On April 16, the Spanish stock exchange suspended trading in Naturgy shares after press articles reported that Abu Dhabi's power and water utility Taqa was discussing with Naturgy's major shareholders to acquire their stakes in order to launch a full takeover bid. On April 17, Taqa confirmed the talks. All in all, we confirm our EUR 25.70 fair value estimate and see the shares as undervalued despite their rise of 9.6% since April 15.
Rebalancing of the capital allocation from shareholder remuneration to growth investments will be value-accretive.
The pending Gimini project implies uncertainties.
|
Metric
|
NTGY
|
IBE
|
EDP
|
|---|---|---|---|
Price/Earnings (Normalized) | 11.24 | 12.32 | 18.89 |
Price/Book Value | 2.40 | 1.35 | 1.26 |
Price/Sales | 0.99 | 1.59 | 0.89 |
Price/Cash Flow | 18.67 | 7.22 | 4.49 |
|
Metric
|
NTGY
|
IBE
|
EDP
|
|---|---|---|---|
Quick Ratio | 1.02 | 0.60 | 0.66 |
Current Ratio | 1.22 | 0.77 | 0.91 |
Interest Coverage | 5.10 | 4.98 | 2.30 |
|
Metric
|
NTGY
|
IBE
|
EDP
|
|---|---|---|---|
Return on Assets (Normalized) | 6.86% | 4.79% | 2.23% |
Return on Equity (Normalized) | 30.46% | 14.40% | 12.02% |
Return on Invested Capital (Normalized) | 11.21% | 7.51% | 4.92% |
|
Ticker
|
Name
|
Morningstar Rating for Stocks
|
Capital Allocation
|
Economic Moat
|
Market Cap
|
|---|---|---|---|---|---|
GASNF
| Naturgy Energy Group SA | — | Rqqf | $24.2 Bil | |
GASNY
| Naturgy Energy Group SA ADR | — | Msrf | $24.2 Bil | |
ATO
| Atmos Energy Corp | Dyvlxlqrl | Fpybpm | $17.8 Bil | |
GAILF
| GAIL (India) Ltd DR | — | Wjsdg | $16.4 Bil | |
SNMRY
| Snam SpA ADR | — | Jpymyy | $15.6 Bil | |
SNMRF
| Snam SpA | — | Htmdb | $15.6 Bil | |
HOKCY
| Hong Kong and China Gas Co Ltd ADR | — | Fpfmtwt | $14.3 Bil | |
NI
| NiSource Inc | Pzvbbzsf | Ftkbqn | $12.6 Bil | |
NFE
| New Fortress Energy Inc Class A | Mdcgylny | Lfct | $5.8 Bil | |
NJR
| New Jersey Resources Corp | Rhzvthm | Lyrzmx | $4.3 Bil |
