Despite its range evolution during the last 12 months, Romgaz shares remain very popular among Romanian investors and top-performing international funds. While you can buy SNGN shares directly, sometimes it is worth considering an ETF with SNG representation.
National Natural Gas Company Romgaz SA Mediaș (SNGN Romgaz SA), or simply Romgaz is the largest natural gas producer in Romania and one of the largest producers in Eastern Europe. The company is the country's main supplier and is responsible for producing around 40% of the total natural gas consumption in Romania.
S.N.G.N. Romgaz S.A. was listed on the Bucharest Stock Exchange (BVB) and on the London Stock Exchange (LSE) on November 12, 2013. As of this date, the Company's shares are traded on the regulated market administered by the BVB, under the symbol "SNG" and are now one of the holdings in the largest Frontier and Emerging Markets ETFs (FM).
Romgaz Stock (BVB: SGN) - Research and Ratings
- Is Romgaz stock undervalued compared to its fair value, analyst forecasts, and price relative to the market?
- What is the analyst 12-month SGN shares price forecast?
- What are SGN’s future growth expectations?
- How has Romgaz stock performed over the past 5 years?
- Should you buy Romgaz shares or invest in ETFs with SGN representation?
Understanding Romgaz Stock (BVB: SGN): A brief history
After the unification of Transylvania and Romania in 1919 the Direcția Gazului Natural company is established at Cluj Napoca affiliated to the Ministry of Industry and Commerce in Bucharest, which later in 1925 was renamed to Societatea Națională de Gaz Metan SONAMETAN (National Methane Company).
The first underground storage facility was operated in 1961, and in 1976 the company's largest natural gas output was realised 29.8 cubic kilometers. In 1991 the company is renamed as Regia Autonomă Romgaz RA and in 1998 it is renamed as Societatea Națională de Gaze Naturale Romgaz SA. In 2000, Romgaz was then divided into five smaller independent companies: Exprogaz, Depogaz, Transgaz, Distrigaz Sud and Distrigaz Nord. In 2001, Exprogaz and Depogaz were merged to create SNGN Romgaz SA the current company.
Romgaz’s main segments of activity are:
- geological exploration (aiming to discover new gas fields, methane gas production by exploiting the deposits inside the company’s portfolio)
- supply and distribution of natural gas
- special operations and well services
- supply and electric power production.
Romania is one of the region's only countries to be largely energy independent. The country imports less than 10 percent of its total gas demand, the rest being produced locally, with Romgaz being one of the two major players in the market.
Romgaz shares are distributed among 3 categories:
- ROMANIAN STATE THROUGH MINISTRY OF ENERGY - 70.0071%
- Legal entities - 24.7765 % (Fondul Proprietatea - 15%)
- Individuals - 5.2164% %
Romgaz stock (BVB: SGN)- Fundamental Analysis and Financial Ratings
See the latest Romgaz (BVB: SGN) stock price analysis, including valuation, future growth, past performance, and more to help you make more informed investing decisions.
Valuation
Is Romgaz stock undervalued compared to its fair value, analyst forecasts, and its price relative to the market?
- SNG is expensive based on its Price-To-Earnings Ratio (6.8x) compared to the peer average (4.2x).
- SNG is expensive based on its Price-To-Earnings Ratio (6.8x) compared to the European Oil and Gas industry average (5.1x).
- SNG is expensive based on its Price-To-Earnings Ratio (6.8x) compared to the estimated Fair Price-To-Earnings Ratio (6.6x).
- SNG (RON44) is trading below simplywall.st estimate of fair value (RON58.34), by more then 20%.
- SNG target price is more than 20% higher than the current share price, but analysts are not within a statistically confident range of agreement.
Future Growth
SNGN Romgaz's earnings is forecast to decline at an annual rate of -2.6% and its revenue is expected to decline at 0% annually. EPS is expected to decline by 9.5%. Return on equity is forecast to be 14.5% in 3 years. Analyst coverage for Romgaz stock is low.
- SNG's Earnings vs Savings Rate are forecast to decline over the next 3 years (-2.6% per year).
- SNG's earnings (-2.6% per year) are forecast to grow faster than the RO market (-3.4% per year).
