DB:NG0

Stock Analysis Report

Executive Summary

Nippon Gas Co., Ltd. engages in the supply and sale of LP gas and natural gas in Japan.

Snowflake

Fundamentals

Moderate growth potential with mediocre balance sheet.

Share Price & News

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


Latest Share Price and Events

Stable Share Price: NG0 has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

1.6%

NG0

0.3%

DE Gas Utilities

0.8%

DE Market


1 Year Return

-12.1%

NG0

8.8%

DE Gas Utilities

9.0%

DE Market

Return vs Industry: NG0 underperformed the German Gas Utilities industry which returned 8.8% over the past year.

Return vs Market: NG0 underperformed the German Market which returned 9% over the past year.


Shareholder returns

NG0IndustryMarket
7 Day1.6%0.3%0.8%
30 Day-6.7%1.9%6.3%
90 Day1.1%4.5%14.4%
1 Year-9.8%-12.1%14.7%8.8%12.4%9.0%
3 Year-1.3%-5.7%58.6%37.9%25.6%14.5%
5 Year55.1%45.2%50.0%12.3%41.0%21.8%

Price Volatility Vs. Market

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


Simply Wall St News

No news available

Valuation

Is Nippon 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: NG0 (€25.2) is trading below our estimate of fair value (€61.48)

Significantly Below Fair Value: NG0 is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: NG0 is poor value based on its PE Ratio (21.5x) compared to the Gas Utilities industry average (17x).

PE vs Market: NG0 is poor value based on its PE Ratio (21.5x) compared to the German market (19.9x).


Price to Earnings Growth Ratio

PEG Ratio: NG0 is poor value based on its PEG Ratio (1.7x)


Price to Book Ratio

PB vs Industry: NG0 is overvalued based on its PB Ratio (1.9x) compared to the XE Gas Utilities industry average (1.4x).


Next Steps

Future Growth

How is Nippon Gas forecast to perform in the next 1 to 3 years based on estimates from 4 analysts?

12.6%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: NG0's forecast earnings growth (12.6% per year) is above the savings rate (0.2%).

Earnings vs Market: NG0's earnings (12.6% per year) are forecast to grow faster than the German market (12.8% per year).

High Growth Earnings: NG0's earnings are forecast to grow, but not significantly.

Revenue vs Market: NG0's revenue (12.1% per year) is forecast to grow faster than the German market (4.9% per year).

High Growth Revenue: NG0's revenue (12.1% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: NG0's Return on Equity is forecast to be low in 3 years time (13.9%).


Next Steps

Past Performance

How has Nippon Gas performed over the past 5 years?

-5.9%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: NG0 has high quality earnings.

Growing Profit Margin: NG0's current net profit margins (4.6%) are lower than last year (6%).


Past Earnings Growth Analysis

Earnings Trend: NG0's earnings have declined by -5.9% per year over the past 5 years.

Accelerating Growth: NG0's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: NG0 had negative earnings growth (-16%) over the past year, making it difficult to compare to the Gas Utilities industry average (10.8%).


Return on Equity

High ROE: NG0's Return on Equity (8.9%) is considered low.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is Nippon Gas's financial position?


Financial Position Analysis

Short Term Liabilities: NG0's short term assets (¥23.3B) do not cover its short term liabilities (¥34.2B)

Long Term Liabilities: NG0's short term assets (23.3B) do not cover its long term liabilities (31.5B)


Debt to Equity History and Analysis

Debt Level: NG0's debt to equity ratio (61.9%) is considered high

Reducing Debt: NG0's debt to equity ratio has reduced from 201.8% to 61.9% over the past 5 years.

Debt Coverage: NG0's debt is well covered by operating cash flow (36.5%).

Interest Coverage: NG0 earns more interest than it pays, so coverage of interest payments is not a concern.


Balance Sheet

Inventory Level: NG0 has a high level of physical assets or inventory.

Debt Coverage by Assets: NG0's debt is not covered by short term assets (assets are 0.6x debt).


Next Steps

Dividend

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

2.28%

Current Dividend Yield


Upcoming Dividend Payment

Purchase Nippon Gas before the 'Buy Limit' to receive their next dividend payment.


Dividend Yield vs Market

company2.3%marketbottom25%1.4%markettop25%3.6%industryaverage5.1%forecastin3Years2.9%

Current dividend yield vs market & industry

Notable Dividend: NG0's dividend (2.28%) is higher than the bottom 25% of dividend payers in the German market (1.39%).

High Dividend: NG0's dividend (2.28%) is low compared to the top 25% of dividend payers in the German market (3.64%).


Stability and Growth of Payments

Stable Dividend: NG0's dividend payments have been volatile in the past 10 years.

