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Relative valuation derived from Energy sector median benchmarks. Model weights: EV/EBITDA (40%), P/B (35%), P/S (25%). Multiples adjusted for extreme outliers and non-recurring volatility.
Auditing capital efficiency...
Quality Profile Audit
Score: 32.7GRADE D
Composite assessment of profitability, capital efficiency, and financial strength. Top-tier entities demonstrate sustainable cash flow generation.
Return on Equity
Profit generated per dollar of shareholder equity
21.1%
Sector: 6.7%
Dividend Analysis audit
No Dividend
This company does not currently pay a dividend.
Analyst Projections
Analyst Consensus
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Based on our 6-factor quantitative model, National Energy Services Reunited Corp. (NESR) receives a "Hold" rating with a composite score of 51.2/100, ranked #1102 out of 4446 stocks. Key factor scores: Quality 33/100, Value 55/100, Momentum 84/100. This is quantitative analysis only — not investment advice.
National Energy Services Reunited Corp. (NESR) Stock Analysis — April 2026 Rating, Price, and Forecast
Company Overview — What Does National Energy Services Reunited Corp. Do?
National Energy Services Reunited Corp. provides oilfield services to oil and gas companies in the Middle East, North Africa, and the Asia Pacific regions. It operates through two segments, Production Services; and Drilling and Evaluation Services. The Production Services segment offers hydraulic fracturing services; coiled tubing services, including nitrogen lifting, fishing, milling, clean-out, scale removal, and other well applications; stimulation and pumping services; primary and remedial cementing services; nitrogen services; filtration services, as well as frac tanks and pumping units; and pipeline services, such as water filling and hydro testing, nitrogen purging, and de-gassing and pressure testing, as well as cutting/welding and cooling down piping/vessels systems. It also provides production assurance chemicals; laboratory services; artificial lift services; and surface and subsurface safety systems, high-pressure packer systems, flow controls, service tools, expandable liner technology, vacuum insulated tubing technology, and engineering capabilities with manufacturing capacity and testing facilities, as well as sources, treats, and disposes water for oil and gas, municipal, and industrial use. The Drilling and Evaluation Services segment offers drilling and workover rigs; rig services; fishing and remedial solutions; directional and turbines drilling services; drilling fluid systems and related technologies; wireline logging services; slickline services for removal of scale, wax and sand build-up, setting plugs, changing out gas lift valves, and fishing and other well applications; and well testing services to measure solids, gas, and oil and water produced from a well, as well as rents drilling tools. It also provides oilfield solutions for thru-tubing intervention; tubular running services; and a range of wellhead products, flow control equipment, and frac equipment. The company was incorporated in 2017 and is headquartered in Houston, Texas. National Energy Services Reunited Corp. (NESR) is classified as a mid-cap stock in the Energy sector, specifically within the Petroleum And Natural Gas industry. The company is led by CEO Sherif Foda and employs approximately 5,580 people. With a market capitalization of $2.2B, NESR is one of the notable companies in the Energy sector.
National Energy Services Reunited Corp. (NESR) Stock Rating — Hold (April 2026)
As of April 2026, National Energy Services Reunited Corp. receives a Hold rating with a composite score of 51.2/100 and 3 out of 5 stars from the Blank Capital Research quantitative model.NESR ranks #1,102 out of 4,446 stocks in our coverage universe. Within the Energy sector, National Energy Services Reunited Corp. ranks #91 of 128 stocks, placing it in the lower half of its Energy peers. The rating is generated by a multi-factor model that weighs quality (30%), momentum (25%), value (15%), investment (10%), stability (10%), and short interest (10%).
NESR Stock Price and 52-Week Range
National Energy Services Reunited Corp. (NESR) currently trades at $23.81. The 52-week high for NESR is $26.85, which means the stock is currently trading -11.3% from its annual peak. The 52-week low is $5.20, putting the stock 357.9% above its annual trough. Recent trading volume was 0 shares, suggesting relatively thin trading activity.
Is NESR Overvalued or Undervalued? — Valuation Analysis
National Energy Services Reunited Corp. (NESR) carries a value factor score of 55/100 in the Blank Capital model, indicating fair valuation relative to historical norms. The trailing price-to-earnings ratio is 45.79x, compared to the Energy sector average of 19.63x — a premium of 133%. The price-to-book ratio stands at 2.26x, versus the sector average of 1.64x. The price-to-sales ratio is 0.41x, compared to 0.47x for the average Energy stock. On an enterprise value basis, NESR trades at 6.21x EV/EBITDA, versus 3.50x for the sector.
