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

• Market Cap: €26.43B
• Dividend Yield: 5.77%
• Average Volume (3M): 436.46K
• Price to Earnings (P/E): 13.2
• Beta (1Y): 0.57
• Revenue Growth: 2.66%
• EPS Growth: 1.06%
• Country: ES
• Employees: 6,594
• Sector: Utilities
• Sector Strength: 78
• Industry: Regulated Gas
• EPS (TTM): 0.61
• Shares Outstanding: 969,613,830
• 10 Day Avg. Volume: 335,586
• 30 Day Avg. Volume: 436,456
• PEG Ratio: -5.75
• Price to Book (P/B): 2.78
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 14.65
• 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: €25.99
• Price Target Upside: -5.49% Downside
• Rating Consensus: Hold
• Number of Analyst Covering: 4

• Rating: 75 Outperform
• Price Target: €30.00 ▲(9.09%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., 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. It serves in Spain, Argentina, Brazil, Chile, Mexico, Panama, the rest of Latin America, and internationally. The company was formerly known as Gas Natural SDG, S.A. and changed its name to Naturgy Energy Group, S.A. in June 2018. Naturgy Energy Group, S.A. was incorporated in 1843 and is based in Madrid, Spain.

How the Company Makes Money

Naturgy Energy Group, S.A. generates revenue through multiple streams. The primary sources include the sale and distribution of electricity and natural gas to residential, commercial, and industrial customers. The company operates a diversified portfolio of electricity generation assets, including both traditional thermal power plants and renewable energy sources such as wind and solar, allowing it to sell electricity in competitive wholesale and retail markets. Additionally, Naturgy earns income through the management and maintenance of energy infrastructure, including power lines and gas pipelines. Key partnerships with other energy firms and participation in international energy markets further enhance its revenue capabilities. The company's focus on expanding its renewable energy footprint and optimizing its energy distribution networks also contributes significantly to its profitability.

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: 27.50
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• 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 27.5 is above the 20-day moving average (MA) of 27.23, above the 50-day MA of 26.74, and above the 200-day MA of 24.47, indicating a bullish trend. The MACD of 0.18 indicates Positive momentum. The RSI at 61.20 is Neutral, neither overbought nor oversold. The STOCH value of 58.33 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
NTGY	75 Outperform	€26.43B	13.18	22.84%	5.77%	2.66%	1.06%
Sector *	72 Outperform	€13.00B	46.58	11.98%	4.54%	0.22%	7.71%
0EBQ	―	€3.46B	25.67	5.64%	7.23%	―	―
0N9G	―	€27.04B	12.35	26.26%	5.19%	―	―
0HIT	―	€101.32B	18.93	10.92%	3.28%	―	―
0RI5	―	€9.32B	25.33	9.44%	7.23%	―	―
5BP	―	€7.91B	21.95	6.11%	1.83%	―	―

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.