📊 NFG Key Takeaways
Is National Fuel Gas Co (NFG) a Good Investment?
National Fuel Gas exhibits strong profitability margins (42.4% operating, 27.9% net) but faces critical cash flow deterioration with negative free cash flow of -$2.7M despite $274.9M operating cash flow, indicating insufficient capital generation to fund $277.6M in capital expenditures. Low liquidity ratios (0.65x current/quick) and the suspicious 568.9% net income spike (driven by non-operational factors rather than 2.6% revenue growth) raise concerns about earnings sustainability and financial flexibility in a sector requiring stable cash generation.
NFG shows strong operating profitability (42% operating margin) and healthy interest coverage, suggesting resilient core earnings with manageable leverage. However, modest revenue growth, negative free cash flow due to capex, and weak liquidity (0.65x current ratio) temper the improvement and raise questions about earnings sustainability. Evidence of sustained positive FCF and stable margins would warrant a more constructive view.
Why Buy National Fuel Gas Co Stock? NFG Key Strengths
- Exceptional operating margin of 42.4% and net margin of 27.9% demonstrate pricing power and cost discipline
- Strong interest coverage ratio of 8.2x indicates solid debt servicing capacity despite leverage
- Stable operating cash flow of $274.9M provides foundation for capital investments
- High operating and net margins indicating efficient operations
- Solid interest coverage and moderate leverage (Debt/Equity 0.75x)
- Significant YoY earnings and EPS rebound
NFG Stock Risks: National Fuel Gas Co Investment Risks
- Negative free cash flow of -$2.7M is fundamentally unsustainable for a utility; capital expenditures of $277.6M exceed operating cash generation
- Dangerously low liquidity ratios (0.65x current and quick) below 1.0 indicate potential working capital strain and reduced financial flexibility
- Massive 568.9% net income growth against only 2.6% revenue growth suggests non-recurring items; earnings quality is questionable and likely not sustainable
- Negative free cash flow and heavy capex burden
- Weak liquidity (current and quick ratio 0.65x)
- Earnings volatility risk given outsized YoY net income jump
Key Metrics to Watch
- Free cash flow trend and ability to achieve positive FCF while maintaining capital investment levels
- Current and quick ratios improvement; any further deterioration in liquidity is critical
- Revenue growth acceleration; 2.6% YoY is well below industry expectations for sustained value creation
- FCF margin
- Current ratio
National Fuel Gas Co (NFG) Financial Metrics & Key Ratios
💡 AI Analyst Insight
The current ratio below 1.0x warrants monitoring of short-term liquidity.
NFG Profit Margin, ROE & Profitability Analysis
NFG vs Utilities Sector: How National Fuel Gas Co Compares
How National Fuel Gas Co compares to Utilities sector averages
Sector benchmarks are approximate industry averages. Actual sector performance may vary.
Is National Fuel Gas Co Stock Overvalued? NFG Valuation Analysis 2026
Based on fundamental analysis, National Fuel Gas Co appears fundamentally strong relative to the Utilities sector in 2026.
Note: This is a fundamental analysis based on SEC filings. For P/E ratio, price targets, and market-based valuation, consult financial data providers. This is not investment advice.
National Fuel Gas Co Balance Sheet: NFG Debt, Cash & Liquidity
NFG Revenue & Earnings Growth: 5-Year Financial Trend
5-Year Trend Summary: National Fuel Gas Co's revenue has declined by 26% over the 5-year period, indicating business contraction. The most recent EPS of $5.17 reflects profitable operations.
NFG Revenue Growth, EPS Growth & YoY Performance
NFG Quarterly Earnings & Performance
| Quarter | Revenue | Net Income | EPS |
|---|---|---|---|
| Q1 2026 | $513.8M | $45.0M | $0.49 |
| Q3 2025 | $338.6M | -$54.2M | $-0.59 |
| Q2 2025 | $558.7M | $166.3M | $1.80 |
| Q1 2025 | $500.1M | $45.0M | $0.49 |
| Q3 2024 | $338.6M | -$54.2M | $-0.59 |
| Q2 2024 | $558.7M | $140.9M | $1.53 |
| Q1 2024 | $500.1M | $133.0M | $1.44 |
| Q1 2019 | $499.6M | $102.7M | $1.18 |
Data sourced from SEC EDGAR 10-Q quarterly filings. Figures may represent quarterly or cumulative values.
National Fuel Gas Co Dividends, Buybacks & Capital Allocation
NFG SEC Filings: Latest 10-K & 10-Q Analysis
Access official SEC EDGAR filings for National Fuel Gas Co (CIK: 0000070145)
📋 Recent SEC Filings
❓ Frequently Asked Questions about NFG
What is the AI rating for NFG?
National Fuel Gas Co (NFG) has a Combined AI Rating of SELL from Claude (SELL) and ChatGPT (HOLD) with 68% combined confidence, based on fundamental analysis of SEC EDGAR filings.
What are NFG's key strengths?
Claude: Exceptional operating margin of 42.4% and net margin of 27.9% demonstrate pricing power and cost discipline. Strong interest coverage ratio of 8.2x indicates solid debt servicing capacity despite leverage. ChatGPT: High operating and net margins indicating efficient operations. Solid interest coverage and moderate leverage (Debt/Equity 0.75x).
What are the risks of investing in NFG?
Claude: Negative free cash flow of -$2.7M is fundamentally unsustainable for a utility; capital expenditures of $277.6M exceed operating cash generation. Dangerously low liquidity ratios (0.65x current and quick) below 1.0 indicate potential working capital strain and reduced financial flexibility. ChatGPT: Negative free cash flow and heavy capex burden. Weak liquidity (current and quick ratio 0.65x).
What is NFG's revenue and growth?
National Fuel Gas Co reported revenue of $651.5M.
Does NFG pay dividends?
National Fuel Gas Co pays dividends, with $48.4M distributed to shareholders in the trailing twelve months.
Where can I find NFG SEC filings?
Official SEC filings for National Fuel Gas Co (CIK: 0000070145) including 10-K, 10-Q, and 8-K reports are available on SEC EDGAR.
What is NFG's EPS?
National Fuel Gas Co has a diluted EPS of $1.98.
How is the AI analysis conducted?
Two independent AI systems — Claude (Anthropic) and ChatGPT (OpenAI) — analyze SEC EDGAR filings including 10-K annual reports and 10-Q quarterly reports. Each AI evaluates financial health, profitability ratios, balance sheet strength, and growth metrics. The combined rating reflects both perspectives for balanced insights.
Is NFG a good stock to buy right now?
Based on our AI fundamental analysis in April 2026, National Fuel Gas Co has a SELL rating with 68% confidence. Review the strengths and risks sections above before making a decision. This is not investment advice.
Is NFG stock overvalued or undervalued?
Valuation metrics for NFG: ROE of 5.1% (sector avg: 10%), net margin of 27.9% (sector avg: 12%). Compare these metrics with sector averages to assess valuation.
Should I buy NFG stock in 2026?
Our dual AI analysis gives National Fuel Gas Co a combined SELL rating for 2026. Revenue is data pending, with profitability above sector average. Always conduct your own research.
What is NFG's free cash flow?
National Fuel Gas Co's operating cash flow is $274.9M, with capital expenditures of $277.6M. FCF margin is -0.4%.
How does NFG compare to other Utilities stocks?
Vs Utilities sector averages: Net margin 27.9% (avg: 12%), ROE 5.1% (avg: 10%), current ratio 0.65 (avg: 0.8).