For beginners, it can seem like a good idea (and an exciting prospect) to buy a company that tells a good story to investors, even if it currently lacks a track record of revenue and profit. But as Peter Lynch said in One Up On Wall Street, ‘Long shots almost never pay off.’ Loss-making companies are always racing against time to reach financial sustainability, so investors in these companies may be taking on more risk than they should.
If this kind of company isn’t your style, you like companies that generate revenue, and even earn profits, then you may well be interested in Natural Gas Services Group (NYSE:NGS). Even if this company is fairly valued by the market, investors would agree that generating consistent profits will continue to provide Natural Gas Services Group with the means to add long-term value to shareholders.
Natural Gas Services Group has undergone a massive growth in earnings per share over the last three years. So much so that this three year growth rate wouldn’t be a fair assessment of the company’s future. So it would be better to isolate the growth rate over the last year for our analysis. Natural Gas Services Group’s EPS has risen over the last 12 months, growing from US$1.30 to US$1.49. That’s a 15% gain; respectable growth in the broader scheme of things.
One way to double-check a company’s growth is to look at how its revenue, and earnings before interest and tax (EBIT) margins are changing. While we note Natural Gas Services Group achieved similar EBIT margins to last year, revenue grew by a solid 9.5% to US$167m. That’s a real positive.
In the chart below, you can see how the company has grown earnings and revenue, over time. Click on the chart to see the exact numbers.
NYSE:NGS Earnings and Revenue History January 25th 2026
View our latest analysis for Natural Gas Services Group
The trick, as an investor, is to find companies that are going to perform well in the future, not just in the past. While crystal balls don’t exist, you can check our visualization of consensus analyst forecasts for Natural Gas Services Group’s future EPS 100% free.
It’s a necessity that company leaders act in the best interest of shareholders and so insider investment always comes as a reassurance to the market. Natural Gas Services Group followers will find comfort in knowing that insiders have a significant amount of capital that aligns their best interests with the wider shareholder group. As a matter of fact, their holding is valued at US$12m. That shows significant buy-in, and may indicate conviction in the business strategy. Even though that’s only about 2.8% of the company, it’s enough money to indicate alignment between the leaders of the business and ordinary shareholders.