Based on key financial metrics such as the price-to-sales ratio, shareholder yield and the price-earnings ratio, the following 5 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.

Click the button below to learn more about A+ Investor and subscribe today.

5 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 5 undervalued stocks in the Oil & Gas - Related Services and Equipment industry for Thursday, May 16, 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 88, which is considered to be undervalued.

When you look at Dmc Global Inc’s price-to-sales ratio at 0.36 compared to the industry median at 0.88, 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 11.76 compared to the industry median at 16.91. 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 6.2, 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. Dmc Global Inc’s shareholder yield is higher than its industry median ratio of (0.99%). 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 1.29. This could make Dmc Global Inc more attractive to investors looking for a new addition to their portfolio.

Gulf Island Fabrication, Inc.’s Value Grade

Value Grade:

Gulf Island Fabrication, Inc. is a fabricator of complex steel structures and modules. The Company is also a provider of specialty services, including project management, hookup, commissioning, repair, maintenance, scaffolding, coatings, welding enclosures, civil construction and staffing services for the industrial and energy sectors. The Company operates through two divisions: the Services Division, and the Fabrication Division. Services Division provides maintenance, repair, construction, scaffolding, coatings, welding enclosures and other specialty services on offshore platforms and inland structures and at industrial facilities. It also provides services required to connect production equipment and service modules and equipment on offshore platforms. Fabrication Division fabricates modules, skids and piping systems for onshore refining, petrochemical, industrial facilities, and offshore facilities; fabricates foundations, secondary steel components and support structures.

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.

Gulf Island Fabrication, Inc. has a Value Score of 61, which is considered to be undervalued.

Gulf Island Fabrication, Inc.’s price-to-book ratio is lower than its peers. This could make Gulf Island Fabrication, Inc. fairly attractive for value investors when compared to the industry median at 1.29.

You can read more about Gulf Island Fabrication, 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 83, 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.

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 70, which is considered to be undervalued.

Profire Energy, Inc.’s price-earnings ratio is 7.2 compared to the industry median at 16.9. 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 higher than its peers. This could make Profire Energy, Inc. less attractive for value investors when compared to the industry median at 1.29.

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.

Solaris Oilfield Infrastructure Inc’s Value Grade

Value Grade:

Solaris Oilfield Infrastructure, Inc. provides mobile equipment that drives supply chain and execution in the completion of oil and natural gas wells. The Company designs and manufactures specialized equipment, which combined with field technician support, last mile logistics services and software solutions, which enables it to provide a service offering that helps oil and natural gas operators and their suppliers during the completion phase of well development. It services 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 sand handling service span from mobile proppant management systems to multiple types of all-electric, automated systems designed to store, move, and blend sand and fluids on the low-pressure side of well completion sites. It measures its activity based on the number of its fully utilized 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 92, which is considered to be undervalued.

Solaris Oilfield Infrastructure Inc’s price-earnings ratio is 13.3 compared to the industry median at 16.9. 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 lower than its peers. This could make Solaris Oilfield Infrastructure Inc fairly attractive for value investors when compared to the industry median at 1.29.

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.

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 5 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 A.
• Gulf Island Fabrication, Inc. stock has a Value Grade of B.
• Nine Energy Service Inc stock has a Value Grade of A.
• Profire Energy, Inc. stock has a Value Grade of B.
• Solaris Oilfield Infrastructure Inc stock has a Value Grade of A.

Now that you have a bit more background about each of the 5 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.

• 5 Undervalued Oil & Gas - Related Services and Equipment Stocks for Thursday, May 16
• 3 Undervalued Oil & Gas - Related Services and Equipment Stocks for Wednesday, May 15
• 6 Undervalued Oil & Gas - Related Services and Equipment Stocks for Tuesday, May 14
• Why Profrac Holding Corp’s (ACDC) Stock Is Up 9.97%

AAII Disclaimer

We make no representations or warranties that any investor will, or is likely to, achieve profits similar to those shown, because past, hypothetical or simulated performance is not necessarily indicative of future results. Before making an investment decision, you should consider your circumstances and whether the information on our content is applicable to your situation. This information was prepared in good faith and we accept no liability for any errors or omissions. The full disclaimer can be read here.