Stock Price & Analysis

Based on improving earnings estimates and a strong dividend yield, NFG stock is a buy. Its current price of $74.4 aligns with positive analyst sentiment and moderate growth prospects.

NFG stock is predicted to reach $78 by Q2 2025, driven by improved earnings outlook and strong dividend performance. The stock's current price of $74.4 reflects positive market sentiment and increased earnings estimates.

The S1 support level for NFG Stock is $73.42 ,The R1 resistant level for NFG Stock is $76.08.

As of the end of day on 2025-03-17, the price of NFG Stock was $76.95.

The target price for NFG Stock according to analyst rating is 77.40, with the highest price target at 84.00 and the lowest at 64.00. Analysts have a Hold rating on NFG Stock overall.

The market cap of NFG is $6.9B.

Analysis and Insights

Valuation Metrics

NFG's current valuation metrics suggest a premium relative to industry averages. The price-to-earnings (P/E) ratio is elevated at 15.71 for Q3 2024, compared to the industry average of 10-12. Similarly, the EV/EBITDA ratio of 6.96 is above historical norms, indicating potential overvaluation.

Financial Performance

The company's financial performance has been inconsistent. While Q1 2025 net income improved to $44.986 million, Q3 and Q4 2024 results were negative, raising concerns about profitability. Revenue has also fluctuated, with Q3 2024 revenue dropping to $417.442 million from $629.939 million in Q2 2024.

Dividend Yield and Return on Equity (ROE)

NFG offers a dividend yield of 2.9%, which is attractive but not exceptional. However, the negative ROE of -45.05% in Q4 2024 raises questions about the sustainability of dividend payments.

Market Sentiment and Technical Analysis

The stock is currently trading at $74.4, with a market cap of $6.7 billion. While the stock has shown resilience with a 0.13% gain in regular market hours, the lack of strong earnings growth and high valuation metrics may limit upside potential.

Conclusion

Based on the analysis, NFG appears overvalued due to its high valuation metrics, inconsistent earnings, and lack of strong growth catalysts. Investors should exercise caution and consider waiting for a correction or improved financial performance before investing.

National Fuel Gas Company is a holding company. The Company is a diversified energy company engaged principally in the production, gathering, transportation, storage and distribution of natural gas. Its segments include Exploration and Production, Pipeline and Storage, Gathering, and Utility. The Exploration and Production segment is engaged in the exploration for, and the development and production of, primarily natural gas in the Appalachian region of the United States. The Pipeline and Storage segment provides interstate natural gas transportation services for affiliated and nonaffiliated companies through integrated natural gas pipeline systems in Pennsylvania and New York. The Gathering segment builds, owns and operates natural gas processing and pipeline gathering facilities in the Appalachian region. The Utility segment provides natural gas utility services to customers through a local distribution system located in western New York and northwestern Pennsylvania.

NFG stock is predicted to reach $120 by 2030, driven by its strong earnings growth and vertically integrated energy model. The company's recent Q1 EPS of $1.66, beating consensus estimates, and its 8.7% increase in earnings forecasts, position it for long-term growth. Its diversified operations across energy production, transportation, and distribution further support this bullish outlook.

NFG has a total of 2240 employees.