NYSE:NFG

Stock Analysis Report

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Executive Summary

National Fuel Gas Company operates as a diversified energy company. More Details


Snowflake Analysis

Average dividend payer with moderate growth potential.


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 has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

-6.9%

NFG

-6.0%

US Gas Utilities

-5.3%

US Market


1 Year Return

-12.1%

NFG

-25.4%

US Gas Utilities

10.4%

US Market

Return vs Industry: NFG exceeded the US Gas Utilities industry which returned -25.3% over the past year.

Return vs Market: NFG underperformed the US Market which returned 12% over the past year.


Shareholder returns

NFGIndustryMarket
7 Day-6.9%-6.0%-5.3%
30 Day0%0.6%-2.1%
90 Day-1.5%-7.5%1.7%
1 Year-8.2%-12.1%-22.8%-25.4%12.9%10.4%
3 Year-22.2%-30.2%-12.7%-20.4%34.3%25.4%
5 Year-5.3%-19.9%27.5%9.0%73.7%54.3%

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

Valuation

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

50.23x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: NFG ($39.96) is trading above our estimate of fair value ($38.08)

Significantly Below Fair Value: NFG is trading above our estimate of fair value.


Price To Earnings Ratio

PE vs Industry: NFG is poor value based on its PE Ratio (50.2x) compared to the US Gas Utilities industry average (18.1x).

PE vs Market: NFG is poor value based on its PE Ratio (50.2x) compared to the US market (18.1x).


Price to Earnings Growth Ratio

PEG Ratio: NFG is good value based on its PEG Ratio (0.3x)


Price to Book Ratio

PB vs Industry: NFG's PB Ratio (1.6x) is in line with the US Gas Utilities industry average.


Next Steps

Future Growth

How is National Fuel Gas forecast to perform in the next 1 to 3 years based on estimates from 5 analysts?

163.6%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: NFG's forecast earnings growth (163.6% per year) is above the savings rate (2.2%).

Earnings vs Market: NFG's earnings (163.6% per year) are forecast to grow faster than the US market (22% per year).

High Growth Earnings: earnings are expected to grow significantly over the next 3 years.

Revenue vs Market: NFG's revenue (8.7% per year) is forecast to grow slower than the US market (10% per year).

High Growth Revenue: NFG's revenue (8.7% 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?

50.6%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: NFG has a large one-off loss of $196.0M impacting its June 30 2020 financial results.

Growing Profit Margin: NFG's current net profit margins (4.5%) are lower than last year (17.5%).


Past Earnings Growth Analysis

Earnings Trend: NFG has become profitable over the past 5 years, growing earnings by 50.6% per year.

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 (-76.6%) over the past year, making it difficult to compare to the Gas Utilities industry average (11.6%).


Return on Equity

High ROE: NFG's Return on Equity (3.1%) 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 ($831.7M) exceed its short term liabilities ($342.4M).

Long Term Liabilities: NFG's short term assets ($831.7M) do not cover its long term liabilities ($4.6B).


Debt to Equity History and Analysis

Debt Level: NFG's debt to equity ratio (118.1%) is considered high.

Reducing Debt: NFG's debt to equity ratio has increased from 93.6% to 118.1% over the past 5 years.

Debt Coverage: NFG's debt is well covered by operating cash flow (28.4%).

Interest Coverage: NFG's interest payments on its debt are well covered by EBIT (4.2x coverage).


Balance Sheet


Next Steps

Dividend

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

4.45%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: NFG's dividend (4.45%) is higher than the bottom 25% of dividend payers in the US market (1.69%).

High Dividend: NFG's dividend (4.45%) is low compared to the top 25% of dividend payers in the US market (4.78%).


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 high payout ratio (220%), NFG's dividend payments are not well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: NFG's dividends in 3 years are forecast to be covered by earnings (52.4% payout ratio).


Next Steps

Management

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

2.0yrs

Average management tenure


CEO

Dave Bauer (51 yo)

1.25yrs

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 ($USD3.51M) is below average for companies of similar size in the US market ($USD5.63M).

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
President1.25yrsUS$3.51m0.052%
$ 1.9m
Karen Camiolo
Treasurer & Principal Financial Officer1.25yrsUS$1.47m0.057%
$ 2.1m
John Pustulka
Chief Operating Officer4.58yrsUS$4.94m0.14%
$ 4.9m
Donna DeCarolis
President of National Fuel Gas Distribution Corporation1.58yrsUS$2.60m0.089%
$ 3.2m
John McGinnis
President of Seneca Resources Corporation4.42yrsUS$3.08m0.10%
$ 3.8m
Elena Mendel
Controller & Principal Accounting Officer1.25yrsno data0.0059%
$ 212.2k
Martin Krebs
Chief Information Officer1.83yrsno data0.00047%
$ 17.0k
Kenneth Webster
Director of Investor Relations2.75yrsno datano data
Sarah Mugel
General Counsel & Secretary9.83yrsno data0.017%
$ 609.0k
Justin Loweth
Senior Vice Presidentno datano datano data
Michael Kasprzak
President of National Fuel Gas Midstream Company LLC2.17yrsno data0.019%
$ 702.1k
James Peterson
Assistant Secretaryno datano datano data

2.0yrs

Average Tenure

60yo

Average Age

Experienced Management: NFG's management team is considered experienced (2 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
David Bauer
President1.25yrsUS$3.51m0.052%
$ 1.9m
Joseph Jaggers
Independent Director5.25yrsUS$284.63k0.020%
$ 718.0k
David Smith
Independent Chairman of the Board10.58yrsUS$345.13k0.35%
$ 12.8m
Thomas Skains
Independent Director3.83yrsUS$277.13k0.014%
$ 516.3k
Jeffrey Shaw
Lead Independent Director0.58yrUS$299.63k0.022%
$ 812.9k
Ronald Tanski
Director6.58yrsUS$9.02m0.60%
$ 21.7m
David Carroll
Independent Director8.25yrsUS$271.13k0.028%
$ 1.0m
Barbara Baumann
Independent Director0.58yrno data0.0064%
$ 232.8k
David Anderson
Independent Director1.25yrsUS$85.41k0.0059%
$ 213.3k
Steven Finch
Independent Director2.25yrsUS$284.63k0.0089%
$ 322.6k
Rebecca Ranich
Independent Director4.25yrsUS$299.63k0.017%
$ 597.4k

3.8yrs

Average Tenure

63yo

Average Age

Experienced Board: NFG's board of directors are considered experienced (3.8 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.


Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: Shareholders have been diluted in the past year, with total shares outstanding growing by 5.4%.


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: NYSE
  • Founded: 1902
  • Industry: Gas Utilities
  • Sector: Utilities
  • Market Cap: US$3.621b
  • Shares outstanding: 90.95m
  • 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 Producti ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/10/31 00:34
End of Day Share Price2020/10/30 00:00
Earnings2020/06/30
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.