Overall, NESR's valuation appears roughly in line with sector benchmarks, suggesting the market is pricing the stock fairly given its current fundamentals and growth trajectory. Neither deep value nor significantly overpriced, the stock occupies a middle ground on valuation.
National Energy Services Reunited Corp. Profitability — ROE, Margins, and Quality Score
National Energy Services Reunited Corp. (NESR) earns a quality factor score of 33/100, signaling below-average profitability metrics relative to the broader market. The return on equity (ROE) is 21.1%, compared to the Energy sector average of 6.7%, which demonstrates strong shareholder value creation. Return on assets (ROA) comes in at 11.1% versus the sector average of 3.7%.
On a margin basis, National Energy Services Reunited Corp. reports gross margins of 12.4%, compared to 52.7% for the sector. The operating margin is 7.4% (sector: 10.7%). Net profit margin stands at 3.9%, versus 6.4% for the average Energy stock. Profitability is below benchmark levels, which may reflect industry headwinds, elevated reinvestment, or structural challenges.
NESR Debt, Balance Sheet, and Financial Health
National Energy Services Reunited Corp. has a debt-to-equity ratio of 27.0%, compared to the Energy sector average of 55.0%. The low leverage indicates a conservative balance sheet with significant financial flexibility. The current ratio is 1.04x, suggesting adequate working capital coverage. Total debt on the balance sheet is $258M. Cash and equivalents stand at $108M.
NESR has a beta of 1.24, meaning it is more volatile than the broader market — a $10,000 investment in NESR would be expected to move 24.3% more than the S&P 500 on any given day. The stability factor score for National Energy Services Reunited Corp. is 45/100, reflecting average volatility within the normal range for its sector.
National Energy Services Reunited Corp. Revenue and Earnings History — Quarterly Trend
In TTM 2026, National Energy Services Reunited Corp. reported revenue of $1.32B and earnings per share (EPS) of $0.52. Net income for the quarter was $51M. Gross margin was 12.4%. Operating income came in at $98M.
In FY 2025, National Energy Services Reunited Corp. reported revenue of $1.32B and earnings per share (EPS) of $0.52. Net income for the quarter was $51M. Gross margin was 12.4%. Revenue grew 5.1% year-over-year compared to FY 2024. Operating income came in at $98M.
In FY 2024, National Energy Services Reunited Corp. reported revenue of $1.26B and earnings per share (EPS) of $0.80. Net income for the quarter was $76M. Gross margin was -3.2%. Revenue grew 15.0% year-over-year compared to FY 2023. Operating income came in at $1.30B.
In FY 2023, National Energy Services Reunited Corp. reported revenue of $1.10B and earnings per share (EPS) of $0.13. Net income for the quarter was $13M. Gross margin was -4.2%. Revenue grew 24.3% year-over-year compared to FY 2022. Operating income came in at $1.14B.
Over the past 8 quarters, National Energy Services Reunited Corp. has demonstrated a growth trajectory, with revenue expanding from $639M to $1.32B. Investors analyzing NESR stock should weigh these quarterly trends alongside the valuation and quality metrics discussed above.
NESR Dividend Yield and Income Analysis
National Energy Services Reunited Corp. (NESR) does not currently pay a dividend. This is common among smaller companies in the Petroleum And Natural Gas industry that prefer to reinvest cash flows into business expansion rather than returning capital to shareholders. Income-focused investors looking for Energy dividend stocks may want to explore other Energy stocks or use the stock screener to filter by dividend yield.
NESR Momentum and Technical Analysis Profile
National Energy Services Reunited Corp. (NESR) has a momentum factor score of 84/100, indicating strong price momentum with the stock outperforming the majority of the market over recent periods. Stocks with high momentum scores have historically tended to continue their outperformance in the near term. The investment factor score is 37/100, which measures capital allocation efficiency and asset growth patterns. The short interest score of 40/100 reflects moderate short selling activity.
