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 Thursday, August 29, 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.

Viridien SA (ADR)’s Value Grade

Value Grade:

Viridian SA is a France-based company that engages in geophysical services and products to oil and gas companies. The Company provides the provision of geophysical services such as recording, processing and interpretation of land and marine seismic data. It provides manufacturing of seismic equipment like recording and transmission devices, seismic data acquisition vibrators, sensors, data processing, interpretation software. It is a global technology and High-Performance Computing (HPC) controller that provide data, products, services and solutions in Earth science, data science, sensing and monitoring. Its portfolio supports clients in sectors such as digital, energy transition, natural resource, and environmental. Along with the current business, it also concentrates on low carbon markets, minerals, mining, as well as the infrastructure monitoring and computing markets outside of oil and gas.

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.

Viridien SA (ADR) has a Value Score of 93, which is considered to be undervalued.

When you look at Viridien SA (ADR)’s price-to-sales ratio at 0.32 compared to the industry median at 0.85, this company has a lower price relative to revenue compared to its peers. This could make Viridien SA (ADR)’s stock more attractive for value investors.

Now, let’s assess Viridien SA (ADR)’s EV/EBITDA ratio, also known as enterprise multiple. At 3.4, when compared to the industry median of 6.9, 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. Viridien SA (ADR)’s shareholder yield is lower than its industry median ratio of (0.72%). 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. Viridien SA (ADR)’s price-to-book ratio is lower than its industry median ratio of 1.33. This could make Viridien SA (ADR) more attractive to investors looking for a new addition to their portfolio.

Lastly, let’s take a look at Viridien 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. Viridien SA (ADR)’s price-to-free-cash-flow ratio is lower than its industry median ratio of 10.20. This could make Viridien SA (ADR) more attractive because the lower P/FCF ratio indicates that Viridien 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.

Geospace Technologies Corp’s Value Grade

Value Grade:

Geospace Technologies Corporation designs and manufactures seismic instruments and equipment. It operates through three segments: Oil and Gas Markets, Adjacent Markets and Emerging Markets. The Oil and Gas Markets segment products include wireless seismic data acquisition systems, reservoir characterization products and services, and traditional seismic exploration products, such as geophones, hydrophones, leader wire, connectors, cables, marine streamer retrieval and steering devices and various other seismic products. Adjacent Markets segment products include imaging equipment, water meter products, remote shut-off valves and IoT platform, as well as seismic sensors used for vibration monitoring and geotechnical applications, such as mine safety applications and earthquake detection. The Emerging Markets segment designs and markets seismic products targeted at the border and perimeter security markets. Its seismic products are marketed to the oil and gas industry, and others.

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.

Geospace Technologies Corp has a Value Score of 81, which is considered to be undervalued.

Geospace Technologies Corp’s price-earnings ratio is 12.9 compared to the industry median at 18.9. This means that it has a lower price relative to its earnings compared to its peers. This makes Geospace Technologies Corp more attractive for value investors.

Geospace Technologies Corp’s price-to-book ratio is higher than its peers. This could make Geospace Technologies Corp less attractive for value investors when compared to the industry median at 1.33.

You can read more about Geospace Technologies Corp’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.

Mind Technology Inc’s Value Grade

Value Grade:

Mind Technology, Inc. provides technology to the oceanographic, hydrographic, defense, seismic and security industries. The Company offers marine technology products to marine survey, marine exploration, and maritime defense markets. The Company operates through one segment: Seamap Marine Products. Seamap Marine Products business is engaged in the design, manufacture and sale of specialized marine seismic equipment. Its Seamap unit designs, manufactures, and sells specialized, marine exploration and survey equipment. Its facilities are maintained in the United Kingdom, Singapore, Malaysia and the state of Texas. Seamap Marine Products include Seamap SeaLink, Seamap GunLink, Seamap BuoyLink, source products, and Misc. Seismic Products. It also offers the Sea Serpent, is a line of passive sonar arrays for maritime security and anti-submarine warfare applications. The Company has a global presence with operating locations in the United States, Singapore, Malaysia, and the United Kingdom.

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.

Mind Technology Inc has a Value Score of 97, which is considered to be undervalued.

Mind Technology Inc’s price-to-book ratio is higher than its peers. This could make Mind Technology Inc less attractive for value investors when compared to the industry median at 1.33.

You can read more about Mind Technology 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 85, which is considered to be undervalued.

NCS Multistage Holdings Inc’s price-earnings ratio is 1.2 compared to the industry median at 18.9. This means that it has a lower price relative to its earnings compared to its peers. This makes NCS Multistage Holdings Inc more attractive for value investors.

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 1.33.

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.

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.

• Viridien SA (ADR) stock has a Value Grade of A.
• Geospace Technologies Corp stock has a Value Grade of A.
• Mind Technology Inc stock has a Value Grade of A.
• NCS Multistage Holdings Inc stock has a Value Grade of A.

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 Thursday, August 29
• 4 Undervalued Oil & Gas - Related Services and Equipment Stocks for Wednesday, August 28
• 4 Undervalued Oil & Gas - Related Services and Equipment Stocks for Tuesday, August 27
• 6 Undervalued Oil & Gas - Related Services and Equipment Stocks for Monday, August 26

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.