Naturgy Energy Group (BME:NTGY) - Share price, News & Analysis

NTGY fundamental analysis
Snowflake Score
Valuation	2/6
Future Growth	1/6
Past Performance	3/6
Financial Health	2/6
Dividends	2/6

NTGY Stock Overview

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

Rewards

Trading at 35.9% below our estimate of its fair value

Earnings are forecast to grow 2.62% per year

Became profitable this year

Risk Analysis

Debt is not well covered by operating cash flow

Dividend of 4.26% is not well covered by earnings or forecast to be in the next 3 years

Naturgy Energy Group Competitors

Enagás

BME:ENG

€5.7b

TotalEnergies

ENXTPA:TTE

€137.5b

PetroChina

SEHK:857

HK$1.1t

Gazprom

MISX:GAZP

₽6.2t

Price History & Performance

Summary of all time highs, changes and price drops for Naturgy Energy Group
Historical stock prices
Current Share Price	€28.17
52 Week High	€29.96
52 Week Low	€21.23
Beta	0.71
1 Month Change	-1.95%
3 Month Change	22.75%
1 Year Change	30.78%
3 Year Change	8.35%
5 Year Change	27.35%
Change since IPO	786.58%

Recent News & Updates

May 20

Are Investors Undervaluing Naturgy Energy Group, S.A. (BME:NTGY) By 37%?

In this article we are going to estimate the intrinsic value of Naturgy Energy Group, S.A. ( BME:NTGY ) by taking the...

Mar 28

Is Naturgy Energy Group (BME:NTGY) A Risky Investment?

Legendary fund manager Li Lu (who Charlie Munger backed) once said, 'The biggest investment risk is not the volatility...

Shareholder Returns

	NTGY	ES Gas Utilities	ES Market
7D	6.8%	4.7%	2.1%
1Y	30.8%	13.8%	-9.1%

Return vs Industry: NTGY exceeded the Spanish Gas Utilities industry which returned 13.8% over the past year.

Return vs Market: NTGY exceeded the Spanish Market which returned -9.1% over the past year.

Price Volatility

Is NTGY's price volatile compared to industry and market?
NTGY volatility
NTGY Average Weekly Movement	4.4%
Gas Utilities Industry Average Movement	4.5%
Market Average Movement	4.5%
10% most volatile stocks in ES Market	8.2%
10% least volatile stocks in ES Market	1.1%

Stable Share Price: NTGY is not significantly more volatile than the rest of Spanish stocks over the past 3 months, typically moving +/- 4% a week.

Volatility Over Time: NTGY's weekly volatility (4%) has been stable over the past year.

About the Company

Founded	Employees	CEO	Website
1843	7,249	Francisco Miguel Reynés Massanet	https://www.naturgy.com

Naturgy Energy Group, S.A., together with its subsidiaries, engages in the supply, liquefaction, regasification, transport, storage, distribution, and sale of natural gas. It operates through Energy and Network Management, Renewables and New Business, Supply, and Rest segments. The company engages in the regulated gas and electricity distribution; sale of liquefied natural gas and the sea transport business; management of the gas pipelines and conventional thermal generation facilities; and generation and sale of electricity through wind, mini-hydro, solar, and cogeneration sources, as well as provision of supply management services.

Naturgy Energy Group Fundamentals Summary

How do Naturgy Energy Group's earnings and revenue compare to its market cap?
NTGY fundamental statistics
Market Cap	€27.07b
Earnings (TTM)	€1.11b
Revenue (TTM)	€25.60b

24.5x

P/E Ratio

1.1x

P/S Ratio

Is NTGY overvalued?

See Fair Value and valuation analysis

Earnings & Revenue

Key profitability statistics from the latest earnings report
NTGY income statement (TTM)
Revenue	€25.60b
Cost of Revenue	€19.95b
Gross Profit	€5.65b
Other Expenses	€4.54b
Earnings	€1.11b

Last Reported Earnings

Mar 31, 2022

Next Earnings Date

n/a

Earnings per share (EPS)	1.15
Gross Margin	22.07%
Net Profit Margin	4.32%
Debt/Equity Ratio	223.2%

How did NTGY perform over the long term?

See historical performance and comparison

Dividends

4.3%

Current Dividend Yield

104%

Payout Ratio

Valuation

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

Valuation Score

2/6

Valuation Score 2/6

Below Fair Value
Significantly Below Fair Value
PE vs Industry
PE vs Market
PEG Ratio
PB vs Industry

35.9%

Undervalued compared to fair value

Share Price vs. Fair Value

Below Fair Value: NTGY (€28.17) is trading below our estimate of fair value (€43.98)

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

Price To Earnings Ratio

PE vs Industry: NTGY is poor value based on its PE Ratio (24.5x) compared to the European Gas Utilities industry average (11.8x).

