Taking everything into account, NOG scores 5 out of 10 in our fundamental rating. NOG was compared to 207 industry peers in the Oil, Gas & Consumable Fuels industry. While NOG has a great profitability rating, there are quite some concerns on its financial health. NOG has a decent growth rate and is not valued too expensively.

Quickly go to:

1. Profitability

2. Health

3. Growth

4. Valuation

5. Dividend

1. Profitability

1.1 Basic Checks

In the past year NOG was profitable.
NOG had a positive operating cash flow in the past year.
In multiple years NOG reported negative net income over the last 5 years.
In the past 5 years NOG always reported a positive cash flow from operatings.

1.2 Ratios

NOG has a Return On Assets (3.30%) which is in line with its industry peers.
NOG has a Return On Equity (8.07%) which is comparable to the rest of the industry.
NOG's Return On Invested Capital of 14.29% is amongst the best of the industry. NOG outperforms 93.24% of its industry peers.
NOG had an Average Return On Invested Capital over the past 3 years of 22.03%. This is in line with the industry average of 21.94%.
The 3 year average ROIC (22.03%) for NOG is well above the current ROIC(14.29%). The reason for the recent decline needs to be investigated.

		Industry Rank	Sector Rank
ROA	3.3%
ROE	8.07%
ROIC	14.29%

ROA(3y)18.39%

ROA(5y)-10.2%

ROE(3y)55.05%

ROE(5y)N/A

ROIC(3y)22.03%

ROIC(5y)19.84%

1.3 Margins

NOG's Profit Margin of 7.61% is in line compared to the rest of the industry. NOG outperforms 52.17% of its industry peers.
NOG has a better Operating Margin (35.59%) than 83.57% of its industry peers.
In the last couple of years the Operating Margin of NOG has grown nicely.
NOG has a better Gross Margin (74.23%) than 85.51% of its industry peers.
In the last couple of years the Gross Margin of NOG has grown nicely.

		Industry Rank	Sector Rank
OM	35.59%
PM (TTM)	7.61%
GM	74.23%

OM growth 3Y33.88%

OM growth 5Y23.52%

PM growth 3YN/A

PM growth 5YN/A

GM growth 3Y13.67%

GM growth 5Y3.3%

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ROA

ROE

ROIC

Operating and Profit Margin

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2. Health

2.1 Basic Checks

NOG has a Return on Invested Capital (ROIC), which is well above the Cost of Capital (WACC), which means it is creating value.
Compared to 1 year ago, NOG has less shares outstanding
NOG has more shares outstanding than it did 5 years ago.
The debt/assets ratio for NOG is higher compared to a year ago.

2.2 Solvency

Based on the Altman-Z score of 1.53, we must say that NOG is in the distress zone and has some risk of bankruptcy.
NOG has a Altman-Z score (1.53) which is comparable to the rest of the industry.
NOG has a Debt/Equity ratio of 1.05. This is a high value indicating a heavy dependency on external financing.
Looking at the Debt to Equity ratio, with a value of 1.05, NOG is doing worse than 70.05% of the companies in the same industry.

		Industry Rank	Sector Rank
Debt/Equity	1.05
Debt/FCF	N/A
Altman-Z	1.53

ROIC/WACC1.57

WACC9.12%

2.3 Liquidity

A Current Ratio of 1.10 indicates that NOG should not have too much problems paying its short term obligations.
Looking at the Current ratio, with a value of 1.10, NOG is in line with its industry, outperforming 46.86% of the companies in the same industry.
A Quick Ratio of 1.10 indicates that NOG should not have too much problems paying its short term obligations.
NOG has a Quick ratio (1.10) which is comparable to the rest of the industry.

		Industry Rank	Sector Rank
Current Ratio	1.1
Quick Ratio	1.1

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WACC

Debt/Equity

How to determine the health of a company

Altman-Z score

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3. Growth

3.1 Past

NOG shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -15.83%.
The Earnings Per Share has been growing by 9.73% on average over the past years. This is quite good.
The Revenue has decreased by -4.94% in the past year.
Measured over the past years, NOG shows a very strong growth in Revenue. The Revenue has been growing by 36.34% on average per year.

