NORTHWESTERN ENERGY GROUP IN (NWE) Stock Fundamental Analysis
NASDAQ:NWE - Nasdaq - US6680743050 - Common Stock - Currency: USD
Taking everything into account, NWE scores 5 out of 10 in our fundamental rating. NWE was compared to 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 has a decent growth rate and is not valued too expensively. NWE also has an excellent dividend rating.
1. Profitability
1.1 Basic Checks
In the past year NWE was profitable.
NWE had a positive operating cash flow in the past year.
NWE had positive earnings in each of the past 5 years.
NWE had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
Looking at the Return On Assets, with a value of 2.91%, NWE is in the better half of the industry, outperforming 68.00% of the companies in the same industry.
With a Return On Equity value of 8.15%, NWE is not doing good in the industry: 64.00% of the companies in the same industry are doing better.
NWE has a Return On Invested Capital of 3.55%. This is amonst the worse of the industry: NWE underperforms 80.00% 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 3.93%.
The 3 year average ROIC (3.32%) for NWE is below the current ROIC(3.55%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.91% | ||
| ROE | 8.15% | ||
| ROIC | 3.55% |
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
Looking at the Profit Margin, with a value of 15.68%, NWE is in the better half of the industry, outperforming 80.00% of the companies in the same industry.
In the last couple of years the Profit Margin of NWE has declined.
NWE has a better Operating Margin (22.99%) than 76.00% of its industry peers.
In the last couple of years the Operating Margin of NWE has remained more or less at the same level.
Looking at the Gross Margin, with a value of 73.61%, NWE is in the better half of the industry, outperforming 80.00% of the companies in the same industry.
In the last couple of years the Gross Margin of NWE has remained more or less at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 22.99% | ||
| PM (TTM) | 15.68% | ||
| GM | 73.61% |
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.
Compared to 1 year ago, NWE has about the same amount of shares outstanding.
The number of shares outstanding for NWE has been increased compared to 5 years ago.
The debt/assets ratio for NWE is higher compared to a year ago.
2.2 Solvency
Based on the Altman-Z score of 0.87, we must say that NWE is in the distress zone and has some risk of bankruptcy.
Looking at the Altman-Z score, with a value of 0.87, NWE is in line with its industry, outperforming 52.00% of the companies in the same industry.
NWE has a Debt/Equity ratio of 1.08. This is a high value indicating a heavy dependency on external financing.
NWE's Debt to Equity ratio of 1.08 is amongst the best of the industry. NWE outperforms 96.00% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.08 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 0.87 |
ROIC/WACC0.56
WACC6.34%
2.3 Liquidity
A Current Ratio of 1.19 indicates that NWE should not have too much problems paying its short term obligations.
The Current ratio of NWE (1.19) is better than 92.00% of its industry peers.
A Quick Ratio of 0.89 indicates that NWE may have some problems paying its short term obligations.
The Quick ratio of NWE (0.89) is better than 84.00% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.19 | ||
| Quick Ratio | 0.89 |
3. Growth
3.1 Past
The Earnings Per Share has been growing slightly by 6.65% over the past year.
Measured over the past years, NWE shows a decrease in Earnings Per Share. The EPS has been decreasing by -0.12% on average per year.
The Revenue has been growing slightly by 4.31% 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)6.65%
EPS 3Y-2.34%
EPS 5Y-0.12%
EPS Q2Q%11.93%
Revenue 1Y (TTM)4.31%
Revenue growth 3Y3.33%
Revenue growth 5Y3.77%
Sales Q2Q%-1.83%
3.2 Future
NWE is expected to show a small growth in Earnings Per Share. In the coming years, the EPS will grow by 5.71% yearly.
NWE is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 3.83% yearly.
EPS Next Y6.17%
EPS Next 2Y6.51%
EPS Next 3Y5.85%
EPS Next 5Y5.71%
Revenue Next Year3.29%
Revenue Next 2Y4.01%
Revenue Next 3Y3.77%
Revenue Next 5Y3.83%
3.3 Evolution
The EPS growth rate is accelerating: in the next years the growth will be better than in the last years.
The Revenue growth rate is stable: in the next years the growth will be about the same than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
With a Price/Earnings ratio of 14.86, NWE is valued correctly.
Based on the Price/Earnings ratio, NWE is valued a bit cheaper than the industry average as 64.00% of the companies are valued more expensively.
NWE is valuated rather cheaply when we compare the Price/Earnings ratio to 27.45, which is the current average of the S&P500 Index.
A Price/Forward Earnings ratio of 13.60 indicates a correct valuation of NWE.
Based on the Price/Forward Earnings ratio, NWE is valued a bit cheaper than the industry average as 64.00% of the companies are valued more expensively.
When comparing the Price/Forward Earnings ratio of NWE to the average of the S&P500 Index (21.90), we can say NWE is valued slightly cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 14.86 | ||
| Fwd PE | 13.6 |
4.2 Price Multiples
NWE's Enterprise Value to EBITDA ratio is in line with the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 10.88 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
The decent profitability rating of NWE may justify a higher PE ratio.
