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 Thursday, April 18, 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 France-based company suppliers of geophysical services and products to oil and gas companies. The Company provision provides geophysical services recording, processing and interpretation of land and marine seismic data. It provides manufacturing of seismic equipment (40.3%): notably recording and transmission devices, seismic data acquisition vibrators, data processing and interpretation software, etc. It is a global technology and HPC that provides data, products, services and solutions in Earth science, data science, sensing and monitoring. Its portfolio supports clients in efficiently and responsibly solving complex digital, energy transition, natural resource, environmental, and infrastructure challenges for a more sustainable future. The Company offers a full spectrum of systems, sensors, sources for seismic acquisition and structural health monitoring.

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 78, which is considered to be undervalued.

When you look at CGG SA (ADR)’s price-to-sales ratio at 0.29 compared to the industry median at 0.84, 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 66.35 compared to the industry median at 16.11. This means it has a higher share price relative to earnings compared to its peers. This could make CGG SA (ADR) less attractive for value investors.

Now, let’s assess CGG SA (ADR)’s EV/EBITDA ratio, also known as enterprise multiple. At 4.0, 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. CGG SA (ADR)’s shareholder yield is lower than its industry median ratio of (1.07%). 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 1.32. 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 13.05. 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.

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 82, 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 1.32.

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.

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. The Company 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 79, 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 1.32.

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.

Newpark Resources Inc’s Value Grade

Value Grade:

Newpark Resources, Inc. is a geographically diversified supplier providing products, as well as rentals and services to customers across multiple industries. The Company operates through two segments include Industrial Solutions, Fluids Systems and Industrial Blending. Its Industrial Solutions segment provides temporary worksite access solutions, including the rental of its recyclable composite matting systems, along with related site construction and services to customers in various markets including power transmission, oil and natural gas exploration and production (E&P;), pipeline, renewable energy, petrochemical, construction and other industries, primarily in the United States and Europe. Its Fluids Systems segment provides drilling, completion, and stimulation fluids products and related technical services to customers for oil, natural gas, and geothermal projects primarily in North America and Europe, the Middle East and Africa, as well as certain countries in Asia Pacific.

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.

Newpark Resources Inc has a Value Score of 66, which is considered to be undervalued.

Newpark Resources Inc’s price-earnings ratio is 44.8 compared to the industry median at 16.1. This means that it has a higher price relative to its earnings compared to its peers. This makes Newpark Resources Inc less attractive for value investors.

Newpark Resources Inc’s price-to-book ratio is lower than its peers. This could make Newpark Resources Inc more attractive for value investors when compared to the industry median at 1.32.

You can read more about Newpark Resources 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 5.7 compared to the industry median at 16.1. 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 1.32.

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.

Select Water Solutions Inc’s Value Grade

Value Grade:

Select Water Solutions, Inc. is a provider of sustainable water and chemical solutions to the energy industry. The Company operates in three segments: Water Services, Water Infrastructure, and Chemical Technologies. The Water Services segment consists of its services businesses, including water sourcing, water transfer, flowback and well testing, fluid hauling, water monitoring, water containment and water network automation, serving exploration and production (E&P;) companies. The Water Infrastructure segment provides recycling, gathering, transferring and disposal of water. Its operations are enabled by a network of permanent pipeline infrastructure, semi-permanent pipeline infrastructure, water recycling facilities, earthen pits, water sources and SWDs. The Chemical Technologies segment develops, manufactures, manages logistics and provides a full suite of completion chemical products utilized in hydraulic fracturing, stimulation, cementing and related well completion processes.

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.

Select Water Solutions Inc has a Value Score of 76, which is considered to be undervalued.

Select Water Solutions Inc’s price-earnings ratio is 14.4 compared to the industry median at 16.1. This means that it has a lower price relative to its earnings compared to its peers. This makes Select Water Solutions Inc more attractive for value investors.

Select Water Solutions Inc’s price-to-book ratio is lower than its peers. This could make Select Water Solutions Inc fairly attractive for value investors when compared to the industry median at 1.32.

You can read more about Select Water 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.

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 B.
• Koil Energy Solutions Inc stock has a Value Grade of A.
• NCS Multistage Holdings Inc stock has a Value Grade of B.
• Newpark Resources Inc stock has a Value Grade of B.
• Tenaris SA (ADR) stock has a Value Grade of A.
• Select Water Solutions Inc stock has a Value Grade of B.

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 Thursday, April 18
• 4 Undervalued Oil & Gas - Related Services and Equipment Stocks for Wednesday, April 17
• What You Need to Know About Liberty Energy Inc's Q4 Earnings
• Why Profrac Holding Corp’s (ACDC) Stock Is Down 5.90%

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