Based on key financial metrics such as the price-to-sales ratio, shareholder yield and the price-earnings ratio, the following 6 stocks made the list for top value stocks in the Oil & Gas - Related Services and Equipment industry. Those looking for value stocks to add to their portfolio may want to use this list as a starting point for further investment research.

Latest Oil & Gas - Related Services and Equipment Stock News

Before choosing which top Oil & Gas - Related Services and Equipment stock to buy, be sure to conduct proper due diligence: analyze various financial metrics and look at historical data, public statements and news coverage.

The fundamental outlook for the oil & gas related services & equipment sub-industry is neutral for the next 12 months. Oil prices rebounded from lows during the pandemic to all-time highs in spring of 2022. Global oil demand is expected to exceed pre-pandemic levels, but inadequate supply levels add additional stress to an already tight market. Oil producers are increasing their capital spending for 2022, paving the way for more production while driving up demand for oil services. Despite this, the industry faces challenges heading into late 2022. Labor, equipment maintenance and supplies are all getting more costly. Oil services companies are also experiencing a shortage of sand used for fracking, rigs and fracking crews.

Why Focus on Undervalued Oil & Gas - Related Services and Equipment Stocks?

Value investors seek to buy stocks at a discount to their intrinsic value. Long-term returns show that such strategies are advantageous. Value stocks, as a group, tend to outperform growth stocks over extended periods of time. Typically, value investors perform financial analysis of numerous metrics, don’t follow the herd and are long-term investors.

AAII’s A+ Investor Value Grade is derived from a stock’s Value Score. The Value Score is the percentile rank of the average of the percentile ranks of the price-to-sales ratio, price-earnings ratio, enterprise-value-to-EBITDA (EV/EBITDA) ratio, shareholder yield, price-to-book-value ratio and price-to-free-cash-flow ratio. The score is variable, meaning it can consider all six ratios or, should any of the six ratios not be valid, the remaining ratios that are valid. To be assigned a Value Score, stocks must have a valid (non-null) ratio and corresponding ranking for at least two of the six valuation ratios.

What Goes Into AAII’s Value Grade?

Stock evaluation requires access to huge amounts of data as well as the knowledge and time to sift through it all, make sense of financial ratios, read income statements and analyze recent stock movement. AAII created A+ Investor, a robust data suite that condenses data research in an actionable and customizable way suitable for investors of all knowledge levels, to help investors with that task.

AAII’s proprietary stock grades come with A+ Investor. These offer intuitive A–F grades for more than just value. It is possible for a stock to appear cheap based on one valuation metric but appear expensive on another. It is also possible for one valuation ratio to be associated with outperforming stocks during certain periods of time but not others. Some stocks may even have null values for certain metrics like the price-earnings ratio or the price-to-book ratio but not others. An example of this would be a company with losses instead of profits or a negative book value because of heavy borrowing. Negative earnings or book value result in non-meaningful ratios that are left blank or null.

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6 Undervalued Oil & Gas - Related Services and Equipment Stocks

Of course, there are countless value stocks that are worth mentioning, but this is a concise list of the top 6 undervalued stocks in the Oil & Gas - Related Services and Equipment industry for Friday, February 09, 2024. Let’s take a closer look at their individual scores to see how they measure up against each other and the Oil & Gas - Related Services and Equipment industry median.

The Value Grade is assigned based on how each stock’s composite valuation compares to all other stocks.

The process for assigning grades starts with each variable for a given stock. The percentile rankings for all valid ratios that a stock has are calculated. So, for instance, a stock could have a price-to-book ranking in the 43rd percentile, a price-earnings ranking in the 67th percentile, a price-to-sales ranking in the 23rd percentile, etc. Then, those rankings are averaged for each stock. (A minimum of two valid variables are required, though all six will be used if available.)

Once the average of the individual variables is calculated, that average is ranked against all stocks. Put another way, each stock’s composite valuation is compared to all other stocks. These ranks are then sorted into quintiles from the cheapest 20% (a grade of A) to the most expensive 20% (a grade of F).

As always, we recommend that you conduct proper due diligence and research before investing in any security. We also suggest that investors utilize numerous grades, not just value, when it comes to deciding whether a company is a good fit for their allocation needs.

