National Fuel Gas Company
National Fuel Gas Company Fundamental Analysis
National Fuel Gas Company (NFG) shows strong financial fundamentals with a PE ratio of 12.32, profit margin of 27.65%, and ROE of 21.09%. The company generates $2.5B in annual revenue with strong year-over-year growth of 17.11%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 71.0/100 based on profitability, valuation, growth, and balance sheet metrics. The B grade reflects solid fundamentals with room for improvement in valuation or growth.
Fundamental Health Score
We analyze NFG's fundamental strength across five key dimensions:
Efficiency Score
WeakNFG struggles to generate sufficient returns from assets.
Valuation Score
ExcellentNFG trades at attractive valuation levels.
Growth Score
ModerateNFG shows steady but slowing expansion.
Financial Health Score
ModerateNFG shows balanced financial health with some risks.
Profitability Score
ExcellentNFG achieves industry-leading margins.
Key Financial Metrics
Is NFG Expensive or Cheap?
P/E Ratio
NFG trades at 12.32 times earnings. This suggests potential undervaluation.
PEG Ratio
When adjusting for growth, NFG's PEG of 0.47 indicates potential undervaluation.
Price to Book
The market values National Fuel Gas Company at 2.25 times its book value. This may indicate undervaluation.
EV/EBITDA
Enterprise value stands at 3.92 times EBITDA. This is generally considered low.
How Well Does NFG Make Money?
Net Profit Margin
For every $100 in sales, National Fuel Gas Company keeps $27.65 as profit after all expenses.
Operating Margin
Core operations generate 42.34 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $21.09 in profit for every $100 of shareholder equity.
ROA
National Fuel Gas Company generates $7.12 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
National Fuel Gas Company generates strong operating cash flow of $1.20B, reflecting robust business health.
Free Cash Flow
National Fuel Gas Company produces free cash flow of $213.50M, offering steady but limited capital for shareholder returns and expansion.
FCF Per Share
Each share generates $2.25 in free cash annually.
FCF Yield
NFG converts 2.43% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
12.32
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
0.47
vs 25 benchmark
P/B Ratio
Price to book value ratio
2.25
vs 25 benchmark
P/S Ratio
Price to sales ratio
3.55
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
0.77
vs 25 benchmark
Current Ratio
Current assets to current liabilities
0.65
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.21
vs 25 benchmark
ROA
Return on assets percentage
0.07
vs 25 benchmark
ROCE
Return on capital employed
0.12
vs 25 benchmark
How NFG Stacks Against Its Sector Peers
| Metric | NFG Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 12.32 | 20.19 | Better (Cheaper) |
| ROE | 21.09% | 1019.00% | Weak |
| Net Margin | 27.65% | -44017.00% (disorted) | Strong |
| Debt/Equity | 0.77 | -0.65 (disorted) | Distorted |
| Current Ratio | 0.65 | 4.60 | Weak Liquidity |
| ROA | 7.12% | -11655350.00% (disorted) | Weak |
NFG outperforms its industry in 2 out of 6 key metrics, particularly excelling in Net Margin, but lagging in ROE.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews National Fuel Gas Company's 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
43.17%
Industry Style: Cyclical, Value, Commodity
High GrowthEPS CAGR
507.20%
Industry Style: Cyclical, Value, Commodity
High GrowthFCF CAGR
44.34%
Industry Style: Cyclical, Value, Commodity
High Growth