NATIONAL FUEL GAS CO (NFG) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:NFG - US6361801011 - Common Stock
82.06 USD
+2 (+2.5%)
82.06 USD
0 (0%)
Overall NFG gets a fundamental rating of 7 out of 10. We evaluated NFG against 14 industry peers in the Gas Utilities industry. NFG scores excellent on profitability, but there are some minor concerns on its financial health. An interesting combination arises when we look at growth and value: NFG is growing strongly while it also seems undervalued.
1. Profitability
1.1 Basic Checks
NFG had positive earnings in the past year.
In the past year NFG had a positive cash flow from operations.
NFG had positive earnings in each of the past 5 years.
In the past 5 years NFG always reported a positive cash flow from operatings.
1.2 Ratios
NFG has a better Return On Assets (5.95%) than 92.86% of its industry peers.
NFG has a better Return On Equity (16.76%) than 85.71% of its industry peers.
NFG has a Return On Invested Capital of 9.83%. This is amongst the best in the industry. NFG outperforms 85.71% of its industry peers.
The Average Return On Invested Capital over the past 3 years for NFG is above the industry average of 6.27%.
The 3 year average ROIC (8.65%) for NFG is below the current ROIC(9.83%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 5.95% | ||
| ROE | 16.76% | ||
| ROIC | 9.83% |
ROA(3y)4.21%
ROA(5y)4.94%
ROE(3y)11.86%
ROE(5y)16.63%
ROIC(3y)8.65%
ROIC(5y)9.07%
1.3 Margins
NFG's Profit Margin of 22.77% is amongst the best of the industry. NFG outperforms 92.86% of its industry peers.
In the last couple of years the Profit Margin of NFG has declined.
Looking at the Operating Margin, with a value of 41.94%, NFG belongs to the top of the industry, outperforming 92.86% of the companies in the same industry.
In the last couple of years the Operating Margin of NFG has grown nicely.
NFG's Gross Margin of 90.63% is amongst the best of the industry. NFG outperforms 100.00% of its industry peers.
NFG's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 41.94% | ||
| PM (TTM) | 22.77% | ||
| GM | 90.63% |
OM growth 3Y4.57%
OM growth 5Y6.24%
PM growth 3Y-4.2%
PM growth 5YN/A
GM growth 3Y3.36%
GM growth 5Y1.32%
2. Health
2.1 Basic Checks
NFG has a Return on Invested Capital (ROIC), which is just above the Cost of Capital (WACC), which means it is creating some value.
The number of shares outstanding for NFG has been reduced compared to 1 year ago.
The number of shares outstanding for NFG has been reduced compared to 5 years ago.
Compared to 1 year ago, NFG has an improved debt to assets ratio.
2.2 Solvency
Based on the Altman-Z score of 1.67, we must say that NFG is in the distress zone and has some risk of bankruptcy.
NFG's Altman-Z score of 1.67 is amongst the best of the industry. NFG outperforms 92.86% of its industry peers.
The Debt to FCF ratio of NFG is 15.13, which is on the high side as it means it would take NFG, 15.13 years of fcf income to pay off all of its debts.
The Debt to FCF ratio of NFG (15.13) is better than 85.71% of its industry peers.
NFG has a Debt/Equity ratio of 0.82. This is a neutral value indicating NFG is somewhat dependend on debt financing.
The Debt to Equity ratio of NFG (0.82) is better than 78.57% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.82 | ||
| Debt/FCF | 15.13 | ||
| Altman-Z | 1.67 |
ROIC/WACC1.28
WACC7.68%
2.3 Liquidity
NFG has a Current Ratio of 0.44. This is a bad value and indicates that NFG is not financially healthy enough and could expect problems in meeting its short term obligations.
NFG's Current ratio of 0.44 is on the low side compared to the rest of the industry. NFG is outperformed by 78.57% of its industry peers.
A Quick Ratio of 0.35 indicates that NFG may have some problems paying its short term obligations.
The Quick ratio of NFG (0.35) is worse than 71.43% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.44 | ||
| Quick Ratio | 0.35 |
3. Growth
3.1 Past
NFG shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 37.92%, which is quite impressive.
NFG shows quite a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 18.56% yearly.
The Revenue has grown by 17.11% in the past year. This is quite good.
NFG shows quite a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 8.05% yearly.
EPS 1Y (TTM)37.92%
EPS 3Y5.47%
EPS 5Y18.56%
EPS Q2Q%58.44%
Revenue 1Y (TTM)17.11%
Revenue growth 3Y1.38%
Revenue growth 5Y8.05%
Sales Q2Q%22.67%
3.2 Future
Based on estimates for the next years, NFG will show a quite strong growth in Earnings Per Share. The EPS will grow by 8.09% on average per year.