- SNG's High Growth Earnings are forecast to decline over the next 3 years.
- SNG's revenue (-0% per year) is forecast to grow faster than the RO market (-1% per year).
- SNG's High Growth Revenue is forecast to decline over the next 3 years (0% per year).
- SNG's Return on Equity is forecast to be low in 3 years time (14.5%).
Past Performance
How has Romgaz stock performed over the past 5 years?
SNGN Romgaz has been growing earnings at an average annual rate of 16.4%, while the Oil and Gas industry saw earnings growing at 23.5% annually. Revenues have been growing at an average rate of 23.5% per year. SNGN Romgaz's return on equity is 24%, and it has net margins of 23.3%.
- SNG has high-quality earnings.
- SNG's current net profit margins (23.3%) are lower than last year (25.9%).
- SNG's earnings have grown by 16.4% per year over the past 5 years.
- SNG's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.
- SNG had negative earnings growth (-13%) over the past year, making it difficult to compare to the Oil and Gas industry average (16.5%).
- SNG's Return on Equity (24%) is considered high.
Financial Health
What is Romgaz's financial position?
SNGN Romgaz has a total shareholder equity of RON10.4B and total debt of RON1.3B, which brings its debt-to-equity ratio to 12.4%. Its total assets and total liabilities are RON15.7B and RON5.2B respectively. SNGN Romgaz's EBIT is RON4.9B making its interest coverage ratio -25.2. It has cash and short-term investments of RON3.4B.
- SNG's short-term assets (RON5.0B) exceed its short-term liabilities (RON3.5B)
- SNG's short-term assets (RON5.0B) exceed its long-term liabilities (RON1.7B).
- SNG has more cash than its total debt.
- SNG's debt-to-equity ratio has increased from 0% to 12.4% over the past 5 years.
- SNG's debt is well covered by operating cash flow (230.5%).
- SNG earns more interest than it pays, so coverage of interest payments is not a concern.
Dividend
SNGN Romgaz is a dividend-paying company with a current yield of 7.77% that is well covered by earnings.
- Romgaz's dividend payments have been volatile in the past 10 years.
- SNG's dividend payments have increased over the past 10 years.
- SNG's dividend (7.77%) is higher than the bottom 25% of dividend payers in the Romanian market (2.53%).
- SNG's dividend ( 7.77%) is low compared to the top 25% of dividend payers in the Romanian market (8.27%).
- With its reasonably low cash payout ratio (52.6%), Romgaz's dividend payments are well covered by earnings and cash flows.
Romgaz Stock Price Forecast
What is the analyst 12-month Romgaz stock price forecast, and do we have any statistical confidence in the consensus price target from analysts?
Source: simplywall.st
According to simplywall.st, the SNG 12-month target price is more than 20% higher than the current share price, but analysts are not within a statistically confident range of agreement.
The analyst consensus target price for shares in SNGN Romgaz SA is 54.54 RON. That is 23.57% above the last closing price of 40.90RON, according to stockopedia.com.
Investing.com analysts' 12-Month Price High Target is 80.50 RON, while the Average and Low Price targets are 53.13, respectively 38.00 RON.
Source: investing.com
There are no 5-year SNG shares price forecasts and price predictions.
Important: When considering Romgaz's fundamental analysis, financial rating and price predictions, it’s important to remember that high market volatility and changing economic environment makes it difficult to give long-term estimates. As such, analysts and algorithm-based platforms can and do get their ratings and predictions wrong. Always do your own research before making an investment decision. And never trade or invest more than you can afford to lose.
Romgaz Stock (BVB: SGN) - Technical Analysis
Technically, SNG shares price made the breakout from a previous range dating from September 2022 and is currently testing the 45.00 RON level.
A break above this level, followed by a consolidation, would target the intermediate 48.80 resistance level and above, the all-time high 51.85.
How to Invest in Romgaz Stock
Some investors want to take an active hand in managing their investments, while others prefer to set it and forget it. Your preference may change but decide on an approach to get started.
For most people, stock market investing means choosing among these two investment types:
Individual Romgaz shares
If you’re after a specific company, you can buy a single share or a few shares to dip your toe into the stock-trading waters. Building a diversified portfolio out of many individual stocks is possible, but it takes significant investment and research.
