NCSM - Margin Compression Will Hold Back NCS Multistage For Now
Competition Holds Back NCSM’s Growth
NCS Multistage Holdings (NCSM) provides engineered products and support services. The company’s offerings help optimize energy well completions and field development strategies. Upstream customers’ budget constraints and stiff competition from peers are keeping NCSM’s pricing low. Although I expect to see revenue growth, the company’s margin is unlikely to improve in the short term. I don’t think NCSM’s stock price will produce attractive returns in the short term.
Given the competition, some of the company’s offerings will continue to struggle. One of the worst affected will be the