CGG SA (ADR)’s Value Grade

Value Grade:

CGG SA (CGG) is a manufacturer of geophysical equipment. The Company provides marine, land and airborne data acquisition services, as well as a range of other geoscience services, including data imaging, geoscience and petroleum engineering consulting services, and collecting, developing and licensing geological data. Its segments include Contractual Data Acquisition; Geology, Geophysics & Reservoir (GGR); Equipment, and Non-Operated Resources. The Contractual Data Acquisition includes marine, and land and multi-physics. Its GGR segment includes the Multi-client business line and the Subsurface Imaging and Reservoir business lines (processing and imaging of geophysical data, reservoir characterization, geophysical consulting and software services, geological data library and data management solutions). The Equipment segment consists of its manufacturing and sales activities for seismic equipment. It operates through Saturno, a multi-client survey over Santos Basin Offshore Brazil.

Stocks with a Value Score from 81 to 100 are considered deep value, those with a score between 61 and 80 are value and so on.

CGG SA (ADR) has a Value Score of 96, which is considered to be undervalued.

When you look at CGG SA (ADR)’s price-to-sales ratio at 0.37 compared to the industry median at 0.74, this company has a lower price relative to revenue compared to its peers. This could make CGG SA (ADR)’s stock more attractive for value investors.

CGG SA (ADR)’s price-earnings ratio is 5.01 compared to the industry median at 15.95. This means it has a lower share price relative to earnings compared to its peers. This could make CGG SA (ADR) more attractive for value investors.

Now, let’s assess CGG SA (ADR)’s EV/EBITDA ratio, also known as enterprise multiple. At 3.9, when compared to the industry median of 7.5, the company may be considered undervalued in relation to its peers. Value investors could use the enterprise multiple to identify stocks that are considered overvalued or undervalued relative to their industry.

Shareholder yield is the sum of a stock’s dividend yield (paid over previous 12 months minus special dividends) and the percentage of net share buybacks over the previous 12 months. CGG SA (ADR)’s shareholder yield is lower than its industry median ratio of (0.69%). Value investors may look for an attractive shareholder yield because it can be a powerful tool for identifying if the company has a good management team.

As one of the most common value metrics, the price-to-book ratio evaluates a company’s current market price relative to its book value. CGG SA (ADR)’s price-to-book ratio is lower than its industry median ratio of 1.25. This could make CGG SA (ADR) more attractive to investors looking for a new addition to their portfolio.

Lastly, let’s take a look at CGG SA (ADR)’s price-to-free-cash-flow ratio (P/FCF), which can indicate a company’s market value relative to its operating cash flow. CGG SA (ADR)’s price-to-free-cash-flow ratio is lower than its industry median ratio of 15.18. This could make CGG SA (ADR) more attractive because the lower P/FCF ratio indicates that CGG SA (ADR) is undervalued. The P/FCF ratio metric can also be viewed over a long-term time frame to see if the company's cash flow to share price value is generally improving or worsening.

Forum Energy Technologies Inc’s Value Grade

Value Grade:

Forum Energy Technologies, Inc. is a global company serving the oil, natural gas, industrial, and renewable energy industries. The Company’s segments include Drilling & Downhole, Completions and Production. Its Drilling & Downhole segment designs, manufactures and supplies products and provides related services to the drilling, well construction, artificial lift, and subsea energy construction markets, including applications in oil and natural gas, renewable energy, defense, and communications. Its Completions segment designs, manufactures and supplies products and provides related services to the coiled tubing, well stimulation and intervention markets. Its Production segment designs, manufactures, and supplies products and provides related equipment and services for the production and infrastructure markets. It provides a range of industrial valves. The Company also manufactures customized downhole technology solutions in sand and flow control for heavy oil applications.

Stocks with a Value Score from 81 to 100 are considered deep value, those with a score between 61 and 80 are value and so on.

Forum Energy Technologies Inc has a Value Score of 70, which is considered to be undervalued.

Forum Energy Technologies Inc’s price-to-book ratio is higher than its peers. This could make Forum Energy Technologies Inc less attractive for value investors when compared to the industry median at 1.25.

You can read more about Forum Energy Technologies Inc’s key financial metrics like shareholder yield, price-to-free-cash-flow and EV/EBITDA ratio, or learn more about its Momentum and Growth Grades, by subscribing to A+ Investor.

