Based on key financial metrics such as the price-to-sales ratio, shareholder yield and the price-earnings ratio, the following 7 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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7 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 7 undervalued stocks in the Oil & Gas - Related Services and Equipment industry for Wednesday, March 20, 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.

Profrac Holding Corp’s Value Grade

Value Grade:

ProFrac Holding Corp. is a vertically integrated energy services company. The Company is engaged in providing hydraulic fracturing, completion services and other complementary products and services to upstream oil and gas companies engaged in the exploration and production (E&P;) of North American unconventional oil and natural gas resources. It provides in-basin sand in North America. Its four mines produces approximately 10.4 million tons per year of proppant. Its solutions to the North American Oil and Gas industry include project design and manufacturing, sand and chemical supply, logistics coordination and data reporting, automation technology, emissions reduction, and additive manufacturing. The Company also provides pressure pumping services with operations in the Rockies and Eagle Ford. It operates frac fleets totaling 204,500 hydraulic horsepower that offer opportunity for upgrades through the additions of dynamic gas blending (DGB) engines and engine idle reduction 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.

Profrac Holding Corp has a Value Score of 78, which is considered to be undervalued.

When you look at Profrac Holding Corp’s price-to-sales ratio at 0.50 compared to the industry median at 0.86, this company has a lower price relative to revenue compared to its peers. This could make Profrac Holding Corp’s stock more attractive for value investors.

Now, let’s assess Profrac Holding Corp’s EV/EBITDA ratio, also known as enterprise multiple. At 3.8, when compared to the industry median of 7.2, 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. Profrac Holding Corp’s shareholder yield is lower than its industry median ratio of (0.62%). 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. Profrac Holding Corp’s price-to-book ratio is lower than its industry median ratio of 1.36. This could make Profrac Holding Corp more attractive to investors looking for a new addition to their portfolio.

Lastly, let’s take a look at Profrac Holding Corp’s price-to-free-cash-flow ratio (P/FCF), which can indicate a company’s market value relative to its operating cash flow. Profrac Holding Corp’s price-to-free-cash-flow ratio is lower than its industry median ratio of 13.58. This could make Profrac Holding Corp more attractive because the lower P/FCF ratio indicates that Profrac Holding Corp 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.

Dawson Geophysical Co’s Value Grade

Value Grade:

Dawson Geophysical Company is a provider of North American onshore seismic data acquisition services with operations throughout the continental United States and Canada. The Company acquires and processes two-dimensional (2-D), three-dimensional (3-D), and multi-component seismic data solely for its clients, ranging from oil and gas companies to independent oil and gas operators, as well as providers of multi-client data libraries. It provides its seismic data acquisition services primarily to providers of multi-client data libraries for use in the onshore drilling and production of oil and natural gas in the continental United States and Canada, as well as directly to onshore oil and natural gas exploration and development companies. It acquires geophysical data using 3-D seismic survey techniques. In addition to conventional 2-D and 3-D seismic surveys, it provides multi-component seismic data surveys. Multi-component surveys involve the recording of alternative seismic waves.

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.

Dawson Geophysical Co has a Value Score of 64, which is considered to be undervalued.

Dawson Geophysical Co’s price-to-book ratio is higher than its peers. This could make Dawson Geophysical Co less attractive for value investors when compared to the industry median at 1.36.

You can read more about Dawson Geophysical Co’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.

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 77, 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 1.36.

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.

KLX Energy Services Holdings Inc’s Value Grade

Value Grade:

KLX Energy Services Holdings, Inc. is a provider of diversified oilfield services to onshore oil and natural gas exploration and production companies operating in both conventional and unconventional plays in all of the active basins throughout the United States. It operates in three segments: the Southwest Region (the Permian Basin and Eagle Ford Shale), 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). Its primary services include directional drilling, coiled tubing, hydraulic frac rentals, fishing, pressure control, wireline, rig-assisted snubbing, fluid pumping, flowback, testing, pressure pumping, and well control services. Its primary rentals and products include hydraulic fracturing stacks, blow out preventers, tubulars, downhole tools, dissolvable plugs, composite plugs, and accommodation units.

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 80, which is considered to be undervalued.

KLX Energy Services Holdings Inc’s price-earnings ratio is 5.9 compared to the industry median at 17.4. This means that it has a lower price relative to its earnings compared to its peers. This makes KLX Energy Services Holdings Inc more attractive for value investors.

