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.

Latest Oil & Gas - Related Services and Equipment Stock News

Before choosing which top Oil & Gas - Related Services and Equipment stock to buy, be sure to conduct proper due diligence: analyze various financial metrics and look at historical data, public statements and news coverage.

The fundamental outlook for the oil & gas related services & equipment sub-industry is neutral for the next 12 months. Oil prices rebounded from lows during the pandemic to all-time highs in spring of 2022. Global oil demand is expected to exceed pre-pandemic levels, but inadequate supply levels add additional stress to an already tight market. Oil producers are increasing their capital spending for 2022, paving the way for more production while driving up demand for oil services. Despite this, the industry faces challenges heading into late 2022. Labor, equipment maintenance and supplies are all getting more costly. Oil services companies are also experiencing a shortage of sand used for fracking, rigs and fracking crews.

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 Tuesday, March 14, 2023. 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.

Dawson Geophysical Co’s Value Grade

Value Grade:

Dawson Geophysical Company is a provider of onshore seismic data acquisition services with operations throughout the continental United States and Canada. The Company is engaged in the exploration and development of oil and natural gas on land and in land-to-water transition areas. The Company acquires and processes two-dimensional (2-D), three-dimensional (3-D) and multi-component seismic data for its clients, ranging from oil and gas companies to independent oil and gas operators as well as providers of multi-client data libraries. The Company also provides data acquisition services primarily to providers of multi-client data libraries for use in the onshore drilling and production of oil and natural gas, as well as directly to onshore oil and natural gas exploration and development companies. The Company 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.

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 67, which is considered to be undervalued.

When you look at Dawson Geophysical Co’s price-to-sales ratio at 1.12 compared to the industry median at 0.84, this company has a higher price relative to revenue compared to its peers. This could make Dawson Geophysical Co’s stock less attractive for value investors.

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. Dawson Geophysical Co’s shareholder yield is higher than its industry median ratio of (0.87%). 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. Dawson Geophysical Co’s price-to-book ratio is lower than its industry median ratio of 1.27. This could make Dawson Geophysical Co more attractive to investors looking for a new addition to their portfolio.

Koil Energy Solutions Inc’s Value Grade

Value Grade:

Koil Energy Solutions, Inc., formerly Deep Down, Inc., is an energy services company. The Company is engaged in offering subsea equipment and support services to the world?s energy and offshore industries. It provides solutions to complex customer challenges presented between the production facility and the energy source. Its core services and technological solutions include distribution system installation support and engineering services, umbilical terminations, loose-tube steel flying leads, and related services. Its services include engineering and project management, manufacturing and fabrication, subsea equipment storage, umbilical testing, monitoring and commissioning, installation management, pull-in and spooling operations, system integration testing (SIT and FAT), and storage and equipment refurbishment. Its product offerings include buoyancy solutions, flying leads, storage and transportation products, subsea fluid and power distribution, and umbilical termination solutions.

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 93, 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 1.27.

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.

Profire Energy, Inc.’s Value Grade

Value Grade:

Profire Energy, Inc. is a technology company. The Company is focused in 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 71, which is considered to be undervalued.

Profire Energy, Inc.’s price-earnings ratio is 14.4 compared to the industry median at 20.4. 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 higher than its peers. This could make Profire Energy, Inc. less attractive for value investors when compared to the industry median at 1.27.

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.

Shawcor Ltd (USA)’s Value Grade

Value Grade:

Shawcor Ltd. is a global material sciences company serving the Infrastructure, Energy, and Transportation markets. The Company operates through a network of fixed and mobile manufacturing and service facilities. It operates through three business segments: composite systems, automotive and industrial and pipeline and pipe services. The composite systems consist of two operating units: the Xerxes business, which manufactures fiberglass reinforced plastic underground storage tanks primarily for the retail fuel, storm water and wastewater markets; and the FlexPipe business, which manufactures flexible fiberglass reinforced composite pipe used for oil and gas gathering and water disposal lines and carbon dioxide injection lines. The automotive and industrial segment supplies specialty wire and cable and integrated heat shrink solutions. The Pipeline and Pipe Services segment provides pipeline protection and inspection solutions, as well as facilities and engineering services.

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.

Shawcor Ltd (USA) has a Value Score of 76, which is considered to be undervalued.

Shawcor Ltd (USA)’s price-to-book ratio is higher than its peers. This could make Shawcor Ltd (USA) less attractive for value investors when compared to the industry median at 1.27.

You can read more about Shawcor Ltd (USA)’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. designs and manufactures specialized equipment, which combined with field technician support, last mile logistics services and software solutions. It provides a service offering that helps oil and natural gas operators. Its equipment and services are deployed in 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. Its oilfield technologies include the Solaris Mobile Proppant Management System and the Solaris Mobile Chemical Management System, which lowers completion times and costs by increasing proppant and chemical storage capacity on well sites. It owns or leases various facilities, including its corporate headquarters in Houston, Texas, a manufacturing facility in Early, Texas, and a transloading facility in Kingfisher, Oklahoma. It manufactures and assembles its systems at its manufacturing facility in Early, Texas.

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 77, which is considered to be undervalued.

Solaris Oilfield Infrastructure Inc’s price-earnings ratio is 13.9 compared to the industry median at 20.4. 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 1.27.

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.

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 66, which is considered to be undervalued.

Tenaris SA (ADR)’s price-earnings ratio is 7.2 compared to the industry median at 20.4. 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) more attractive for value investors when compared to the industry median at 1.27.

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.

Bristow Group Inc’s Value Grade

Value Grade:

Bristow Group Inc. is a provider of flight solutions. The Company provides aviation services to national and independent energy companies. It also provides commercial search and rescue (SAR) services in multiple countries and public sector SAR services in the United Kingdom on behalf of the Maritime & Coastguard Agency (MCA). The Company also offers fixed-wing transportation and other aviation related solutions. The Company owns and operates three classes of helicopters, such as heavy helicopters, medium helicopters and light helicopters. Its heavy helicopters have twin engines and passenger capacity ranging from 16 to 19. Its medium helicopters have twin engines and passenger capacity of 12. Its light helicopters have single or twin engines and a typical passenger capacity of four to seven. Its total fleet consists of approximately 229 aircraft, of which 213 were helicopters. Its fleet also includes approximately 14 fixed wing aircraft and two unmanned aerial vehicles (UAV).

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.

Bristow Group Inc has a Value Score of 66, which is considered to be undervalued.

Bristow Group Inc’s price-earnings ratio is 39.6 compared to the industry median at 20.4. This means that it has a higher price relative to its earnings compared to its peers. This makes Bristow Group Inc less attractive for value investors.

Bristow Group Inc’s price-to-book ratio is higher than its peers. This could make Bristow Group Inc less attractive for value investors when compared to the industry median at 1.27.

You can read more about Bristow Group 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.

• Dawson Geophysical Co stock has a Value Grade of B.
• Koil Energy Solutions Inc stock has a Value Grade of A.
• Profire Energy, Inc. stock has a Value Grade of B.
• Shawcor Ltd (USA) stock has a Value Grade of B.
• Solaris Oilfield Infrastructure Inc stock has a Value Grade of B.
• Tenaris SA (ADR) stock has a Value Grade of B.
• Bristow Group 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 Tuesday, March 14
• 7 Undervalued Oil & Gas - Related Services and Equipment Stocks for Monday, March 13
• Why Cactus Inc’s (WHD) Stock Is Down 5.33%
• Why Core Laboratories N.V.’s (CLB) Stock Is Down 7.37%

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