Northern Oil Profitability Analysis

NOG Stock  USD 39.68  0.66  1.69%   
Taking into consideration Northern Oil's profitability measurements, Northern Oil Gas is performing exceptionally good at this time. It has a great risk to showcase excellent profitability results in April. Profitability indicators assess Northern Oil's ability to earn profits and add value for shareholders.
 
Net Income  
First Reported
1999-09-30
Previous Quarter
26.1 M
Current Value
388.9 M
Quarterly Volatility
152.1 M
 
Dot-com Bubble
 
Housing Crash
 
Credit Downgrade
 
Yuan Drop
 
Covid
At this time, Northern Oil's Operating Cash Flow Sales Ratio is most likely to slightly decrease in the upcoming years. The Northern Oil's current Days Of Sales Outstanding is estimated to increase to 117.00, while Price To Sales Ratio is projected to decrease to 1.69. At this time, Northern Oil's Net Income is most likely to increase significantly in the upcoming years. The Northern Oil's current Total Other Income Expense Net is estimated to increase to about 134.1 M, while Interest Income is projected to decrease to roughly 76.6 M.
Current ValueLast YearChange From Last Year 10 Year Trend
Return On Equity0.460.4507
Fairly Up
Very volatile
For Northern Oil profitability analysis, we use financial ratios and fundamental drivers that measure the ability of Northern Oil to generate income relative to revenue, assets, operating costs, and current equity. These fundamental indicators attest to how well Northern Oil Gas utilizes its assets to generate profit and value for its shareholders. The profitability module also shows relationships between Northern Oil's most relevant fundamental drivers. It provides multiple suggestions of what could affect the performance of Northern Oil Gas over time as well as its relative position and ranking within its peers.
  
Check out Correlation Analysis.
Is Northern Oil's industry expected to grow? Or is there an opportunity to expand the business' product line in the future? Factors like these will boost the valuation of Northern Oil. If investors know Northern will grow in the future, the company's valuation will be higher. The financial industry is built on trying to define current growth potential and future valuation accurately. All the valuation information about Northern Oil listed above have to be considered, but the key to understanding future value is determining which factors weigh more heavily than others.
Quarterly Earnings Growth
1.379
Dividend Share
1.49
Earnings Share
10.03
Revenue Per Share
19.095
Quarterly Revenue Growth
0.226
The market value of Northern Oil Gas is measured differently than its book value, which is the value of Northern that is recorded on the company's balance sheet. Investors also form their own opinion of Northern Oil's value that differs from its market value or its book value, called intrinsic value, which is Northern Oil's true underlying value. Investors use various methods to calculate intrinsic value and buy a stock when its market value falls below its intrinsic value. Because Northern Oil's market value can be influenced by many factors that don't directly affect Northern Oil's underlying business (such as a pandemic or basic market pessimism), market value can vary widely from intrinsic value.
Please note, there is a significant difference between Northern Oil's value and its price as these two are different measures arrived at by different means. Investors typically determine if Northern Oil is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Northern Oil's price is the amount at which it trades on the open market and represents the number that a seller and buyer find agreeable to each party.

Northern Oil Gas Total Asset vs. Gross Profit Fundamental Analysis

Comparative valuation techniques use various fundamental indicators to help in determining Northern Oil's current stock value. Our valuation model uses many indicators to compare Northern Oil value to that of its competitors to determine the firm's financial worth.
Northern Oil Gas is considered to be number one stock in gross profit category among related companies. It is considered to be number one stock in total asset category among related companies fabricating about  2.86  of Total Asset per Gross Profit. At this time, Northern Oil's Gross Profit is most likely to increase significantly in the upcoming years.. Comparative valuation analysis is a catch-all model that can be used if you cannot value Northern Oil by discounting back its dividends or cash flows. This model doesn't attempt to find an intrinsic value for Northern Oil's Stock . Still, instead, it compares the stock's price multiples to a benchmark or nearest competition to determine if the stock is relatively undervalued or overvalued. The reason why the comparable model can be used in almost all circumstances is due to the vast number of multiples that can be utilized, such as the price-to-earnings (P/E), price-to-book (P/B), price-to-sales (P/S), price-to-cash flow (P/CF), and many others. The P/E ratio is the most commonly used of these ratios because it focuses on the Northern Oil's earnings, one of the primary drivers of an investment's value.