NESR vs Competitors — Energy Sector Ranking and Peer Comparison
Within the Energy sector, National Energy Services Reunited Corp. (NESR) ranks #91 out of 128 stocks based on the Blank Capital composite score. This places NESR in the lower half of all Energy stocks in our coverage universe. Key competitors and sector peers include TotalEnergies SE (TTE) with a score of 57.0/100, APA Corp (APA) with a score of 54.7/100, PRECISION DRILLING Corp (PDS) with a score of 53.4/100, Greenfire Resources Ltd. (GFR) with a score of 59.2/100, and EXXON MOBIL CORP (XOM) with a score of 55.1/100.
Comparing NESR against the S&P 500 benchmark is also instructive for understanding relative performance. Investors can view the full NESR vs S&P 500 (SPY) comparison to assess how National Energy Services Reunited Corp. stacks up against the broader market across all factor dimensions.
NESR Next Earnings Date
No upcoming earnings date has been announced for National Energy Services Reunited Corp. (NESR) at this time. Check the earnings calendar for the latest scheduling updates across all stocks in our coverage universe.
Should You Buy NESR? — Investment Thesis Summary
National Energy Services Reunited Corp. presents a balanced picture with arguments on both sides. The quality score of 33/100 flags below-average profitability. Price momentum is positive at 84/100, suggesting the trend favors buyers.
In summary, National Energy Services Reunited Corp. (NESR) earns a Hold rating with a composite score of 51.2/100 as of April 2026. The rating is derived from the Blank Capital Research methodology, which combines six factor dimensions into a single quantitative ranking. Investors should consider these quantitative signals alongside their own fundamental research, risk tolerance, and investment time horizon before making buy or sell decisions on NESR stock.
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Institutional Research Dossier
National Energy Services Reunited Corp. (NESR) Deep Dive Analysis
Published on March 24, 2026
Action RatingHold
Sections
Executive Summary
National Energy Services Reunited Corp. (NESR) receives a Hold rating, driven by a mixed financial profile. While the company exhibits strong momentum and a reasonable valuation based on certain metrics, concerns arise from its relatively weak profitability, capital allocation, and stability compared to its peers. The critical takeaway is that NESR's future performance hinges on its ability to improve operational efficiency and capitalize on growth opportunities in the Middle East, North Africa, and Asia Pacific regions, while effectively managing its debt burden.
The company's exposure to the cyclical oil and gas industry introduces inherent volatility, requiring investors to carefully weigh the potential for upside against the risk of downturns. The current valuation appears fair, but significant improvements in profitability and free cash flow generation are necessary to justify a more bullish outlook. Until these improvements materialize, a Hold rating is warranted, reflecting a balanced view of the company's prospects and challenges.
Business Strategy & Overview
National Energy Services Reunited Corp. (NESR) operates as an oilfield services provider, focusing on the Middle East, North Africa, and Asia Pacific regions. The company generates revenue through two primary segments: Production Services and Drilling and Evaluation Services. The Production Services segment offers a comprehensive suite of services, including hydraulic fracturing, coiled tubing, cementing, and pipeline services. This segment also provides production assurance chemicals, laboratory services, and artificial lift services, catering to the full lifecycle of oil and gas production.
The Drilling and Evaluation Services segment focuses on providing drilling and workover rigs, rig services, directional drilling, drilling fluid systems, and wireline logging services. This segment also offers well testing services and rents drilling tools, supporting exploration and development activities. NESR's strategy involves offering integrated solutions to oil and gas companies, aiming to capture a larger share of the market by providing a one-stop shop for various oilfield service needs. This approach allows NESR to build stronger relationships with its clients and potentially secure long-term contracts.
NESR's strategic positioning in the Middle East and North Africa is crucial, as these regions hold significant oil and gas reserves and are expected to continue investing in exploration and production activities. The company's focus on these regions allows it to benefit from the growing demand for oilfield services in these markets. However, this geographic concentration also exposes NESR to regional political and economic risks.
The company's product pipeline appears to be focused on enhancing its existing service offerings and expanding its technological capabilities. This includes investments in advanced drilling technologies, enhanced oil recovery techniques, and digital solutions for optimizing oilfield operations. By continuously innovating and improving its service offerings, NESR aims to maintain a competitive edge and attract new clients. The company's ability to successfully execute its business strategy will depend on its ability to effectively manage its operations, control costs, and adapt to changing market conditions.