KLX Energy Services Holdings Inc’s price-to-book ratio is lower than its peers. This could make KLX Energy Services Holdings Inc more attractive for value investors when compared to the industry median at 1.36.

You can read more about KLX Energy Services 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.

Nine Energy Service Inc’s Value Grade

Value Grade:

Nine Energy Service, Inc. is an oilfield services company that offers completion solutions within North America and abroad. The Company partner with its exploration and production (E&P;) customers to design and deploy downhole solutions and technology to prepare horizontal, multistage wells for production. The Company provide its comprehensive completion solutions across a diverse set of well-types, including on the complex, technically demanding unconventional wells. It offers variety of completion applications and technologies to match customer needs across the broadest addressable completions market. Its comprehensive well solutions range from cementing the well at the initial stages of the completion, preparing the well for stimulation, isolating all the stages of an extended reach lateral, and the drilling out of isolation tools. The Company provides services integral to the completion of unconventional wells through a range of tools and methodologies.

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.

Nine Energy Service Inc has a Value Score of 87, which is considered to be undervalued.

You can read more about Nine Energy Service 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.

Oil States International Inc’s Value Grade

Value Grade:

Oil States International, Inc. is a global provider of manufactured products and services to customers in the energy, industrial and military sectors. The Company's manufactured products include highly engineered capital equipment, as well as products consumed in the drilling, well construction and production of oil and natural gas. It operates through three segments. The Offshore/Manufactured Products segment designs, manufactures and markets capital equipment utilized on floating production systems, subsea pipeline infrastructure, and offshore drilling rigs and vessels, along with short-cycle and other products. The Well Site Services segment includes a range of equipment and services that are used to drill for, establish and maintain the flow of oil and natural gas from a well throughout its life cycle. The Downhole Technologies segment provides oil and gas perforation systems and downhole tools in support of completion, intervention, wireline and well abandonment 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.

Oil States International Inc has a Value Score of 75, which is considered to be undervalued.

Oil States International Inc’s price-earnings ratio is 29.2 compared to the industry median at 17.4. This means that it has a higher price relative to its earnings compared to its peers. This makes Oil States International Inc less attractive for value investors.

Oil States International Inc’s price-to-book ratio is higher than its peers. This could make Oil States International Inc less attractive for value investors when compared to the industry median at 1.36.

You can read more about Oil States International 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.

Profire Energy, Inc.’s Value Grade

Value Grade:

Profire Energy, Inc. is a technology company. The Company is focused on the upstream, midstream, and downstream transmission segments of the oil and gas industry. It specializes in the engineering and design of burner and combustion management systems and solutions. The Company’s applications include combustors, enclosed flares, gas production units, treaters, glycol and amine reboiler, indirect line heaters, heated tanks, and process heaters that require heat as part of its production and or processing functions. Its burner-management systems ignite, monitor, and manage pilot and burner systems that are utilized in its process. Its technology enables remote operation, reducing the need for employee interaction with the appliance's burner for purposes, such as re-ignition or temperature monitoring. The Company's systems and solutions are used by exploration and production companies (E&P;), midstream operators, pipeline operators, as well as downstream transmission and utility providers.

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.

Profire Energy, Inc. has a Value Score of 66, which is considered to be undervalued.

Profire Energy, Inc.’s price-earnings ratio is 9.4 compared to the industry median at 17.4. This means that it has a lower price relative to its earnings compared to its peers. This makes Profire Energy, Inc. more attractive for value investors.

Profire Energy, Inc.’s price-to-book ratio is lower than its peers. This could make Profire Energy, Inc. more attractive for value investors when compared to the industry median at 1.36.

You can read more about Profire Energy, 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 7 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.

• Profrac Holding Corp stock has a Value Grade of B.
• Dawson Geophysical Co stock has a Value Grade of B.
• Forum Energy Technologies Inc stock has a Value Grade of B.
• KLX Energy Services Holdings Inc stock has a Value Grade of B.
• Nine Energy Service Inc stock has a Value Grade of A.
• Oil States International Inc stock has a Value Grade of B.
• Profire Energy, Inc. stock has a Value Grade of B.

Now that you have a bit more background about each of the 7 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.

• 7 Undervalued Oil & Gas - Related Services and Equipment Stocks for Wednesday, March 20
• 5 Undervalued Oil & Gas - Related Services and Equipment Stocks for Tuesday, March 19
• Why Dmc Global Inc’s (BOOM) Stock Is Up 5.68%
• Why Natural Gas Services Group, Inc.’s (NGS) Stock Is Up 4.96%

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