Company DescriptionNaturgy Energy Group, S.A., together with its subsidiaries, engages in the supply, liquefaction, regasification, transport, storage, distribution, and sale of natural gas. It operates through Energy and Network Management, Renewables and New Business, Supply, and Rest segments. The company engages in the regulated gas and electricity distribution; sale of liquefied natural gas and the sea transport business; management of the gas pipelines and conventional thermal generation facilities; and generation and sale of electricity through wind, mini-hydro, solar, and cogeneration sources, as well as provision of supply management services. It serves in Spain, Argentina, Brazil, Chile, Mexico, Panama, the rest of Latin America, and internationally. The company was formerly known as Gas Natural SDG, S.A. and changed its name to Naturgy Energy Group, S.A. in June 2018. Naturgy Energy Group, S.A. was incorporated in 1843 and is based in Madrid, Spain.

How the Company Makes Money

Naturgy Energy Group, S.A. Financial Statement Overview

Summary

Naturgy Energy Group presents a financially stable profile with strong gross and EBIT margins, zero debt, and robust equity levels. However, declining revenue and free cash flow highlight potential challenges in sustaining growth and profitability. The company demonstrates strong cash generation capabilities, yet must focus on reversing revenue declines to ensure long-term financial health.

Income Statement

Positive

Naturgy Energy Group shows a mixed performance in its income statement. The gross profit margin for 2024 is approximately 40%, indicating a strong ability to manage costs. However, there is a declining revenue trend from 2022 to 2024, with a notable revenue decrease of around 15% from 2023 to 2024. The EBIT margin stands at 18%, and the EBITDA margin at 27%, both reflecting solid operational efficiency. Despite these strengths, the net profit margin reduced slightly from 8.8% in 2023 to 9.9% in 2024, reflecting challenges in maintaining net income levels amid revenue declines.

Balance Sheet

Positive

The balance sheet of Naturgy Energy Group reflects a strong equity position with an equity ratio of 23% for 2024, indicating a stable financial structure. The company has eliminated its total debt, resulting in a debt-to-equity ratio of 0, which mitigates financial risk. The return on equity (ROE) for 2024 is approximately 20%, showcasing effective utilization of shareholder funds to generate profits. Overall, the balance sheet indicates a robust financial position with minimal leverage risk.

Cash Flow

Positive

The cash flow statement indicates a decline in free cash flow from €2.43 billion in 2023 to €1.79 billion in 2024, marking a decline in free cash flow growth. The operating cash flow to net income ratio of 2.1 demonstrates strong cash generation relative to net income. However, the free cash flow to net income ratio has decreased, reflecting reduced cash available after capital expenditures. Despite these challenges, the company's cash flow generation remains adequate, supporting its operational needs.

Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Breakdown
Income Statement		Total Revenue
19.27B	22.62B	33.97B	22.14B	15.35B
	Gross Profit
7.70B	7.51B	6.54B	5.43B	5.01B
	EBIT
3.76B	3.74B	4.88B	2.10B	2.00B
	EBITDA
5.22B	5.19B	4.63B	3.74B	2.02B
	Net Income Common Stockholders
1.90B	1.99B	1.65B	1.21B	-55.00M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
6.10B	4.12B	4.39B	4.36B	4.49B
	Total Assets
40.84B	37.89B	40.39B	38.25B	39.55B
	Total Debt
18.01B	15.96B	16.26B	16.69B	17.35B
	Net Debt
12.38B	12.27B	12.28B	12.73B	13.42B
	Total Liabilities
29.18B	25.96B	30.41B	29.38B	28.28B
	Stockholders Equity
9.48B	9.45B	7.57B	5.89B	8.03B
Cash Flow		Free Cash Flow
1.79B	2.43B	2.16B	-203.00M	1.96B
	Operating Cash Flow
3.99B	4.86B	2.16B	1.00B	3.43B
	Investing Cash Flow
-1.82B	-2.74B	1.16B	1.90B	-1.14B
	Financing Cash Flow
-239.00M	-2.26B	-2.54B	-2.85B	-388.00M

Naturgy Energy Group, S.A. Peers Comparison

Overall Rating

UnderperformOutperform

Sector (64)

Financial Indicators

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
0NPV		€25.27B	13.12	20.32%	4.32%	―	―
Sector *	64 Neutral	$8.54B	10.30	4.24%	4.37%	4.14%	-13.04%
0HAC		€15.00B	17.81	16.48%	2.83%	―	―
0EBQ		€3.67B	10.12	-11.89%	8.33%	―	―
0P2N		€32.11B	10.05	65.54%	1.47%	―	―
0HIT		€101.86B	20.49	10.55%	2.99%	―	―

* Utilities Sector Average

Performance Comparison

GB:0NPV

Naturgy Energy Group, S.A.

26.12

2.88

12.39%

GB:0HAC

Actividades de Construccion y Servicios SA

57.35

18.09

46.08%

GB:0EBQ

Enagas SA

14.07

0.62

4.61%

GB:0P2N

Ferrovial

44.93

9.75

27.71%

GB:0HIT

Iberdrola

15.99

4.32

37.02%

Glossary

OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.

NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.

UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.

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.