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Naturgy Energy Group SA (GASNY)
OTHER OTC:GASNY
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Naturgy Energy Group SA
(OTC:GASNY)
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Rating:65Neutral
Price Target:
$6.50
â–²(8.51% Upside)
Naturgy Energy Group SA's overall stock score reflects strong financial performance and strategic achievements highlighted in the earnings call. However, technical indicators suggest a bearish trend, and challenges in revenue growth and leverage management are notable risks. The attractive dividend yield and reasonable valuation provide a positive offset.
Positive Factors
Improved Margins
The improvement in gross profit margin indicates better cost management and operational efficiency, which can enhance long-term profitability and competitiveness.
Strong Cash Flow
Strong free cash flow generation provides financial flexibility for investments, debt reduction, and shareholder returns, supporting sustainable growth.
Increased Free Float
Increasing the free float enhances share liquidity and marketability, potentially attracting more investors and improving capital market access.
Negative Factors
Revenue Decline
Continued revenue decline poses a risk to financial stability and growth, potentially impacting the company's ability to invest in future projects.
Rising Debt Levels
Increased leverage can strain financial resources and limit operational flexibility, posing risks to long-term financial health and investment capacity.
Challenges in Renewable Generation
Challenges in renewable generation can hinder the company's transition to sustainable energy solutions, affecting long-term growth in this strategic area.
Naturgy Energy Group SA (GASNY) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$25.95B
Dividend Yield4.19%
Average Volume (3M)2.19K
Price to Earnings (P/E)13.1
Beta (1Y)-0.09
Revenue Growth3.23%
EPS Growth1.90%
CountryUS
Employees6,594
SectorUtilities
Sector Strength65
IndustryRegulated Gas
Share Statistics
EPS (TTM)0.13
Shares Outstanding4,848,069,000
10 Day Avg. Volume0
30 Day Avg. Volume2,194
Financial Highlights & Ratios
PEG Ratio-3.33
Price to Book (P/B)2.26
Price to Sales (P/S)1.11
P/FCF Ratio11.92
Enterprise Value/Market Cap0.86
Enterprise Value/Revenue1.11
Enterprise Value/Gross Profit2.87
Enterprise Value/Ebitda4.76
Forecast
1Y Price TargetN/A
Price Target UpsideN/A
Rating ConsensusN/A
Number of Analyst Covering0
EPS Forecast (FY)N/A
Revenue Forecast (FY)N/A
Naturgy Energy Group SA Business Overview & Revenue Model
Company DescriptionNaturgy 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 MoneyNaturgy generates revenue through several key streams, primarily from the sale of electricity and natural gas to residential, commercial, and industrial customers. The company's revenue model includes both regulated and unregulated activities, with significant income deriving from its extensive network of gas and power distribution. Additionally, Naturgy invests in renewable energy projects, which contribute to its earnings through the sale of electricity generated from renewable sources. The company has established strategic partnerships and joint ventures to expand its market reach and enhance its operational capabilities, further bolstering its financial performance. Factors such as regulatory frameworks, energy prices, and demand for cleaner energy solutions significantly influence its earnings.
Naturgy Energy Group SA Earnings Call Summary
Earnings Call Date:Oct 29, 2025
(Q3-2025)
| % Change Since: |
Next Earnings Date:Mar 03, 2026
Earnings Call Sentiment Neutral
The earnings call highlighted Naturgy's strategic achievements in increasing free float and maintaining a robust financial position. Despite solid performances in energy management, challenges remain with declines in network EBITDA, renewable generation issues, and currency depreciation in Latin America. The company is navigating margin pressures in its supply business, yet remains committed to its strategic plan and dividend targets.Q3-2025 Updates
Positive Updates
Increased Free Float and Liquidity
Naturgy successfully increased its free float from 10% to almost 19% in record time, enhancing share liquidity and positioning itself to return to the MSCI indexes. Monthly average trading volumes have doubled compared to the first half of the year.
Strong Cash Flow and Dividend Commitment
Free cash flow after minorities reached almost EUR 2.2 billion. The Board approved a second 2025 dividend of EUR 0.60, on track for a minimum annual total DPS of EUR 1.7 per share.
Robust Financial Position
Net debt stands at EUR 12.9 billion, with a comfortable net debt to last 12 months 2025 EBITDA ratio of 2.4x. The balance sheet remains strong, providing the company flexibility and optionality.
Positive Energy Management Performance
Energy management EBITDA increased by 18% to EUR 718 million, driven by higher margins on hedge sales and effective hedging and diversified procurement portfolio.
Negative Updates
Decline in Networks EBITDA
Networks reported a total EBITDA of EUR 2,098 million in 2025, representing an 8% decline compared to 2024, primarily due to one-off positive impacts in Chile last year and the depreciation of several Latin American currencies.
Challenges in Renewable Generation
Renewable generation production in Spain was 8% lower compared to 2024, mainly due to lower wind and hydro generation. This was partially offset by new capacity and higher electricity prices.
Currency Depreciation Impact in Latin America
Results in Mexico, Brazil, and Argentina were affected by currency depreciation, impacting the overall financial performance in these regions.
Supply Business Margin Pressure
Supply business EBITDA was EUR 500 million, a 16% decrease compared to 2024 due to incremental margin pressure, competition, and regulated tariffs.