Execution Benchmarks audit
Gross Margin
Core pricing power
12.4%
Sector: 52.7%
-76% VS SCTR
Economic Moat Analysis
National Energy Services Reunited Corp. (NESR) likely possesses a narrow economic moat. The oilfield services industry is highly competitive, with numerous players offering similar services. However, NESR's focus on the Middle East, North Africa, and Asia Pacific regions provides it with a degree of geographic specialization, which can create some barriers to entry for competitors. The company's established relationships with national oil companies (NOCs) in these regions also contribute to its competitive advantage.
Switching costs for oilfield services can be moderate. While oil and gas companies may be reluctant to switch providers due to the complexity of operations and the potential for disruptions, they are also price-sensitive and will seek out the most cost-effective solutions. NESR's ability to offer competitive pricing and maintain high service quality is crucial for retaining its clients.
Intangible assets, such as proprietary technologies and specialized expertise, can also contribute to NESR's moat. The company's investments in advanced drilling technologies and enhanced oil recovery techniques may provide it with a competitive edge over its rivals. However, these technologies are often replicable, and NESR must continuously innovate to maintain its advantage.
Cost advantages are another potential source of economic moat. NESR's ability to efficiently manage its operations and control costs can allow it to offer competitive pricing and maintain healthy profit margins. However, the company's gross margin of 12.4% is significantly lower than the sector average of 55.1%, suggesting that it may not have a significant cost advantage. Efficient scale is unlikely to be a major factor in NESR's moat, as the oilfield services industry is not characterized by significant economies of scale.
Overall, NESR's narrow moat is primarily based on its geographic specialization, established relationships with NOCs, and investments in proprietary technologies. However, the company faces intense competition and must continuously innovate and improve its service offerings to maintain its competitive advantage. The relatively low gross margin compared to the sector suggests that NESR needs to improve its cost structure to strengthen its moat.
Financial Health & Profitability
National Energy Services Reunited Corp.'s (NESR) financial health presents a mixed picture. The company's revenue has shown growth over the past few years, increasing from $827.41 million in FY2020 to $1.32 billion in FY2025. However, the company's profitability has been inconsistent. While NESR reported a net income of $51.13 million in FY2025, it experienced net losses in FY2021 and FY2022. The company's net margin of 3.9% is lower than the sector average of 6.3%, indicating room for improvement in operational efficiency.
NESR's return on equity (ROE) of 21.1% is significantly higher than the sector average of 6.9%, suggesting that the company is effectively utilizing its equity to generate profits. However, this metric should be viewed in the context of the company's leverage, as higher leverage can inflate ROE. The company's gross margin of 12.4% is significantly lower than the sector average of 55.1%, indicating that NESR may be facing challenges in controlling its cost of goods sold.
The company's balance sheet shows a total cash balance of $107.96 million and total debt of $258.00 million, resulting in a debt-to-equity ratio of 27.00, which is lower than the sector average of 55.00. This suggests that NESR is less leveraged than its peers. The company's current ratio of 1.04 indicates that it has sufficient current assets to cover its current liabilities. Free cash flow generation has been inconsistent, with negative free cash flow in FY2020 and positive free cash flow in subsequent years. The company's ability to generate consistent free cash flow is crucial for funding its growth initiatives and reducing its debt burden.
Examining the quarterly financial history reveals fluctuating gross and operating margins. The operating margin figures of over 100% in FY2021-FY2024 are anomalous and likely due to accounting adjustments or one-time gains, which should be investigated further to understand their nature and impact on the company's financial performance. The recent decline in operating margin to 7.4% in FY2025 warrants attention, as it could indicate a deterioration in the company's operational efficiency or increased competitive pressures.
Valuation Assessment
National Energy Services Reunited Corp.'s (NESR) valuation presents a mixed picture. The company's price-to-earnings (P/E) ratio of 39.7x is significantly higher than the sector average of 19.5x, suggesting that the stock may be overvalued relative to its earnings. However, the P/E ratio can be misleading if the company's earnings are volatile or depressed. The company's EV/EBITDA ratio of 6.0x is also higher than the sector average of 3.5x, further indicating that the stock may be overvalued relative to its earnings before interest, taxes, depreciation, and amortization.
The company's free cash flow (FCF) yield cannot be accurately assessed due to the lack of available FCF data for the most recent period. However, based on the available data, the company's FCF generation has been inconsistent, which makes it difficult to determine a fair valuation based on FCF yield. The company's market capitalization of $2.08 billion appears reasonable given its revenue of $1.32 billion, but the valuation should be assessed in the context of the company's growth prospects and profitability.
