NATIONAL FUEL GAS CO (NFG)
US6361801011 - Common Stock
Taking everything into account, NFG scores 5 out of 10 in our fundamental rating. NFG was compared to 14 industry peers in the Gas Utilities industry. While NFG has a great profitability rating, there are quite some concerns on its financial health. NFG is valued quite cheap, while showing a decent growth score. This is a good combination!
1. Profitability
1.1 Basic Checks
In the past year NFG was profitable.
In the past year NFG had a positive cash flow from operations.
NFG had positive earnings in 4 of the past 5 years.
In the past 5 years NFG always reported a positive cash flow from operatings.
1.2 Ratios
With an excellent Return On Assets value of 5.37%, NFG belongs to the best of the industry, outperforming 100.00% of the companies in the same industry.
With an excellent Return On Equity value of 14.09%, NFG belongs to the best of the industry, outperforming 92.86% of the companies in the same industry.
NFG has a better Return On Invested Capital (7.04%) than 92.86% of its industry peers.
The Average Return On Invested Capital over the past 3 years for NFG is above the industry average of 5.43%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 5.37% | ||
| ROE | 14.09% | ||
| ROIC | 7.04% |
ROA(3y)5.93%
ROA(5y)4.15%
ROE(3y)21.22%
ROE(5y)14.32%
ROIC(3y)8.77%
ROIC(5y)7.74%
1.3 Margins
NFG has a better Profit Margin (23.84%) than 92.86% of its industry peers.
NFG's Profit Margin has declined in the last couple of years.
With an excellent Operating Margin value of 37.75%, NFG belongs to the best 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 remained more or less at the same level.
NFG has a Gross Margin of 90.53%. This is amongst the best in 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 | 37.75% | ||
| PM (TTM) | 23.84% | ||
| GM | 90.53% |
OM growth 3Y3.87%
OM growth 5Y1.26%
PM growth 3YN/A
PM growth 5Y-2.25%
GM growth 3Y-2.01%
GM growth 5Y0.27%
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.
NFG has more shares outstanding than it did 1 year ago.
The number of shares outstanding for NFG has been increased compared to 5 years ago.
The debt/assets ratio for NFG has been reduced compared to a year ago.
2.2 Solvency
NFG has an Altman-Z score of 1.38. This is a bad value and indicates that NFG is not financially healthy and even has some risk of bankruptcy.
The Altman-Z score of NFG (1.38) is better than 85.71% of its industry peers.
The Debt to FCF ratio of NFG is 22.84, which is on the high side as it means it would take NFG, 22.84 years of fcf income to pay off all of its debts.
NFG's Debt to FCF ratio of 22.84 is in line compared to the rest of the industry. NFG outperforms 57.14% of its industry peers.
A Debt/Equity ratio of 0.81 indicates that NFG is somewhat dependend on debt financing.
NFG's Debt to Equity ratio of 0.81 is amongst the best of the industry. NFG outperforms 85.71% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.81 | ||
| Debt/FCF | 22.84 | ||
| Altman-Z | 1.38 |
ROIC/WACC0.98
WACC7.2%
2.3 Liquidity
NFG has a Current Ratio of 0.58. 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 0.58 is on the low side compared to the rest of the industry. NFG is outperformed by 71.43% of its industry peers.
NFG has a Quick Ratio of 0.58. This is a bad value and indicates that NFG is not financially healthy enough and could expect problems in meeting its short term obligations.
With a Quick ratio value of 0.50, NFG is not doing good in the industry: 64.29% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.58 | ||
| Quick Ratio | 0.5 |
3. Growth
3.1 Past
NFG shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -17.51%.
The Earnings Per Share has been growing by 9.07% on average over the past years. This is quite good.
The Revenue for NFG has decreased by -15.60% in the past year. This is quite bad
The Revenue has been growing slightly by 6.42% on average over the past years.
EPS 1Y (TTM)-17.51%
EPS 3Y20.57%
EPS 5Y9.07%
EPS growth Q2Q16.23%
Revenue 1Y (TTM)-15.6%
Revenue growth 3Y12.02%
Revenue growth 5Y6.42%
Revenue growth Q2Q-12.17%
3.2 Future
The Earnings Per Share is expected to grow by 12.30% on average over the next years. This is quite good.
NFG is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 5.78% yearly.
EPS Next Y-5.06%
EPS Next 2Y10.25%
EPS Next 3Y12.3%
EPS Next 5YN/A
Revenue Next Year4.34%
Revenue Next 2Y6.95%
Revenue Next 3Y5.78%
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.
The Revenue growth rate is stable: in the next years the growth will be about the same than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
The Price/Earnings ratio is 11.23, which indicates a very decent valuation of NFG.
Based on the Price/Earnings ratio, NFG is valued cheaply inside the industry as 85.71% of the companies are valued more expensively.
NFG is valuated cheaply when we compare the Price/Earnings ratio to 28.15, which is the current average of the S&P500 Index.
With a Price/Forward Earnings ratio of 9.01, the valuation of NFG can be described as very reasonable.
NFG's Price/Forward Earnings ratio is rather cheap when compared to the industry. NFG is cheaper than 85.71% of the companies in the same industry.
