NATIONAL FUEL GAS CO (NFG) Stock Fundamental Analysis
NYSE:NFG - New York Stock Exchange, Inc. - US6361801011 - Common Stock - Currency: USD
NFG gets a fundamental rating of 5 out of 10. The analysis compared the fundamentals against 14 industry peers in the Gas Utilities industry. NFG has a medium profitability rating, but doesn't score so well on its financial health evaluation. A decent growth rate in combination with a cheap valuation! Better keep an eye on NFG.
1. Profitability
1.1 Basic Checks
In the past year NFG was profitable.
NFG had a positive operating cash flow in the past year.
NFG had positive earnings in 4 of the past 5 years.
Each year in the past 5 years NFG had a positive operating cash flow.
1.2 Ratios
The Return On Assets of NFG (0.47%) is worse than 85.71% of its industry peers.
Looking at the Return On Equity, with a value of 1.43%, NFG is doing worse than 85.71% of the companies in the same industry.
With an excellent Return On Invested Capital value of 8.90%, NFG belongs to the best of the industry, outperforming 85.71% of the companies in the same industry.
NFG had an Average Return On Invested Capital over the past 3 years of 8.98%. This is above the industry average of 6.29%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 0.47% | ||
| ROE | 1.43% | ||
| ROIC | 8.9% |
ROA(3y)4.62%
ROA(5y)3.39%
ROE(3y)15.34%
ROE(5y)12.02%
ROIC(3y)8.98%
ROIC(5y)8.29%
1.3 Margins
The Profit Margin of NFG (1.91%) is worse than 85.71% of its industry peers.
NFG's Profit Margin has declined in the last couple of years.
The Operating Margin of NFG (39.46%) is better than 92.86% of its industry peers.
NFG's Operating Margin has improved in the last couple of years.
NFG's Gross Margin of 90.90% is amongst the best of the industry. NFG outperforms 100.00% of its industry peers.
NFG's Gross Margin has improved in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 39.46% | ||
| PM (TTM) | 1.91% | ||
| GM | 90.9% |
OM growth 3Y-0.6%
OM growth 5Y4.39%
PM growth 3Y-42.41%
PM growth 5Y-26.01%
GM growth 3Y0.79%
GM growth 5Y3.64%
2. Health
2.1 Basic Checks
The Return on Invested Capital (ROIC) is just above the Cost of Capital (WACC), so NFG is still creating some value.
Compared to 1 year ago, NFG has less shares outstanding
NFG has more shares outstanding than it did 5 years ago.
NFG has a worse debt/assets ratio than last year.
2.2 Solvency
Based on the Altman-Z score of 1.58, we must say that NFG is in the distress zone and has some risk of bankruptcy.
The Altman-Z score of NFG (1.58) is better than 92.86% of its industry peers.
NFG has a debt to FCF ratio of 41.97. This is a negative value and a sign of low solvency as NFG would need 41.97 years to pay back of all of its debts.
The Debt to FCF ratio of NFG (41.97) is comparable to the rest of the industry.
NFG has a Debt/Equity ratio of 0.94. This is a neutral value indicating NFG is somewhat dependend on debt financing.
NFG has a Debt to Equity ratio of 0.94. This is in the better half of the industry: NFG outperforms 78.57% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.94 | ||
| Debt/FCF | 41.97 | ||
| Altman-Z | 1.58 |
ROIC/WACC1.16
WACC7.66%
2.3 Liquidity
A Current Ratio of 0.47 indicates that NFG may have some problems paying its short term obligations.
NFG has a worse Current ratio (0.47) than 78.57% of its industry peers.
A Quick Ratio of 0.43 indicates that NFG may have some problems paying its short term obligations.
NFG has a worse Quick ratio (0.43) than 78.57% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.47 | ||
| Quick Ratio | 0.43 |
3. Growth
3.1 Past
NFG shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 15.28%, which is quite good.
NFG shows a small growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 7.81% yearly.
The Revenue has been growing slightly by 5.94% in the past year.
NFG shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 2.81% yearly.
