Based on key financial metrics such as the price-to-sales ratio, shareholder yield and the price-earnings ratio, the following 4 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.

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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4 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 4 undervalued stocks in the Oil & Gas - Related Services and Equipment industry for Friday, March 01, 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.

KLX Energy Services Holdings Inc’s Value Grade

Value Grade:

KLX Energy Services Holdings, Inc. is a provider of oilfield services to onshore oil and natural gas exploration and production companies operating in both conventional and unconventional areas throughout the United States. It operates in three segments on a geographic basis, including the Southwest Region (the Permian Basin, Eagle Ford Shale and the Gulf Coast as well as in industrial and petrochemical facilities), the Rocky Mountains Region (the Bakken, Williston, DJ, Uinta, Powder River, Piceance and Niobrara basins) and the Northeast/Mid-Con Region (the Marcellus and Utica Shale as well as the Mid-Continent STACK and SCOOP and Haynesville Shale). Its primary services include directional drilling, coiled tubing, thru tubing, hydraulic frac rentals, fishing, pressure control, wireline, fluid pumping, flowback, testing, pressure pumping and well control services. Its primary rentals and products include hydraulic fracturing stacks, blow out preventers, tubulars, and downhole tools.

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.

KLX Energy Services Holdings Inc has a Value Score of 82, which is considered to be undervalued.

When you look at KLX Energy Services Holdings Inc’s price-to-sales ratio at 0.14 compared to the industry median at 0.77, this company has a lower price relative to revenue compared to its peers. This could make KLX Energy Services Holdings Inc’s stock more attractive for value investors.

KLX Energy Services Holdings Inc’s price-earnings ratio is 2.67 compared to the industry median at 14.96. This means it has a lower share price relative to earnings compared to its peers. This could make KLX Energy Services Holdings Inc more attractive for value investors.

Now, let’s assess KLX Energy Services Holdings Inc’s EV/EBITDA ratio, also known as enterprise multiple. At 3.2, when compared to the industry median of 7.4, 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. KLX Energy Services Holdings Inc’s shareholder yield is lower than its industry median ratio of (0.98%). 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. KLX Energy Services Holdings Inc’s price-to-book ratio is higher than its industry median ratio of 1.28. This could make KLX Energy Services Holdings Inc less attractive to investors looking for a new addition to their portfolio.

Lastly, let’s take a look at KLX Energy Services Holdings Inc’s price-to-free-cash-flow ratio (P/FCF), which can indicate a company’s market value relative to its operating cash flow. KLX Energy Services Holdings Inc’s price-to-free-cash-flow ratio is lower than its industry median ratio of 13.13. This could make KLX Energy Services Holdings Inc more attractive because the lower P/FCF ratio indicates that KLX Energy Services Holdings Inc 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.

Perma-Pipe International Holdings Inc’s Value Grade

Value Grade:

Perma-Pipe International Holdings, Inc. is engaged in the manufacture and sale of piping systems. The Company engineers, designs, manufactures, and sells specialty piping systems and leak detection systems. Its Specialty piping systems include insulated and jacketed district heating, and cooling piping systems; primary and secondary containment piping systems for transporting chemicals, hazardous fluids and petroleum products; the coating and/or insulation of oil and gas gathering and transmission pipelines; and liquid and powder-based anti-corrosion coatings. The Company's leak detection systems are sold with its piping systems or on a stand-alone basis to monitor areas where fluid intrusion may contaminate the environment, endanger personal safety, cause a fire hazard, impair essential services, or damage equipment or property. The Company operates through one segment: Piping Systems.

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.

Perma-Pipe International Holdings Inc has a Value Score of 87, which is considered to be undervalued.

Perma-Pipe International Holdings Inc’s price-earnings ratio is 11.9 compared to the industry median at 15.0. This means that it has a lower price relative to its earnings compared to its peers. This makes Perma-Pipe International Holdings Inc more attractive for value investors.

Perma-Pipe International Holdings Inc’s price-to-book ratio is higher than its peers. This could make Perma-Pipe International Holdings Inc less attractive for value investors when compared to the industry median at 1.28.

You can read more about Perma-Pipe International 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.

Solaris Oilfield Infrastructure Inc’s Value Grade

Value Grade:

Solaris Oilfield Infrastructure, Inc. designs and manufactures specialized equipment, which combined with field technician support, last mile logistics services and software solutions. The Company provides a service offering that helps oil and natural gas operators and their suppliers during the completion phase of well development. Its equipment and services are deployed in the active oil and natural gas basins in the United States. It specializes in developing all-electric equipment that automates the low-pressure section of oil and gas well completion sites. The Company?s fleet consist of mobile proppant management systems to multiple types of all-electric, automated equipment designed to store, move and blend sand and fluids on the low-pressure side of well completion sites. It owns or leases manufacturing facilities in Early, Texas and a transloading facility in Kingfisher, Oklahoma. It also offers AutoBlend, an integrated electric blender and fluid management systems.

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.

Solaris Oilfield Infrastructure Inc has a Value Score of 90, which is considered to be undervalued.

Solaris Oilfield Infrastructure Inc’s price-earnings ratio is 11.0 compared to the industry median at 15.0. This means that it has a lower price relative to its earnings compared to its peers. This makes Solaris Oilfield Infrastructure Inc more attractive for value investors.

Solaris Oilfield Infrastructure Inc’s price-to-book ratio is higher than its peers. This could make Solaris Oilfield Infrastructure Inc less attractive for value investors when compared to the industry median at 1.28.

You can read more about Solaris Oilfield Infrastructure 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.

Bristow Group Inc’s Value Grade

Value Grade:

Bristow Group Inc. is a provider of vertical flight solutions. The Company primarily provides aviation services to a broad base of offshore energy companies and government entities. The Company?s aviation services include personnel transportation, search and rescue (SAR), medevac, fixed-wing transportation, unmanned systems, and ad-hoc helicopter services. It focuses on helicopter service contracts and fixed-wing service contracts. The Company owns and operates classes of helicopters, such as heavy helicopters, medium helicopters, light helicopters, and single-engine helicopters. It is an operator of each of the S92, AW189, and AW139 helicopter models. It serves customers in Australia, Brazil, Canada, Chile, the Dutch Caribbean, the Falkland Islands, Guyana, India, Mexico, the Netherlands, Nigeria, Norway, Spain, Suriname, Trinidad, the United Kingdom (U.K.) and the United States (U.S.). The Company?s fleet includes 227 aircraft located across six continents and 17 different countries.

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.

Bristow Group Inc has a Value Score of 69, which is considered to be undervalued.

Bristow Group Inc’s price-to-book ratio is higher than its peers. This could make Bristow Group Inc less attractive for value investors when compared to the industry median at 1.28.

You can read more about Bristow Group 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 4 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.

• KLX Energy Services Holdings Inc stock has a Value Grade of A.
• Perma-Pipe International Holdings Inc stock has a Value Grade of A.
• Solaris Oilfield Infrastructure Inc stock has a Value Grade of A.
• Bristow Group Inc stock has a Value Grade of B.

Now that you have a bit more background about each of the 4 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.

• 4 Undervalued Oil & Gas - Related Services and Equipment Stocks for Friday, March 01
• 4 Undervalued Oil & Gas - Related Services and Equipment Stocks for Thursday, February 29
• Why Oceaneering International Inc’s (OII) Stock Is Down 4.86%
• 6 Undervalued Oil & Gas - Related Services and Equipment Stocks for Wednesday, February 28

AAII Disclaimer

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