PEG (NY)2.41
PEG (5Y)N/A
EPS Next 2Y6.51%
EPS Next 3Y5.85%
5. Dividend
5.1 Amount
NWE has a Yearly Dividend Yield of 5.03%, which is a nice return.
Compared to an average industry Dividend Yield of 4.00, NWE pays a better dividend. On top of this NWE pays more dividend than 84.00% of the companies listed in the same industry.
Compared to an average S&P500 Dividend Yield of 2.42, NWE pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 5.03% |
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
NWE pays out 67.50% of its income as dividend. This is not a sustainable payout ratio.
The dividend of NWE is growing, but earnings are growing more, so the dividend growth is sustainable.
DP67.5%
EPS Next 2Y6.51%
EPS Next 3Y5.85%
52.47
+0.52 (+1%)
Chartmill FA Rating
GICS SectorUtilities
GICS IndustryGroupUtilities
GICS IndustryMulti-Utilities
Earnings (Last)
Earnings (Next)
Inst Owners98.84%
Inst Owner Change-1.05%
Ins Owners0.59%
Ins Owner Change4.79%
Market Cap3.22B
Analysts75.38
Price Target62.48 (19.08%)
Short Float %2.6%
Short Ratio3.59
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 5.03% |
Yearly Dividend2.59
Dividend Growth(5Y)2.53%
DP67.5%
Div Incr Years19
Div Non Decr Years19
Ex-Date
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)0.69%
Min EPS beat(2)-1.24%
Max EPS beat(2)2.61%
EPS beat(4)2
Avg EPS beat(4)1.21%
Min EPS beat(4)-5.4%
Max EPS beat(4)8.87%
EPS beat(8)3
Avg EPS beat(8)-4.31%
EPS beat(12)4
Avg EPS beat(12)-6.11%
EPS beat(16)6
Avg EPS beat(16)-1.19%
Revenue beat(2)0
Avg Revenue beat(2)-5.28%
Min Revenue beat(2)-6.75%
Max Revenue beat(2)-3.82%
Revenue beat(4)1
Avg Revenue beat(4)-2.75%
Min Revenue beat(4)-6.75%
Max Revenue beat(4)2.04%
Revenue beat(8)1
Avg Revenue beat(8)-7.5%
Revenue beat(12)5
Avg Revenue beat(12)-1.75%
Revenue beat(16)8
Avg Revenue beat(16)0.53%
PT rev (1m)-0.64%
PT rev (3m)2.2%
EPS NQ rev (1m)-9.18%
EPS NQ rev (3m)-30.21%
EPS NY rev (1m)-0.14%
EPS NY rev (3m)-0.04%
Revenue NQ rev (1m)-0.99%
Revenue NQ rev (3m)-0.99%
Revenue NY rev (1m)-0.99%
Revenue NY rev (3m)0.19%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 14.86 | ||
| Fwd PE | 13.6 | ||
| P/S | 2.14 | ||
| P/FCF | N/A | ||
| P/OCF | 8.08 | ||
| P/B | 1.11 | ||
| P/tB | 1.27 | ||
| EV/EBITDA | 10.88 |
EPS(TTM)3.53
EY6.73%
EPS(NY)3.86
Fwd EY7.35%
FCF(TTM)-2.19
FCFYN/A
OCF(TTM)6.49
OCFY12.37%
SpS24.52
BVpS47.19
TBVpS41.36
PEG (NY)2.41
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.91% | ||
| ROE | 8.15% | ||
| ROCE | 4.49% | ||
| ROIC | 3.55% | ||
| ROICexc | 3.57% | ||
| ROICexgc | 3.75% | ||
| OM | 22.99% | ||
| PM (TTM) | 15.68% | ||
| GM | 73.61% | ||
| 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 | 1.08 | ||
| Debt/FCF | N/A | ||
| Debt/EBITDA | 5.41 | ||
| Cap/Depr | 228.3% | ||
| Cap/Sales | 35.39% | ||
| Interest Coverage | 2.42 | ||
| Cash Conversion | 68.79% | ||
| Profit Quality | N/A | ||
| Current Ratio | 1.19 | ||
| Quick Ratio | 0.89 | ||
| Altman-Z | 0.87 |
F-Score6
WACC6.34%
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)6.65%
EPS 3Y-2.34%
EPS 5Y-0.12%
EPS Q2Q%11.93%
EPS Next Y6.17%
EPS Next 2Y6.51%
EPS Next 3Y5.85%
EPS Next 5Y5.71%
Revenue 1Y (TTM)4.31%
Revenue growth 3Y3.33%
Revenue growth 5Y3.77%
Sales Q2Q%-1.83%
Revenue Next Year3.29%
Revenue Next 2Y4.01%
Revenue Next 3Y3.77%
Revenue Next 5Y3.83%
EBIT growth 1Y12.9%
EBIT growth 3Y5.45%
EBIT growth 5Y3.15%
EBIT Next Year77.99%
EBIT Next 3Y25.19%
EBIT Next 5Y18.66%
FCF growth 1Y36.42%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y22.53%
OCF growth 3Y22.73%
OCF growth 5Y6.51%