NORTHWESTERN ENERGY GROUP IN (NWE) Stock Fundamental Analysis
USA - NASDAQ:NWE - US6680743050 - Common Stock
57.14 USD
+0.04 (+0.07%)
57.14 USD
0 (0%)
NWE gets a fundamental rating of 4 out of 10. The analysis compared the fundamentals against 25 industry peers in the Multi-Utilities industry. NWE has a medium profitability rating, but doesn't score so well on its financial health evaluation. NWE does not seem to be growing, but still is valued expensively. Finally NWE also has an excellent dividend rating.
1. Profitability
1.1 Basic Checks
NWE had positive earnings in the past year.
In the past year NWE had a positive cash flow from operations.
NWE had positive earnings in each of the past 5 years.
Each year in the past 5 years NWE had a positive operating cash flow.
1.2 Ratios
With a decent Return On Assets value of 2.77%, NWE is doing good in the industry, outperforming 72.00% of the companies in the same industry.
NWE's Return On Equity of 7.83% is on the low side compared to the rest of the industry. NWE is outperformed by 72.00% of its industry peers.
NWE's Return On Invested Capital of 3.54% is on the low side compared to the rest of the industry. NWE is outperformed by 72.00% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for NWE is in line with the industry average of 3.82%.
The last Return On Invested Capital (3.54%) for NWE is above the 3 year average (3.32%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.77% | ||
| ROE | 7.83% | ||
| ROIC | 3.54% |
ROA(3y)2.62%
ROA(5y)2.61%
ROE(3y)7.23%
ROE(5y)7.43%
ROIC(3y)3.32%
ROIC(5y)3.29%
1.3 Margins
NWE has a better Profit Margin (14.76%) than 80.00% of its industry peers.
NWE's Profit Margin has declined in the last couple of years.
NWE has a Operating Margin of 22.59%. This is in the better half of the industry: NWE outperforms 64.00% of its industry peers.
In the last couple of years the Operating Margin of NWE has remained more or less at the same level.
NWE has a Gross Margin of 74.08%. This is in the better half of the industry: NWE outperforms 80.00% of its industry peers.
NWE's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 22.59% | ||
| PM (TTM) | 14.76% | ||
| GM | 74.08% |
OM growth 3Y2.06%
OM growth 5Y-0.6%
PM growth 3Y2.84%
PM growth 5Y-1.62%
GM growth 3Y1.12%
GM growth 5Y-0.92%
2. Health
2.1 Basic Checks
With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), NWE is destroying value.
NWE has about the same amout of shares outstanding than it did 1 year ago.
Compared to 5 years ago, NWE has more shares outstanding
The debt/assets ratio for NWE is higher compared to a year ago.
2.2 Solvency
Based on the Altman-Z score of 0.86, we must say that NWE is in the distress zone and has some risk of bankruptcy.
NWE has a Altman-Z score (0.86) which is in line with its industry peers.
A Debt/Equity ratio of 1.09 is on the high side and indicates that NWE has dependencies on debt financing.
The Debt to Equity ratio of NWE (1.09) is better than 100.00% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.09 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 0.86 |
ROIC/WACC0.56
WACC6.27%
2.3 Liquidity
NWE has a Current Ratio of 0.75. This is a bad value and indicates that NWE is not financially healthy enough and could expect problems in meeting its short term obligations.
The Current ratio of NWE (0.75) is worse than 72.00% of its industry peers.
A Quick Ratio of 0.52 indicates that NWE may have some problems paying its short term obligations.
NWE's Quick ratio of 0.52 is on the low side compared to the rest of the industry. NWE is outperformed by 76.00% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.75 | ||
| Quick Ratio | 0.52 |
3. Growth
3.1 Past
NWE shows a slight negative growth in Earnings Per Share. In the last year, the EPS has decreased by -2.58%.
The Earnings Per Share has been decreasing by -0.12% on average over the past years.
The Revenue has been growing slightly by 3.78% in the past year.
NWE shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 3.77% yearly.
