DB:GAN

Stock Analysis Report

Naturgy Energy Group

Executive Summary

Naturgy Energy Group, S.A., together with its subsidiaries, engages in the supply, liquefaction, regasification, transport, storage, distribution, and sale of natural gas in Spain and internationally.


Snowflake Analysis

Good value with mediocre balance sheet.


Similar Companies

Share Price & News

How has Naturgy Energy Group's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: GAN has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

-1.6%

GAN

0.7%

DE Gas Utilities

-0.9%

DE Market


1 Year Return

0.8%

GAN

7.7%

DE Gas Utilities

12.8%

DE Market

Return vs Industry: GAN underperformed the German Gas Utilities industry which returned 7.7% over the past year.

Return vs Market: GAN underperformed the German Market which returned 12.8% over the past year.


Shareholder returns

GANIndustryMarket
7 Day-1.6%0.7%-0.9%
30 Day3.4%3.3%-0.4%
90 Day1.7%6.7%2.3%
1 Year5.5%0.8%12.7%7.7%16.3%12.8%
3 Year51.8%32.7%52.3%31.8%15.8%5.7%
5 Year39.6%12.2%54.5%15.4%19.7%3.3%

Price Volatility Vs. Market

How volatile is Naturgy Energy Group's share price compared to the market and industry in the last 5 years?


Simply Wall St News

No news available

Valuation

Is Naturgy Energy Group undervalued compared to its fair value and its price relative to the market?

37.0%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: GAN (€24.12) is trading below our estimate of fair value (€38.28)

Significantly Below Fair Value: GAN is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: GAN is good value based on its PE Ratio (16.8x) compared to the Gas Utilities industry average (18.9x).

PE vs Market: GAN is good value based on its PE Ratio (16.8x) compared to the German market (20.8x).


Price to Earnings Growth Ratio

PEG Ratio: GAN is poor value based on its PEG Ratio (6.4x)


Price to Book Ratio

PB vs Industry: GAN is overvalued based on its PB Ratio (2.2x) compared to the XE Gas Utilities industry average (1.3x).


Next Steps

Future Growth

How is Naturgy Energy Group forecast to perform in the next 1 to 3 years based on estimates from 15 analysts?

2.6%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: GAN's forecast earnings growth (2.6% per year) is above the savings rate (-0.4%).

Earnings vs Market: GAN's earnings (2.6% per year) are forecast to grow slower than the German market (13% per year).

High Growth Earnings: GAN's earnings are forecast to grow, but not significantly.

Revenue vs Market: GAN's revenue (0.5% per year) is forecast to grow slower than the German market (5.2% per year).

High Growth Revenue: GAN's revenue (0.5% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: GAN's Return on Equity is forecast to be low in 3 years time (15.3%).


Next Steps

Past Performance

How has Naturgy Energy Group performed over the past 5 years?

-34.4%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: GAN has high quality earnings.

Growing Profit Margin: GAN became profitable in the past.


Past Earnings Growth Analysis

Earnings Trend: GAN's earnings have declined by -34.4% per year over the past 5 years.

Accelerating Growth: GAN has become profitable in the last year, making the earnings growth rate difficult to compare to its 5-year average.

Earnings vs Industry: GAN has become profitable in the last year, making it difficult to compare its past year earnings growth to the Gas Utilities industry (10.6%).


Return on Equity

High ROE: GAN's Return on Equity (12.9%) is considered low.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is Naturgy Energy Group's financial position?


Financial Position Analysis

Short Term Liabilities: GAN's short term assets (€8.8B) exceed its short term liabilities (€6.7B).

Long Term Liabilities: GAN's short term assets (€8.8B) do not cover its long term liabilities (€20.5B).


Debt to Equity History and Analysis

Debt Level: GAN's debt to equity ratio (116.9%) is considered high.

Reducing Debt: GAN's debt to equity ratio has increased from 113% to 116.9% over the past 5 years.

Debt Coverage: GAN's debt is well covered by operating cash flow (24.6%).

Interest Coverage: GAN's interest payments on its debt are well covered by EBIT (4.8x coverage).


Balance Sheet

Inventory Level: GAN has a high level of physical assets or inventory.

Debt Coverage by Assets: GAN's debt is not covered by short term assets (assets are 0.5x debt).


Next Steps

Dividend

What is Naturgy Energy Group's current dividend yield, its reliability and sustainability?

5.68%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: GAN's dividend (5.68%) is higher than the bottom 25% of dividend payers in the German market (1.31%).

High Dividend: GAN's dividend (5.68%) is in the top 25% of dividend payers in the German market (3.63%)


Stability and Growth of Payments

Stable Dividend: GAN's dividend payments have been volatile in the past 10 years.

Growing Dividend: GAN's dividend payments have increased over the past 10 years.


Current Payout to Shareholders

Dividend Coverage: With its high payout ratio (95.6%), GAN's dividend payments are not well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: GAN's dividends in 3 years are not forecast to be well covered by earnings (97.1% payout ratio).


