needs a dividend |
| EPV | 17.97 | -42% | Earnings power value: current EPS capitalised at 9% with no growth |
| Zombie (liquidation) | -19.77 | -164% | Current assets less all liabilities, per share: the balance-sheet floor. Not in the average |
| Wall St target | 54.00 | +74% | Analysts' average 12-month price target. Not in the average |
Quality and financial health
Financial health is average - NGS passes 6 of the nine Piotroski tests, which passes the Sunday Scan's "6 or more" rule. The Financials tab on the Quote page shows which tests fail. The GLS Moat score is 5.1 out of 10: a ten-year record that is consistent in some of the metrics the score tracks (revenue, earnings, margins, cash flow, returns on capital) and patchy in others.
Returns on capital are thin or negative - ROIC 3.9%, ROE 7.3%, ROA 3.4% - with debt at 0.84 times equity and negative free cash flow.
The dividend yield is 1.68% at a payout ratio of 23%; for a wheel trader holding assigned shares the dividend adds to the covered-call premium, and the ex-dividend date is worth knowing before a call is sold. Revenue comes mainly from Aftermarket Services 34%, Product Sales 33%, Parts 21% (quarter Q2 FY2026).
Institutional ownership scores 10/10, insider activity 1/10 and Congressional trading 5/10 on the GLS smart-money scales.
| Piotroski F-score | 6 / 9 | ROIC | 3.9% |
|---|---|---|---|
| GLS Moat | 5.1 / 10 | ROE | 7.3% |
| Debt / equity | 0.84 | ROA | 3.4% |
| Free-cash-flow yield | -7.8% | Payout ratio | 23% |
| Institutions | 10 / 10 | Insiders · Congress | 1 · 5 / 10 |
Wheel Score 72: Good
NGS scores 72 out of 100 on the Wheel Score (Good band, 65-79). The score blends the margin of safety (Value, 24/25), Piotroski health (13/20), the GLS moat (8/15), the option premium on offer (20/20) and how easily the stock trades (7/20). Stability (7/20) is the part holding the score back.
Implied volatility is 54% on the near-the-money contracts 20-60 days out - inside the 35-60% range the Wheel Score pays full marks for: enough premium to be worth selling, not so much that the risk is unpaid. Chain open interest is thin - 1,251 contracts across every expiry - so fills at a fair price are not guaranteed; a 30-45-day put may not exist at a usable strike.
Volume runs at 111k shares a day on a market cap of $399M, with a beta of 0.42 - a low beta, so day-to-day moves are smaller than the market's; the Stability part of the Wheel Score gives that 7 of 20.
| Part | Points | From | |
|---|---|---|---|
| Value | 24 / 25 | 28% margin of safety | |
| Health | 13 / 20 | Piotroski 6/9 | |
| Moat | 8 / 15 | moat 5.1/10 | |
| Premium | 20 / 20 | implied volatility 54% | |
| Stability | 7 / 20 | 111k shares/day, $399M cap, beta 0.42 |
The Wheel Score ranks ~7,400 US stocks for selling cash-secured puts and covered calls; it is updated nightly and is not a recommendation. The walkthrough lesson shows how the score fits into a trade, start to finish.
Upcoming events
The next earnings report is due on 9 Nov 2026 (after the close), 24 days away; a 30-45-day put sold today would expire after it, which is worth weighing against the premium.
Earnings, dividend, IPO, split and economic calendars for the whole market, filterable to your watchlists.
Similar stocks in Oil & Gas Equipment & Services
The 12 companies below are the closest to Natural Gas Services Group, Inc. by market cap within the Oil & Gas Equipment & Services industry, each with its own fact sheet; the Compare page puts up to eight of them side by side.
| Stock | Close | Fair value | MoS | Wheel | Mkt cap |
|---|---|---|---|---|---|
| CLB Core Laboratories N.V. | 9.78 | 12.50 | +22% | 76Good | $449M |
| RNGR Ranger Energy Services, Inc. | 14.79 | 23.32 | +37% | 64Fair | $346M |
| OIS Oil States International, Inc. | 7.94 | 11.99 | +34% | 45Weak | $479M |
| NOA North American Construction Group Ltd. | 11.46 | 21.11 | +46% | 76Good | $308M |
| SND Smart Sand, Inc. | 5.26 | 10.93 | +52% | 59Fair | $223M |
| ACDC ProFrac Holding Corp. | 4.12 | 8.03 | +49% | 45Weak | $750M |
| HMH HMH Holding Inc. Class A Common Stock | 17.34 | 40.96 | +58% | 39No options | $775M |
| TTI TETRA Technologies, Inc. | 5.33 | 2.23 | -139% | 50Fair | $789M |
| FET Forum Energy Technologies, Inc. | 77.11 | 141.68 | +46% | 45Weak | $872M |
| FTK Flotek Industries, Inc. | 24.73 | 26.06 | +5% | 45Weak | $895M |
| OMSE OMS Energy Technologies Inc. | 3.91 | 31.50 | +88% | 39No options | $166M |
| HOS Hornbeck Offshore Services, Inc. | 6.72 | 1.79 | -276% | 42Weak | $990M |
Screen the whole market the same way
A free GLS Equity account gets you nightly fair value and the Wheel Score on ~7,400 US stocks, a watchlist, the scanner preview and the Sunday Scan - the same eight-rule screen, emailed every week. Pro adds the full put and call scanners, unlimited watchlists with alerts and the trade journal.
Start free See the Sunday ScanQuestions about NGS
Is NGS undervalued right now?
By the GLS models, moderately: at 30.96 the stock trades 28% below the average fair value of 43.02 (data as of 16 Oct 2026).
What is the Wheel Score of NGS and what does it mean?
NGS scores 72 out of 100 (Good). The Wheel Score blends the margin of safety (25 points), Piotroski health (20), the GLS moat (15), the option premium on offer (20) and trading stability (20) into one number that ranks stocks for the wheel strategy - selling cash-secured puts, then covered calls if assigned. 80 and above is Prime, 65-79 Good, 50-64 Fair, under 50 Weak.
What is the GLS fair value for NGS?
43.02 per share as of 16 Oct 2026 - the simple average of the 7 valuation models (out of nine: DCF, Graham Number, Graham Growth, Lynch, GLS Growth, 10 Cap, Payback Time, DDM and EPV) that produced a positive value. The models run every night on the latest filings; the Quote page lets you switch any of them off and add a margin of safety of your own.
When does Natural Gas Services Group, Inc. report earnings next?
The next earnings report is due on 9 Nov 2026 (after the close), 24 days from the data date of 16 Oct 2026. The Calendars page lists every upcoming report with its time of day.
Does NGS have listed options, and how liquid are they?
Yes. The nightly snapshot found 124 listed contracts with 1,251 open interest across all expiries and implied volatility of 54% on the near-the-money contracts. The Options scanner lists the cash-secured put and covered call set-ups with premium and annualised yield worked out.