Northern Total Asset vs. Gross Profit

Gross Profit is the most basic measure of business operational efficiency. It is simply the difference between sales revenue and the cost associated with making a product or providing a service. It is calculated before deducting administrative expenses, taxes, and interest payments.

Northern Oil

Gross Profit

 = 

Revenue

-

Cost of Revenue

 = 
1.57 B
Gross Profit varies significantly from one sector to another and tells an investor how much money a business would have made if it didn't have to pay any overhead expenses such as salary, taxes, or rent.
Total Asset is everything that a business owns. It is the sum of current and long-term assets owned by a firm at a given time. These assets are listed on a balance sheet and typically valued based on their purchasing prices, not the current market value.

Northern Oil

Total Asset

 = 

Tangible Assets

+

Intangible Assets

 = 
4.48 B
Total Asset is typically divided on the balance sheet on current asset and long-term asset. Long-term is the value of company property and other capital assets that are expected to be useable for more than one year. Long term assets are reported net of depreciation. On the other hand current assets are assets that are expected to be sold or converted to cash as part of normal business operation.

Northern Total Asset Comparison

Northern Oil is currently under evaluation in total asset category among related companies.

Northern Oil Profitability Projections

The most important aspect of a successful company is its ability to generate a profit. For investors in Northern Oil, profitability is also one of the essential criteria for including it into their portfolios because, without profit, Northern Oil will eventually generate negative long term returns. The profitability progress is the general direction of Northern Oil's change in net profit over the period of time. It can combine multiple indicators of Northern Oil, where stable trends show no significant progress. An accelerating trend is seen as positive, while a decreasing one is unfavorable. A rising trend means that profits are rising, and operational efficiency may be rising as well. A decreasing trend is a sign of poor performance and may indicate upcoming losses.
Last ReportedProjected for 2024
Accumulated Other Comprehensive Income-2.2 B-2.1 B
Operating Income873 M916.7 M
Income Before TaxB1.1 B
Net Income923 M969.1 M
Total Other Income Expense Net127.7 M134.1 M
Income Tax Expense77.8 M81.7 M
Net Income Applicable To Common Shares654.9 M687.7 M
Net Income From Continuing Ops679.2 M713.1 M
Interest Income91.2 M76.6 M
Net Interest Income-123 M-129.1 M
Change To Netincome-27 M-25.6 M
Net Income Per E B T 0.92  0.84 

Northern Profitability Driver Comparison

Profitability drivers are factors that can directly affect your investment outlook on Northern Oil. Investors often realize that things won't turn out the way they predict. There are maybe way too many unforeseen events and contingencies during the holding period of Northern Oil position where the market behavior may be hard to predict, tax policy changes, gold or oil price hikes, calamities change, and many others. The question is, are you prepared for these unexpected events? Although some of these situations are obviously beyond your control, you can still follow the important profit indicators to know where you should focus on when things like this occur. Below are some of the Northern Oil's important profitability drivers and their relationship over time.

Northern Oil Profitability Trends

Northern Oil profitability trend refers to the progression of profit or loss within a business. An upward trend means that Northern Oil's profit has generally increased over time, and a downward profitability trend means profits are declining. Recognizing problems early in profitability trends allows investors to address revenue and cost issues in advance. Investors and analysts usually monitor three types of profitability trends: gross, operating, and net. Gross profit is the difference between revenue and costs of goods sold. Operating profit is Northern Oil's gross profit minus its overhead. After you account for other unusual revenue, expenses, and costs, you get net profit. Gross profit trends are often a good indicator of future profitability. If you have high gross profit margins, you have a better chance to cover overhead and make money.

Northern Oil Profitability Drivers Correlations

One of the toughest challenges investors face today is learning how to quickly synthesize and read into endless financial statements and information provided by the company, SEC reporting, and various external parties. Understanding the correlation between Northern Oil different financial indicators related to revenue and profit generation helps investors identify and prioritize their investing strategies towards Northern Oil in a much-optimized way. Analyzing correlations between profit drivers that are directly associated with dollar figures is the most effective way to break down Northern Oil's future profitability.