The Revenue is expected to grow by 12.48% on average over the next years. This is quite good.
EPS Next Y22%
EPS Next 2Y14.65%
EPS Next 3Y8.09%
EPS Next 5YN/A
Revenue Next Year12.29%
Revenue Next 2Y18.22%
Revenue Next 3Y12.48%
Revenue Next 5YN/A
3.3 Evolution
The EPS growth rate is decreasing: in the next years the growth will be less than in the last years.
The Revenue growth rate is accelerating: in the next years the growth will be better than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
The Price/Earnings ratio is 11.88, which indicates a very decent valuation of NFG.
Compared to the rest of the industry, the Price/Earnings ratio of NFG indicates a somewhat cheap valuation: NFG is cheaper than 78.57% of the companies listed in the same industry.
When comparing the Price/Earnings ratio of NFG to the average of the S&P500 Index (26.60), we can say NFG is valued rather cheaply.
The Price/Forward Earnings ratio is 9.73, which indicates a very decent valuation of NFG.
Based on the Price/Forward Earnings ratio, NFG is valued cheaply inside the industry as 92.86% of the companies are valued more expensively.
The average S&P500 Price/Forward Earnings ratio is at 23.23. NFG is valued rather cheaply when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 11.88 | ||
| Fwd PE | 9.73 |
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.
Based on the Price/Free Cash Flow ratio, NFG is valued a bit cheaper than 71.43% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 39.62 | ||
| EV/EBITDA | 7.12 |
4.3 Compensation for Growth
The low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
NFG has an outstanding profitability rating, which may justify a higher PE ratio.
PEG (NY)0.54
PEG (5Y)0.64
EPS Next 2Y14.65%
EPS Next 3Y8.09%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 2.67%, NFG has a reasonable but not impressive dividend return.
NFG's Dividend Yield is slightly below the industry average, which is at 3.88.
Compared to an average S&P500 Dividend Yield of 1.94, NFG pays a bit more dividend than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.67% |
5.2 History
The dividend of NFG has a limited annual growth rate of 3.74%.
NFG has been paying a dividend for at least 10 years, so it has a reliable track record.
NFG has not decreased their dividend for at least 10 years, which is a reliable track record.
Dividend Growth(5Y)3.74%
Div Incr Years34
Div Non Decr Years34
5.3 Sustainability
NFG pays out 36.34% of its income as dividend. This is a sustainable payout ratio.
NFG's earnings are growing more than its dividend. This makes the dividend growth sustainable.
DP36.34%
EPS Next 2Y14.65%
EPS Next 3Y8.09%
82.06
+2 (+2.5%)
Chartmill FA Rating
GICS SectorUtilities
GICS IndustryGroupUtilities
GICS IndustryGas Utilities
Earnings (Last)
Earnings (Next)
Inst Owners79.49%
Inst Owner Change0%
Ins Owners0.86%
Ins Owner Change1.73%
Market Cap7.42B
Revenue(TTM)2.28B
Net Income(TTM)518.50M
Analysts77.78
Price Target103.36 (25.96%)
Short Float %3.79%
Short Ratio5.65
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.67% |
Yearly Dividend2.08
Dividend Growth(5Y)3.74%
DP36.34%
Div Incr Years34
Div Non Decr Years34
Ex-DateN/A
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)8.41%
Min EPS beat(2)8.4%
Max EPS beat(2)8.43%
EPS beat(4)4
Avg EPS beat(4)7.92%
Min EPS beat(4)7.07%
Max EPS beat(4)8.43%
EPS beat(8)7
Avg EPS beat(8)6.36%
EPS beat(12)9
Avg EPS beat(12)4.58%
