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.

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 Wednesday, April 10, 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.

Dmc Global Inc’s Value Grade

Value Grade:

DMC Global Inc. is an owner and operator of asset-light manufacturing businesses. It owns and operates Arcadia Products, DynaEnergetics and NobelClad, three asset-light manufacturing businesses that provide differentiated products and engineered solutions to segments of the construction, energy, industrial processing and transportation markets. Arcadia Products supplies architectural building products, including exterior and interior framing systems, windows, curtain walls, storefronts, doors and interior partitions to the commercial construction market. DynaEnergetics designs, manufactures and sells highly engineered products utilized by the global oil and gas industry for the perforation of oil and gas wells. NobelClad produces explosion-welded clad metal plates for use in the construction of corrosion resistant industrial processing equipment, as well as specialized transition joints for use in construction of commuter rail cars, ships and liquified natural gas processing equipment.

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.

Dmc Global Inc has a Value Score of 73, which is considered to be undervalued.

When you look at Dmc Global Inc’s price-to-sales ratio at 0.54 compared to the industry median at 0.89, this company has a lower price relative to revenue compared to its peers. This could make Dmc Global Inc’s stock more attractive for value investors.

Dmc Global Inc’s price-earnings ratio is 17.34 compared to the industry median at 17.60. This means it has a lower share price relative to earnings compared to its peers. This could make Dmc Global Inc more attractive for value investors.

Now, let’s assess Dmc Global Inc’s EV/EBITDA ratio, also known as enterprise multiple. At 6.3, 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. Dmc Global Inc’s shareholder yield is lower than its industry median ratio of (0.96%). 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. Dmc Global Inc’s price-to-book ratio is lower than its industry median ratio of 1.39. This could make Dmc Global Inc more attractive to investors looking for a new addition to their portfolio.

Lastly, let’s take a look at Dmc Global Inc’s price-to-free-cash-flow ratio (P/FCF), which can indicate a company’s market value relative to its operating cash flow. Dmc Global Inc’s price-to-free-cash-flow ratio is lower than its industry median ratio of 14.32. This could make Dmc Global Inc more attractive because the lower P/FCF ratio indicates that Dmc Global 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.

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 78, 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 1.39.

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.

Koil Energy Solutions Inc’s Value Grade

Value Grade:

Koil Energy Solutions, Inc. is an energy services company, which provides equipment and support services to the world’s energy and offshore industries. Its core services and technological solutions include distribution system installation support and engineering services, umbilical terminations, loose-tube steel flying leads, and related services. It supports subsea engineering, manufacturing, installation, commissioning, and maintenance projects located anywhere in the world. Its line of solutions is engineered and manufactured for integrated, large independent, and foreign national energy companies in offshore areas throughout the world. These products are often developed in direct response to customer requests for solutions to critical needs in the field. Its products include Flying Leads, Umbilical Hardware, Installation Aids and Riser Isolation Valves and Subsea Isolation Valve Services. It designs, manufactures, and installs flying leads, particularly steel tube flying leads.

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.

Koil Energy Solutions Inc has a Value Score of 81, which is considered to be undervalued.

Koil Energy Solutions Inc’s price-to-book ratio is higher than its peers. This could make Koil Energy Solutions Inc less attractive for value investors when compared to the industry median at 1.39.

You can read more about Koil Energy Solutions 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.

Nov Inc’s Value Grade

Value Grade:

NOV Inc. is an independent equipment and technology provider to the global energy industry. The Company operates through two segments: Energy Equipment, and Energy Products and Services. Its engineering knowhow, global supply chain management, manufacturing, and energy infrastructure development support provides capabilities to assist customers with energy transition advancement. It is also a geothermal equipment and technology provider, offering an array of tools and equipment specifically designed for the ultra-harsh conditions associated with geothermal development. Additionally, the Company is an equipment and technology provider for purpose-built vessels used to build, install, and maintain offshore wind towers and turbines. The Company is engaged in the development and commercialization of novel products and technologies to improve the efficiencies and economics of land and offshore-based wind, geothermal power generation, and carbon capture and sequestration.

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.

Nov Inc has a Value Score of 76, which is considered to be undervalued.

Nov Inc’s price-earnings ratio is 8.1 compared to the industry median at 17.6. This means that it has a lower price relative to its earnings compared to its peers. This makes Nov Inc more attractive for value investors.

Nov Inc’s price-to-book ratio is higher than its peers. This could make Nov Inc less attractive for value investors when compared to the industry median at 1.39.

You can read more about Nov 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 68, which is considered to be undervalued.

Profire Energy, Inc.’s price-earnings ratio is 8.4 compared to the industry median at 17.6. 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 1.39.

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.

Tenaris SA (ADR)’s Value Grade

Value Grade:

Tenaris S.A. is a holding company, which is a steel producer with production facilities in Mexico, Argentina, Colombia, United States and Guatemala. The Company supplies round steel bars and flat steel products for its pipes business. It operates through Tubes business segment. The Tubes segment includes the production and sale of both seamless and welded steel tubular products, and related services primarily for the oil and gas industry, principally oil country tubular goods (OCTG) used in drilling operations, and for other industrial applications with production processes that include in the transformation of steel into tubular products. It operates in geographical areas, such as North America, South America, Europe, Middle East and Africa, and Asia Pacific. Its products and services include OCTG, Premium Connections, Rig Direct, Offshore Line Pipe, Onshore Line Pipe, Hydrocarbon Processing, Power Generation, Sucker Rods, Coiled Tubing, Industrial and Mechanical, and Automotive.

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.

Tenaris SA (ADR) has a Value Score of 91, which is considered to be undervalued.

Tenaris SA (ADR)’s price-earnings ratio is 6.0 compared to the industry median at 17.6. This means that it has a lower price relative to its earnings compared to its peers. This makes Tenaris SA (ADR) more attractive for value investors.

Tenaris SA (ADR)’s price-to-book ratio is lower than its peers. This could make Tenaris SA (ADR) fairly attractive for value investors when compared to the industry median at 1.39.

You can read more about Tenaris SA (ADR)’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.

• Dmc Global Inc stock has a Value Grade of B.
• Forum Energy Technologies Inc stock has a Value Grade of B.
• Koil Energy Solutions Inc stock has a Value Grade of A.
• Nov Inc stock has a Value Grade of B.
• Profire Energy, Inc. stock has a Value Grade of B.
• Tenaris SA (ADR) 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 Wednesday, April 10
• 3 Undervalued Oil & Gas - Related Services and Equipment Stocks for Tuesday, April 09
• 7 Undervalued Oil & Gas - Related Services and Equipment Stocks for Monday, April 08
• 5 Undervalued Oil & Gas - Related Services and Equipment Stocks for Friday, April 05

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