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1. Company Snapshot

1.a. Company Description

NCS Multistage Holdings, Inc.provides engineered products and support services for oil and natural gas well completions and field development strategies in the United States, Canada, and internationally.It offers fracturing systems, which include casing-installed sliding sleeves, downhole frac isolation assemblies, sand jet perforating products, accelus sliding sleeves, injection control devices, repeat precision products, chemical and radioactive tracer diagnostics, and well construction products.


The company also provides tracer diagnostics services for well completion and reservoir characterization that utilize downhole chemical and radioactive tracers.It offers its products and services primarily to exploration and production companies for use in onshore wells through technically-trained direct sales force, and operating partners or sales representatives.The company was formerly known as Pioneer Super Holdings, Inc.


and changed its name to NCS Multistage Holdings, Inc.in December 2016.NCS Multistage Holdings, Inc.


was founded in 2006 and is headquartered in Houston, Texas.

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1.b. Last Insights on NCSM

NCS Multistage Holdings, Inc.'s recent performance was driven by strong Q2 2025 earnings, with total revenues increasing 22.8% year-over-year to $36.5 million, outpacing industry activity levels. Net income was $0.9 million, with diluted earnings per share of $0.34. Adjusted EBITDA rose $1.3 million year-over-year to $2.2 million. The company's solid financials and positive outlook, coupled with its passing of the "Recent Price Strength" screen, suggest momentum may continue. Stonegate Capital Partners updated their coverage, highlighting the company's strong operational performance.

1.c. Company Highlights

2. NCS Multistage Holdings' 2025 Earnings Exceed Expectations

NCS Multistage Holdings, Inc. reported a robust financial performance in 2025, with revenue growing 13% year-over-year to $183.6 million, and adjusted EBITDA increasing 20% to $26.7 million. The company's adjusted EBITDA margin stood at 15%, reflecting its ability to maintain profitability amidst a challenging market environment. Earnings per share (EPS) came in at $1.6, significantly higher than the estimated $0.7, underscoring the company's strong operational performance. Free cash flow after distributions to noncontrolling interest totaled $18.9 million, representing over 70% of adjusted EBITDA, which highlights the company's efficient conversion of earnings into cash.

Publication Date: Mar -08

📋 Highlights
  • Revenue Growth:: 13% YoY increase to $183.6M, with 10% growth excluding ResMetrics acquisition impact.
  • Adjusted EBITDA Expansion:: 20% growth to $26.7M, achieving a 15% margin despite challenging market conditions.
  • Free Cash Flow Conversion:: Over 70% of adjusted EBITDA converted to free cash flow ($18.9M) in 2025.
  • 2026 Guidance:: Midpoint free cash flow yield of 13.2% on $15M average (based on $12M–$16M guidance range).
  • Return on Invested Capital:: 11% after-tax returns in 2025, targeting 15% medium-term improvement.

Strategic Progress and Outlook

The company made significant strides in its strategic plan, including the successful deployment of its fracturing systems technology in a SAGD project in Canada and the expected installation of the Raytec Propex sliding sleeve system in the deepwater Gulf of America. For 2026, NCS Multistage Holdings aims to grow revenue in excess of underlying market activity, with a target to convert more than 50% of adjusted EBITDA to free cash flow. The company expects revenue to range from $184 million to $194 million, with adjusted EBITDA between $26 million and $29 million.

Valuation and Returns

Analysts estimate the company's revenue growth at 7.6% for the next year. With a current P/E Ratio of 5.14 and an EV/EBITDA of 5.66, the stock appears to be reasonably valued. Additionally, the Free Cash Flow Yield stands at approximately 17.02%, indicating a strong potential for returns. NCS Multistage Holdings achieved an after-tax return of over 11% in 2025 and aims to continue improving its returns, with a medium-term objective of 15%. The company's ROIC stands at 7.05%, and its ROE is 21.91%, demonstrating its ability to create value for shareholders.

Balance Sheet Strength and Future Prospects

NCS Multistage Holdings has a strong balance sheet and liquidity position, with total liquidity of over $61 million. The company expects to strengthen its balance sheet further through its free cash flow generation, with a guidance of $12 million to $16 million in free cash flow after distributions to its JV partner in 2026. This positions the company well to pursue strategic investment opportunities and drive further growth.

3. NewsRoom

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NCS Multistage (NCSM) is an Incredible Growth Stock: 3 Reasons Why

Apr -13

Source: zacks.com

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A Look at NCS Multistage Holdings Inc (NCSM) After 4.5% Decline -- GF Value $23.20 vs Price $63.16

Apr -10

Source: gurufocus.com

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NCS Multistage CEO Details Tech-Driven Growth, International Push and M&A Plans at Conference

Apr -03

Source: defenseworld.net

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3 Reasons Growth Investors Will Love NCS Multistage (NCSM)

Mar -26

Source: zacks.com

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Are Oils-Energy Stocks Lagging NCS Multistage (NCSM) This Year?