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

4.8yrs

Average management tenure


CEO

Francisco Miguel Reynés Massanet (56yo)

2yrs

Tenure

€1,028,571

Compensation

Mr. Francisco Miguel Reynés Massanet serves as Vice-Chairman and Chief Executive Officer of Abertis Infraestructuras, S.A. Mr. Massanet has been CEO and Chairman of Gas Natural SDG, S.A since February 2018 ...


Leadership Team

NamePositionTenureCompensationOwnership
Francisco Miguel Reynés Massanet
CEO & Chairman2yrs€1.03m0.080% 18.7m
Carlos Javier Álvarez Fernández
Chief Financial Officer20.1yrsno datano data
Abel Arbat
Head of Investor Relations0yrsno datano data
Manuel García Cobaleda
GM of Legal Services0yrsno datano data
Carlos Ayuso Salinas
Director of Internal Audit6.1yrsno datano data
Rosa María Sanz García
Managing Director of España & Empl-Medgaz Infrastructure Business4.8yrsno datano data
Steven Fernández
Director of Capital Markets1.7yrsno datano data
Jon Ganuza Fernández De Arroyabe
Controller0yrsno datano data
Jon Ganuza
Director of Controlling0yrsno datano data

4.8yrs

Average Tenure

56yo

Average Age

Experienced Management: GAN's management team is considered experienced (4.8 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Francisco Miguel Reynés Massanet
CEO & Chairman2yrs€1.03m0.080% 18.7m
Javier de Jaime Guijarro
Proprietary Director1.8yrs€153.37kno data
Marcelino Armenter Vidal
Proprietary Director3.4yrs€255.50k0.0010% 234.1k
Enrique Alcántara-García Irazoqui
Independent Director28.7yrs€208.32k0.0030% 702.4k
Claudi Santiago Ponsa
Independent Director1.7yrs€117.50kno data
Ramon Adell Ramon
Lead Director0yrs€354.18k0.0020% 468.3k
Rajaram Rao
Proprietary Director3.4yrs€277.32kno data
Francisco Belil Creixell
Independent Director4.8yrs€319.30k0.0010% 234.1k
Helena Herrero Starkie
Independent Director3.8yrs€208.32kno data
José Antonio Torre de Silva López de Letona
Proprietary Director1.8yrs€155.31kno data

3.4yrs

Average Tenure

61.5yo

Average Age

Experienced Board: GAN's board of directors are considered experienced (3.4 years average tenure).


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Top Shareholders

Company Information

Naturgy Energy Group, S.A.'s company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Naturgy Energy Group, S.A.
  • Ticker: GAN
  • Exchange: DB
  • Founded: 1843
  • Industry: Gas Utilities
  • Sector: Utilities
  • Market Cap: €23.413b
  • Shares outstanding: 970.30m
  • Website: https://www.naturgy.com

Number of Employees


Location

  • Naturgy Energy Group, S.A.
  • Plaza del Gas, 1
  • Barcelona
  • Catalonia
  • 8003
  • Spain

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
NTGYBME (Bolsas y Mercados Espanoles)YesOrdinary SharesESEURJan 1980
GANDB (Deutsche Boerse AG)YesOrdinary SharesDEEURJan 1980
GASN.FOTCPK (Pink Sheets LLC)YesOrdinary SharesUSUSDJan 1980
0NPVLSE (London Stock Exchange)YesOrdinary SharesGBEURJan 1980
GAS-UETLX (Eurotlx)YesOrdinary SharesITEURJan 1980
GASWBAG (Wiener Boerse AG)YesOrdinary SharesATEURJan 1980
GASN.YOTCPK (Pink Sheets LLC)UNSPONSORED ADRUSUSDOct 2008

Biography

Naturgy Energy Group, S.A., together with its subsidiaries, engages in the supply, liquefaction, regasification, transport, storage, distribution, and sale of natural gas in Spain and internationally. The company operates through Gas and Electricity, EMEA Infrastructures, Latin America South Zone Infrastructures, Latin America North Zone Infrastructures, and Rest segments. The Gas and Electricity segment is involved in the supply of gas, electricity, and services; sale of liquefied natural gas and the sea transport business; generation and sale of electricity through hydro, coal, nuclear, and combined cycle plants, as well as through wind, mini-hydro, solar, and cogeneration in Spain; and generation and sale of electricity in Latin America and Australia. The EMEA Infrastructures segment engages in the regulated gas and electricity distribution business in Spain, as well as provides network services for customers, primarily connections and hook-ups, metering, and other actions associated with third-party access to company’s distribution network; and manages the Maghreb - Europe gas pipeline. The Latin America South Zone Infrastructures segment distributes gas and electricity in Argentina and Chile; and distributes gas in Brazil and Peru. The Latin America North Zone Infrastructures segment distributes gas in Mexico and electricity in Panama. The Rest segment is involved in the gas marketing and storage business. The company was formerly known as Gas Natural SDG, S.A. and changed its name to Naturgy Energy Group, S.A. in June 2018. Naturgy Energy Group, S.A. was founded in 1843 and is headquartered in Barcelona, Spain. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/02/23 20:53
End of Day Share Price2020/02/21 00:00
Earnings2019/12/31
Annual Earnings2019/12/31


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.