NYSE:NFG

Stock Analysis Report

Executive Summary

National Fuel Gas Company operates as a diversified energy company.

Snowflake

Fundamentals

6 star dividend payer and undervalued.


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

2.6%

NFG

-4.2%

US Gas Utilities

0.8%

US Market


1 Year Return

-13.8%

NFG

-3.9%

US Gas Utilities

11.0%

US Market

Return vs Industry: NFG underperformed the US Gas Utilities industry which returned -3.9% over the past year.

Return vs Market: NFG underperformed the US Market which returned 11% over the past year.


Shareholder returns

NFGIndustryMarket
7 Day2.6%-4.2%0.8%
30 Day3.9%-5.8%4.3%
90 Day-1.0%-3.5%6.1%
1 Year-11.0%-13.8%-1.5%-3.9%13.4%11.0%
3 Year0.1%-8.8%31.9%22.4%49.9%40.2%
5 Year-21.5%-32.5%60.9%40.8%63.1%45.0%

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%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: NFG ($46.66) is trading below our estimate of fair value ($246.43)

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 (13.2x) compared to the Gas Utilities industry average (24.5x).

PE vs Market: NFG is good value based on its PE Ratio (13.2x) compared to the US market (18.2x).


Price to Earnings Growth Ratio

PEG Ratio: Insufficient data to calculate NFG's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: NFG is good value based on its PB Ratio (1.9x) compared to the US Gas Utilities industry average (2.1x).


Next Steps

Future Growth

How is National Fuel Gas forecast to perform in the next 1 to 3 years based on estimates from 2 analysts?

3.4%

Forecasted annual revenue growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: Insufficient data to determine if NFG's forecast earnings growth is above the savings rate (2.7%).

Earnings vs Market: Insufficient data to determine if NFG's earnings are forecast to grow faster than the US market

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

Revenue vs Market: NFG's revenue (3.4% per year) is forecast to grow slower than the US market (7.2% 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: NFG's Return on Equity is forecast to be low in 3 years time (11.5%).


Next Steps

Past Performance

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

34.1%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: NFG has high quality earnings.

Growing Profit Margin: NFG's current net profit margins (18%) are lower than last year (24.6%).


Past Earnings Growth Analysis

Earnings Trend: NFG's earnings have grown significantly by 34.1% 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 (-22.3%) over the past year, making it difficult to compare to the Gas Utilities industry average (-8.6%).


Return on Equity

High ROE: NFG's Return on Equity (14.2%) is considered low.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is National Fuel Gas's financial position?


Financial Position Analysis

Short Term Liabilities: NFG's short term assets ($362.6M) do not cover its short term liabilities ($425.3M)

Long Term Liabilities: NFG's short term assets (362.6M) do not cover its long term liabilities (3.9B)


Debt to Equity History and Analysis

Debt Level: NFG's debt to equity ratio (102.3%) is considered high

Reducing Debt: NFG's debt to equity ratio has increased from 71.5% to 102.3% over the past 5 years.

Debt Coverage: NFG's debt is well covered by operating cash flow (31.7%).

Interest Coverage: NFG's interest payments on its debt are well covered by EBIT (4.8x 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?

3.73%

Current Dividend Yield


Dividend Yield vs Market

company3.7%marketbottom25%1.4%markettop25%3.7%industryaverage2.7%forecastin3Years3.8%

Current dividend yield vs market & industry

Notable Dividend: NFG's dividend (3.73%) is higher than the bottom 25% of dividend payers in the US market (1.43%).

High Dividend: NFG's dividend (3.73%) is in the top 25% of dividend payers in the US market (3.66%)


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 reasonably low payout ratio (48.7%), NFG's dividend payments are well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: NFG's dividends in 3 years are forecast to be covered by earnings (54.6% payout ratio).


Next Steps

Management

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

1.3yrs

Average management tenure


CEO

Dave Bauer (50yo)

0.3yrs

Tenure

US$2,230,044

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 ($USD2.23M) is below average for companies of similar size in the US market ($USD5.09M).

Compensation vs Earnings: Dave's compensation has been consistent with company performance over the past year.


Management Age and Tenure

1.3yrs

Average Tenure

59yo

Average Age

Experienced Management: NFG's management team is not considered experienced ( 1.3 years average tenure), which suggests a new team.


Board Age and Tenure

5.0yrs

Average Tenure

62.5yo

Average Age

Experienced Board: NFG's board of directors are considered experienced (5 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.