NCS Multistage Holdings Inc’s Value Grade

Value Grade:

NCS Multistage Holdings, Inc. is a provider of engineered products and support services for oil and natural gas well construction, well completions and field development strategies. The Company offers products and services primarily to exploration and production companies for use in onshore and offshore wells. The Company?s products and services are utilized in oil and natural gas basins throughout North America and in selected international markets, including Argentina, China, the Middle East and the North Sea. The Company owns a 50% interest in Repeat Precision, LLC, which sells composite frac plugs, perforating guns and related products directly to customers. It also provides tracer diagnostics services for well completion and reservoir characterization that utilize downhole chemical and radioactive tracers. The Company sells products for well construction, including its casing buoyancy systems, liner hanger systems and toe initiation sleeves.

Stocks with a Value Score from 81 to 100 are considered deep value, those with a score between 61 and 80 are value and so on.

NCS Multistage Holdings Inc has a Value Score of 64, which is considered to be undervalued.

NCS Multistage Holdings Inc’s price-to-book ratio is higher than its peers. This could make NCS Multistage Holdings Inc less attractive for value investors when compared to the industry median at 1.25.

You can read more about NCS Multistage Holdings Inc’s key financial metrics like shareholder yield, price-to-free-cash-flow and EV/EBITDA ratio, or learn more about its Momentum and Growth Grades, by subscribing to A+ Investor.

North American Construction Group Ltd’s Value Grade

Value Grade:

North American Construction Group Ltd. is a Canada-based company, which provides heavy civil construction and mining services in Canada, the United States, and Australia. It provides a range of mining and heavy construction services to customers in the resource development and industrial construction sectors. The Company’s Heavy Construction and Mining division is engaged in hard rock and oil sands mining, overburden removal, mine site development, and mine reclamation. This division also provides constructability design reviews, budgetary cost estimates, and a range of planning and scheduling services. The Company’s Equipment Maintenance Services division offers maintenance procedures on-site, as well as in its multiple shop facilities. It provides services, such as fuel and lube servicing options, portable steaming, equipment inspections, hose manufacturing and onsite haul truck brake testing. The Company also provides heavy earthworks solutions to the mining and civil sectors.

Stocks with a Value Score from 81 to 100 are considered deep value, those with a score between 61 and 80 are value and so on.

North American Construction Group Ltd has a Value Score of 64, which is considered to be undervalued.

North American Construction Group Ltd’s price-earnings ratio is 13.4 compared to the industry median at 15.9. This means that it has a lower price relative to its earnings compared to its peers. This makes North American Construction Group Ltd more attractive for value investors.

North American Construction Group Ltd’s price-to-book ratio is lower than its peers. This could make North American Construction Group Ltd more attractive for value investors when compared to the industry median at 1.25.

You can read more about North American Construction Group Ltd’s key financial metrics like shareholder yield, price-to-free-cash-flow and EV/EBITDA ratio, or learn more about its Momentum and Growth Grades, by subscribing to A+ Investor.

Propetro Holding Corp’s Value Grade

Value Grade:

ProPetro Holding Corp. is an integrated oilfield services company. The Company is focused on providing hydraulic fracturing, wireline and other complementary oilfield completion services to upstream oil and gas companies engaged in the exploration and production (E&P;) of North American oil and natural gas resources. Its operations are primarily focused on the Permian Basin. Its Completion Services segment includes hydraulic fracturing, cementing and wireline operations. It owns and operates a fleet of mobile hydraulic fracturing, wireline and cementing units, and other auxiliary equipment to perform completion services for E&P; companies. It provides cementing services for completion of new wells and remedial work on existing wells. It provides wireline and ancillary services, such as pumpdown on new oil well completions in the Permian Basin. The Company's coiled tubing services involve injecting coiled tubing into wells to perform completion well intervention operations.

Stocks with a Value Score from 81 to 100 are considered deep value, those with a score between 61 and 80 are value and so on.

Propetro Holding Corp has a Value Score of 74, which is considered to be undervalued.

Propetro Holding Corp’s price-earnings ratio is 7.8 compared to the industry median at 15.9. This means that it has a lower price relative to its earnings compared to its peers. This makes Propetro Holding Corp more attractive for value investors.

Propetro Holding Corp’s price-to-book ratio is higher than its peers. This could make Propetro Holding Corp less attractive for value investors when compared to the industry median at 1.25.

You can read more about Propetro Holding Corp’s key financial metrics like shareholder yield, price-to-free-cash-flow and EV/EBITDA ratio, or learn more about its Momentum and Growth Grades, by subscribing to A+ Investor.

