Naturgy Energy Group, S.A. (NTGY) AI Stock Analysis

• Market Cap: €26.16B
• Dividend Yield: 4.41%
• Average Volume (3M): 435.14K
• Price to Earnings (P/E): 13.6
• Beta (1Y): 0.61
• Revenue Growth: -14.81%
• EPS Growth: -4.27%
• Country: ES
• Employees: 6,594
• Sector: Utilities
• Sector Strength: 68
• Industry: Regulated Gas
• EPS (TTM): 0.33
• Shares Outstanding: 969,613,830
• 10 Day Avg. Volume: 688,164
• 30 Day Avg. Volume: 435,136
• PEG Ratio: >-0.01
• Price to Book (P/B): 4.67
• Price to Sales (P/S): 0.00
• P/FCF Ratio: -135.52
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: €25.50
• Price Target Upside: -6.32% Downside
• Rating Consensus: Hold
• Number of Analyst Covering: 1

• Rating: 75 Outperform
• Price Target: €30.00 ▲(10.21%Upside)

Naturgy Energy Group scores well due to its strong financial stability, operational efficiency, and strong technical indicators. The absence of debt and robust equity position are significant positives. However, challenges such as declining revenue and free cash flow, along with the lack of earnings call insights, slightly temper the overall score.

Naturgy Energy Group, S.A. Business Overview & Revenue Model

Company Description

Naturgy Energy Group, S.A. (NTGY) is a leading multinational energy company based in Spain, primarily engaged in the distribution and commercialization of natural gas and electricity. The company operates across various sectors including energy generation, infrastructure, and commercialization, with a focus on providing sustainable energy solutions. Naturgy serves millions of customers in both regulated and deregulated markets across Europe, Latin America, and other regions, offering a range of energy-related services and products.

How the Company Makes Money

Naturgy makes money primarily through its diversified operations in the energy sector, which include the distribution and commercialization of natural gas and electricity. The company's revenue model is built around several key streams: regulated activities like gas and electricity distribution, which provide stable income, and deregulated activities such as electricity generation and commercialization, which can be more volatile but offer higher margins. Naturgy also engages in renewable energy projects, contributing to its earnings by leveraging growing demand for sustainable energy sources. Significant partnerships and joint ventures in various regions help Naturgy expand its market reach and enhance its service offerings, thus contributing to its overall revenue.

Naturgy Energy Group, S.A. Financial Statement Overview

Summary

Naturgy Energy Group presents a financially stable profile with strong gross and EBIT margins, zero debt, and robust equity levels. However, declining revenue and free cash flow highlight potential challenges in sustaining growth and profitability. The company demonstrates strong cash generation capabilities, yet must focus on reversing revenue declines to ensure long-term financial health.

Income Statement

Naturgy Energy Group shows a mixed performance in its income statement. The gross profit margin for 2024 is approximately 40%, indicating a strong ability to manage costs. However, there is a declining revenue trend from 2022 to 2024, with a notable revenue decrease of around 15% from 2023 to 2024. The EBIT margin stands at 18%, and the EBITDA margin at 27%, both reflecting solid operational efficiency. Despite these strengths, the net profit margin reduced slightly from 8.8% in 2023 to 9.9% in 2024, reflecting challenges in maintaining net income levels amid revenue declines.

Balance Sheet

The balance sheet of Naturgy Energy Group reflects a strong equity position with an equity ratio of 23% for 2024, indicating a stable financial structure. The company has eliminated its total debt, resulting in a debt-to-equity ratio of 0, which mitigates financial risk. The return on equity (ROE) for 2024 is approximately 20%, showcasing effective utilization of shareholder funds to generate profits. Overall, the balance sheet indicates a robust financial position with minimal leverage risk.

Cash Flow

The cash flow statement indicates a decline in free cash flow from €2.43 billion in 2023 to €1.79 billion in 2024, marking a decline in free cash flow growth. The operating cash flow to net income ratio of 2.1 demonstrates strong cash generation relative to net income. However, the free cash flow to net income ratio has decreased, reflecting reduced cash available after capital expenditures. Despite these challenges, the company's cash flow generation remains adequate, supporting its operational needs.

