NORTHERN OIL AND GAS INC (NOG) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:NOG - US6655313079 - Common Stock
23.45 USD
+0.11 (+0.47%)
23.5 USD
+0.05 (+0.21%)
NOG gets a fundamental rating of 5 out of 10. The analysis compared the fundamentals against 207 industry peers in the Oil, Gas & Consumable Fuels industry. NOG has an excellent profitability rating, but there are concerns on its financial health. NOG has a correct valuation and a medium growth rate.
1. Profitability
1.1 Basic Checks
- NOG had positive earnings in the past year.
- NOG had a positive operating cash flow in the past year.
- In multiple years NOG reported negative net income over the last 5 years.
- Each year in the past 5 years NOG had a positive operating cash flow.
1.2 Ratios
- Looking at the Return On Assets, with a value of 3.30%, NOG is in line with its industry, outperforming 51.21% of the companies in the same industry.
- NOG has a Return On Equity (8.07%) which is comparable to the rest of the industry.
- NOG has a Return On Invested Capital of 14.29%. This is amongst the best in the industry. NOG outperforms 93.24% of its industry peers.
- Measured over the past 3 years, the Average Return On Invested Capital for NOG is in line with the industry average of 21.94%.
- The last Return On Invested Capital (14.29%) for NOG is well below the 3 year average (22.03%), which needs to be investigated, but indicates that NOG had better years and this may not be a problem.
| 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
- Looking at the Profit Margin, with a value of 7.61%, NOG is in line with its industry, outperforming 52.17% of the companies in the same industry.
- NOG has a Operating Margin of 35.59%. This is amongst the best in the industry. NOG outperforms 83.57% of its industry peers.
- In the last couple of years the Operating Margin of NOG has grown nicely.
- NOG's Gross Margin of 74.23% is amongst the best of the industry. NOG outperforms 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%
2. Health
2.1 Basic Checks
- With a Return on Invested Capital (ROIC) well above the Cost of Capital (WACC), NOG is creating value.
- NOG has less shares outstanding than it did 1 year ago.
- NOG has more shares outstanding than it did 5 years ago.
- Compared to 1 year ago, NOG has a worse debt to assets ratio.
2.2 Solvency
- Based on the Altman-Z score of 1.52, we must say that NOG is in the distress zone and has some risk of bankruptcy.
- NOG has a Altman-Z score (1.52) which is comparable to the rest of the industry.
- A Debt/Equity ratio of 1.05 is on the high side and indicates that NOG has dependencies on debt financing.
- NOG's Debt to Equity ratio of 1.05 is on the low side compared to the rest of the industry. NOG is outperformed by 70.05% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.05 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 1.52 |
ROIC/WACC1.59
WACC8.96%
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.
- With a Quick ratio value of 1.10, NOG perfoms like the industry average, outperforming 55.07% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.1 | ||
| Quick Ratio | 1.1 |
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.
- NOG shows a decrease in Revenue. In the last year, the revenue decreased by -4.94%.
- 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
- Based on estimates for the next years, NOG will show a small growth in Earnings Per Share. The EPS will grow by 1.57% on average per year.
- 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
- The EPS growth rate is decreasing: in the next years the growth will be less 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 decreasing.
4. Valuation
4.1 Price/Earnings Ratio
- Based on the Price/Earnings ratio of 4.85, the valuation of NOG can be described as very cheap.
- 93.72% of the companies in the same industry are more expensive than NOG, based on the Price/Earnings ratio.
- NOG is valuated cheaply when we compare the Price/Earnings ratio to 27.21, which is the current average of the S&P500 Index.
- With a Price/Forward Earnings ratio of 8.05, the valuation of NOG can be described as very reasonable.
- Based on the Price/Forward Earnings ratio, NOG is valued cheaper than 89.37% of the companies in the same industry.
- NOG's Price/Forward Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 25.98.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 4.85 | ||
| Fwd PE | 8.05 |
4.2 Price Multiples
- 93.72% of the companies in the same industry are more expensive than NOG, based on the Enterprise Value to EBITDA ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 2.77 |
4.3 Compensation for Growth
- NOG has a very decent profitability rating, which may justify a higher PE ratio.
- NOG's earnings are expected to decrease with -13.91% in the coming years. This may justify a cheaper valuation.
PEG (NY)N/A
PEG (5Y)0.5
EPS Next 2Y-25.5%
EPS Next 3Y-13.91%
5. Dividend
5.1 Amount
- With a Yearly Dividend Yield of 7.71%, NOG is a good candidate for dividend investing.
- 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 1.81, 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%
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%.