EPS 1Y (TTM)15.28%
EPS 3Y5.39%
EPS 5Y7.81%
EPS Q2Q%33.52%
Revenue 1Y (TTM)5.94%
Revenue growth 3Y3.73%
Revenue growth 5Y2.81%
Sales Q2Q%15.88%
3.2 Future
The Earnings Per Share is expected to grow by 21.13% on average over the next years. This is a very strong growth
NFG is expected to show quite a strong growth in Revenue. In the coming years, the Revenue will grow by 10.30% yearly.
EPS Next Y39.94%
EPS Next 2Y30.97%
EPS Next 3Y21.13%
EPS Next 5YN/A
Revenue Next Year11.46%
Revenue Next 2Y14.34%
Revenue Next 3Y10.3%
Revenue Next 5YN/A
3.3 Evolution
The EPS growth rate is accelerating: in the next years the growth will be better than in the last years.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.
4. Valuation
4.1 Price/Earnings Ratio
With a Price/Earnings ratio of 15.29, NFG is valued correctly.
Based on the Price/Earnings ratio, NFG is valued a bit cheaper than 64.29% of the companies in the same industry.
The average S&P500 Price/Earnings ratio is at 27.51. NFG is valued slightly cheaper when compared to this.
NFG is valuated reasonably with a Price/Forward Earnings ratio of 10.34.
Based on the Price/Forward Earnings ratio, NFG is valued cheaper than 92.86% of the companies in the same industry.
When comparing the Price/Forward Earnings ratio of NFG to the average of the S&P500 Index (35.58), we can say NFG is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 15.29 | ||
| Fwd PE | 10.34 |
4.2 Price Multiples
85.71% of the companies in the same industry are more expensive than NFG, based on the Enterprise Value to EBITDA ratio.
NFG's Price/Free Cash Flow ratio is in line with the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 114.63 | ||
| EV/EBITDA | 8.17 |
4.3 Compensation for Growth
NFG's low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
NFG has a very decent profitability rating, which may justify a higher PE ratio.
A more expensive valuation may be justified as NFG's earnings are expected to grow with 21.13% in the coming years.
PEG (NY)0.38
PEG (5Y)1.96
EPS Next 2Y30.97%
EPS Next 3Y21.13%
5. Dividend
5.1 Amount
NFG has a Yearly Dividend Yield of 2.60%.
Compared to an average industry Dividend Yield of 3.95, NFG is paying slightly less dividend.
Compared to an average S&P500 Dividend Yield of 2.35, NFG has a dividend comparable with the average S&P500 company.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.6% |
5.2 History
The dividend of NFG has a limited annual growth rate of 3.28%.
NFG has paid a dividend for at least 10 years, which is a reliable track record.
NFG has not decreased their dividend for at least 10 years, which is a reliable track record.
Dividend Growth(5Y)3.28%
Div Incr Years34
Div Non Decr Years34
5.3 Sustainability
NFG pays out 470.85% of its income as dividend. This is not a sustainable payout ratio.
The dividend of NFG is growing, but earnings are growing more, so the dividend growth is sustainable.
DP470.85%
EPS Next 2Y30.97%
EPS Next 3Y21.13%
NYSE:NFG (7/15/2025, 3:58:05 PM)
88.85
+4.78 (+5.69%)
Chartmill FA Rating
GICS SectorUtilities
GICS IndustryGroupUtilities
GICS IndustryGas Utilities
Earnings (Last)
Earnings (Next)
Inst Owners79.36%
Inst Owner Change0%