Growing Dividend: NG0's dividend payments have increased over the past 10 years.


Current Payout to Shareholders

Dividend Coverage: With its reasonable payout ratio (57.6%), NG0's dividend payments are covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: Insufficient data to determine if a dividend will be paid in 3 years and that it will be covered by earnings.


Next Steps

Management

What is the CEO of Nippon Gas's salary, the management and board of directors tenure and is there insider trading?

4.4yrs

Average management tenure


CEO

Shinji Wada (67yo)

14.4yrs

Tenure

0

Mr. Shinji Wada has been the President at Nippon Gas Co., Ltd. since June 2005. Mr. Wada served as the Head of Sales Headquarters at Nippon Gas Co., Ltd. since January 23, 2016 and served as its General Ma ...


Management Age and Tenure

4.4yrs

Average Tenure

54.5yo

Average Age

Experienced Management: NG0's management team is considered experienced (4.4 years average tenure).


Board Age and Tenure

7.4yrs

Average Tenure

57yo

Average Age

Experienced Board: NG0's board of directors are considered experienced (7.4 years average tenure).


Insider Trading

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.


Management Team

  • Shinji Wada (67yo)

    President & Representative Director

    • Tenure: 14.4yrs
  • Daijo Watanabe (61yo)

    Senior MD of Energy Sales Headquarters

    • Tenure: 19.4yrs
  • Shohei Ohtsuki (64yo)

    MD & Director

    • Tenure: 14.4yrs
  • Masahiro Mukai (54yo)

    MD, Energy Sales Headquarters Deputy General Manager & Director

    • Tenure: 13.4yrs
  • Tetsuo Kamagata (52yo)

    Senior Executive Officer

    • Tenure: 4.4yrs
  • Yoko Iwasaki

    Executive Officer of Corporate Strategy Headquarters & GM of Human Resource Department

    • Tenure: 1.6yrs
  • Junichi Morishita (55yo)

    MD, GM of Energy Business Headquarters & Director

    • Tenure: 8.4yrs
  • Ichiro Sato (53yo)

    Managing Exective Officer of Energy Sales Headquarters & Regional Head of West Kanto

    • Tenure: 4.4yrs
  • Haruki Iwatani

    Managing Exective Officer of Energy Sales Headquarters & Regional Head of Tokyo

    • Tenure: 4.4yrs
  • Kunihiko Kashiwaya (48yo)

    Senior MD

    • Tenure: 6.4yrs

Board Members

  • Shinji Wada (67yo)

    President & Representative Director

    • Tenure: 14.4yrs
  • Daijo Watanabe (61yo)

    Senior MD of Energy Sales Headquarters

    • Tenure: 19.4yrs
  • Shohei Ohtsuki (64yo)

    MD & Director

    • Tenure: 14.4yrs
  • Masahiro Mukai (54yo)

    MD, Energy Sales Headquarters Deputy General Manager & Director

    • Tenure: 13.4yrs
  • Junichi Morishita (55yo)

    MD, GM of Energy Business Headquarters & Director

    • Tenure: 8.4yrs
  • Keiichi Ozaku (57yo)

    Director

    • Tenure: 1.4yrs
  • Kunihiko Kashiwaya (48yo)

    Senior MD

    • Tenure: 6.4yrs
  • Takashi Ide

    Outside Director

    • Tenure: 4.4yrs
  • Shinichi Kiyota

    Director

    • Tenure: 1.4yrs
  • Toshiomi Suzuki

    MD & Director

    • Tenure: 1.4yrs

Company Information

Nippon Gas Co., Ltd.'s company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Nippon Gas Co., Ltd.
  • Ticker: NG0
  • Exchange: DB
  • Founded: 1955
  • Industry: Gas Utilities
  • Sector: Utilities
  • Market Cap: JP¥124.538b
  • Listing Market Cap: JP¥1.036b
  • Shares outstanding: 40.63m
  • Website: https://www.nichigas.co.jp

Number of Employees


Location

  • Nippon Gas Co., Ltd.
  • 4-31-8 Yoyogi
  • Shibuya-ku
  • Tokyo
  • 151-8582
  • Japan

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
8174TSE (The Tokyo Stock Exchange)YesCommon SharesJPJPYJan 1992
NG0DB (Deutsche Boerse AG)YesCommon SharesDEEURJan 1992

Biography

Nippon Gas Co., Ltd. engages in the supply and sale of LP gas and natural gas in Japan. The company supplies LP gas through pipelines to homes built for sale, company dormitories, apartment buildings, othe ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/11/12 21:40
End of Day Share Price2019/11/12 00:00
Earnings2019/09/30
Annual Earnings2019/03/31


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.