One-glance verdict
Undervalued
$214.30 our estimate vs market $53.35
75% below our estimate, below the bear case
Fundamentals snapshot
NCS Multistage Holdings Inc
NCSM · NCM · Energy · Oil & Gas Equipment & Services
Current price
$53.35
52-week range
$34.06 - $87.36
Market cap
$140.02M
Balance sheet
Healthy
42.61x Strong cushion
Net cash $18.54M. Interest coverage shows how many times profit covers the interest bill.
What stands out
3 Rewards
2 Risks
3 rewards · 2 risks
- Reward Revenue grew 13.0% last year.
- Reward Returns 14.0% on equity, ahead of 66% of its peers.
- Risk Forward P/E (18.6x) is higher than trailing (10.8x) - earnings are expected to drop.
- Risk Operating margin compressed from -1.4% to -14.6% over 3 years.
What this company does
NCS Multistage Holdings Inc
NCS Multistage Holdings Inc sells specialized equipment and services to oil and gas companies for drilling and completing wells, like the systems that help separate different parts of the well during the completion process. Most of their money comes from selling these engineered products to energy companies in the U.S. and Canada, which is important because it directly ties their success to the activity and spending in the oil and gas industry.
How the company got here
NCS Multistage Holdings, Inc. was founded in 2006 by entrepreneurs who recognized the growing importance of multistage completions in North American shale development. The company went public in 2017. In a significant turning point, NCS Multistage was acquired by Weatherford International plc on September 1, 2026, becoming a subsidiary of Weatherford. This acquisition aimed to strengthen Weatherford's offerings in well completions and expand its capabilities in reservoir diagnostics and well performance solutions.
What it actually does
NCS Multistage provides specialized engineered products and services to the oil and natural gas industry. Think of them as a high-tech tool and service provider for companies that drill for oil and gas. Their main goal is to help these companies complete wells more effectively and develop oil and gas fields more efficiently. They offer advanced tools and expertise that help extract more oil and gas from each well, especially in challenging formations.
Fracturing Systems
This is a core part of NCS Multistage's business, focusing on tools used in hydraulic fracturing, often called "fracking." Fracking is a process where a high-pressure mixture of water, sand, and chemicals is injected into rock formations to release oil and natural gas. NCS Multistage provides systems like casing-installed sliding sleeves, downhole frac isolation assemblies, and sand jet perforating products. These tools help control where the fracking fluid goes and how the oil and gas are released, optimizing the extraction process.
Well Construction
This segment involves products that help in the initial building of an oil or gas well. This includes items like the AirLock casing buoyancy system, which helps lower long pipes (casing) into the well more easily, and Vecturon and Vectraset liner hanger systems, which secure these pipes in place. Essentially, these are foundational components that ensure the well is built safely and efficiently from the ground up.
Tracer Diagnostics Services
NCS Multistage offers services that use special chemical or radioactive tracers. These tracers are introduced into the well during operations and then detected later to provide valuable data. This data helps understand how the well is performing, identify any issues, and characterize the underground rock formations (reservoir). It's like a diagnostic test for the well, giving engineers crucial information to improve performance and development strategies.
What management is betting on now
Following its acquisition by Weatherford, NCS Multistage's strategic focus is now integrated within Weatherford's broader goals. Key priorities include strengthening Weatherford's completions portfolio, expanding capabilities in reservoir diagnostics and well performance, and realizing cost and commercial synergies between the two companies. Management is focused on integrating NCS's technologies and expertise to offer a more comprehensive suite of solutions to oil and gas producers, aiming to improve well performance and maximize asset value for customers.
Price history
How the share price has moved
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Is it cheap or expensive?
Fair value $214.30 vs current price $53.35
Our most-likely fair value is $214.30 a share — about 301.7% above today's price of $53.35, so the stock currently looks cheap (undervalued).
Is it drowning in debt?
Healthy
Net cash $18.5M - more cash than debt. Interest coverage 42.6x.
Net debt
$-18.54M
Interest coverage
42.61x
NCS Multistage Holdings Inc's profit covers its interest bill about 42.6 times over. which is stronger than every peer shown here and 2 peers sit below 1x, which is the danger zone where profit does not fully cover the interest bill.
Healthy
Worse cushion
Baseline
Better cushion
NCSM
BASELINE
NCS Multistage Holdings Inc
Total debt $12.78M Interest coverage 42.61x This is the baseline the peer rows are being compared against.
Total debt $128.87M Interest coverage 0.01x -100% vs NCSM Carries about 5655.3x less debt cushion than NCSM.
Total debt $94.70M Interest coverage 0.53x -99% vs NCSM Carries about 79.8x less debt cushion than NCSM.
Total debt $891.29M Interest coverage 2.25x -95% vs NCSM Carries about 18.9x less debt cushion than NCSM.
Total debt $51.74M Interest coverage 18.77x -56% vs NCSM Carries about 2.3x less debt cushion than NCSM.
Total debt $222.48M Interest coverage 3.20x -92% vs NCSM Carries about 13.3x less debt cushion than NCSM.
What you should know
The case for and against NCSM
3 Rewards
2 Risks
Rewards
-
Revenue grew 13.0% last year.
-
Returns 14.0% on equity, ahead of 66% of its peers.
-
Free cash flow was positive in 3/10 years.
Risks
-
Forward P/E (18.6x) is higher than trailing (10.8x) - earnings are expected to drop.
-
Operating margin compressed from -1.4% to -14.6% over 3 years.
The numbers
All the key metrics, grouped by purpose
Tap any ? icon to learn what it means.
Valuation
How expensive the stock looks
P/E (TTM)
10.80x
Forward P/E
18.59x
P/B
1.16x
P/S
0.77x
EV/EBITDA
14.23x
PEG ratio
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Profitability
How much profit each dollar creates
Gross margin
40.1%
Operating margin
-14.6%
Net margin
7.6%
ROE
14.0%
ROA
1.4%
Health
Liquidity and balance-sheet strength
Debt / equity
0.09x
Current ratio
4.27x
Quick ratio
2.54x
Total debt
$12.78M
Total cash
$31.32M
Growth
How the business has been compounding
Revenue TTM
$181.17M
Revenue 5Y CAGR
5.7%
EPS TTM
4.94
EPS 5Y CAGR
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Cash flow
How much cash the business throws off
Operating CF TTM
$22.18M
Free CF TTM
$20.87M
FCF margin
11.5%
Dividend
Shareholder payout
Yield
—
Payout ratio
0.0%
Last ex-div date
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