Compared to its historical valuation, NESR's current valuation appears to be relatively high. The company's P/E ratio is significantly higher than its historical average, which could indicate that the stock is currently overvalued. However, the company's growth prospects may justify a higher valuation. The company's valuation should also be assessed in the context of its peers. Compared to other oilfield services companies, NESR's valuation appears to be in line with its peers, but it is important to consider the company's specific growth prospects and profitability when making a valuation comparison.
Overall, NESR's valuation appears to be fair, but not particularly cheap. The company's high P/E and EV/EBITDA ratios suggest that the stock may be overvalued relative to its earnings, but its growth prospects and ROE may justify a higher valuation. Investors should carefully consider the company's growth prospects, profitability, and risk factors before making an investment decision. The Hold rating reflects the uncertainty surrounding the company's valuation and the need for further improvements in profitability and free cash flow generation.
Risk & Uncertainty
National Energy Services Reunited Corp. (NESR) faces several specific, idiosyncratic risks that could impact its business and financial performance. One of the primary risks is its geographic concentration in the Middle East, North Africa, and Asia Pacific regions. Political instability, economic downturns, or regulatory changes in these regions could significantly disrupt NESR's operations and reduce demand for its services. The company's reliance on national oil companies (NOCs) in these regions also exposes it to the risk of contract cancellations or renegotiations.
Competition in the oilfield services industry is intense, with numerous players offering similar services. NESR faces competition from larger, more established companies with greater financial resources and broader geographic reach. The company's ability to maintain its competitive edge will depend on its ability to innovate, offer competitive pricing, and provide high-quality services. The cyclical nature of the oil and gas industry also poses a significant risk to NESR. Downturns in oil prices can lead to reduced exploration and production activities, which in turn can reduce demand for NESR's services.
NESR's debt burden of $258.00 million also poses a risk to its financial health. The company's ability to service its debt will depend on its ability to generate sufficient cash flow. A decline in oil prices or a slowdown in economic activity could reduce NESR's cash flow and make it difficult for the company to meet its debt obligations. Regulatory risks are also a concern for NESR. Changes in environmental regulations or other regulations affecting the oil and gas industry could increase the company's costs and reduce its profitability.
The anomalous operating margin figures in the historical data (over 100% in several years) raise concerns about the accuracy and reliability of the company's financial reporting. If these figures are due to accounting errors or irregularities, it could undermine investor confidence and lead to a decline in the company's stock price. A thorough investigation of these figures is warranted to determine their cause and impact on the company's financial performance.
Bulls Say / Bears Say
The Bull Case
BULL VIEWNESR's strategic focus on the growing Middle East and North Africa oil and gas markets positions it for significant revenue growth as these regions increase production.
BULL VIEWThe company's improving ROE demonstrates its increasing efficiency in utilizing equity, suggesting a potential for higher profitability and shareholder returns.
BULL VIEWNESR's lower debt-to-equity ratio compared to its peers provides financial flexibility to pursue strategic acquisitions and investments, further enhancing its market position.
The Bear Case
BEAR VIEWNESR's significantly higher P/E ratio compared to the sector average indicates that the stock is overvalued and vulnerable to a correction if earnings do not improve substantially.
BEAR VIEWThe company's inconsistent free cash flow generation raises concerns about its ability to fund future growth and reduce its debt burden, potentially limiting its long-term prospects.
BEAR VIEWNESR's low gross margin compared to its peers suggests a lack of pricing power and operational inefficiencies, hindering its ability to compete effectively in the long run.
About the Author
Marques Blank
Founder & Chief Investment Officer, Blank Capital
Marques brings 15 years of institutional finance and investing experience, having overseen financial planning for a $1.6B defense business unit. He developed the proprietary 6-factor quantitative model used to score NESR and 4,400+ other equities.
National Energy Services Reunited Corp. exhibits a 59% valuation premium relative to institutional benchmarks. This represents a potential valuation overextension based on current multiples.
Return on Assets
Efficiency of asset utilization
11.1%
Sector: 3.7%
Gross Margin
Pricing power and cost efficiency
12.4%
Sector: 52.7%
Operating Margin
Core business profitability
7.4%
Sector: 10.7%
Net Margin
Bottom-line profitability
3.9%
Sector: 6.4%
Factor Methodology
The Quality factor evaluates the persistence and magnitude of cash flows. Companies with scores >70 exhibit superior competitive moats and financial resilience through economic cycles.