Use Northern Oil in pair-trading

One of the main advantages of trading using pair correlations is that every trade hedges away some risk. Because there are two separate transactions required, even if Northern Oil position performs unexpectedly, the other equity can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in Northern Oil will appreciate offsetting losses from the drop in the long position's value.

Northern Oil Pair Trading

Northern Oil Gas Pair Trading Analysis

The ability to find closely correlated positions to Northern Oil could be a great tool in your tax-loss harvesting strategies, allowing investors a quick way to find a similar-enough asset to replace Northern Oil when you sell it. If you don't do this, your portfolio allocation will be skewed against your target asset allocation. So, investors can't just sell and buy back Northern Oil - that would be a violation of the tax code under the "wash sale" rule, and this is why you need to find a similar enough asset and use the proceeds from selling Northern Oil Gas to buy it.
The correlation of Northern Oil is a statistical measure of how it moves in relation to other instruments. This measure is expressed in what is known as the correlation coefficient, which ranges between -1 and +1. A perfect positive correlation (i.e., a correlation coefficient of +1) implies that as Northern Oil moves, either up or down, the other security will move in the same direction. Alternatively, perfect negative correlation means that if Northern Oil Gas moves in either direction, the perfectly negatively correlated security will move in the opposite direction. If the correlation is 0, the equities are not correlated; they are entirely random. A correlation greater than 0.8 is generally described as strong, whereas a correlation less than 0.5 is generally considered weak.
Correlation analysis and pair trading evaluation for Northern Oil can also be used as hedging techniques within a particular sector or industry or even over random equities to generate a better risk-adjusted return on your portfolios.
Pair CorrelationCorrelation Matching

Use Investing Themes to Complement your Northern Oil position

In addition to having Northern Oil in your portfolios, you can quickly add positions using our predefined set of ideas and optimize them against your very unique investing style. A single investing idea is a collection of funds, stocks, ETFs, or cryptocurrencies that are programmatically selected from a pull of investment themes. After you determine your investment opportunity, you can then find an optimal portfolio that will maximize potential returns on the chosen idea or minimize its exposure to market volatility.

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Run Small Growth Funds Thematic Idea Now

Small Growth Funds
Small Growth Funds Theme
Funds or Etfs that invest in stocks of small to mid-sized companies with above-average risk and growth rate that usually reinvest their earnings back into business. The Small Growth Funds theme has 43 constituents at this time.
You can either use a buy-and-hold strategy to lock in the entire theme or actively trade it to take advantage of the short-term price volatility of individual constituents. Macroaxis can help you discover thousands of investment opportunities in different asset classes. In addition, you can partner with us for reliable portfolio optimization as you plan to utilize Small Growth Funds Theme or any other thematic opportunities.
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When determining whether Northern Oil Gas is a strong investment it is important to analyze Northern Oil's competitive position within its industry, examining market share, product or service uniqueness, and competitive advantages. Beyond financials and market position, potential investors should also consider broader economic conditions, industry trends, and any regulatory or geopolitical factors that may impact Northern Oil's future performance. For an informed investment choice regarding Northern Stock, refer to the following important reports:
Check out Correlation Analysis.
You can also try the Instant Ratings module to determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance.

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To fully project Northern Oil's future profitability, investors should examine all historical financial statements. These statements provide investors with a comprehensive snapshot of the financial position of Northern Oil Gas at a specified time, usually calculated after every quarter, six months, or one year. Three primary documents fall into the category of financial statements. These documents include Northern Oil's income statement, its balance sheet, and the statement of cash flows.
Potential Northern Oil investors and stakeholders can use historical trends found within financial statements to determine how well the company is positioned for the future. Although Northern Oil investors may work on each financial statement separately, they are all related. The changes in Northern Oil's assets and liabilities, for example, are also reflected in the revenues and expenses that we see on Northern Oil's income statement, which results in the company's gains or losses. Cash flows can provide more information regarding cash listed on a balance sheet but not equivalent to net income shown on the income statement. Please read more on our technical analysis and fundamental analysis pages.