Nine Energy Revenue vs. Current Valuation
| NINE Stock | USD 0.96 0.04 4.00% |
Total Revenue | First Reported 2015-12-31 | Previous Quarter 142.1 M | Current Value 132.4 M | Quarterly Volatility 78.8 M |
For Nine Energy profitability analysis, we use financial ratios and fundamental drivers that measure the ability of Nine Energy to generate income relative to revenue, assets, operating costs, and current equity. These fundamental indicators attest to how well Nine Energy Service utilizes its assets to generate profit and value for its shareholders. The profitability module also shows relationships between Nine Energy's most relevant fundamental drivers. It provides multiple suggestions of what could affect the performance of Nine Energy Service over time as well as its relative position and ranking within its peers.
Nine |
Is Oil & Gas Equipment & Services space expected to grow? Or is there an opportunity to expand the business' product line in the future? Factors like these will boost the valuation of Nine Energy. If investors know Nine will grow in the future, the company's valuation will be higher. The financial industry is built on trying to define current growth potential and future valuation accurately. All the valuation information about Nine Energy listed above have to be considered, but the key to understanding future value is determining which factors weigh more heavily than others.
Earnings Share (1.30) | Revenue Per Share 16.345 | Quarterly Revenue Growth (0.18) | Return On Assets 0.0074 | Return On Equity (5.83) |
The market value of Nine Energy Service is measured differently than its book value, which is the value of Nine that is recorded on the company's balance sheet. Investors also form their own opinion of Nine Energy's value that differs from its market value or its book value, called intrinsic value, which is Nine Energy's true underlying value. Investors use various methods to calculate intrinsic value and buy a stock when its market value falls below its intrinsic value. Because Nine Energy's market value can be influenced by many factors that don't directly affect Nine Energy's underlying business (such as a pandemic or basic market pessimism), market value can vary widely from intrinsic value.
Please note, there is a significant difference between Nine Energy's value and its price as these two are different measures arrived at by different means. Investors typically determine if Nine Energy is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Nine Energy's price is the amount at which it trades on the open market and represents the number that a seller and buyer find agreeable to each party.
Nine Energy Service Current Valuation vs. Revenue Fundamental Analysis
Comparative valuation techniques use various fundamental indicators to help in determining Nine Energy's current stock value. Our valuation model uses many indicators to compare Nine Energy value to that of its competitors to determine the firm's financial worth. Nine Energy Service is regarded third in revenue category among its peers. It also is regarded third in current valuation category among its peers reporting about 0.61 of Current Valuation per Revenue. The ratio of Revenue to Current Valuation for Nine Energy Service is roughly 1.64 . At present, Nine Energy's Total Revenue is projected to decrease significantly based on the last few years of reporting. Comparative valuation analysis is a catch-all technique that is used if you cannot value Nine Energy by discounting back its dividends or cash flows. It compares the stock's price multiples to nearest competition to determine if the stock is relatively undervalued or overvalued.Nine Revenue vs. Competition
Nine Energy Service is regarded third in revenue category among its peers. Market size based on revenue of Energy industry is now estimated at about 7.71 Billion. Nine Energy holds roughly 609.53 Million in revenue claiming about 8% of equities under Energy industry.
Nine Current Valuation vs. Revenue
Revenue is income that a firm generates from business activities such us rendering services or selling goods to customers. It is a crucial part of a business and an essential item when evaluating a company's financial statements. Revenues from a firm's primary business operations can be reported on the income statement as sales revenue, net sales, or simply sales, depending on the industry in which a given company operates.
Nine Energy |
| = | 609.53 M |
Revenue is typically recorded when cash or cash equivalents are exchanged for services or goods and can include products or services discounts, promotions, as well as early payments on invoices or services rendered in advance.
Enterprise Value is a firm valuation proxy that approximates the current market value of a company. It is typically used to determine the takeover or merger price of a firm. Unlike Market Cap, this measure takes into account the entire liquid asset, outstanding debt, and exotic equity instruments that the company has on its balance sheet. When a takeover occurs, the parent company will have to assume the target company's liabilities but will take possession of all cash and cash equivalents.
Nine Energy |
| = | 372.11 M |
Enterprise Value can be a useful tool to compare companies with different capital structures. Long term liability and current cash or cash equivalents can have a huge impact on market valuation of a given company.
Nine Current Valuation vs Competition
Nine Energy Service is regarded third in current valuation category among its peers. After adjusting for long-term liabilities, total market size of Energy industry is now estimated at about 4.07 Billion. Nine Energy holds roughly 372.11 Million in current valuation claiming about 9% of equities under Energy industry.