Company Guidance
In the recent call, Naturgy provided robust guidance for the remainder of 2025, highlighting several key metrics and strategic moves. The company reported an EBITDA of EUR 4.21 billion and a net income of nearly EUR 1.7 billion for the first nine months of the year. Naturgy's free float was increased from 10% to almost 19%, enhancing share liquidity and positioning for a return to MSCI indexes, with trading volumes doubling compared to the first half of the year. The second 2025 dividend of EUR 0.60 per share is set for payment on November 5, maintaining a total DPS of at least EUR 1.7 per share annually. Operationally, Brent prices decreased by 14%, while natural gas prices rose significantly across benchmarks like TTF and Hub. Amid these dynamics, Naturgy managed a free cash flow after minorities of EUR 2.2 billion, with investments totaling EUR 1.2 billion, primarily focusing on networks and renewables. Net debt stood at EUR 12.9 billion, with a net debt to EBITDA ratio of 2.4x. The company remains committed to its strategic plan, emphasizing value over size, organic growth, and maintaining a strong balance sheet to support future flexibility and optionality.Naturgy Energy Group SA Financial Statement Overview
Summary
Naturgy Energy Group SA exhibits strong profitability and operational efficiency with improved margins. However, declining revenue and increasing leverage pose potential risks. The cash flow position is strong, but the reduced operating cash flow coverage ratio warrants attention.Income Statement
Naturgy Energy Group SA has shown a mixed performance in its income statement. The gross profit margin has improved to 39.98% in 2024 from 33.21% in 2023, indicating better cost management. However, the company experienced a revenue decline of 9.43% in 2024, following a 33.41% decline in 2023, which is a concern. The net profit margin improved to 9.87% in 2024 from 8.78% in 2023, showing enhanced profitability despite revenue challenges. EBIT and EBITDA margins have also improved, reflecting operational efficiency.Balance Sheet
The balance sheet reveals a high debt-to-equity ratio of 1.90 in 2024, up from 1.69 in 2023, indicating increased leverage and potential risk. The return on equity decreased slightly to 20.06% in 2024 from 21.02% in 2023, suggesting a slight decline in the efficiency of equity utilization. The equity ratio remains stable, reflecting a consistent capital structure.Cash Flow
Cash flow analysis shows a positive trend with a 9.65% growth in free cash flow in 2024, following a 12.74% growth in 2023. The operating cash flow to net income ratio decreased to 0.49 in 2024 from 0.69 in 2023, indicating reduced cash generation from operations relative to net income. However, the free cash flow to net income ratio remains healthy at 0.45, demonstrating good cash conversion.| Breakdown | TTM | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 20.16B | 19.27B | 22.62B | 33.97B | 22.14B | 15.35B |
| Gross Profit | 7.78B | 7.70B | 7.51B | 6.88B | 5.43B | 5.01B |
| EBITDA | 4.70B | 5.22B | 5.19B | 4.51B | 3.76B | 3.20B |
| Net Income | 2.00B | 1.90B | 1.99B | 1.65B | 1.21B | -347.00M |
Balance Sheet | ||||||
| Total Assets | 36.51B | 40.84B | 37.89B | 40.39B | 38.25B | 39.55B |
| Cash, Cash Equivalents and Short-Term Investments | 3.30B | 6.10B | 4.12B | 4.39B | 4.36B | 4.49B |
| Total Debt | 0.00 | 17.98B | 15.96B | 16.26B | 16.81B | 17.49B |
| Total Liabilities | 26.75B | 29.18B | 25.96B | 30.41B | 29.38B | 28.28B |
| Stockholders Equity | 7.78B | 9.48B | 9.45B | 7.57B | 5.89B | 8.03B |
Cash Flow | ||||||
| Free Cash Flow | 2.41B | 1.79B | 2.43B | 2.16B | -203.00M | 1.96B |
| Operating Cash Flow | 4.63B | 3.99B | 4.86B | 2.16B | 1.00B | 3.43B |
| Investing Cash Flow | -2.11B | -1.82B | -2.74B | -1.49B | 1.90B | -1.14B |
| Financing Cash Flow | -3.26B | -239.00M | -2.26B | -2.85B | -2.85B | -388.00M |
Naturgy Energy Group SA Technical Analysis
Positive
5.99
Price Trends
6.08
Negative
6.10
Negative
5.97
Positive
Market Momentum
-0.02
Negative
48.60
Neutral
15.08
Positive
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For GASNY, the sentiment is Positive. The current price of 5.99 is above the 20-day moving average (MA) of 5.93, below the 50-day MA of 6.08, and above the 200-day MA of 5.97, indicating a neutral trend. The MACD of -0.02 indicates Negative momentum. The RSI at 48.60 is Neutral, neither overbought nor oversold. The STOCH value of 15.08 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for GASNY.
Naturgy Energy Group SA Peers Comparison
UnderperformOutperform
Sector (66)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
74 Outperform | $5.84B | 12.64 | 5.42% | 3.07% | -23.15% | 157.45% | |
70 Outperform | $7.99B | 11.98 | 14.87% | 3.92% | 1.10% | 140.04% | |
66 Neutral | $27.03B | 22.35 | 9.32% | 2.15% | 12.91% | 9.86% | |
66 Neutral | $17.65B | 18.10 | 5.60% | 3.62% | 6.62% | 11.55% | |
65 Neutral | $25.95B | 13.08 | 22.25% | 4.19% | 3.23% | 1.90% | |
64 Neutral | $4.69B | 13.95 | 14.62% | 4.01% | 13.94% | 13.93% | |
64 Neutral | $19.83B | 22.20 | 10.23% | 2.69% | 19.62% | 12.87% |
* Utilities Sector Average
GASNY
Naturgy Energy Group SA
5.99
1.45
31.84%
ATO
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167.10
31.88
23.58%
NJR
New Jersey Resources
46.57
2.72
6.20%
NI
Nisource
41.55
6.21
17.57%
SWX
Southwest Gas
80.85
13.20
19.51%
UGI
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37.20
9.58
34.69%
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.