📊 NFG Key Takeaways
Is NFG a Good Investment? Thesis Analysis
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.
Why Buy 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
NFG Investment Risks to Consider
- 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
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
NFG Financial Metrics
💡 AI Analyst Insight
The current ratio below 1.0x warrants monitoring of short-term liquidity.
NFG Profitability Ratios
NFG vs Energy Sector
How NATIONAL FUEL GAS CO compares to Energy sector averages
Sector benchmarks are approximate industry averages. Actual sector performance may vary.
Is NFG Overvalued or Undervalued?
Based on fundamental analysis, NATIONAL FUEL GAS CO has mixed fundamental signals relative to the Energy 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.
NFG Balance Sheet & Liquidity
NFG 5-Year Financial Trend & Growth Analysis
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 Growth Metrics (YoY)
NFG Quarterly 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.
NFG Capital Allocation
NFG SEC 10-K & 10-Q Filing 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 an AI rating of SELL with 72% 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.
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.
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 72% 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: 14%), 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 Energy stocks?
Vs Energy sector averages: Net margin 27.9% (avg: 12%), ROE 5.1% (avg: 14%), current ratio 0.65 (avg: 1.3).