Operating Margin - National Fuel Gas Co (NYSE:NFG)

Watchlist Manager

Watchlist

Price: 82.4 USD 0.18%

Market Cap: 7.4B USD

41.9%

Current

38%

Average

13.8%

Industry

Operating Margin represents how efficiently a company is able to generate profit through its core operations.

Higher ratios are generally better, illustrating the company is efficient in its operations and is good at turning sales into profits.

Operating Margin

41.9%

Operating Profit

955.3m

Revenue

2.3B

Operating Margin Across Competitors

Country		Company	Market Cap	Operating Margin
US		National Fuel Gas Co NYSE:NFG	7.4B USD	42%
ES		Naturgy Energy Group SA MAD:NTGY	23.8B EUR	19%
US		Atmos Energy Corp NYSE:ATO	27.6B USD	33%
IT		Snam SpA MIL:SRG	18.7B EUR	48%
HK		Hong Kong and China Gas Co Ltd HKEX:3	130.6B HKD	15%
JP	T	Tokyo Gas Co Ltd TSE:9531	2.2T JPY	7%
JP		Osaka Gas Co Ltd TSE:9532	2.1T JPY	9%
IN		GAIL (India) Ltd NSE:GAIL	1.1T INR	9%
IT		Italgas SpA MIL:IG	9.4B EUR	38%
CN		ENN Energy Holdings Ltd HKEX:2688	81.1B HKD	8%
CN		ENN Natural Gas Co Ltd SSE:600803	68.4B CNY	9%

National Fuel Gas Co
Glance View

Economic Moat

Narrow

Market Cap

7.4B USD

Industry

Utilities

National Fuel Gas Company, an integrated energy company headquartered in Williamsville, New York, has been weaving energy into the fabric of American lives since the early 20th century. With deep roots in the Appalachian region, National Fuel operates across a diversified spectrum of natural gas activities, making it a multifaceted powerhouse in the energy sector. The company primarily functions through four key business segments: Exploration and Production, Pipeline and Storage, Utility, and Energy Marketing. Through its subsidiary, Seneca Resources Company, National Fuel taps into the dense layers of the Marcellus and Utica Shales, extracting the natural gas that serves as the lifeblood of its operations. Its comprehensive approach allows for synergistic benefits as it explores and produces gas, safeguards its transportation through an extensive pipeline system, and sells it, ensuring reliability and efficiency in supply. Investment in infrastructure and strategic management of its assets are paramount for National Fuel Gas Co., particularly in the ever-evolving regulatory environment of the energy industry. The company's pipeline and storage network acts as the circulatory system, delivering natural gas across various states while providing vital storage solutions to manage seasonal demand fluctuations. Meanwhile, its utility arm supplies gas to over 740,000 customers, ensuring a steady cash flow and customer loyalty. Additionally, the energy marketing segment broadens its revenue streams by effectively managing the procurement and sale of natural gas. Through this robust and diversified model, National Fuel Gas Co. not only delivers energy but also crafts a narrative of sustainability and efficiency, deftly navigating the complexities of the changing global energy landscape.

View NFG Analysis

NFG Intrinsic Value

What is Intrinsic Value?

Economic Moat is a concept popularized by Warren Buffett to describe a company's durable competitive advantage. It represents the 'moat' that protects a company from competitors and helps it sustain profitability over the long term. Our analysis of the past 10 years showed that companies with a wide economic moat significantly outperformed the market, delivering +645% returns compared to +189% for the S&P 500.

Our research into Economic Moat performance spans the past 10 years and focuses on companies with a wide economic moat. For this analysis, we calculated the average stock price returns of these companies, comparing them to the performance of the S&P 500 index over the same period.

The results were compelling: wide moat stocks achieved a remarkable +645% average return, compared to +188% for the broader market. This difference highlights the long-term benefits of investing in businesses that can maintain their market position and pricing power over time.

Note: This research does not account for survivorship bias. Past performance is not indicative of future results.

Determining whether a company has an economic moat requires both a deep dive into financial metrics and a qualitative assessment of its competitive position. Our analysts conduct a rigorous evaluation that focuses on identifying structural advantages that enable a company to sustain profitability and defend its market share over the long term.

The process begins with an analysis of a company’s historical financial performance. We assess how consistently the company has generated returns above its cost of capital and whether those returns have been stable or improving. However, financial performance alone doesn’t reveal the full picture. To understand the sources of these advantages, we evaluate five key drivers of economic moats:

Network Effect: We analyze whether the value of a company’s product or service grows as its user base expands. Platforms like payment systems or marketplaces benefit from this self-reinforcing.