EPS beat(16)12
Avg EPS beat(16)4.24%
Revenue beat(2)0
Avg Revenue beat(2)-12.07%
Min Revenue beat(2)-12.14%
Max Revenue beat(2)-12%
Revenue beat(4)0
Avg Revenue beat(4)-10.67%
Min Revenue beat(4)-12.14%
Max Revenue beat(4)-6.69%
Revenue beat(8)0
Avg Revenue beat(8)-16.98%
Revenue beat(12)2
Avg Revenue beat(12)-13.57%
Revenue beat(16)3
Avg Revenue beat(16)-10.75%
PT rev (1m)-0.65%
PT rev (3m)0.33%
EPS NQ rev (1m)0.1%
EPS NQ rev (3m)-7.77%
EPS NY rev (1m)1.13%
EPS NY rev (3m)-3.08%
Revenue NQ rev (1m)-1.8%
Revenue NQ rev (3m)-9.61%
Revenue NY rev (1m)-5.24%
Revenue NY rev (3m)-6.81%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 11.88 | ||
| Fwd PE | 9.73 | ||
| P/S | 3.26 | ||
| P/FCF | 39.62 | ||
| P/OCF | 6.74 | ||
| P/B | 2.4 | ||
| P/tB | 2.4 | ||
| EV/EBITDA | 7.12 |
EPS(TTM)6.91
EY8.42%
EPS(NY)8.43
Fwd EY10.27%
FCF(TTM)2.07
FCFY2.52%
OCF(TTM)12.17
OCFY14.83%
SpS25.2
BVpS34.24
TBVpS34.18
PEG (NY)0.54
PEG (5Y)0.64
Graham Number72.96
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 5.95% | ||
| ROE | 16.76% | ||
| ROCE | 12.26% | ||
| ROIC | 9.83% | ||
| ROICexc | 9.89% | ||
| ROICexgc | 9.89% | ||
| OM | 41.94% | ||
| PM (TTM) | 22.77% | ||
| GM | 90.63% | ||
| FCFM | 8.22% |
ROA(3y)4.21%
ROA(5y)4.94%
ROE(3y)11.86%
ROE(5y)16.63%
ROIC(3y)8.65%
ROIC(5y)9.07%
ROICexc(3y)8.7%
ROICexc(5y)9.13%
ROICexgc(3y)8.7%
ROICexgc(5y)9.13%
ROCE(3y)10.82%
ROCE(5y)11.32%
ROICexgc growth 3Y-3.46%
ROICexgc growth 5Y10.44%
ROICexc growth 3Y-3.45%
ROICexc growth 5Y10.45%
OM growth 3Y4.57%
OM growth 5Y6.24%
PM growth 3Y-4.2%
PM growth 5YN/A
GM growth 3Y3.36%
GM growth 5Y1.32%
F-Score7
Asset Turnover0.26
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.82 | ||
| Debt/FCF | 15.13 | ||
| Debt/EBITDA | 1.79 | ||
| Cap/Depr | 199.92% | ||
| Cap/Sales | 40.08% | ||
| Interest Coverage | 5.99 | ||
| Cash Conversion | 77.91% | ||
| Profit Quality | 36.1% | ||
| Current Ratio | 0.44 | ||
| Quick Ratio | 0.35 | ||
| Altman-Z | 1.67 |
F-Score7
WACC7.68%
ROIC/WACC1.28
Cap/Depr(3y)216.75%
Cap/Depr(5y)218.79%
Cap/Sales(3y)44.81%
Cap/Sales(5y)42.94%
Profit Quality(3y)85.85%
Profit Quality(5y)53.73%
High Growth Momentum
Growth
EPS 1Y (TTM)37.92%
EPS 3Y5.47%
EPS 5Y18.56%
EPS Q2Q%58.44%
EPS Next Y22%
EPS Next 2Y14.65%
EPS Next 3Y8.09%
EPS Next 5YN/A
Revenue 1Y (TTM)17.11%
Revenue growth 3Y1.38%
Revenue growth 5Y8.05%
Sales Q2Q%22.67%
Revenue Next Year12.29%
Revenue Next 2Y18.22%
Revenue Next 3Y12.48%
Revenue Next 5YN/A
EBIT growth 1Y31.06%
EBIT growth 3Y6.01%
EBIT growth 5Y14.79%
EBIT Next Year80.29%
EBIT Next 3Y24.93%
EBIT Next 5YN/A
FCF growth 1Y38.95%
FCF growth 3Y544.28%
FCF growth 5Y50.06%
OCF growth 1Y3.2%
OCF growth 3Y10.63%
OCF growth 5Y8.23%
NATIONAL FUEL GAS CO / NFG FAQ
What is the ChartMill fundamental rating of NATIONAL FUEL GAS CO (NFG) stock?
ChartMill assigns a fundamental rating of 7 / 10 to NFG.
What is the valuation status for NFG stock?
ChartMill assigns a valuation rating of 8 / 10 to NATIONAL FUEL GAS CO (NFG). This can be considered as Undervalued.
What is the profitability of NFG stock?
NATIONAL FUEL GAS CO (NFG) has a profitability rating of 9 / 10.
What is the valuation of NATIONAL FUEL GAS CO based on its PE and PB ratios?
The Price/Earnings (PE) ratio for NATIONAL FUEL GAS CO (NFG) is 11.88 and the Price/Book (PB) ratio is 2.4.
Can you provide the financial health for NFG stock?
The financial health rating of NATIONAL FUEL GAS CO (NFG) is 4 / 10.