Ins Owners0.81%
Ins Owner Change0.2%
Market Cap8.03B
Analysts72
Price Target87.72 (-1.27%)
Short Float %2.65%
Short Ratio4.29
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.6% |
Yearly Dividend2.01
Dividend Growth(5Y)3.28%
DP470.85%
Div Incr Years34
Div Non Decr Years34
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)7.42%
Min EPS beat(2)7.07%
Max EPS beat(2)7.77%
EPS beat(4)3
Avg EPS beat(4)1.99%
Min EPS beat(4)-9.24%
Max EPS beat(4)7.77%
EPS beat(8)6
Avg EPS beat(8)4.57%
EPS beat(12)8
Avg EPS beat(12)3.25%
EPS beat(16)12
Avg EPS beat(16)5.13%
Revenue beat(2)0
Avg Revenue beat(2)-9.27%
Min Revenue beat(2)-11.84%
Max Revenue beat(2)-6.69%
Revenue beat(4)0
Avg Revenue beat(4)-17.82%
Min Revenue beat(4)-29.79%
Max Revenue beat(4)-6.69%
Revenue beat(8)0
Avg Revenue beat(8)-18.61%
Revenue beat(12)2
Avg Revenue beat(12)-12.9%
Revenue beat(16)3
Avg Revenue beat(16)-11.52%
PT rev (1m)0%
PT rev (3m)6.61%
EPS NQ rev (1m)0.9%
EPS NQ rev (3m)0.9%
EPS NY rev (1m)1.14%
EPS NY rev (3m)-0.5%
Revenue NQ rev (1m)0.42%
Revenue NQ rev (3m)2.41%
Revenue NY rev (1m)0.29%
Revenue NY rev (3m)-3.06%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 15.29 | ||
| Fwd PE | 10.34 | ||
| P/S | 3.88 | ||
| P/FCF | 114.63 | ||
| P/OCF | 8.42 | ||
| P/B | 2.9 | ||
| P/tB | 2.91 | ||
| EV/EBITDA | 8.17 |
EPS(TTM)5.81
EY6.54%
EPS(NY)8.59
Fwd EY9.67%
FCF(TTM)0.78
FCFY0.87%
OCF(TTM)10.55
OCFY11.88%
SpS22.9
BVpS30.61
TBVpS30.55
PEG (NY)0.38
PEG (5Y)1.96
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 0.47% | ||
| ROE | 1.43% | ||
| ROCE | 11.22% | ||
| ROIC | 8.9% | ||
| ROICexc | 8.95% | ||
| ROICexgc | 8.95% | ||
| OM | 39.46% | ||
| PM (TTM) | 1.91% | ||
| GM | 90.9% | ||
| FCFM | 3.38% |
ROA(3y)4.62%
ROA(5y)3.39%
ROE(3y)15.34%
ROE(5y)12.02%
ROIC(3y)8.98%
ROIC(5y)8.29%
ROICexc(3y)9.04%
ROICexc(5y)8.33%
ROICexgc(3y)9.05%
ROICexgc(5y)8.34%
ROCE(3y)11.22%
ROCE(5y)10.34%
ROICexcg growth 3Y-1.45%
ROICexcg growth 5Y3.52%
ROICexc growth 3Y-1.44%
ROICexc growth 5Y3.52%
OM growth 3Y-0.6%
OM growth 5Y4.39%
PM growth 3Y-42.41%
PM growth 5Y-26.01%
GM growth 3Y0.79%
GM growth 5Y3.64%
F-Score6
Asset Turnover0.24
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.94 | ||
| Debt/FCF | 41.97 | ||
| Debt/EBITDA | 2.06 | ||
| Cap/Depr | 199.47% | ||
| Cap/Sales | 42.7% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 75.72% | ||
| Profit Quality | 177.01% | ||
| Current Ratio | 0.47 | ||
| Quick Ratio | 0.43 | ||
| Altman-Z | 1.58 |
F-Score6
WACC7.66%
ROIC/WACC1.16
Cap/Depr(3y)223.28%
Cap/Depr(5y)225.59%
Cap/Sales(3y)43.83%
Cap/Sales(5y)44.19%
Profit Quality(3y)73.86%
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)15.28%
EPS 3Y5.39%
EPS 5Y7.81%
EPS Q2Q%33.52%
EPS Next Y39.94%
EPS Next 2Y30.97%
EPS Next 3Y21.13%
EPS Next 5YN/A
Revenue 1Y (TTM)5.94%
Revenue growth 3Y3.73%
Revenue growth 5Y2.81%
Sales Q2Q%15.88%
Revenue Next Year11.46%
Revenue Next 2Y14.34%
Revenue Next 3Y10.3%
Revenue Next 5YN/A
EBIT growth 1Y10.75%
EBIT growth 3Y3.1%
EBIT growth 5Y7.33%
EBIT Next Year109.21%
EBIT Next 3Y33.9%
EBIT Next 5YN/A
FCF growth 1Y-65.89%
FCF growth 3Y50.02%
FCF growth 5YN/A
OCF growth 1Y-13.16%
OCF growth 3Y10.43%
OCF growth 5Y8.95%