If you go this route, remember that individual stocks will have ups and downs. If you research a company and choose to invest in it, think about why you picked that company in the first place if jitters start to set in on a down day.
Traditional stockbrokers allow you to invest in local stocks. However, you might not be able to invest in international stocks listed on the major stock exchanges, global ETFs, and other assets.
ETFs with Romgaz holdings
Romgaz stock (or any single stock, for that matter) can be a very volatile investment. You can manage the risk you see extreme highs and lows by diversifying your investment holdings. An ETF, for instance, contains a basket of individual stocks. When you invest in a fund, you also own small pieces of each of those companies.
If you want an ETF with SNG representation, you might consider iShares MSCI Frontier and Select ETF. BlackRock's iShares is the largest provider of ETFs as calculated by assets under management.
The fund can be suitable for Romania and foreign investors who want liquid and diversified exposure to another top 9 companies listed on the Bucharest Stock Exchange:
Banca Transilvania (BSE: TLV)
OMV Petrom (BSE: SNP)
BRD (BSE: BRD)
Transgaz (BSE: TGN)
Electrica (BSE: EL)
Teraplast (BSE: TRP)
MedLife (BSE: M)
Nuclearelectrica (BSE: SNN)
One United Properties (BSE: ONE)
Why invest in Romgaz Shares via FM?
With net assets of almost $1B, The iShares MSCI Frontier and Select EM ETF (FM) is the largest exchange-traded-fund that seeks to track the investment results of an index composed primarily of frontier market equities along with select emerging market equities.
- Exposure to frontier market stocks and smaller size emerging market stocks with an emphasis on tradability and investability of the underlying constituents
- One-click access to a virtually untapped investment portfolio with a Bucharest Stock Exchange and BET index exposure.
- Use to seek long-term growth and diversification
How to Get Started with CAPEX.com
Here is how to buy and trade stocks, ETFs and other assets with an international, highly regulated broker like CAPEX.com:
- Choose which type of account you want to use. Your first concern should be your risk appetite and time horizon. If you want to buy and hold shares, open an Invest account. If you want to speculate on price movements (including falling prices) with zero commission and leverage, open a CFD trading account.
- Create an account. Regardless of your chosen account, you need to register and complete the KYC process to verify your identity.
- Fund your account with fiat money. Before buying and trading stocks and ETFs, you need to fund your exchange account with U.S. dollars, Euros, or other currencies.
- Place your order. Click on the "Search" icon located in the left panel or by clicking on "ETFs" and then select the instrument, such as "iShares MSCI Frontier and Select EM ETF”.
When trading stocks, the CFDs (contracts for difference) are stored in your account and are more liquid than the underlying asset.
However, you should be aware that CFD trading is fast-moving and requires close monitoring. As a result, traders should be aware of the significant risks when trading CFDs. There are margins you need to maintain; if you cannot cover reductions in values, your position might be closed, and you'll have to meet the loss no matter what subsequently happens to the underlying asset.
With CAPEX, you can trade CFDs on +2.000 stocks and invest in +5.000 stocks and ETFs with ownership.
Free resources
Before you start investing in shares, you should consider using the educational resources we offer like CAPEX Academy or a demo trading account. CAPEX Academy has lots of free trading courses for you to choose from, and they all tackle a different financial concept or process – like the basics of analyses – to help you to become a more informed trader.
Our demo account is a great place for you to learn more about leveraged trading, and you’ll be able to get an intimate understanding of how CFDs work – as well as what it’s like to trade with leverage – before risking real capital. For this reason, a demo account with us is a great tool for investors who are looking to make a transition to leveraged trading.
Sources:
Romgaz | Romgaz
SNGN Romgaz (BVB:SNG) - Stock Price, News & Analysis - Simply Wall St
BVB - Shares SNG S.N.G.N. ROMGAZ S.A.
Societatea Nationala de Gaze Naturale Romgaz SA Share Price - BSE:SNG Stock Research | Stockopedia
Societatea Nationala de Gaze Naturale Romgaz SA (SNG) Stock Forecast & Price Target - Investing.com