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 Wednesday, May 24, 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.

CSI Compressco LP’s Value Grade

Value Grade:

CSI Compressco LP is focused on providing contract services related to the exploration and production of oil and natural gas, including natural gas compression services and treating services. The Company?s natural gas is a mechanical process in which the pressure of a given volume of natural gas is increased to a higher pressure. The Company?s treating services include the removal of contaminants from a natural gas stream and cooling to reduce the temperature of produced gas and liquids. The Company also sells used standard compressor packages and provides aftermarket services and compressor package parts and components manufactured by third-party suppliers. It provides contract compression and treating services and compressor parts and component sales to a base of natural gas and oil exploration and production, midstream, transmission, and storage companies operating throughout many of the onshore producing regions of the United States, Mexico, Canada, Argentina, Egypt and Chile.

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.

CSI Compressco LP has a Value Score of 87, which is considered to be undervalued.

When you look at CSI Compressco LP’s price-to-sales ratio at 0.46 compared to the industry median at 0.78, this company has a lower price relative to revenue compared to its peers. This could make CSI Compressco LP’s stock more attractive for value investors.

Now, let’s assess CSI Compressco LP’s EV/EBITDA ratio, also known as enterprise multiple. At 6.9, when compared to the industry median of 6.8, the company may be considered overvalued 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. CSI Compressco LP’s shareholder yield is higher than its industry median ratio of (0.52%). 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.

CGG SA (ADR)’s Value Grade

Value Grade:

CGG SA (CGG) is a manufacturer of geophysical equipment. The Company provides marine, land and airborne data acquisition services, as well as a range of other geoscience services, including data imaging, geoscience and petroleum engineering consulting services, and collecting, developing and licensing geological data. Its segments include Contractual Data Acquisition; Geology, Geophysics & Reservoir (GGR); Equipment, and Non-Operated Resources. The Contractual Data Acquisition includes marine, and land and multi-physics. Its GGR segment includes the Multi-client business line and the Subsurface Imaging and Reservoir business lines (processing and imaging of geophysical data, reservoir characterization, geophysical consulting and software services, geological data library and data management solutions). The Equipment segment consists of its manufacturing and sales activities for seismic equipment. It operates through Saturno, a multi-client survey over Santos Basin Offshore Brazil.

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 85, which is considered to be undervalued.

CGG SA (ADR)’s price-earnings ratio is 10.3 compared to the industry median at 15.6. This means that it has a lower price relative to its earnings compared to its peers. This makes CGG SA (ADR) more attractive for value investors.

CGG SA (ADR)’s price-to-book ratio is higher than its peers. This could make CGG SA (ADR) less attractive for value investors when compared to the industry median at 1.33.

You can read more about CGG 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.

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 a provider of specialty services, including project management, hookup, commissioning, repair, maintenance, scaffolding, coatings, welding enclosures, civil construction, and staffing services to the industrial and energy sectors. Its segments include the Services Division, Fabrication Division, and Shipyard Division. The Services Division provides maintenance, repair, construction, scaffolding, coatings, welding enclosures and other specialty services on offshore platforms and inland structures and at industrial facilities. The Fabrication Division fabricates modules, skids and piping systems for onshore refining, petrochemical, and offshore facilities and fabricates foundations, secondary steel components and support structures for alternative energy developments and coastal mooring facilities. The Shipyard Division includes two ferries under construction.

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-earnings ratio is 22.0 compared to the industry median at 15.6. This means that it has a higher price relative to its earnings compared to its peers. This makes Gulf Island Fabrication, Inc. less attractive for value investors.

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

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.

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 energy and offshore industries. The Company?s core services and technological solutions include distribution system installation support and engineering services, umbilical terminations, loose-tube steel flying leads and related services. In addition, it supports subsea engineering, manufacturing, installation, commissioning and maintenance projects located anywhere in the world. The Company?s line of solutions is engineered and manufactured primarily 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. The Company primarily serves the offshore oil and gas market. It also serves additional markets, including offshore wind, offshore wave energy, hydrogen and liquefied 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.

Koil Energy Solutions Inc has a Value Score of 83, 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 1.33.

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.

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’s provides technology products such as exploration, survey, and defense products. Its exploration products include Seamap SeaLink, Seamap GunLink, Seamap BuoyLink, source products, miscellaneous Seismic and Sub Bottom Profiling. Its survey products include Multi-Beam Side Scan Sonar, Single-Beam Side Scan Sonar, AUV/UUV Sonar Payloads and Sub Bottom Profiling. Its defense products include Mine Counter Measure, Anti-Submarine Warfare and Waterside Security. The Company has its operations in United States, Singapore, Malaysia, and the United Kingdom. The Company’s subsidiaries include Mitcham Holdings Ltd, Mitcham Canada Holdings Limited, Mitcham Canada ULC, Mitcham Europe Ltd, Seamap (UK) Ltd., Seamap Pte. Ltd., and Klein Marine Systems, Inc.

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 93, 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.

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. The Company provides a service offering that helps oil and natural gas operators and their suppliers during the completion phase of well development. Its equipment and services are deployed in the 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 fleet consist of mobile proppant management systems to multiple types of all-electric, automated equipment designed to store, move and blend sand and fluids on the low-pressure side of well completion sites. It owns or leases manufacturing facilities in Early, Texas and a transloading facility in Kingfisher, Oklahoma. It also offers AutoBlend, an integrated electric blender and fluid management 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 87, which is considered to be undervalued.

Solaris Oilfield Infrastructure Inc’s price-earnings ratio is 10.8 compared to the industry median at 15.6. 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 higher than its peers. This could make Solaris Oilfield Infrastructure Inc less attractive for value investors when compared to the industry median at 1.33.

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.

Bristow Group Inc’s Value Grade

Value Grade:

Bristow Group Inc. is a provider of vertical flight solutions. The Company primarily provides aviation services to a broad base of offshore energy companies and government entities. The Company?s aviation services include personnel transportation, search and rescue (SAR), medevac, fixed-wing transportation, unmanned systems, and ad-hoc helicopter services. It focuses on helicopter service contracts and fixed-wing service contracts. The Company owns and operates classes of helicopters, such as heavy helicopters, medium helicopters, light helicopters, and single-engine helicopters. It is an operator of each of the S92, AW189, and AW139 helicopter models. It serves customers in Australia, Brazil, Canada, Chile, the Dutch Caribbean, the Falkland Islands, Guyana, India, Mexico, the Netherlands, Nigeria, Norway, Spain, Suriname, Trinidad, the United Kingdom (U.K.) and the United States (U.S.). The Company?s fleet includes 227 aircraft located across six continents and 17 different countries.

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 62, which is considered to be undervalued.

Bristow Group Inc’s price-earnings ratio is 57.7 compared to the industry median at 15.6. 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 1.33.

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.

• CSI Compressco LP stock has a Value Grade of A.
• CGG SA (ADR) stock has a Value Grade of A.
• Gulf Island Fabrication, Inc. stock has a Value Grade of B.
• Koil Energy Solutions Inc stock has a Value Grade of A.
• Mind Technology Inc stock has a Value Grade of A.
• Solaris Oilfield Infrastructure Inc stock has a Value Grade of A.
• 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 Wednesday, May 24
• 6 Undervalued Oil & Gas - Related Services and Equipment Stocks for Tuesday, May 23
• 6 Undervalued Oil & Gas - Related Services and Equipment Stocks for Monday, May 22
• Why Core Laboratories N.V.’s (CLB) Stock Is Up 9.50%

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