NORTHERN OIL AND GAS INC (NOG)
US6655313079 - Common Stock
We assign a fundamental rating of 5 out of 10 to NOG. NOG was compared to 213 industry peers in the Oil, Gas & Consumable Fuels industry. While NOG has a great profitability rating, there are some minor concerns on its financial health. NOG has a decent growth rate and is not valued too expensively.
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.
NOG had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
NOG has a better Return On Assets (20.58%) than 86.79% of its industry peers.
With an excellent Return On Equity value of 45.07%, NOG belongs to the best of the industry, outperforming 87.74% of the companies in the same industry.
NOG has a Return On Invested Capital of 21.85%. This is amongst the best in the industry. NOG outperforms 88.68% of its industry peers.
The Average Return On Invested Capital over the past 3 years for NOG is significantly below the industry average of 46.07%.
The 3 year average ROIC (18.00%) for NOG is below the current ROIC(21.85%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 20.58% | ||
| ROE | 45.07% | ||
| ROIC | 21.85% |
ROA(3y)15.11%
ROA(5y)-12.87%
ROE(3y)46.27%
ROE(5y)N/A
ROIC(3y)18%
ROIC(5y)16.54%
1.3 Margins
NOG's Profit Margin of 42.60% is amongst the best of the industry. NOG outperforms 85.38% of its industry peers.
In the last couple of years the Profit Margin of NOG has grown nicely.
The Operating Margin of NOG (52.33%) is better than 85.85% of its industry peers.
In the last couple of years the Operating Margin of NOG has declined.
NOG's Gross Margin of 76.59% is amongst the best of the industry. NOG outperforms 83.49% of its industry peers.
In the last couple of years the Gross Margin of NOG has declined.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 52.33% | ||
| PM (TTM) | 42.6% | ||
| GM | 76.59% |
OM growth 3Y8.57%
OM growth 5Y-3.88%
PM growth 3YN/A
PM growth 5Y15.02%
GM growth 3Y1.36%
GM growth 5Y-1.72%
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 more shares outstanding
The number of shares outstanding for NOG has been increased compared to 5 years ago.
Compared to 1 year ago, NOG has an improved debt to assets ratio.
2.2 Solvency
An Altman-Z score of 2.37 indicates that NOG is not a great score, but indicates only limited risk for bankruptcy at the moment.
NOG has a better Altman-Z score (2.37) than 61.79% of its industry peers.
A Debt/Equity ratio of 0.90 indicates that NOG is somewhat dependend on debt financing.
NOG has a Debt to Equity ratio of 0.90. This is in the lower half of the industry: NOG underperforms 68.40% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.9 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 2.37 |
ROIC/WACC2.62
WACC8.33%
2.3 Liquidity
A Current Ratio of 1.32 indicates that NOG should not have too much problems paying its short term obligations.
NOG has a Current ratio (1.32) which is in line with its industry peers.
NOG has a Quick Ratio of 1.32. This is a normal value and indicates that NOG is financially healthy and should not expect problems in meeting its short term obligations.
The Quick ratio of NOG (1.32) is better than 66.98% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.32 | ||
| Quick Ratio | 1.32 |
3. Growth
3.1 Past
NOG shows a small growth in Earnings Per Share. In the last year, the EPS has grown by 0.92%.
The Earnings Per Share has been growing slightly by 1.23% on average over the past years.
Looking at the last year, NOG shows a very strong growth in Revenue. The Revenue has grown by 37.94%.
Measured over the past years, NOG shows a very strong growth in Revenue. The Revenue has been growing by 26.12% on average per year.
EPS 1Y (TTM)0.92%
EPS 3Y55.58%
EPS 5Y1.23%
EPS growth Q2Q12.59%
Revenue 1Y (TTM)37.94%
Revenue growth 3Y57.71%
Revenue growth 5Y26.12%
Revenue growth Q2Q114.23%
3.2 Future
Based on estimates for the next years, NOG will show a decrease in Earnings Per Share. The EPS will decrease by -4.53% on average per year.
