Naturgy Energy Group, S.A. (NTGY) AI Stock Analysis

Naturgy Energy Group, S.A.

(BME:NTGY)

Select Model

Rating:69Neutral

Price Target:EUR 31.00▲(4.52% Upside)

Action:downgraded

Date:08/06/26

The score is primarily driven by steady financial performance (utility-like profitability and generally positive free cash flow), tempered by multi-year revenue contraction, margin pressure in 2025, and elevated leverage. Technicals add a modestly positive backdrop (price above key longer-term averages with positive MACD), while valuation is supportive due to a moderate P/E and a high dividend yield.

Positive Factors

Regulated network earnings stabilityA large portion of Naturgy’s economics comes from regulated gas and electricity networks with tariff-based returns. These frameworks create predictable cash flows and downside protection versus merchant earnings, supporting multi-year capex plans, dividend capacity and resilient operating cash generation.

Negative Factors

Multi-year revenue contractionA persistent top-line decline over multiple years weakens growth prospects and can compress future allowed returns and scale benefits. For an integrated utility, shrinking revenues reduce the base for network tariffs, limit reinvestment capacity and challenge long-term margin sustainability.

Naturgy Energy Group, S.A. (NTGY) vs. iShares MSCI Spain ETF (EWP)

Market Cap: EUR 28.49B
Dividend Yield: 5.97%
Average Volume (3M): 1.31M
Price to Earnings (P/E): 13.5
Beta (1Y): 0.26
Revenue Growth: ―
EPS Growth: ―
Country: Spain
Employees: 6,764
Sector: General
Sector Strength: 55
Industry: Regulated Gas

Naturgy Energy Group, S.A. Business Overview & Revenue Model

Company Description

Naturgy Energy Group, S.A., together with its affiliates, conducts a comprehensive range of natural gas operations, including its acquisition, conversion (liquefaction and regasification), transmission, warehousing, local delivery, and retailing. The...

How the Company Makes Money

Naturgy primarily makes money by operating regulated energy infrastructure and by selling energy and energy-related services in competitive markets. 1) Regulated networks (stable, tariff-based earnings) - Gas distribution: Naturgy earns regulated rev...

Naturgy Energy Group, S.A. Financial Statement Overview

Summary

Overall fundamentals are steady for a regulated utility, supported by solid profitability and consistently positive net income since 2021. Offsetting this, revenue has contracted for multiple years and gross margin stepped down in 2025, while leverage remains elevated (debt roughly 1.7–2.1x equity), and free-cash-flow conversion versus earnings is only moderate with occasional volatility.

Income Statement

74Positive

Balance Sheet

62Positive

Cash Flow

67Positive

Financial statement breakdown
Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	19.59B	19.45B	19.27B	22.62B	33.97B	22.15B
Gross Profit	4.87B	5.36B	7.70B	7.51B	6.77B	5.62B
EBITDA	5.43B	5.18B	5.24B	5.19B	4.51B	3.77B
Net Income	2.09B	2.02B	1.90B	1.99B	1.65B	1.21B
Balance Sheet
Total Assets	40.78B	39.10B	40.84B	37.89B	40.39B	38.25B
Cash, Cash Equivalents and Short-Term Investments	5.00B	4.66B	6.10B	4.12B	4.39B	4.36B
Total Debt	16.53B	16.75B	18.19B	15.96B	16.26B	16.69B
Total Liabilities	29.04B	27.73B	29.18B	25.96B	30.41B	29.38B
Stockholders Equity	9.58B	9.34B	9.48B	9.45B	7.57B	5.89B
Cash Flow
Free Cash Flow	803.00M	2.38B	1.79B	2.43B	2.16B	-203.00M
Operating Cash Flow	1.88B	4.53B	3.99B	4.86B	2.16B	1.00B
Investing Cash Flow	-853.00M	-1.89B	-1.82B	-2.74B	1.16B	1.90B
Financing Cash Flow	219.00M	-3.67B	-239.00M	-2.26B	-2.54B	-2.85B

Naturgy Energy Group, S.A. Peers Comparison

Overall Rating

UnderperformOutperform

Sector (55)

Financial Indicators

ES:NTGY against its peers
Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
ES:REP	73Outperform	EUR 33.15B	5.92	22.28%	3.42%	23.91%	420.67%
ES:NTGY	69Neutral	EUR 28.49B	13.48	23.92%	5.97%	―	―
ES:ELE	68Neutral	EUR 45.08B	18.56	29.66%	3.62%	6.36%	13.86%
ES:IBE	60Neutral	EUR 146.27B	21.33	13.54%	3.09%	1.33%	20.21%
ES:ENG	58Neutral	EUR 4.62B	21.87	9.07%	5.66%	-2.00%	259.61%
Sector *	55Neutral	$6.65B	3.83	-15.92%	6.20%	10.91%	7.18%
ES:ANA	51Neutral	EUR 11.13B	30.75	7.63%	2.77%	7.62%	-56.65%

* General Sector Average

Performance Comparison

ES:NTGY and its peers over the selected period
Ticker	Company Name	Price	Change	% Change
ES:NTGY	Naturgy Energy Group, S.A.	29.66	4.41	17.45%
ES:ANA	Acciona SA	203.60	12.70	6.65%
ES:ENG	Enagas SA	17.68	4.66	35.83%
ES:ELE	Endesa SA	43.81	13.41	44.11%
ES:IBE	Iberdrola SA (UK)	22.18	5.11	29.97%
ES:REP	Repsol S.A. (UK)	30.73	15.47	101.42%

Glossary

BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.

Date of analysis: Aug 06, 2026

Naturgy Energy Group, S.A. AI Stock Analysis