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Nine Energy Service, Inc. (either individually or together with its subsidiaries, as the context requires, the Company, Nine, we, us, and our ) is a Delaware corporation that was formed in February 2013 through a combination of three service companies owned by SCF Partners, L.P. or its affiliates. Nine is a leading completion services provider that targets unconventional oil and gas re…
Operating margin is thin at 0.42%. Limited cushion if revenue slows or costs rise, not the profile of a wide-moat business.
Revenue growth slowed to 1.4%, essentially flat. Margins also contracted 1.2pp. This is a business that needs a catalyst.
Negative free cash flow of -$23M. The business is consuming cash, not generating it.
Profitability & Returns
Revenue (TTM)
$500M
▲ +1.4% YoY
Net Income (TTM)
$64M
▼ -24.9% YoY
Op. Margin
-2.86%
▼ -1.2pp YoY
ROIC
-3.34%
▼ -1.9pp YoY
Cash Flow & Balance Sheet
FCF (TTM)
-$27M
▼ -1383.0% YoY
Op. Cash Flow (TTM)
-$12M
▼ -155.4% YoY
Net Debt
$79M
Cash & Equiv.
$18M
5Y CAGR: +12.6%
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