Compared to an average S&P500 Price/Forward Earnings ratio of 20.20, NFG is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 11.23 | ||
| Fwd PE | 9.01 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, NFG is valued cheaply inside the industry as 92.86% of the companies are valued more expensively.
NFG's Price/Free Cash Flow ratio is in line with the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 44.69 | ||
| EV/EBITDA | 6.38 |
4.3 Compensation for Growth
The excellent profitability rating of NFG may justify a higher PE ratio.
A more expensive valuation may be justified as NFG's earnings are expected to grow with 12.30% in the coming years.
PEG (NY)N/A
PEG (5Y)1.24
EPS Next 2Y10.25%
EPS Next 3Y12.3%
5. Dividend
5.1 Amount
NFG has a Yearly Dividend Yield of 3.51%. Purely for dividend investing, there may be better candidates out there.
NFG's Dividend Yield is slightly below the industry average, which is at 4.50.
NFG's Dividend Yield is a higher than the S&P500 average which is at 2.34.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.51% |
5.2 History
The dividend of NFG has a limited annual growth rate of 2.83%.
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)2.83%
Div Incr Years19
Div Non Decr Years19
5.3 Sustainability
38.67% of the earnings are spent on dividend by NFG. This is a low number and sustainable payout ratio.
NFG's earnings are growing more than its dividend. This makes the dividend growth sustainable.
DP38.67%
EPS Next 2Y10.25%
EPS Next 3Y12.3%
NATIONAL FUEL GAS CO
NYSE:NFG (5/17/2024, 7:15:58 PM)
After market: 56.61 0 (0%)56.61
+0.02 (+0.04%)
Chartmill FA Rating
GICS SectorUtilities
GICS IndustryGroupUtilities
GICS IndustryGas Utilities
Earnings (Last)
Earnings (Next)
Inst Owners
Inst Owner Change
Ins Owners
Ins Owner Change
Market Cap5.22B
Analysts
Price Target
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.51% |
Dividend Growth(5Y)
DP
Div Incr Years
Div Non Decr Years
Ex-Date
Surprises & Revisions
EPS beat(2)
Avg EPS beat(2)
Min EPS beat(2)
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EPS beat(4)
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EPS beat(8)
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EPS beat(12)
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EPS beat(16)
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Revenue beat(2)
Avg Revenue beat(2)
Min Revenue beat(2)
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Revenue beat(4)
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Revenue beat(8)
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Revenue beat(12)
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Revenue beat(16)
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PT rev (1m)
PT rev (3m)
EPS NQ rev (1m)
EPS NQ rev (3m)
EPS NY rev (1m)
EPS NY rev (3m)
Revenue NQ rev (1m)
Revenue NQ rev (3m)
Revenue NY rev (1m)
Revenue NY rev (3m)
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 11.23 | ||
| Fwd PE | 9.01 | ||
| P/S | |||
| P/FCF | |||
| P/OCF | |||
| P/B | |||
| P/tB | |||
| EV/EBITDA |
EPS(TTM)
EY
EPS(NY)
Fwd EY
FCF(TTM)
FCFY
OCF(TTM)
OCFY
SpS
BVpS
TBVpS
PEG (NY)N/A
PEG (5Y)1.24
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 5.37% | ||
| ROE | 14.09% | ||
| ROCE | |||
| ROIC | |||
| ROICexc | |||
| ROICexgc | |||
| OM | 37.75% | ||
| PM (TTM) | 23.84% | ||
| GM | 90.53% | ||
| FCFM |
ROA(3y)
ROA(5y)
ROE(3y)
ROE(5y)
ROIC(3y)
ROIC(5y)
ROICexc(3y)
ROICexc(5y)
ROICexgc(3y)
ROICexgc(5y)
ROCE(3y)
ROCE(5y)
ROICexcg growth 3Y
ROICexcg growth 5Y
ROICexc growth 3Y
ROICexc growth 5Y
OM growth 3Y
OM growth 5Y
PM growth 3Y
PM growth 5Y
GM growth 3Y
GM growth 5Y
F-Score
Asset Turnover0.23
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.81 | ||
| Debt/FCF | |||
| Debt/EBITDA | |||
| Cap/Depr | |||
| Cap/Sales | |||
| Interest Coverage | |||
| Cash Conversion | |||
| Profit Quality | |||
| Current Ratio | 0.58 | ||
| Quick Ratio | 0.5 | ||
| Altman-Z |
F-Score
WACC
ROIC/WACC
Cap/Depr(3y)
Cap/Depr(5y)
Cap/Sales(3y)
Cap/Sales(5y)
Profit Quality(3y)
Profit Quality(5y)
Growth
EPS 1Y (TTM)-17.51%
EPS 3Y20.57%
EPS 5Y
EPS growth Q2Q
EPS Next Y-5.06%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)-15.6%
Revenue growth 3Y12.02%
Revenue growth 5Y
Revenue growth Q2Q
Revenue Next Year
Revenue Next 2Y
Revenue Next 3Y
Revenue Next 5Y
EBIT growth 1Y
EBIT growth 3Y
EBIT growth 5Y
EBIT Next Year
EBIT Next 3Y
EBIT Next 5Y
FCF growth 1Y
FCF growth 3Y
FCF growth 5Y
OCF growth 1Y
OCF growth 3Y
OCF growth 5Y