I see Naturgy as a credible income holding, but not a high-growth opportunity at this price. Q3 revenue rose 14.1% year on year to €5,277M, while net income and EPS each advanced 4.2%; however, net margin contracted 1.0 pp to 10.3%, so growth is not flowing through proportionately. The 13.9x trailing P/E is reasonable, but consensus EPS is expected to fall 3.1% in 2027 to €2.161, and the median target of €31.55 implies only 5.4% upside. The 5.9% trailing dividend yield is appealing, though debt/equity is unavailable, limiting my ability to judge financing risk in a rate-sensitive sector. With shares 3.8% below their 52-week high, I would start small rather than chase the prospective 7.9% yield.
How it picked this company
- Searched: all markets · Utilities · EUR · P/E ≤ 18 · yield ≥ 4.5% · highest dividend first
I’m looking for euro-denominated utilities with attractive dividends and modest valuations, prioritising predictable cash flows while screening for financing-rate and leverage risks; Naturgy stands out for follow-up.
- 4 matches
- Compared: NTGY.MC, ENG.MC, IG.MI
These combine attractive yields and reasonable P/E multiples, with Naturgy’s especially high yield, Enagás’s projected EPS growth, and Italgas’s sizable discount to its 52-week high warranting closer review.
- Chose this one:
Naturgy stands out for its 7.9% yield and recent revenue and net-income growth, offering stronger income than the other candidates. Its forecast EPS decline and proximity to its 52-week high are notable risks, but Enagás has sharply weaker recent earnings and Italgas offers a lower yield.