PE vs Market: NTGY is poor value based on its PE Ratio (24.5x) compared to the Spanish market (17.8x).

Price to Earnings Growth Ratio

PEG Ratio: NTGY is poor value based on its PEG Ratio (9.3x)

Price to Book Ratio

PB vs Industry: NTGY is overvalued based on its PB Ratio (6.2x) compared to the XE Gas Utilities industry average (0.9x).

Future Growth

How is Naturgy Energy Group forecast to perform in the next 1 to 3 years based on estimates from 14 analysts?

Future Growth Score

1/6

Future Growth Score 1/6

Earnings vs Savings Rate
Earnings vs Market
High Growth Earnings
Revenue vs Market
High Growth Revenue
Future ROE

2.6%

Forecasted annual earnings growth

Earnings and Revenue Growth Forecasts

Analyst Future Growth Forecasts

Earnings vs Savings Rate: NTGY's forecast earnings growth (2.6% per year) is above the savings rate (0.9%).

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

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

Revenue vs Market: NTGY's revenue is expected to decline over the next 3 years (-0.4% per year).

High Growth Revenue: NTGY's revenue is forecast to decline over the next 3 years (-0.4% per year).

Earnings per Share Growth Forecasts

Future Return on Equity

Future ROE: NTGY's Return on Equity is forecast to be low in 3 years time (19%).

Past Performance

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

Past Performance Score

3/6

Past Performance Score 3/6

Quality Earnings
Growing Profit Margin
Earnings Trend
Accelerating Growth
Earnings vs Industry
High ROE

9.7%

Historical annual earnings growth

Earnings and Revenue History

Quality Earnings: NTGY has high quality earnings.

Growing Profit Margin: NTGY became profitable in the past.

Past Earnings Growth Analysis

Earnings Trend: NTGY's earnings have grown by 9.7% per year over the past 5 years.

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

Earnings vs Industry: NTGY has become profitable in the last year, making it difficult to compare its past year earnings growth to the Gas Utilities industry (12%).

Return on Equity

High ROE: NTGY's Return on Equity (19.2%) is considered low.

Financial Health

How is Naturgy Energy Group's financial position?

Financial Health Score

2/6

Financial Health Score 2/6

Short Term Liabilities
Long Term Liabilities
Debt Level
Reducing Debt
Debt Coverage
Interest Coverage

Financial Position Analysis

Short Term Liabilities: NTGY's short term assets (€11.9B) exceed its short term liabilities (€11.6B).

Long Term Liabilities: NTGY's short term assets (€11.9B) do not cover its long term liabilities (€20.9B).

Debt to Equity History and Analysis

Debt Level: NTGY's net debt to equity ratio (174.9%) is considered high.

Reducing Debt: NTGY's debt to equity ratio has increased from 88.5% to 223.2% over the past 5 years.

Debt Coverage: NTGY's debt is not well covered by operating cash flow (6%).

Interest Coverage: NTGY's interest payments on its debt are well covered by EBIT (6.8x coverage).

Balance Sheet

Dividend

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

Dividend Score

2/6

Dividend Score 2/6

Notable Dividend
High Dividend
Stable Dividend
Growing Dividend
Earnings Coverage
Future Dividend Coverage

4.26%

Current Dividend Yield

Dividend Yield vs Market

Notable Dividend: NTGY's dividend (4.26%) is higher than the bottom 25% of dividend payers in the Spanish market (1.81%).

High Dividend: NTGY's dividend (4.26%) is low compared to the top 25% of dividend payers in the Spanish market (5.45%).

Stability and Growth of Payments

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

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

Earnings Payout to Shareholders

Earnings Coverage: With its high payout ratio (104.2%), NTGY's dividend payments are not well covered by earnings.

Cash Payout to Shareholders

Cash Flow Coverage: NTGY is paying a dividend but the company has no free cash flows.

Discover strong dividend paying companies

Management

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

4.1yrs

Average management tenure

CEO

Francisco Miguel Reynés Massanet (58 yo)

4.25yrs

Tenure

€1,100,000

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

Experienced Management: NTGY's management team is considered experienced (4.1 years average tenure).

Board Members

Experienced Board: NTGY's board of directors are considered experienced (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.

Data	Last Updated (UTC time)
Company Analysis	2022/05/23 00:00
End of Day Share Price	2022/05/23 00:00
Earnings	2022/03/31
Annual Earnings	2021/12/31