Ranger Energy Services Inc’s Value Grade

Value Grade:

Ranger Energy Services, Inc. is a provider of onshore high specification (high spec) well service rigs, wireline services, and additional processing solutions and ancillary services in the United States. Its segments include High Specification Rigs, Wireline Services and Processing Solutions and Ancillary Services. The High Specification Rigs segment provides high-spec well service rigs and complementary equipment and services to facilitate operations throughout the lifecycle of a well. The Wireline Services segment provides services necessary to bring and maintain a well on production and consists of its wireline completion, wireline production and pump down lines of business. The Processing Solutions and Ancillary Services segment provides other services often utilized in conjunction with its High Specification Rigs and Wireline Services segments. These services include equipment rentals, snubbing and coil tubing, plug and abandonment, logistics hauling, and processing solutions.

Stocks with a Value Score from 81 to 100 are considered deep value, those with a score between 61 and 80 are value and so on.

Ranger Energy Services Inc has a Value Score of 96, which is considered to be undervalued.

Ranger Energy Services Inc’s price-earnings ratio is 8.5 compared to the industry median at 15.9. This means that it has a lower price relative to its earnings compared to its peers. This makes Ranger Energy Services Inc more attractive for value investors.

Ranger Energy Services Inc’s price-to-book ratio is higher than its peers. This could make Ranger Energy Services Inc less attractive for value investors when compared to the industry median at 1.25.

You can read more about Ranger Energy Services Inc’s key financial metrics like shareholder yield, price-to-free-cash-flow and EV/EBITDA ratio, or learn more about its Momentum and Growth Grades, by subscribing to A+ Investor.

Other Oil & Gas - Related Services and Equipment Stock Grades

Value is just one of the five Stock Grades included in our A+ Investor service. AAII members can see the top-graded stocks—those with grades of A or B for value, growth, momentum, earnings estimate revisions and quality—on the A+ Stock Grades Screener.

Also, if you want full access to all of AAII’s premium services, you can subscribe to one convenient bundled plan called AAII Platinum where you can try out A+ Investor, AAII Dividend Investing, the Stock Superstars Report, Growth Investing and VMQ Stocks. With the other premium services, you can dive deep into additional metrics, portfolios, commentary and information about Oil & Gas - Related Services and Equipment stocks as well as other industrys.

Choosing Which of the 6 Best Oil & Gas - Related Services and Equipment Stocks Is Right for You

Choosing which value stocks to invest in will ultimately depend on your individual goals and allocation; however, comparing similar value stocks in the same industry can help you analyze which might be better investments for you in the long run. So, let’s take a look at the Value Grade for all of our stocks.

• CGG SA (ADR) stock has a Value Grade of A.
• Forum Energy Technologies Inc stock has a Value Grade of B.
• NCS Multistage Holdings Inc stock has a Value Grade of B.
• North American Construction Group Ltd stock has a Value Grade of B.
• Propetro Holding Corp stock has a Value Grade of B.
• Ranger Energy Services Inc stock has a Value Grade of A.

Now that you have a bit more background about each of the 6 undervalued stocks in the Oil & Gas - Related Services and Equipment industry as well as their overall grades, it’s time for you to conduct additional research to see if these could fit your portfolio needs based on your goals and risk tolerance. AAII can help you figure out both and identify which investments align with what works best for you.

We do so through a program of education that teaches you to invest for yourself and become an effective manager of your own wealth—no more relying on others for your financial independence. You can rely on AAII for timeless articles on financial planning and stock-picking, unbiased research and actionable analysis that makes you a better investor.

A+ Investor adds to that qualitative teaching by giving you a powerful data suite that helps you whittle down investment decisions to find stocks, exchange-traded funds (ETFs) or mutual funds that meet your needs.

Additional Resources About Oil & Gas - Related Services and Equipment Stocks

Want to learn more about Oil & Gas - Related Services and Equipment stocks to see if they could be the right investment for you? Check out some additional resources and articles to help you on your financial journey.

• 6 Undervalued Oil & Gas - Related Services and Equipment Stocks for Friday, February 09
• 3 Undervalued Oil & Gas - Related Services and Equipment Stocks for Thursday, February 08
• Why Geospace Technologies Corp’s (GEOS) Stock Is Down 9.34%
• Why North American Construction Group Ltd’s (NOA) Stock Is Up 4.84%

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