Networks account for more than half of Naturgy's EBIT. Around 60% of networks' EBIT comes from Spain where the group is the leader in gas distribution. As it has consistently achieved high profitability and returns in the past in this business, the regulator imposed a sharp remuneration cut in 2021. Networks' returns are higher in Latin America and indexed to inflation.
Rebalancing of the capital allocation from shareholder remuneration to growth investments will be value-accretive.
Earnings are volatile due to the exposure to gas prices.
|
Metric
|
NTGY
|
ELE
|
IBE
|
|---|---|---|---|
Price/Earnings (Normalized) | 12.04 | 25.35 | 13.24 |
Price/Book Value | 2.57 | 2.75 | 1.45 |
Price/Sales | 1.06 | 0.77 | 1.70 |
Price/Cash Flow | 20.00 | 5.24 | 7.76 |
|
Metric
|
NTGY
|
ELE
|
IBE
|
|---|---|---|---|
Quick Ratio | 1.02 | 0.87 | 0.60 |
Current Ratio | 1.22 | 1.10 | 0.77 |
Interest Coverage | 5.10 | 6.61 | 4.98 |
|
Metric
|
NTGY
|
ELE
|
IBE
|
|---|---|---|---|
Return on Assets (Normalized) | 6.86% | 4.12% | 4.79% |
Return on Equity (Normalized) | 30.46% | 35.63% | 14.40% |
Return on Invested Capital (Normalized) | 11.21% | 10.95% | 7.51% |
|
Ticker
|
Name
|
Morningstar Rating for Stocks
|
Capital Allocation
|
Economic Moat
|
Market Cap
|
|---|---|---|---|---|---|
GASNY
| Naturgy Energy Group SA ADR | — | Sbxf | $26.4 Bil | |
GASNF
| Naturgy Energy Group SA | — | Nypz | $26.2 Bil | |
ATO
| Atmos Energy Corp | Fchpfwqlqd | Czfvgwg | $17.9 Bil | |
SNMRF
| Snam SpA | — | Jwnvz | $16.5 Bil | |
SNMRY
| Snam SpA ADR | — | Rpbnl | $16.5 Bil | |
GAILF
| GAIL (India) Ltd DR | — | Hcwv | $16.1 Bil | |
HOKCY
| Hong Kong and China Gas Co Ltd ADR | — | Qpzlnst | $15.5 Bil | |
NI
| NiSource Inc | Ntcptgd | Mqhshbc | $13.1 Bil | |
NFE
| New Fortress Energy Inc Class A | Zflylzp | Kndr | $5.5 Bil | |
NJR
| New Jersey Resources Corp | Lpyjgzvx | Ryyjkpt | $4.4 Bil |