Breakdown	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	19.27B	22.62B	33.97B	22.15B	15.35B
Gross Profit	7.70B	7.51B	6.77B	5.62B	5.01B
EBITDA	5.22B	5.19B	4.63B	3.74B	2.02B
Net Income	1.90B	1.99B	1.65B	1.21B	-55.00M
Balance Sheet
Total Assets	40.84B	37.89B	40.39B	38.25B	39.55B
Cash, Cash Equivalents and Short-Term Investments	6.10B	4.12B	4.39B	4.36B	4.49B
Total Debt	18.01B	15.96B	16.26B	16.69B	17.35B
Total Liabilities	29.18B	25.96B	30.41B	29.38B	28.28B
Stockholders Equity	9.48B	9.45B	7.57B	5.89B	8.03B
Cash Flow
Free Cash Flow	1.79B	2.43B	2.16B	-203.00M	1.96B
Operating Cash Flow	3.99B	4.86B	2.16B	1.00B	3.43B
Investing Cash Flow	-1.82B	-2.74B	1.16B	1.90B	-1.14B
Financing Cash Flow	-239.00M	-2.26B	-2.54B	-2.85B	-388.00M

Naturgy Energy Group, S.A. Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 27.22
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For ES:NTGY, the sentiment is Positive. The current price of 27.22 is above the 20-day moving average (MA) of 26.64, above the 50-day MA of 26.26, and above the 200-day MA of 24.02, indicating a bullish trend. The MACD of 0.26 indicates Negative momentum. The RSI at 63.21 is Neutral, neither overbought nor oversold. The STOCH value of 45.24 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for ES:NTGY.

Naturgy Energy Group, S.A. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
FER	78 Outperform	€32.32B	10.09	65.54%	1.41%	7.43%	608.14%
NTGY	75 Outperform	€26.16B	13.60	20.32%	4.41%	-14.81%	-4.27%
IBE	74 Outperform	€104.24B	20.99	10.55%	2.44%	-3.50%	-20.24%
Sector *	69 Neutral	€25.67B	13.93	12.66%	4.52%	-10.92%	23.63%
ACS	64 Neutral	€14.82B	17.60	16.48%	1.39%	16.50%	7.64%
ENG	58 Neutral	€3.57B	10.27	-11.89%	7.13%	-1.54%	-184.82%

Naturgy Energy Group, S.A. Corporate Events

Naturgy Announces Results of Financial Obligations Sale

Naturgy Energy Group, S.A. has announced the results of its invitation to sell certain financial obligations back to its subsidiary, Naturgy Finance Iberia, S.A.U., in exchange for cash. This move involves several guaranteed obligations with varying maturity dates and interest rates, potentially impacting the company’s financial strategy and stakeholder interests.

The most recent analyst rating on (ES:NTGY) stock is a Hold with a EUR25.00 price target. To see the full list of analyst forecasts on Naturgy Energy Group, S.A. stock, see the ES:NTGY Stock Forecast page.

Naturgy Energy Group Issues €1 Billion in Bonds to Strengthen Financial Position

Naturgy Energy Group, S.A. has announced the issuance of two series of senior unsecured fixed-rate bonds under its Euro Medium Term Note Program, with maturities of 6 and 10 years, each valued at €500 million. This strategic financial move aims to optimize the company’s debt profile and enhance its liquidity position, potentially impacting its market competitiveness and stakeholder confidence.

The most recent analyst rating on (ES:NTGY) stock is a Hold with a EUR25.00 price target. To see the full list of analyst forecasts on Naturgy Energy Group, S.A. stock, see the ES:NTGY Stock Forecast page.

Naturgy Energy Group Announces Bond Buyback and New Issuance Plan

Naturgy Energy Group, S.A. has announced an invitation for bondholders to sell their bonds back to its subsidiary, Naturgy Finance Iberia, S.A.U., in exchange for cash. This move is part of a broader strategy to issue new bonds under its Euro Medium Term Notes program, which could impact its financial structure and market positioning.

Naturgy Announces Board Changes and New Appointment

Naturgy Energy Group, S.A. announced that Mr. Francisco Reynés Massanet has been appointed as a director of Criteria Caixa SAU, with a proposal for him to become executive vice president. The Naturgy Board of Directors has authorized this appointment, pending ratification by the General Shareholders’ Meeting. Additionally, Mr. Enrique Alcántara García-Irazoqui resigned as a director, and Ms. Isabel Gabarró Miquel will replace him on the Appointments and Remuneration Committee. These changes reflect ongoing adjustments in Naturgy’s governance structure, potentially impacting its strategic direction and stakeholder relations.

Francisco Reynés Appointed Director of Criteria Caixa SAU

Francisco Reynés Massanet has been appointed as a director of Criteria Caixa SAU by the Board of Trustees of the Banking Foundation Caixa d’Estalvis i Pensions de Barcelona. Following this appointment, Mr. Reynés has convened a Naturgy Board of Directors meeting to discuss the appointment and seek approval to accept the new role.