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National Energy Services Reu

NESRAbove value

Held by 3 superinvestors.

Price$32.72
Holders3
Total value$53.1M

SEC 10-K · fundamentals

Business quality

as of 2025-12-31
Revenue growth
+1.7%
Net margin
3.9%
ROE
5.3%
FCF margin
9.1%
Revenue $834.2M → $1.32B · 6y
What makes a business high quality

Valuation · value band

Above fair value

$1/ sh · growth-anchored intrinsic value
margin of safety
fair value
above fair value
$33
cheaperpricier

Zero-growth floor

$3

Central IV

$1

Optimistic top

$4

National Energy Services Reu (NESR): A conservative value band $3–$4 / sh (zero-growth floor to growth-capped optimistic top); central read about $1. Today’s price sits above that band (price $33 as of 2026-08-20).

The middle figure is the main read. The right end is the optimistic case under the same conservative caps — not an absolute ceiling.

  • Capex doubled in two years, so maintenance is hard to pin down — read the band conservatively.

Revenue growth 0% (lower of historical trend and fundamental cap, capped by moat) · moat 0 yr · discount 14.6% · Zero-growth downside $3

Price as of 2026-08-20 · yahoo · DGS10 4.7% @ 2026-08-19.

Method & numbers

Model cautions

  • Capex doubled within two years: maintenance is floored then capped at D&A (OE may look optimistic); Greenwald growth value is closed — growth credit stays in the owner-earnings DCF only.
  • Owner-earnings yield diverges sharply from the 10-year Treasury (over 300 bps).

A conservative intrinsic-value band (zero-growth floor to growth-capped DCF) plus a tangible asset floor — not investment advice, not a buy/sell signal, and not a price target.

Owner-earnings DCF $0.63 – $0.77 · Greenwald zero-growth $4.08 · zero-growth base $4.08 · reproduction $2.78

Moat Commodity-like · terminal value 26% of present value · owner-earnings yield 0% vs 10Y 4.7%.

Graham earnings-power value (normalized NOPAT)$3.00 – $4.08 / sh

Normalized NOPAT = average operating margin over the years shown × latest-year revenue × (1 − normalized tax); then + D&A − maintenance capex (write A). Unlevered (pre-interest, attributable to all capital). Capitalized at the 9–11% rate band (read as a WACC proxy). Enterprise → equity bridge applied: + cash − total debt.

Years: 2025, 2024, 2023, 2022, 2021

v1 simplifications: Maintenance capex (degraded) deducted in full cash (write A): EPV = (NOPAT + D&A − maintenance capex) / WACC; no tax shield on the capex term. Maintenance-capex methods diverge by 71% (> 50%); estimate is degraded. Capex doubled within two years (AI-hog rule): flagged; the spike is treated as growth, not maintenance — owner earnings carry extra uncertainty. Share-based compensation is left as a real expense (not added back).

Buffett owner-earnings value$0.68 – $0.78 / sh

Owner earnings = average net income + average D&A − maintenance capex (zero-growth floor; no ΔNWC). Levered (starts from net income, already after interest — an equity-holder stream). Capitalized at the 13.0–15.0% band (9–11% base + 4.0pp leverage premium). No enterprise→equity bridge: the capitalized result is already equity value (subtracting debt would double-count interest).

Years: 2025, 2024, 2023, 2022, 2021

v1 simplifications: Owner earnings = net income + D&A − maintenance capex (degraded); the working-capital change is excluded (maintenance ΔNWC ≈ 0; growth ΔNWC is carried in growth value, not double-counted). Maintenance-capex methods diverge by 71% (> 50%); estimate is degraded. Capex doubled within two years (AI-hog rule): flagged; the spike is treated as growth, not maintenance — owner earnings carry extra uncertainty. One-time items are not separately normalized (multi-year averaging smooths them partially). Share-based compensation is left as a real expense (not added back); see the SBC/OE disclosure. Capitalized at the 9–11% base band plus a 4.0pp leverage premium (cost of equity rises with leverage — MM Proposition II). Net debt is about 18.5 years of owner earnings, adding 4.0pp of cost-of-equity risk premium.

Reproduction value = tangible net assets $275.74M = $2.78 / sh. Tangible net assets = shareholders' equity − goodwill − intangibles, ÷ diluted shares (no R&D history to capitalize).

Moat reading: Franchise test compares earnings power (EPV) against reproduction value on both AV_conservative (tangible + capitalized R&D) and AV_reproduction (conservative + acquired-reset proxy). Both must clear the franchise multiple for a moat signal; near it, a commodity; below it, value destruction. A directional reading, not a verdict.

Growth value gated to zero — capex doubled within two years (AI-hog); growth credit stays in the owner-earnings DCF only.

Window FY 2025, 2024, 2023, 2022, 2021 · discount band 9%–11% · normalized tax 13% (Average effective tax rate over 5 year(s), capped at the statutory 21%.) · diluted shares.

Baseline 9%–11%, net debt ≈ 18.5 years of owner earnings → +4.0pp cost-of-equity premium → effective 13.0%–15.0%.

Owner-earnings DCF: growth g₁ 0% · OE FY 2025, 2024, 2023, 2022, 2021 · Discount band: 13.15%–16.00% (DGS10 +4.5% to a 12% strict end, each +4.00pp for leverage premium, as of 2026-08-19). No enterprise→equity bridge: owner earnings already flow to shareholders (post-interest), so no net cash is added and no debt subtracted — matching the engine owner-earnings lamp.

What the price is betting

Today's price pencils in about over 30.0% (outside the usual range) a year in owner-earnings for the next few years. Revenue actually grew 11.2% a year.

The market wants it well ahead of its own track record.

Even when the value band is low-confidence: use this to see what the price assumes — not as a cheapness confirmation.

How to read intrinsic value

SEC 13F · holders

Superinvestors Holding This Security

3 holders · $53.1M combined · this quarter +1 opened / -0 exited

This quarter1 opened1 added1 trimmed
Holders 1 → 3 · last 7q

SEC 13F · notes

Written summary

National Energy Services Reu (NESR) is held by 3 of the superinvestors tracked on Compounder, with a combined $53.1M in reported 13F value. The largest position belongs to Dodge & Cox, where it makes up 0.0% of the portfolio.

Other notable holders by value include Alex Roepers (2.2% of its book) and Polen Capital (0.0% of its book).

Over the latest quarter, 1 of the tracked filers opened a new position in NESR, 1 added to existing ones, 1 trimmed, and 0 sold out entirely.

Holder counts and values reflect the most recent SEC Form 13F filings, through the quarter ended 2026-06-30. Source: SEC EDGAR. A 13F shows only long US-listed positions and can lag the real portfolio by up to 45 days, so this is disclosed long ownership, not a complete picture.

How to read a 13F

SEC 13F · co-ownership

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Also on

Sources· SEC EDGAR 13F as of 2026-06-30 · filed 2026-08-14

Educational data only — not investment advice. 13F positions are self-reported and can lag up to 45 days.

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