Based on estimates for the next years, NOG will show a small growth in Revenue. The Revenue will grow by 2.43% on average per year.
EPS Next Y-19.62%
EPS Next 2Y-3.35%
EPS Next 3Y-5.83%
EPS Next 5Y-4.53%
Revenue Next Year12.92%
Revenue Next 2Y10.19%
Revenue Next 3Y6.38%
Revenue Next 5Y2.43%
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.
4. Valuation
4.1 Price/Earnings Ratio
A Price/Earnings ratio of 6.38 indicates a rather cheap valuation of NOG.
NOG's Price/Earnings ratio is rather cheap when compared to the industry. NOG is cheaper than 81.13% of the companies in the same industry.
Compared to an average S&P500 Price/Earnings ratio of 24.80, NOG is valued rather cheaply.
Based on the Price/Forward Earnings ratio of 7.94, the valuation of NOG can be described as very cheap.
76.42% of the companies in the same industry are more expensive than NOG, based on the Price/Forward Earnings ratio.
When comparing the Price/Forward Earnings ratio of NOG to the average of the S&P500 Index (21.27), we can say NOG is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 6.38 | ||
| Fwd PE | 7.94 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of NOG indicates a somewhat cheap valuation: NOG is cheaper than 79.72% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 3.75 |
4.3 Compensation for Growth
The decent profitability rating of NOG may justify a higher PE ratio.
NOG's earnings are expected to decrease with -5.83% in the coming years. This may justify a cheaper valuation.
PEG (NY)N/A
PEG (5Y)5.2
EPS Next 2Y-3.35%
EPS Next 3Y-5.83%
5. Dividend
5.1 Amount
NOG has a Yearly Dividend Yield of 3.75%. Purely for dividend investing, there may be better candidates out there.
Compared to an average industry Dividend Yield of 5.80, NOG pays a bit more dividend than its industry peers.
Compared to an average S&P500 Dividend Yield of 2.40, NOG pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.75% |
5.2 History
NOG has been paying a dividend for less than 5 years, so it still needs to build a track record.
Dividend Growth(5Y)N/A
Div Incr Years2
Div Non Decr Years2
5.3 Sustainability
13.43% of the earnings are spent on dividend by NOG. This is a low number and sustainable payout ratio.
DP13.43%
EPS Next 2Y-3.35%
EPS Next 3Y-5.83%
NORTHERN OIL AND GAS INC
NYSE:NOG (4/18/2024, 7:10:54 PM)
After market: 42.05 0 (0%)42.05
-0.4 (-0.94%)
Chartmill FA Rating
GICS SectorEnergy
GICS IndustryGroupEnergy
GICS IndustryOil, Gas & Consumable Fuels
Earnings (Last)
Earnings (Next)
Inst Owners
Inst Owner Change
Ins Owners
Ins Owner Change
Market Cap4.24B
Analysts
Price Target
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.75% |
Dividend Growth(5Y)
DP
Div Incr Years
Div Non Decr Years
Ex-Date
Surprises & Revisions
EPS beat(2)
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Revenue beat(2)
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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 | 6.38 | ||
| Fwd PE | 7.94 | ||
| 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)5.2
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 20.58% | ||
| ROE | 45.07% | ||
| ROCE | |||
| ROIC | |||
| ROICexc | |||
| ROICexgc | |||
| OM | 52.33% | ||
| PM (TTM) | 42.6% | ||
| GM | 76.59% | ||
| 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 Turnover0.48
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.9 | ||
| Debt/FCF | |||
| Debt/EBITDA | |||
| Cap/Depr | |||
| Cap/Sales | |||
| Interest Coverage | |||
| Cash Conversion | |||
| Profit Quality | |||
| Current Ratio | 1.32 | ||
| Quick Ratio | 1.32 | ||
| 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)0.92%
EPS 3Y55.58%
EPS 5Y
EPS growth Q2Q
EPS Next Y-19.62%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)37.94%
Revenue growth 3Y57.71%
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