Recent Insider Transactions

SellUS$945,54219 Sep 19
GAMCO Investors, Inc.
EntityCompany
Shares63,450
Max PriceUS$49.83
BuyUS$162,62519 Sep 19
GAMCO Investors, Inc.
EntityCompany
Shares3,332
Max PriceUS$49.66
BuyUS$2,396,26811 Sep 19
GAMCO Investors, Inc.
EntityCompany
Shares46,327
Max PriceUS$53.72
SellUS$5,818,97911 Sep 19
GAMCO Investors, Inc.
EntityCompany
Shares112,926
Max PriceUS$52.03
BuyUS$5,66825 Jun 19
Associated Capital Group Inc, Asset Management Arm
EntityCompany
Shares100
Max PriceUS$56.68
BuyUS$025 Jun 19
GAMCO Investors, Inc.
EntityCompany
Shares1,862
Max PriceUS$59.17
SellUS$1,191,70225 Jun 19
GAMCO Investors, Inc.
EntityCompany
Shares103,993
Max PriceUS$59.77
SellUS$141,75025 Mar 19
John McGinnis
EntityIndividual
Role
Unit President
President of Seneca Resources Corporation
Shares2,357
Max PriceUS$60.14
SellUS$617,92027 Feb 19
Paula Ciprich
EntityIndividual
Role
Chief Legal Officer
Senior VP & General Counsel
Shares10,227
Max PriceUS$60.42
SellUS$488,86711 Feb 19
David Smith
EntityIndividual
Role
Chairman of the Board
Independent Chairman of the Board
Shares8,394
Max PriceUS$58.24

Ownership Breakdown

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


Management Team

  • John McGinnis (58yo)

    President of Seneca Resources Corporation

    • Tenure: 3.5yrs
    • Compensation: US$2.76m
  • John Pustulka (67yo)

    Chief Operating Officer

    • Tenure: 3.8yrs
    • Compensation: US$4.12m
  • Karen Camiolo (60yo)

    Treasurer & Principal Financial Officer

    • Tenure: 0.3yrs
  • Donna DeCarolis (60yo)

    President of National Fuel Gas Distribution Corporation

    • Tenure: 0.8yrs
  • Paula Ciprich (59yo)

    Senior VP & General Counsel

    • Tenure: 14.8yrs
  • Dave Bauer (50yo)

    President & CEO

    • Tenure: 0.3yrs
    • Compensation: US$2.23m
  • Amy Shiley

    General Manager of Human Resources Department

    • Tenure: 28.8yrs
  • Kenneth Webster

    Director of Investor Relations

    • Tenure: 1.8yrs
  • Martin Krebs

    Chief Information Officer

    • Tenure: 0.8yrs
  • Elena Mendel (53yo)

    Controller & Principal Accounting Officer

    • Tenure: 0.3yrs

Board Members

  • Joe Jaggers (66yo)

    Independent Director

    • Tenure: 4.4yrs
    • Compensation: US$286.11k
  • Dave Smith (66yo)

    Independent Chairman of the Board

    • Tenure: 9.7yrs
    • Compensation: US$345.11k
  • Tom Skains (62yo)

    Independent Director

    • Tenure: 2.9yrs
    • Compensation: US$277.11k
  • Jeff Shaw (61yo)

    Independent Director

    • Tenure: 5.7yrs
    • Compensation: US$301.11k
  • Ron Tanski (67yo)

    Director

    • Tenure: 5.7yrs
    • Compensation: US$8.08m
  • Steven Ewing (75yo)

    Lead Independent Director

    • Tenure: 5.8yrs
    • Compensation: US$316.11k
  • David Carroll (63yo)

    Independent Director

    • Tenure: 7.4yrs
    • Compensation: US$272.61k
  • David Anderson (57yo)

    Independent Director

    • Tenure: 0.4yrs
  • Steve Finch (60yo)

    Independent Director

    • Tenure: 1.3yrs
    • Compensation: US$62.86k
  • Rebecca Ranich (62yo)

    Independent Director

    • Tenure: 3.4yrs
    • Compensation: US$293.61k

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$4.027b
  • Shares outstanding: 86.32m
  • 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 five segments: Exploration and Production, Pipeline and Storage, Gathering, Utility, and Energy Marketing. The Explor ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/11/10 23:38
End of Day Share Price2019/11/08 00:00
Earnings2019/09/30
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.