Northern Oil and Gas, Inc.
Northern Oil and Gas, Inc. Fundamental Analysis
Northern Oil and Gas, Inc. (NOG) shows weak financial fundamentals with a PE ratio of 69.80, profit margin of 1.85%, and ROE of 1.69%. The company generates $2.1B in annual revenue with strong year-over-year growth of 14.42%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 27.2/100 based on profitability, valuation, growth, and balance sheet metrics. The F grade reflects weak fundamentals and significant financial concerns.
Fundamental Health Score
We analyze NOG's fundamental strength across five key dimensions:
Efficiency Score
WeakNOG struggles to generate sufficient returns from assets.
Valuation Score
ModerateNOG shows balanced valuation metrics.
Growth Score
ModerateNOG shows steady but slowing expansion.
Financial Health Score
ModerateNOG shows balanced financial health with some risks.
Profitability Score
WeakNOG struggles to sustain strong margins.
Key Financial Metrics
Is NOG Expensive or Cheap?
P/E Ratio
NOG trades at 69.80 times earnings. This suggests a premium valuation.
PEG Ratio
When adjusting for growth, NOG's PEG of -0.89 indicates potential undervaluation.
Price to Book
The market values Northern Oil and Gas, Inc. at 1.27 times its book value. This may indicate undervaluation.
EV/EBITDA
Enterprise value stands at 0.31 times EBITDA. This is generally considered low.
How Well Does NOG Make Money?
Net Profit Margin
For every $100 in sales, Northern Oil and Gas, Inc. keeps $1.85 as profit after all expenses.
Operating Margin
Core operations generate 29.10 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $1.69 in profit for every $100 of shareholder equity.
ROA
Northern Oil and Gas, Inc. generates $0.72 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
Northern Oil and Gas, Inc. generates strong operating cash flow of $1.50B, reflecting robust business health.
Free Cash Flow
Northern Oil and Gas, Inc. generates weak or negative free cash flow of $-291.15M, restricting financial flexibility.
FCF Per Share
Each share generates $-2.98 in free cash annually.
FCF Yield
NOG converts -10.81% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
69.80
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
-0.89
vs 25 benchmark
P/B Ratio
Price to book value ratio
1.27
vs 25 benchmark
P/S Ratio
Price to sales ratio
1.29
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
1.13
vs 25 benchmark
Current Ratio
Current assets to current liabilities
1.09
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.02
vs 25 benchmark
ROA
Return on assets percentage
0.007
vs 25 benchmark
ROCE
Return on capital employed
0.13
vs 25 benchmark
How NOG Stacks Against Its Sector Peers
| Metric | NOG Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 69.80 | 19.95 | Worse (Expensive) |
| ROE | 1.69% | 963.00% | Weak |
| Net Margin | 1.85% | -48347.00% (disorted) | Weak |
| Debt/Equity | 1.13 | -0.54 (disorted) | Distorted |
| Current Ratio | 1.09 | 4.82 | Neutral |
| ROA | 0.72% | -2296.00% (disorted) | Weak |
NOG outperforms its industry in 0 out of 6 key metrics, but lagging in P/E Ratio.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews Northern Oil and Gas, Inc.'s 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
234.20%
Industry Style: Cyclical, Value, Commodity
High GrowthEPS CAGR
101.87%
Industry Style: Cyclical, Value, Commodity
High GrowthFCF CAGR
-100.00%
Industry Style: Cyclical, Value, Commodity
Declining