Mar -26

Source:

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Bet on These 4 High-Flying Stocks With Increasing Cash Flows

Mar -11

Source: zacks.com

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Here is Why Growth Investors Should Buy NCS Multistage (NCSM) Now

Mar -10

Source: zacks.com

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NCS Multistage (NCSM) Upgraded to Strong Buy: What Does It Mean for the Stock?

Mar -10

Source: zacks.com

4. Business Breakdown

4.a. Revenues by Country

4.b. Revenues by Segment

5. Expected revenues mid-term growth (5.59%)

6. Segments

Engineered Products

Expected Growth: 5.5%

NCS Multistage Holdings' Engineered Products segment growth of 5.5% is driven by increasing demand for oil and gas production, expansion into international markets, and strategic acquisitions. Additionally, the company's focus on innovative product development, operational efficiency, and strong customer relationships contribute to its growth momentum.

Support Services

Expected Growth: 5.8%

NCS Multistage Holdings' Support Services segment growth of 5.8% is driven by increasing demand for oilfield services, rising oil prices, and growing adoption of multistage completions. Additionally, the company's strategic acquisitions and expansion into new markets have contributed to the segment's growth.

7. Detailed Products

FracStim

A comprehensive suite of fracturing and stimulation services designed to optimize well performance and increase hydrocarbon recovery.

FracFlow

A proprietary technology that enables real-time monitoring and control of fracturing operations, ensuring optimal treatment design and execution.

FracIQ

A data analytics platform that provides real-time insights and predictive analytics to optimize fracturing operations and improve well performance.

FracNetic

A suite of advanced fracturing technologies designed to improve well performance, reduce costs, and minimize environmental impact.

FracRite

A proprietary system that enables real-time monitoring and control of fracturing operations, ensuring optimal treatment design and execution.

8. NCS Multistage Holdings, Inc.'s Porter Forces

Forces Ranking

Threat Of Substitutes

The threat of substitutes for NCS Multistage Holdings, Inc. is medium due to the availability of alternative products and services in the oil and gas industry.

Bargaining Power Of Customers

The bargaining power of customers for NCS Multistage Holdings, Inc. is low due to the company's strong market position and limited customer concentration.

Bargaining Power Of Suppliers

The bargaining power of suppliers for NCS Multistage Holdings, Inc. is medium due to the presence of multiple suppliers in the market, but the company's dependence on a few critical suppliers.

Threat Of New Entrants

The threat of new entrants for NCS Multistage Holdings, Inc. is high due to the relatively low barriers to entry in the oil and gas industry and the attractiveness of the market.

Intensity Of Rivalry

The intensity of rivalry for NCS Multistage Holdings, Inc. is high due to the presence of several established players in the market, leading to intense competition.

9. SWOT Analysis

Strength

Weaknesses

Opportunities

Threats

10. Capital Structure

10.a. Balance Sheet

10.b. Weighted Average Cost of capital

Value
Debt Weight 12.85%
Debt Cost 4.66%
Equity Weight 87.15%
Equity Cost 11.18%
WACC 10.34%
Leverage 14.75%

11. Quality Control: NCS Multistage Holdings, Inc. passed 4 out of 9 key points

12.a Historical Valuation

12.b Price/Earnings Ratio

12.c Margin Valuation

12.d Peers Valuation

Peers Group Analysis

Stock-Card
NCS Multistage Holdings

A-Score: 5.4/10

Value: 8.3

Growth: 4.8

Quality: 6.9

Yield: 0.0

Momentum: 10.0

Volatility: 2.3

1-Year Total Return ->

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Stock-Card
Smart Sand

A-Score: 5.1/10

Value: 5.3

Growth: 4.4

Quality: 3.4

Yield: 6.0

Momentum: 8.5

Volatility: 2.7

1-Year Total Return ->

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Stock-Card
Superior Drilling Products

A-Score: 4.5/10

Value: 7.3

Growth: 5.4

Quality: 7.2

Yield: 0.0

Momentum: 6.0

Volatility: 1.0

1-Year Total Return ->

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Stock-Card
Dawson Geophysical

A-Score: 4.4/10

Value: 5.2

Growth: 4.6

Quality: 2.5

Yield: 4.0

Momentum: 9.5

Volatility: 0.7

1-Year Total Return ->

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Stock-Card
DMC Global

A-Score: 3.9/10

Value: 9.8

Growth: 3.8

Quality: 4.5

Yield: 0.0

Momentum: 2.5

Volatility: 2.7

1-Year Total Return ->

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Stock-Card
Newpark Resources

A-Score: 3.0/10

Value: 2.6

Growth: 1.7

Quality: 7.0

Yield: 0.0

Momentum: 4.5

Volatility: 2.3

1-Year Total Return ->

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Peers Metrics

12.e Scoring Insights

12.f DCF BETA

Parameters

Short Term Growth

Short term Time

Long-Term Growth

WACC

Target Price

69.48$

Current Price

69.48$

Potential

-0.00%

Expected Cash-Flows