Top 13 Regulated Gas Stocks
Marvin ranks 13 regulated gas companies by Overall score within their industry. New Jersey Resources, ONE Gas and UGI come first, and Centuri Holdings comes last. The picks below show growth, margins and debt for each.
Regulated gas companies are utilities that deliver natural gas to homes and businesses. Their prices and service areas are generally overseen by government regulators. This list covers 13 companies in Marvin's Regulated Gas industry above about $300 million in size.
The order comes from Marvin's Overall score, which combines a quality score and an opportunity score. Each score compares a company only with others in the same industry, so a high number means it looks strong next to gas utility peers, not next to every stock.
Keep in mind that utilities often spend heavily on pipes and equipment, which can push free cash flow margin below zero. Some figures are missing for certain companies, and each pick notes that. This is research information, not a recommendation.
The list
How Marvin ranked these stocks
Marvin included companies above about $300 million in size and ranked them by Overall score, highest first, within the Regulated Gas industry. Scores run from zero to one hundred and are relative to each company's own industry, so they show how a company compares with its gas utility peers today. They are not a forecast.
Companies above about $300 million in size, ranked by Marvin scores (0-100, relative to each company's own industry). The Regulated Gas industry, highest Overall score first.
The stocks, one by one
New Jersey Resources Corporation NJR
New Jersey Resources leads the list with an overall score of 87 and an opportunity score of 93. Revenue grew 13.4% last fiscal year and operating margin was 24.8%. Caution: debt-to-equity is 1.37, and free cash flow margin is not available.
ONE Gas, Inc. OGS
ONE Gas has the top quality score here at 87, with an overall score of 80. Return on equity is 8.1% and debt-to-equity is 0.96. Caution: revenue growth and operating margin are not available, so the picture is incomplete.
UGI Corporation UGI
UGI Corporation has a quality score of 81 and an overall score of 74. Operating margin is 16.2% and return on equity is 12.9%. Caution: revenue growth was only 1.1%, and free cash flow margin was a thin 2.6%.
NiSource Inc NI
NiSource grew revenue 23.5% last fiscal year and kept an operating margin of 27.6%, giving an overall score of 67. Caution: free cash flow margin was -16.1%, meaning spending exceeded cash generated, and debt-to-equity is 1.70.
Northwest Natural Holding Company NWN
Northwest Natural has an opportunity score of 86, well above its quality score of 41. Revenue grew 11.8% and operating margin was 22.8%. Caution: free cash flow margin was -20.6% and debt-to-equity is 1.73.
Chesapeake Utilities Corporation CPK
Chesapeake Utilities posted revenue growth of 18.1% and an operating margin of 27.3%, for an overall score of 54. Debt-to-equity is 1.04. Caution: free cash flow margin was -19.5%, so investment outpaced the cash it produced.
Black Hills Corporation BKH
Black Hills Corporation shows modest revenue growth of 8.6% and an operating margin of 23.9%, with a middling overall score of 48. Caution: return on equity is 7.6%, and free cash flow margin was negative at -13.3%.
Atmos Energy Corporation ATO
Atmos Energy has a strong operating margin of 37.0% and the lowest debt-to-equity ratio on this list at 0.65. Its overall score is 41. Caution: free cash flow margin was -41.1%, the weakest of the group.
MDU Resources Group, Inc. MDU
MDU Resources Group grew revenue 6.7% with an operating margin of 17.0%, and its overall score is 34. Caution: return on equity is only 6.7%, and free cash flow margin was negative at -21.1%.
Spire Inc. SR
Spire has an operating margin of 22.2% and return on equity of 10.5%, but a low quality score of 14. Caution: revenue changed by -4.5% last fiscal year, and debt-to-equity of 2.26 is the highest on this list.
Southwest Gas Holdings, Inc. SWX
Southwest Gas Holdings has return on equity of 13.3% and debt-to-equity of 0.85, with an overall score of 21. Caution: revenue changed by -21.6% in the last fiscal year, and operating margin is not available.
Brookfield Infrastructure Corporation BIPC
Brookfield Infrastructure shows a high operating margin of 61.5% and gross margin of 63.6%, but an overall score of just 14. Caution: revenue growth was only 0.1%, and return on equity and debt-to-equity are not available.
Centuri Holdings, Inc. CTRI
Centuri Holdings ranks last with an overall score of 7. Revenue grew 13.1%, but operating margin was only 2.7% and gross margin 7.8%. Caution: return on equity is just 3.3%, so profits are thin.
Common questions
What is a regulated gas company?
It is a utility that delivers natural gas to customers in a set service area. Government regulators typically oversee its rates and service. That oversight often makes its business steadier than many other industries, though it does not remove risk.
Why do many of these companies have negative free cash flow margins?
Free cash flow is the cash left after running the business and paying for investments. Gas utilities often spend heavily on pipelines and equipment, so a negative margin means they spent more than they generated in that year. It is worth checking alongside debt levels.
Do higher Marvin scores mean a stock is a better buy?
No. Marvin's scores only show how a company compares with others in its own industry today. They are not predictions and not advice, so readers should look at the underlying figures and do their own research.
Keep reading
- Top 15 Utilities Stocks by Marvin's Opportunity Score
- Top 15 Utilities Stocks by Marvin Scores
- Top 15 Fastest-Growing Profitable Utilities Stocks
- Top 15 Utilities Stocks With the Strongest Businesses
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Marvin's scores (0-100) compare each company with others in its industry today. Growth and margin figures come from SEC filings. This is general information, not personal investment advice or a recommendation to buy or sell anything. Do your own research.