Switching Costs: We assess whether customers face significant costs or disruptions when switching to a competitor’s product or service. High switching costs create customer stickiness and provide pricing power.

Intangible Assets: Strong brands, patents, and regulatory licenses can protect a company’s market position by creating barriers for competitors or enabling premium pricing. For example, a well-recognized consumer brand may command higher customer loyalty and margins.

Efficient scale: Occurs when a market is optimally served by one or a few players, making it unprofitable for new entrants to compete. This typically happens in industries with high fixed costs or geographic constraints, such as utilities or pipelines.

Cost Advantage: Companies with structural cost advantages can produce goods or services at a lower cost than their competitors, enabling them to offer competitive pricing or maintain higher margins. These advantages often arise from economies of scale, superior supply chain management, or proprietary technology. Firms like Walmart leverage their massive scale to negotiate better terms with suppliers, allowing them to undercut competitors on price.

By examining these factors in combination with a company’s financial performance and market positioning, we classify each company into one of three categories:

This rigorous evaluation ensures that our moat ratings are both comprehensive and reliable, giving investors the tools they need to make well-informed, long-term decisions.

The AI Assistant may sometimes provide inaccurate information.

Make your own investment decisions or consult a licensed financial advisor.

US	Johnson & Johnson NYSE:JNJ	Pharmaceuticals
US	Berkshire Hathaway Inc NYSE:BRK.A	Financial Services
US	Bank of America Corp NYSE:BAC	Banking
US	Mastercard Inc NYSE:MA	Technology
US	UnitedHealth Group Inc NYSE:UNH	Health Care
US	Exxon Mobil Corp NYSE:XOM	Energy
US	Pfizer Inc NYSE:PFE	Pharmaceuticals
US	Palantir Technologies Inc NYSE:PLTR	Technology
US	Nike Inc NYSE:NKE	Textiles, Apparel & Luxury Goods
US	Visa Inc NYSE:V	Technology
CN	Alibaba Group Holding Ltd NYSE:BABA	Retail
US	JPMorgan Chase & Co NYSE:JPM	Banking
US	Coca-Cola Co NYSE:KO	Beverages
US	Walmart Inc NYSE:WMT	Retail
US	Verizon Communications Inc NYSE:VZ	Telecommunication
US	Chevron Corp NYSE:CVX	Energy

	Johnson & Johnson NYSE:JNJ	214.17 USD 1.22%
	Berkshire Hathaway Inc NYSE:BRK.A	759 260.0012 USD 1.39%
	Bank of America Corp NYSE:BAC	55.33 USD 0.34%
	Mastercard Inc NYSE:MA	569.13 USD -0.49%
	UnitedHealth Group Inc NYSE:UNH	341.1 USD -0.22%
	Exxon Mobil Corp NYSE:XOM	117.76 USD -0.89%

	Franklin Covey Co NYSE:FC	16.22 USD -2.47%
	Mohawk Industries Inc NYSE:MHK	111.49 USD -0.89%
	Ardmore Shipping Corp NYSE:ASC	11.27 USD 1.17%
	ASGN Inc NYSE:ASGN	47.95 USD -0.25%
	Skyworks Solutions Inc NASDAQ:SWKS	66.37 USD -0.9%
	Weatherford International PLC NASDAQ:WFRD	78.99 USD -1.68%

	Johnson & Johnson NYSE:JNJ	214.17 USD 1.22%
	Bank of America Corp NYSE:BAC	55.33 USD 0.34%
	Mastercard Inc NYSE:MA	569.13 USD -0.49%
	Salesforce Inc NYSE:CRM	254.58 USD -2.92%
	Abbvie Inc NYSE:ABBV	227.45 USD 1.85%
	Home Depot Inc NYSE:HD	356.99 USD -0.74%

	Monolithic Power Systems Inc NASDAQ:MPWR	949.4 USD 0.31%
	Applovin Corp NASDAQ:APP	675.165 USD 0.67%
	NVIDIA Corp NASDAQ:NVDA	176.29 USD 0.73%
	Cal-Maine Foods Inc NASDAQ:CALM	88.02 USD 1.3%
	Pro Medicus Ltd ASX:PME	226.05 AUD -3.27%
	Lundin Gold Inc TSX:LUG	111 CAD -0.37%

National Fuel Gas Co
NYSE:NFG