Nine Energy Profitability Projections
The most important aspect of a successful company is its ability to generate a profit. For investors in Nine Energy, profitability is also one of the essential criteria for including it into their portfolios because, without profit, Nine Energy will eventually generate negative long term returns. The profitability progress is the general direction of Nine Energy's change in net profit over the period of time. It can combine multiple indicators of Nine Energy, where stable trends show no significant progress. An accelerating trend is seen as positive, while a decreasing one is unfavorable. A rising trend means that profits are rising, and operational efficiency may be rising as well. A decreasing trend is a sign of poor performance and may indicate upcoming losses.
| Last Reported | Projected for Next Year | ||
| Accumulated Other Comprehensive Income | -4.9 M | -5.1 M | |
| Operating Income | 20.3 M | 21.3 M | |
| Net Loss | -13.9 M | -14.6 M | |
| Income Before Tax | -31.6 M | -33.2 M | |
| Total Other Income Expense Net | -52 M | -54.6 M | |
| Net Income Applicable To Common Shares | 13 M | 13.6 M | |
| Net Loss | -32.2 M | -33.8 M | |
| Income Tax Expense | 585 K | 614.2 K | |
| Interest Income | 1.1 M | 1 M | |
| Net Interest Income | -45.4 M | -47.6 M | |
| Non Operating Income Net Other | 2.8 M | 2.7 M | |
| Change To Netincome | 4.9 M | 4.6 M | |
| Net Loss | (0.97) | (1.02) | |
| Income Quality | (1.41) | (1.34) | |
| Net Income Per E B T | 1.02 | 0.72 |
Nine Profitability Driver Comparison
Profitability drivers are factors that can directly affect your investment outlook on Nine Energy. Investors often realize that things won't turn out the way they predict. There are maybe way too many unforeseen events and contingencies during the holding period of Nine Energy position where the market behavior may be hard to predict, tax policy changes, gold or oil price hikes, calamities change, and many others. The question is, are you prepared for these unexpected events? Although some of these situations are obviously beyond your control, you can still follow the important profit indicators to know where you should focus on when things like this occur. Below are some of the Nine Energy's important profitability drivers and their relationship over time.
Use Nine Energy in pair-trading
One of the main advantages of trading using pair correlations is that every trade hedges away some risk. Because there are two separate transactions required, even if Nine Energy position performs unexpectedly, the other equity can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in Nine Energy will appreciate offsetting losses from the drop in the long position's value.Nine Energy Pair Trading
Nine Energy Service Pair Trading Analysis
The ability to find closely correlated positions to Nine Energy could be a great tool in your tax-loss harvesting strategies, allowing investors a quick way to find a similar-enough asset to replace Nine Energy when you sell it. If you don't do this, your portfolio allocation will be skewed against your target asset allocation. So, investors can't just sell and buy back Nine Energy - that would be a violation of the tax code under the "wash sale" rule, and this is why you need to find a similar enough asset and use the proceeds from selling Nine Energy Service to buy it.
The correlation of Nine Energy is a statistical measure of how it moves in relation to other instruments. This measure is expressed in what is known as the correlation coefficient, which ranges between -1 and +1. A perfect positive correlation (i.e., a correlation coefficient of +1) implies that as Nine Energy moves, either up or down, the other security will move in the same direction. Alternatively, perfect negative correlation means that if Nine Energy Service moves in either direction, the perfectly negatively correlated security will move in the opposite direction. If the correlation is 0, the equities are not correlated; they are entirely random. A correlation greater than 0.8 is generally described as strong, whereas a correlation less than 0.5 is generally considered weak.
Correlation analysis and pair trading evaluation for Nine Energy can also be used as hedging techniques within a particular sector or industry or even over random equities to generate a better risk-adjusted return on your portfolios.Use Investing Themes to Complement your Nine Energy position
In addition to having Nine Energy in your portfolios, you can quickly add positions using our predefined set of ideas and optimize them against your very unique investing style. A single investing idea is a collection of funds, stocks, ETFs, or cryptocurrencies that are programmatically selected from a pull of investment themes. After you determine your investment opportunity, you can then find an optimal portfolio that will maximize potential returns on the chosen idea or minimize its exposure to market volatility.Did You Try This Idea?
Run Defense Thematic Idea Now
Defense
Fama and French investing themes focus on testing asset pricing under different economic assumptions. The Defense theme has 16 constituents at this time.
You can either use a buy-and-hold strategy to lock in the entire theme or actively trade it to take advantage of the short-term price volatility of individual constituents. Macroaxis can help you discover thousands of investment opportunities in different asset classes. In addition, you can partner with us for reliable portfolio optimization as you plan to utilize Defense Theme or any other thematic opportunities.
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Check out Correlation Analysis. You can also try the Portfolio Backtesting module to avoid under-diversification and over-optimization by backtesting your portfolios.
To fully project Nine Energy's future profitability, investors should examine all historical financial statements. These statements provide investors with a comprehensive snapshot of the financial position of Nine Energy Service at a specified time, usually calculated after every quarter, six months, or one year. Three primary documents fall into the category of financial statements. These documents include Nine Energy's income statement, its balance sheet, and the statement of cash flows.