National Fuel Gas Co (NYSE: NFG)

Sector: Energy Industry: Oil & Gas Integrated CIK: 0000070145
Market Cap 7.90 Bn
P/B 2.20
P/E 12.06
P/S 3.32
ROIC (Qtr) 12.31
Div Yield % 2.43
Rev 1y % (Qtr) 18.57
Total Debt (Qtr) 2.77 Bn
Debt/Equity (Qtr) 0.77
Add ratio to table...

About

National Fuel Gas Company, commonly known as National Fuel, operates in the energy industry with the ticker symbol NFG. This diversified energy company is engaged in various activities such as the production, gathering, transportation, storage, and distribution of natural gas. National Fuel operates in four main business segments: Exploration and Production, Pipeline and Storage, Gathering, and Utility. The Exploration and Production segment is responsible for the exploration, development, and production of natural gas and oil, mainly in the Appalachian...

Read more

Investment thesis

Bull case

  • Strong operating cash flow of 1.15B provides robust 0.42x coverage of total debt 2.77B, indicating excellent debt servicing capability and financial flexibility.
  • Operating cash flow of 1.15B provides strong 60.33x coverage of stock compensation 19.14M, indicating sustainable incentive practices.
  • Strong tangible asset base of 9.20B provides 3.32x coverage of total debt 2.77B, indicating robust asset backing and low credit risk.
  • Tangible assets of 9.20B provide robust 26.92x coverage of other current liabilities 341.82M, indicating strong asset backing.
  • Operating cash flow of 1.15B provides strong 16.78x coverage of inventory 68.84M, indicating efficient inventory management.

Bear case

  • Operating cash flow of 1.15B barely covers its investment activities of (936.04M), with a coverage ratio of -1.23, indicating heavy reliance on external financing for growth which may not be sustainable in a tighter credit environment.
  • Operating cash flow of 1.15B provides thin coverage of dividend payments of (189.92M) with a -6.08 ratio, suggesting potential dividend sustainability issues if operational performance deteriorates.
  • High receivables of 335.54M relative to inventory of 68.84M (4.87 ratio) suggests aggressive credit terms or collection difficulties, potentially masking revenue quality issues.
  • Free cash flow of 204.84M provides weak coverage of capital expenditures of 950.02M, with a 0.22 ratio suggesting additional external financing needs for growth initiatives.
  • Operating earnings of 1.04B show weak coverage of depreciation charges of 469.25M, with a 2.22 ratio indicating high capital intensity and potential reinvestment needs.

Peer comparison

Companies in the Oil & Gas Integrated
S.No. Ticker Company Market Cap P/E P/S Total Debt (Qtr)
1 XOM Exxon Mobil Corp 630.73 Bn 18.39 1.45 42.04 Bn
2 CVX Chevron Corp 360.16 Bn 29.26 2.14 41.54 Bn
3 TTE TotalEnergies SE 172.29 Bn 13.13 0.94 61.42 Bn
4 IMO Imperial Oil Ltd 99.73 Bn 51.19 4.54 2.90 Bn
5 BP Bp Plc 98.37 Bn 1,788.57 0.51 72.53 Bn
6 SU Suncor Energy Inc 67.22 Bn 15.56 1.87 10.59 Bn
7 CVE Cenovus Energy Inc. 38.97 Bn 17.12 1.04 7.27 Bn
8 NFG National Fuel Gas Co 7.90 Bn 12.06 3.32 2.77 Bn

Industry comparisons

Current Valuation Value Ind Avg Percentile
EV to Assets EV to Assets 1.16 1.02
EV to Cash from Ops. EV/CFO 9.26 11.79
EV to Debt EV to Debt 3.85 7.40
EV to EBIT EV/EBIT 10.27 19.95
EV to EBITDA EV/EBITDA 7.26 7.85
EV to Free Cash Flow [EV/FCF] EV/FCF 52.18 46.96
EV to Market Cap EV to Market Cap 1.35 1.30
EV to Revenue EV/Rev 4.49 2.01
Price to Book Value [P/B] P/B 2.20 2.14
Price to Earnings [P/E] P/E 12.06 168.60
Dividend Metrics Value Ind Avg Percentile
Dividend Coverage Ratio Div Coverage (Qtr) 3.45 0.95
Dividend Payout Ratio % Div Payout % (Qtr) 29.30 786.52
Dividend per Basic Share Div per Share (Qtr) 2.12 1.89
FCF Dividend Payout Ratio % FCF Div Payout % (Qtr) 94.35 37.80
Interest Coverage Int. cover (Qtr) 6.44 42.88
Growth Metrics Value Ind Avg Percentile
Capex Growth (1y) % Capex 1y % (Qtr) -2.74 -10.32
Cash and Equivalents Growth (1y) % Cash & Equiv 1y % (Qtr) 457.35 32.58
Dividend Growth (1y) % Div 1y % (Qtr) 3.92 -4.88
EBIAT Growth (1y) % EBIAT 1y % (Qtr) 2,109.91 142.66
EBITDA Growth (1y) % EBITDA 1y % (Qtr) 173.01 22.56
EBIT Growth (1y) % EBIT 1y % (Qtr) 854.27 35.32
EBT Growth (1y) % EBT 1y % (Qtr) 2,788.99 190.68
EPS Growth (1y) % EPS 1y % (Qtr) 6,672.73 511.78
FCF Growth (1y) % FCF 1y % (Qtr) 126.64 4.66
Gross Profit Growth (1y) % Gross Profit 1y % (Qtr) 21.79 16.28
Liquidity Ratios Value Ind Avg Percentile
Asset Utilization Ratio Asset Util Ratio (Qtr) 0.26 0.58
Cash Payout Ratio Cash Payout (Qtr) 0.09 0.13
Cash Ratio Cash Ratio (Qtr) 0.23 0.27
Current Ratio Curr Ratio (Qtr) 0.65 1.06
Debt to Equity Ratio Debt/Equity (Qtr) 0.77 0.88
Interest Cover Ratio Int Coverage (Qtr) 6.44 42.88
Times Interest Earned Times Interest Earned (Qtr) 6.44 42.88
Profitability Value Ind Avg Percentile
EBITDA Margin % EBITDA Margin % (Qtr) 63.40 18.39
EBIT Margin % EBIT Margin % (Qtr) 43.72 6.19
EBT Margin % EBT Margin % (Qtr) 36.93 1.30
Gross Margin % Gross Margin % (Qtr) 66.00 30.31
Net Profit Margin % Net Margin % (Qtr) 27.50 -1.26