Naturgy Energy GroupXMAD:NTGY +0.94%65 ROE % is 20.46% as of Dec. 2025, which is 34% above its 10-year median of 15.24. GuruFocus rates XMAD:NTGY with a GF Score™ of 65/100 and a GF Value™ of €22.64 (Modestly Overvalued). The stock has 7 warning signs investors should review. Among 503 Utilities - Regulated companies, Naturgy Energy Group ranks better than 90.85% on this metric.
The historical rank and industry rank for Naturgy Energy Group's ROE % or its related term are showing as below:
XMAD:NTGY'
s ROE % Range Over the Past 10 Years
Min: -21.98 Med: 15.24 Max: 24.5
Current: 22.82
During the past 13 years, Naturgy Energy Group's highest ROE % was 24.50%. The lowest was -21.98%. And the median was 15.24%.
XMAD:NTGY's ROE % is ranked better than 90.85% of 503
companies
in the Utilities - Regulated industry
Industry Median: 8.62
vs XMAD:NTGY: 22.82
Naturgy Energy Group (XMAD:NTGY) ROE % Explanation
ROE % measures the rate of return on the ownership interest (shareholder's equity) of the common stock owners. It measures a firm's efficiency at generating profits from every unit of shareholders' equity (also known as net assets or assets minus liabilities). ROE % shows how well a company uses investment funds to generate earnings growth. ROE %s between 15% and 20% are considered desirable.
The factors that affect a company's ROE % can be illustrated with the three-step DuPont Analysis:
Note:
The net income data used here is two times the semi-annual (Dec. 2025) net income data. The Revenue data used here is two times the semi-annual (Dec. 2025) revenue data. The same rule applies to Pre-Tax Income and Operating Income.
* In the five-step DuPont Analysis, Operating Income is only available for non-financial companies. Thus, for Insurance companies, we use EBIT as a substitution of Operating Income. For Banks, both Operating Income and EBIT is unavailable. Thus we combined Interest Burden and Operating Margin % into Pretax Margin %, and the DuPont Analysis is divided into four components instead.
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
Be Aware
Net Income is used.
Because a company can increase its ROE % by having more financial leverage, it is important to watch the equity multiplier when investing in high ROE % companies. Like ROA %, ROE % is calculated with only 12 months data. Fluctuations in company's earnings or business cycles can affect the ratio drastically. It is important to look at the ratio from a long term perspective.
Asset light businesses require very few assets to generate very high earnings. Their ROE %s can be extremely high.
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
For the Utilities - Regulated Gas subindustry, Naturgy Energy Group's ROE %, along with its competitors' market caps and ROE % data, can be viewed below:
* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.
Naturgy Energy Group ROE % vs Utilities - Regulated Industry
For the Utilities - Regulated industry and Utilities sector, Naturgy Energy Group's ROE % distribution charts can be found below:
* The bar in red indicates where Naturgy Energy Group's ROE % falls into.
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
In the calculation of annual ROE %, the net income of the last fiscal year and the average total shareholder equity over the fiscal year are used. In calculating the quarterly data,
the net income data used here is two times the semi-annual (Dec. 2025) net income data.
ROE % is displayed in the 30-year financial page.
Naturgy Energy Group (XMAD:NTGY) has a ROE % of 20.46% as of Dec. 2025. Return on equity is the ratio of current-period net income to average two-period total equity. View historical data on Naturgy Energy Group and its competitors. This is 34% above median its historical median of 15.24. According to the industry distribution chart, Naturgy Energy Group ranks #46 out of 503 companies in the Utilities - Regulated industry, placing it in the top 9.1%.
Is Naturgy Energy Group's ROE % too high?
Naturgy Energy Group's current ROE % of 20.46% is 34% above median its 10-year median of 15.24. The Utilities - Regulated industry median ROE % is 8.62. Naturgy Energy Group's value of 20.46% is 137.4% above this industry median. Based on the distribution chart, Naturgy Energy Group ranks #46 out of 503 companies in the Utilities - Regulated industry, which is in the top quartile — a strong position relative to peers. Overall, Naturgy Energy Group has a GF Score™ of 65/100 and is considered Modestly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Naturgy Energy Group's ROE % compare to ATO and NI?
According to the Utilities - Regulated industry distribution chart, Naturgy Energy Group ranks #46 out of 503 companies for ROE %. This places Naturgy Energy Group in the top 9% of its industry — outperforming the majority of peers. The industry median ROE % is 8.62. Naturgy Energy Group's value of 20.46% is 137.4% above this benchmark. While the company's 10-year median is 15.24 vs. the industry median of 8.62, Naturgy Energy Group has consistently been above the industry average. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good ROE % for an Utilities - Regulated company?
The median ROE % among Utilities - Regulated companies is 8.62, based on 503 companies in the industry. Companies in the top quartile (top 25%) have a ROE % significantly above this median, while those in the bottom quartile fall well below. However, ROE % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Naturgy Energy Group's current ROE % of 20.46% is 137.4% above the industry median. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high ROE % mean?
A high ROE % can signal that a stock is expensive relative to its fundamentals. Return on equity is the ratio of current-period net income to average two-period total equity. View historical data on Naturgy Energy Group and its competitors. For the Utilities - Regulated industry, the median ROE % is 8.62 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Naturgy Energy Group's current ROE % is 20.46%, which is 34% above median its own 10-year median of 15.24. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Naturgy Energy Group stock overvalued right now?
Based on GuruFocus' analysis, Naturgy Energy Group (XMAD:NTGY) is currently considered Modestly Overvalued. The stock's GF Value™ is €22.64, compared to a current price of €27.80 — trading 22.8% above its estimated fair value. The current ROE % is 20.46%, which is 34% above median its 10-year median of 15.24 and 137.4% above the Utilities - Regulated industry median of 8.62. Naturgy Energy Group's overall GF Score™ is 65/100 with 7 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is ROE % calculated?
ROE % is calculated from a company's financial statements. For Naturgy Energy Group (XMAD:NTGY), the current ROE % is 20.46% as of Dec. 2025. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.
Is Naturgy Energy Group (XMAD:NTGY) Overvalued in 2026?
Based on GuruFocus' analysis, Naturgy Energy Group stock appears to be overvalued.
The current stock price of €27.80 is trading 22.8% above its estimated GF Value™ of €22.64.
GuruFocus considers Naturgy Energy Group to be Modestly Overvalued.
Key valuation signals for XMAD:NTGY:
ROE %: 20.46% (34% above median its 10-year median of 15.24)
GF Value™: €22.64 vs. price of €27.80 (22.8% above fair value)
Industry Position: 137.4% above the Utilities - Regulated median (#46 of 503)
No single metric tells the full story. See the XMAD:NTGY stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Naturgy stems from the 2008 acquisition of Union Fenosa. The company operates across the gas value chain, from procurement to distribution and marketing. It owns and operates the largest gas distribution network in Spain, where it is also the leading retail gas supplier. The company additionally operates gas and electricity distribution networks across several Latin American countries. It owns 17.9 GW of generation capacity, including 7.3 GW of wind and solar.
65GF Score
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