NCSM - NCS Multistage Holdings Lacks Short-Term Impetus
NCSM Has Some Recovery To Make
The sharp drop in fracking activity is the most impending challenge NCS Multistage Holdings (NCSM) faces in the near-term. The company’s tracer diagnostics products underperformed during Q1, which triggered a significant impairment charge. On the other hand, market share gains in fracturing systems in Canada mitigated some of the revenue loss. The company has continued to emphasize improving operating margin through cost reduction initiatives and increasing liquidity. Although the company has sufficient liquidity and cash flow to support debt repayment, the possibility of a debt default cannot be ignored,