EPS 1Y (TTM)-2.58%
EPS 3Y-2.34%
EPS 5Y-0.12%
EPS Q2Q%-24.53%
Revenue 1Y (TTM)3.78%
Revenue growth 3Y3.33%
Revenue growth 5Y3.77%
Sales Q2Q%7.13%
3.2 Future
Based on estimates for the next years, NWE will show a small growth in Earnings Per Share. The EPS will grow by 5.45% on average per year.
NWE is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 4.22% yearly.
EPS Next Y6.45%
EPS Next 2Y6.75%
EPS Next 3Y5.7%
EPS Next 5Y5.45%
Revenue Next Year3.54%
Revenue Next 2Y4.13%
Revenue Next 3Y3.63%
Revenue Next 5Y4.22%
3.3 Evolution
The EPS growth rate is accelerating: in the next years the growth will be better than in the last years.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is stable.
4. Valuation
4.1 Price/Earnings Ratio
A Price/Earnings ratio of 16.81 indicates a correct valuation of NWE.
NWE's Price/Earnings ratio is in line with the industry average.
Compared to an average S&P500 Price/Earnings ratio of 27.30, NWE is valued a bit cheaper.
With a Price/Forward Earnings ratio of 14.75, NWE is valued correctly.
NWE's Price/Forward Earnings is on the same level as the industry average.
Compared to an average S&P500 Price/Forward Earnings ratio of 22.73, NWE is valued a bit cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 16.81 | ||
| Fwd PE | 14.75 |
4.2 Price Multiples
The rest of the industry has a similar Enterprise Value to EBITDA ratio as NWE.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 11.3 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
NWE has a very decent profitability rating, which may justify a higher PE ratio.
PEG (NY)2.61
PEG (5Y)N/A
EPS Next 2Y6.75%
EPS Next 3Y5.7%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 4.57%, NWE is a good candidate for dividend investing.
NWE's Dividend Yield is a higher than the industry average which is at 4.16.
NWE's Dividend Yield is rather good when compared to the S&P500 average which is at 2.45.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.57% |
5.2 History
The dividend of NWE has a limited annual growth rate of 2.53%.
NWE has been paying a dividend for at least 10 years, so it has a reliable track record.
NWE has not decreased its dividend for at least 10 years, so it has a reliable track record of non decreasing dividend.
Dividend Growth(5Y)2.53%
Div Incr Years19
Div Non Decr Years19
5.3 Sustainability
70.93% of the earnings are spent on dividend by NWE. This is not a sustainable payout ratio.
The dividend of NWE is growing, but earnings are growing more, so the dividend growth is sustainable.
DP70.93%
EPS Next 2Y6.75%
EPS Next 3Y5.7%
57.14
+0.04 (+0.07%)
Chartmill FA Rating
GICS SectorUtilities
GICS IndustryGroupUtilities
GICS IndustryMulti-Utilities
Earnings (Last)
Earnings (Next)
Inst Owners99.2%
Inst Owner Change1.76%
Ins Owners0.6%
Ins Owner Change0.69%
Market Cap3.51B
Analysts74
Price Target61.4 (7.46%)
Short Float %2.2%
Short Ratio2.72
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.57% |
