We confirm our EUR 25.70 fair value estimate after no-moat Naturgy released flat first-half EBITDA and net income. The latter exceeded consensus by more than 20%. The firm set 2024 guidance above our and FactSet consensus expectations. The 2024 P/E of 11.8 implied by the new guidance and the 6.4% dividend yield reflect the undervaluation of the shares.
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
|
IBE
|
ELE
|
|---|---|---|---|
Price/Earnings (Normalized) | 10.92 | 13.13 | 25.06 |
Price/Book Value | 2.24 | 1.44 | 2.52 |
Price/Sales | 1.11 | 1.69 | 0.85 |
Price/Cash Flow | 19.10 | 7.69 | 5.33 |
|
Metric
|
NTGY
|
IBE
|
ELE
|
|---|---|---|---|
Quick Ratio | 1.09 | 0.60 | 0.63 |
Current Ratio | 1.22 | 0.77 | 0.85 |
Interest Coverage | 5.15 | 4.98 | 2.91 |
|
Metric
|
NTGY
|
IBE
|
ELE
|
|---|---|---|---|
Return on Assets (Normalized) | 7.22% | 4.79% | 2.06% |
Return on Equity (Normalized) | 28.92% | 14.40% | 12.02% |
Return on Invested Capital (Normalized) | 11.30% | 7.51% | 5.61% |
|
1-Day Chart
|
Name
|
Price
|
Morningstar Rating for Stocks
|
Capital Allocation
|
Economic Moat
|
Market Cap
|
|---|---|---|---|---|---|---|
| Naturgy Energy Group SA
GASNF
| — | Ljg | $23.7 Bil | |||
| Naturgy Energy Group SA ADR
GASNY
| — | Hbmy | $23.7 Bil | |||
| Atmos Energy Corp
ATO
| Drhwllds | Lykcr | $19.0 Bil | |||
| GAIL (India) Ltd DR
GAILF
| — | Mdnv | $18.1 Bil | |||
| Snam SpA
SNMRF
| — | Dzvwhs | $15.8 Bil | |||
| Snam SpA ADR
SNMRY
| — | Pybrj | $15.8 Bil | |||
| Hong Kong and China Gas Co Ltd ADR
HOKCY
| — | Mkdjj | $15.2 Bil | |||
| NiSource Inc
NI
| Vnvspktm | Kttxwmy | $14.0 Bil | |||
| New Jersey Resources Corp
NJR
| Pfkvblwd | Vnthcz | $4.6 Bil | |||
| New Fortress Energy Inc Class A
NFE
| Gpmnqdfwd | Kxw | $4.1 Bil |
