Nine Energy Valuation Analysis

Investor Information

About 31.0% of NINE shares are owned by institutional investors. NINE reported a loss per share of 1.25. Nine Energy had not issued any dividends in recent years. Capital allocation and earnings structure point to Nine Energy having mixed financial positioning. Return on assets remains positive, but negative return on equity suggests the equity base is reduced enough to distort headline capital-return measures.

Asset Utilization

The concept of asset utilization usually refers to the revenue earned for every dollar of assets a company currently reports. The latest return on assets of Nine Energy indicates not a very effective usage of assets in May.

Discounted Cash Flow Analysis

Nine Energy Service trades above its custom levered DCF estimate, with implied equity value per share of -12.96 versus a market price of 10.01. Relative to the modeled value, the stock sits roughly 229.5% higher. Current assumptions include 15.09% WACC, 2.0% perpetual growth, and about -23.72 Million of next-period free cash flow. Present terminal value accounts for roughly 53.6% of enterprise value. with net debt near 362.81 Million. Divergences of this magnitude warrant particular scrutiny of the underlying assumptions. The market may be pricing in risks or structural headwinds that the model's base case does not fully capture.

Nine Energy Market Price vs. Intrinsic Value

Projected Revenue and Levered Free Cash Flow

Key Model Assumptions

Forecast Detail and Valuation Progression

Profitability Analysis

Based on Nine Energy's financial statements, Nine Energy Service is generating positive operating income but reporting a net loss of -51.32 million, indicating that non-operating charges are eroding bottom-line results. The operating margin stands at 1.14% while the net profit margin is -8.63%, with return on equity at 36.0%. Profitability is deteriorating broadly, with margin and return metrics declining across multiple levels of the income statement.In the latest reported period, Gross Profit is broadly unchanged at $60.16 million. In addition to that, Pretax Profit Margin remains stable near -8.25%.

	Current Value	Last Year	Change From Last Year	10 Year Trend
Gross Profit Margin	8.80%	9.64%	Significantly Down	Stable
Operating Profit Margin	1.14%	1.27%	Moderately Down	Stable
Return On Equity	36.00%	40.00%	Moderately Down	Stable

Earnings per Share Projection vs Actual

Analyst consensus on Nine Energy's EPS captures the range of professional forecasts and their trajectory over time. An operating margin of 1.14% frames the cost structure behind Nine Energy's reported EPS. Comparing Nine Energy's EPS against revenue growth and cash conversion clarifies earnings quality. The EPS consensus for Nine Energy Service reflects normalized analyst expectations. Comparing this estimate against the current net margin profile (-8.63%), guidance revisions, and prior forecast error reveals whether the market is pricing in improvement, stability, or deterioration. Nine Energy reported estimated earnings of -0.2625 in earnings per share on 31st of December 2026. The strongest signal comes from comparing this forecast against the company's historical beat/miss rate and recent guidance revisions.

Earnings Estimation Breakdown

1 analyst contributes to the current consensus. The last reported EPS was 0.00 as of 31st of December 2025.

Earnings Projection Consensus

Ownership Allocation

About 30% of Nine Energy outstanding shares are owned by institutions. Institutional investors - such as mutual funds, pension funds, and asset managers - typically hold positions as part of a broader portfolio strategy, managing assets on behalf of clients. As a result, institutional investors are subject to reporting requirements and oversight rules - such as 13F filings - that differ from those for individual retail investors. Changes in institutional ownership of Nine Energy can sometimes signal a shift in professional sentiment toward the company.

Revenue and Profit Overview

NINE reported previous year's revenue of $561.91 million. Net Loss for the year was -$51.32 million with profit before overhead, payroll, taxes, and interest of $94.55 million.

What the Data Shows

Combined Signal Overview

A growth framework around Nine Energy Service should test whether the business is actually regaining operating strength instead of assuming the market is pricing in a classic high-growth trajectory. That usually means separating cyclical rebound from durable compounding and checking whether better growth is being matched by healthier margins and cash generation.

The intrinsic value of Nine Energy Service is estimated using multiple approaches, including discounted cash flow analysis, relative valuation multiples, and balance sheet-based methods, each reflecting different assumptions about earnings durability, capital structure, and future cash generation. Quantitative valuation narrows the range of reasonable outcomes by cross-referencing multiple model-based signals. Reported values are derived from company filings, audited financial statements, and market data, and are standardized within Macroaxis quantitative models for consistency. Model outputs reflect a point-in-time estimate based on available data and assumptions and should be interpreted alongside changes in operating performance, market conditions, and forward expectations.