EPS 1Y (TTM)-15.83%

EPS 3Y15.13%

EPS 5Y9.73%

EPS Q2Q%-26.43%

Revenue 1Y (TTM)-4.94%

Revenue growth 3Y64.84%

Revenue growth 5Y36.34%

Sales Q2Q%-35.53%

3.2 Future

The Earnings Per Share is expected to grow by 1.57% on average over the next years.
Based on estimates for the next years, NOG will show a small growth in Revenue. The Revenue will grow by 3.62% on average per year.

EPS Next Y-13.12%

EPS Next 2Y-25.5%

EPS Next 3Y-13.91%

EPS Next 5Y1.57%

Revenue Next Year5.57%

Revenue Next 2Y-3.1%

Revenue Next 3Y-0.76%

Revenue Next 5Y3.62%

3.3 Evolution

When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.

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4. Valuation

4.1 Price/Earnings Ratio

With a Price/Earnings ratio of 5.03, the valuation of NOG can be described as very cheap.
Compared to the rest of the industry, the Price/Earnings ratio of NOG indicates a rather cheap valuation: NOG is cheaper than 94.20% of the companies listed in the same industry.
When comparing the Price/Earnings ratio of NOG to the average of the S&P500 Index (28.60), we can say NOG is valued rather cheaply.
A Price/Forward Earnings ratio of 8.36 indicates a reasonable valuation of NOG.
Compared to the rest of the industry, the Price/Forward Earnings ratio of NOG indicates a rather cheap valuation: NOG is cheaper than 89.86% of the companies listed in the same industry.
Compared to an average S&P500 Price/Forward Earnings ratio of 25.83, NOG is valued rather cheaply.

		Industry Rank	Sector Rank
PE	5.03
Fwd PE	8.36

4.2 Price Multiples

NOG's Enterprise Value to EBITDA ratio is rather cheap when compared to the industry. NOG is cheaper than 93.72% of the companies in the same industry.

		Industry Rank	Sector Rank
P/FCF	N/A
EV/EBITDA	2.8

4.3 Compensation for Growth

NOG has a very decent profitability rating, which may justify a higher PE ratio.
A cheap valuation may be justified as NOG's earnings are expected to decrease with -13.91% in the coming years.

PEG (NY)N/A

PEG (5Y)0.52

EPS Next 2Y-25.5%

EPS Next 3Y-13.91%

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5. Dividend

5.1 Amount

NOG has a Yearly Dividend Yield of 7.71%, which is a nice return.
NOG's Dividend Yield is rather good when compared to the industry average which is at 3.73. NOG pays more dividend than 82.61% of the companies in the same industry.
Compared to an average S&P500 Dividend Yield of 1.82, NOG pays a better dividend.

		Industry Rank	Sector Rank
Dividend Yield	7.71%

5.2 History

NOG has been paying a dividend for over 5 years, so it has already some track record.
NOG has not decreased its dividend in the last 3 years.

Dividend Growth(5Y)N/A

Div Incr Years3

Div Non Decr Years3

5.3 Sustainability

94.64% of the earnings are spent on dividend by NOG. This is not a sustainable payout ratio.

DP94.64%

EPS Next 2Y-25.5%

EPS Next 3Y-13.91%

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NORTHERN OIL AND GAS INC / NOG FAQ

Can you provide the ChartMill fundamental rating for NORTHERN OIL AND GAS INC?

ChartMill assigns a fundamental rating of 5 / 10 to NOG.

What is the valuation status for NOG stock?

ChartMill assigns a valuation rating of 6 / 10 to NORTHERN OIL AND GAS INC (NOG). This can be considered as Fairly Valued.

How profitable is NORTHERN OIL AND GAS INC (NOG) stock?

NORTHERN OIL AND GAS INC (NOG) has a profitability rating of 7 / 10.

What is the financial health of NORTHERN OIL AND GAS INC (NOG) stock?

The financial health rating of NORTHERN OIL AND GAS INC (NOG) is 3 / 10.

Can you provide the dividend sustainability for NOG stock?

The dividend rating of NORTHERN OIL AND GAS INC (NOG) is 5 / 10 and the dividend payout ratio is 94.64%.