DB:NFG

Stock Analysis Report

National Fuel Gas

Executive Summary

National Fuel Gas Company operates as a diversified energy company.


Snowflake Analysis

Established dividend payer and good value.


Similar Companies

Share Price & News

How has National Fuel Gas's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: NFG's share price has been volatile over the past 3 months.


Market Performance


7 Day Return

7.4%

NFG

1.8%

DE Gas Utilities

2.2%

DE Market


1 Year Return

-40.9%

NFG

-23.9%

DE Gas Utilities

-17.2%

DE Market

Return vs Industry: NFG underperformed the German Gas Utilities industry which returned -24.3% over the past year.

Return vs Market: NFG underperformed the German Market which returned -17.5% over the past year.


Shareholder returns

NFGIndustryMarket
7 Day7.4%1.8%2.2%
30 Day-3.6%-16.8%-15.7%
90 Day-22.8%-20.2%-24.0%
1 Year-38.5%-40.9%-20.0%-23.9%-14.9%-17.2%
3 Year-36.5%-42.6%4.4%-10.6%-16.4%-23.3%
5 Year-32.4%-42.5%12.5%-17.2%-16.5%-27.8%

Price Volatility Vs. Market

How volatile is National Fuel Gas's share price compared to the market and industry in the last 5 years?


Simply Wall St News

No news available

Valuation

Is National Fuel Gas undervalued compared to its fair value and its price relative to the market?

>50%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: NFG (€31.8) is trading below our estimate of fair value (€317.33)

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


Price To Earnings Ratio

PE vs Industry: NFG is good value based on its PE Ratio (11.4x) compared to the Gas Utilities industry average (13x).

PE vs Market: NFG is good value based on its PE Ratio (11.4x) compared to the German market (16.3x).


Price to Earnings Growth Ratio

PEG Ratio: NFG's earnings are forecast to decline next year, so we can't calculate its PEG ratio.


Price to Book Ratio

PB vs Industry: NFG is overvalued based on its PB Ratio (1.5x) compared to the XE Gas Utilities industry average (1.1x).


Next Steps

Future Growth

How is National Fuel Gas forecast to perform in the next 1 to 3 years based on estimates from 3 analysts?

-5.5%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: NFG's earnings are forecast to decline over the next 3 years (-5.5% per year).

Earnings vs Market: NFG's earnings are forecast to decline over the next 3 years (-5.5% per year).

High Growth Earnings: NFG's earnings are forecast to decline over the next 3 years.

Revenue vs Market: NFG's revenue (3.4% per year) is forecast to grow slower than the German market (4.1% per year).

High Growth Revenue: NFG's revenue (3.4% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: Insufficient data to determine if NFG's Return on Equity is forecast to be high in 3 years time


Next Steps

Past Performance

How has National Fuel Gas performed over the past 5 years?

41.2%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: NFG has high quality earnings.

Growing Profit Margin: NFG's current net profit margins (17.5%) are lower than last year (17.8%).


Past Earnings Growth Analysis

Earnings Trend: NFG's earnings have grown significantly by 41.2% per year over the past 5 years.

Accelerating Growth: NFG's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: NFG had negative earnings growth (-2.5%) over the past year, making it difficult to compare to the Gas Utilities industry average (-4.5%).


Return on Equity

High ROE: NFG's Return on Equity (13.2%) is considered low.


Next Steps

Financial Health

How is National Fuel Gas's financial position?


Financial Position Analysis

Short Term Liabilities: NFG's short term assets ($430.7M) do not cover its short term liabilities ($546.5M).

Long Term Liabilities: NFG's short term assets ($430.7M) do not cover its long term liabilities ($4.0B).


Debt to Equity History and Analysis

Debt Level: NFG's debt to equity ratio (104.2%) is considered high.

Reducing Debt: NFG's debt to equity ratio has increased from 70% to 104.2% over the past 5 years.

Debt Coverage: NFG's debt is well covered by operating cash flow (33.3%).

Interest Coverage: NFG's interest payments on its debt are well covered by EBIT (4.4x coverage).


Balance Sheet

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

Debt Coverage by Assets: NFG's debt is not covered by short term assets (assets are 0.2x debt).


Next Steps

Dividend

What is National Fuel Gas's current dividend yield, its reliability and sustainability?

4.56%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: NFG's dividend (4.56%) is higher than the bottom 25% of dividend payers in the German market (1.68%).

High Dividend: NFG's dividend (4.56%) is low compared to the top 25% of dividend payers in the German market (4.97%).


Stability and Growth of Payments

Stable Dividend: NFG's dividends per share have been stable in the past 10 years.

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


Current Payout to Shareholders

Dividend Coverage: With its reasonable payout ratio (51.8%), NFG's dividend payments are covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: NFG's dividends in 3 years are forecast to be covered by earnings (65.8% payout ratio).


Next Steps

Management

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

1.7yrs

Average management tenure


CEO

Dave Bauer (50yo)

0.67

Tenure

US$3,511,483

Compensation

Mr. David P. Bauer, also known as Dave, has been President and Chief Executive Officer at National Fuel Gas Company since July 01, 2019. Mr. Bauer served as Treasurer and Principal Financial Officer of Nat ...