Yearly Dividend2.59
Dividend Growth(5Y)2.53%
DP70.93%
Div Incr Years19
Div Non Decr Years19
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)5.76%
Min EPS beat(2)2.61%
Max EPS beat(2)8.9%
EPS beat(4)2
Avg EPS beat(4)1.22%
Min EPS beat(4)-5.4%
Max EPS beat(4)8.9%
EPS beat(8)4
Avg EPS beat(8)0.93%
EPS beat(12)4
Avg EPS beat(12)-5.45%
EPS beat(16)6
Avg EPS beat(16)-4.14%
Revenue beat(2)1
Avg Revenue beat(2)-2.98%
Min Revenue beat(2)-6.75%
Max Revenue beat(2)0.78%
Revenue beat(4)1
Avg Revenue beat(4)-3.06%
Min Revenue beat(4)-6.75%
Max Revenue beat(4)0.78%
Revenue beat(8)2
Avg Revenue beat(8)-5.25%
Revenue beat(12)5
Avg Revenue beat(12)-2.85%
Revenue beat(16)8
Avg Revenue beat(16)-0.03%
PT rev (1m)-0.61%
PT rev (3m)-2.01%
EPS NQ rev (1m)1.67%
EPS NQ rev (3m)6.33%
EPS NY rev (1m)0.69%
EPS NY rev (3m)0.12%
Revenue NQ rev (1m)-0.09%
Revenue NQ rev (3m)1.82%
Revenue NY rev (1m)0.12%
Revenue NY rev (3m)0.31%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 16.81 | ||
| Fwd PE | 14.75 | ||
| P/S | 2.3 | ||
| P/FCF | N/A | ||
| P/OCF | 8.9 | ||
| P/B | 1.22 | ||
| P/tB | 1.39 | ||
| EV/EBITDA | 11.3 |
EPS(TTM)3.4
EY5.95%
EPS(NY)3.87
Fwd EY6.78%
FCF(TTM)-2.09
FCFYN/A
OCF(TTM)6.42
OCFY11.24%
SpS24.89
BVpS46.9
TBVpS41.08
PEG (NY)2.61
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.77% | ||
| ROE | 7.83% | ||
| ROCE | 4.54% | ||
| ROIC | 3.54% | ||
| ROICexc | 3.54% | ||
| ROICexgc | 3.72% | ||
| OM | 22.59% | ||
| PM (TTM) | 14.76% | ||
| GM | 74.08% | ||
| FCFM | N/A |
ROA(3y)2.62%
ROA(5y)2.61%
ROE(3y)7.23%
ROE(5y)7.43%
ROIC(3y)3.32%
ROIC(5y)3.29%
ROICexc(3y)3.32%
ROICexc(5y)3.3%
ROICexgc(3y)3.5%
ROICexgc(5y)3.48%
ROCE(3y)4.22%
ROCE(5y)4.19%
ROICexcg growth 3Y0.72%
ROICexcg growth 5Y-1.93%
ROICexc growth 3Y0.96%
ROICexc growth 5Y-1.66%
OM growth 3Y2.06%
OM growth 5Y-0.6%
PM growth 3Y2.84%
PM growth 5Y-1.62%
GM growth 3Y1.12%
GM growth 5Y-0.92%
F-Score6
Asset Turnover0.19
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.09 | ||
| Debt/FCF | N/A | ||
| Debt/EBITDA | 5.36 | ||
| Cap/Depr | 219.01% | ||
| Cap/Sales | 34.22% | ||
| Interest Coverage | 2.55 | ||
| Cash Conversion | 67.55% | ||
| Profit Quality | N/A | ||
| Current Ratio | 0.75 | ||
| Quick Ratio | 0.52 | ||
| Altman-Z | 0.86 |
F-Score6
WACC6.27%
ROIC/WACC0.56
Cap/Depr(3y)258.26%
Cap/Depr(5y)246.47%
Cap/Sales(3y)37%
Cap/Sales(5y)35.3%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)-2.58%
EPS 3Y-2.34%
EPS 5Y-0.12%
EPS Q2Q%-24.53%
EPS Next Y6.45%
EPS Next 2Y6.75%
EPS Next 3Y5.7%
EPS Next 5Y5.45%
Revenue 1Y (TTM)3.78%
Revenue growth 3Y3.33%
Revenue growth 5Y3.77%
Sales Q2Q%7.13%
Revenue Next Year3.54%
Revenue Next 2Y4.13%
Revenue Next 3Y3.63%
Revenue Next 5Y4.22%
EBIT growth 1Y7.04%
EBIT growth 3Y5.45%
EBIT growth 5Y3.15%
EBIT Next Year79.66%
EBIT Next 3Y26.2%
EBIT Next 5Y18.66%
FCF growth 1Y26.89%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y7.06%
OCF growth 3Y22.73%
OCF growth 5Y6.51%