CEO Compensation Analysis

Compensation vs Market: Dave's total compensation ($USD3.51M) is about average for companies of similar size in the German market ($USD3.79M).

Compensation vs Earnings: Dave's compensation has increased by more than 20% whilst company earnings have fallen more than 20% in the past year.


Leadership Team

NamePositionTenureCompensationOwnership
David Bauer
President0.67yrUS$3.51m0.055% $1.6m
Karen Camiolo
Treasurer & Principal Financial Officer0.67yrUS$1.47m0.060% $1.7m
John Pustulka
Chief Operating Officer4yrsUS$4.94m0.14% $4.0m
Donna DeCarolis
President of National Fuel Gas Distribution Corporation1yrUS$2.60m0.093% $2.6m
John McGinnis
President of Seneca Resources Corporation3.83yrsUS$3.08m0.11% $3.1m
Elena Mendel
Controller & Principal Accounting Officer0.67yrno data0.0062% $173.8k
Martin Krebs
Chief Information Officer1.25yrsno data0.00050% $14.1k
Kenneth Webster
Director of Investor Relations2.17yrsno datano data
Paula Ciprich
Senior VP & General Counsel15.17yrsno data0.077% $2.2m
Amy Shiley
General Manager of Human Resources Department29.17yrsno datano data

1.7yrs

Average Tenure

58.5yo

Average Age

Experienced Management: NFG's management team is not considered experienced ( 1.7 years average tenure), which suggests a new team.


Board Members

NamePositionTenureCompensationOwnership
David Bauer
President0.67yrUS$3.51m0.055% $1.6m
Joseph Jaggers
Independent Director4.75yrsUS$284.63k0.017% $478.1k
David Smith
Independent Chairman of the Board10yrsUS$345.13k0.37% $10.4m
Thomas Skains
Independent Director3.25yrsUS$277.13k0.012% $348.6k
Jeffrey Shaw
Lead Independent Directorno dataUS$299.63k0.020% $555.9k
Ronald Tanski
Director6yrsUS$9.02m0.62% $17.6m
David Carroll
Independent Director7.75yrsUS$271.13k0.026% $737.3k
David Anderson
Independent Director0.75yrUS$85.41k0.0036% $100.1k
Steven Finch
Independent Director1.67yrsUS$284.63k0.0067% $190.1k
Rebecca Ranich
Independent Director3.75yrsUS$299.63k0.014% $401.9k

4.3yrs

Average Tenure

62yo

Average Age

Experienced Board: NFG's board of directors are considered experienced (4.3 years average tenure).


Ownership

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


Insider Trading Volume

Insider Buying: NFG insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

Ownership Breakdown

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


Top Shareholders

Company Information

National Fuel Gas Company's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: National Fuel Gas Company
  • Ticker: NFG
  • Exchange: DB
  • Founded: 1902
  • Industry: Gas Utilities
  • Sector: Utilities
  • Market Cap: US$3.127b
  • Listing Market Cap: US$2.821b
  • Shares outstanding: 86.56m
  • Website: https://investor.nationalfuelgas.com

Number of Employees


Location

  • National Fuel Gas Company
  • 6363 Main Street
  • Williamsville
  • New York
  • 14221
  • United States

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
NFGNYSE (New York Stock Exchange)YesCommon StockUSUSDJan 1968
NFGDB (Deutsche Boerse AG)YesCommon StockDEEURJan 1968

Biography

National Fuel Gas Company operates as a diversified energy company. It operates through four segments: Exploration and Production, Pipeline and Storage, Gathering, and Utility. The Exploration and Production segment explores for, develops, and produces natural gas and oil in California and in the Appalachian region of the United States. As of September 30, 2019, it had proved developed and undeveloped reserves of 24,873 thousand barrels of oil and 2,949,519 million cubic feet of natural gas. The Pipeline and Storage segment provides interstate natural gas transportation and storage services through an integrated gas pipeline system extending from southwestern Pennsylvania to the New York-Canadian border, and eastward to Ellisburg and Leidy, Pennsylvania; and owns and operates 28 underground natural gas storage fields, as well as 3 other underground natural gas storage fields. This segment also transports natural gas for National Fuel Gas Distribution Corporation, as well as for other utilities, industrial companies, and power producers in New York State; and owns and operates the Empire Pipeline, a 266-mile pipeline system. The Gathering segment builds, owns, and operates natural gas processing and pipeline gathering facilities in the Appalachian region. The Utility segment sells natural gas or provides natural gas transportation services to approximately 743,400 customers in Buffalo, Niagara Falls, and Jamestown, New York; and Erie and Sharon, Pennsylvania. The company markets gas to industrial, wholesale, commercial, public authority, and residential customers primarily in western and central New York, and northwestern Pennsylvania. As of September 30, 2019, the company also owned approximately 95,000 acres of timber property; and managed approximately 2,500 additional acres of timber cutting rights. National Fuel Gas Company was founded in 1902 and is headquartered in Williamsville, New York. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/03/30 21:46
End of Day Share Price2020/03/30 00:00
Earnings2019/12/31
Annual Earnings2019/09/30


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.