NORTHWEST NATURAL HOLDING CO (NWN) Stock Fundamental Analysis
NYSE:NWN - New York Stock Exchange, Inc. - US66765N1054 - Common Stock - Currency: USD
We assign a fundamental rating of 3 out of 10 to NWN. NWN was compared to 14 industry peers in the Gas Utilities industry. NWN has a bad profitability rating. Also its financial health evaluation is rather negative. NWN has a correct valuation and a medium growth rate. NWN also has an excellent dividend rating.
1. Profitability
1.1 Basic Checks
In the past year NWN was profitable.
In the past year NWN had a positive cash flow from operations.
In the past 5 years NWN has always been profitable.
NWN 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 1.51%, NWN is doing worse than 78.57% of the companies in the same industry.
With a Return On Equity value of 5.69%, NWN is not doing good in the industry: 71.43% of the companies in the same industry are doing better.
Looking at the Return On Invested Capital, with a value of 2.94%, NWN is doing worse than 92.86% of the companies in the same industry.
Measured over the past 3 years, the Average Return On Invested Capital for NWN is below the industry average of 7.78%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 1.51% | ||
| ROE | 5.69% | ||
| ROIC | 2.94% |
ROA(3y)1.75%
ROA(5y)1.85%
ROE(3y)6.78%
ROE(5y)7.48%
ROIC(3y)3.03%
ROIC(5y)3.09%
1.3 Margins
With a Profit Margin value of 6.84%, NWN perfoms like the industry average, outperforming 42.86% of the companies in the same industry.
In the last couple of years the Profit Margin of NWN has declined.
With a Operating Margin value of 16.58%, NWN perfoms like the industry average, outperforming 42.86% of the companies in the same industry.
In the last couple of years the Operating Margin of NWN has remained more or less at the same level.
The Gross Margin of NWN (60.04%) is comparable to the rest of the industry.
In the last couple of years the Gross Margin of NWN has remained more or less at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 16.58% | ||
| PM (TTM) | 6.84% | ||
| GM | 60.04% |
OM growth 3Y-4.37%
OM growth 5Y-0.3%
PM growth 3Y-9.23%
PM growth 5Y-3.72%
GM growth 3Y-1.06%
GM growth 5Y0.22%
2. Health
2.1 Basic Checks
With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), NWN is destroying value.
NWN has more shares outstanding than it did 1 year ago.
The number of shares outstanding for NWN has been increased compared to 5 years ago.
Compared to 1 year ago, NWN has a worse debt to assets ratio.
2.2 Solvency
NWN has an Altman-Z score of 0.69. This is a bad value and indicates that NWN is not financially healthy and even has some risk of bankruptcy.
NWN's Altman-Z score of 0.69 is on the low side compared to the rest of the industry. NWN is outperformed by 71.43% of its industry peers.
A Debt/Equity ratio of 1.33 is on the high side and indicates that NWN has dependencies on debt financing.
The Debt to Equity ratio of NWN (1.33) is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.33 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 0.69 |
ROIC/WACC0.5
WACC5.87%
2.3 Liquidity
A Current Ratio of 0.86 indicates that NWN may have some problems paying its short term obligations.
NWN has a Current ratio of 0.86. This is in the better half of the industry: NWN outperforms 71.43% of its industry peers.
A Quick Ratio of 0.69 indicates that NWN may have some problems paying its short term obligations.
With a decent Quick ratio value of 0.69, NWN is doing good in the industry, outperforming 71.43% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.86 | ||
| Quick Ratio | 0.69 |
3. Growth
3.1 Past
NWN shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -10.77%.
NWN shows a decrease in Earnings Per Share. Measured over the last years, the EPS has been decreasing by -0.09% yearly.
The Revenue has decreased by -3.71% in the past year.
Measured over the past years, NWN shows a quite strong growth in Revenue. The Revenue has been growing by 9.09% on average per year.
EPS 1Y (TTM)-10.77%
EPS 3Y-3.23%
EPS 5Y-0.09%
EPS Q2Q%16.53%
Revenue 1Y (TTM)-3.71%
Revenue growth 3Y10.25%
Revenue growth 5Y9.09%
Sales Q2Q%4.26%
3.2 Future
Based on estimates for the next years, NWN will show a quite strong growth in Earnings Per Share. The EPS will grow by 8.63% on average per year.
The Revenue is expected to grow by 4.61% on average over the next years.
EPS Next Y25.52%
EPS Next 2Y15.1%
EPS Next 3Y11.31%
EPS Next 5Y8.63%
Revenue Next Year9.52%
Revenue Next 2Y7.41%
Revenue Next 3Y8.21%
Revenue Next 5Y4.61%
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 decreasing: in the next years the growth will be less than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
A Price/Earnings ratio of 18.07 indicates a rather expensive valuation of NWN.
NWN's Price/Earnings is on the same level as the industry average.
NWN is valuated rather cheaply when we compare the Price/Earnings ratio to 29.35, which is the current average of the S&P500 Index.
Based on the Price/Forward Earnings ratio of 14.40, the valuation of NWN can be described as correct.
Based on the Price/Forward Earnings ratio, NWN is valued a bit cheaper than the industry average as 78.57% of the companies are valued more expensively.
NWN's Price/Forward Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 22.10.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 18.07 | ||
| Fwd PE | 14.4 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, NWN is valued a bit cheaper than 64.29% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 9.62 |
4.3 Compensation for Growth
The low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
PEG (NY)0.71
PEG (5Y)N/A
EPS Next 2Y15.1%
EPS Next 3Y11.31%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 4.73%, NWN is a good candidate for dividend investing.
Compared to an average industry Dividend Yield of 3.93, NWN pays a better dividend. On top of this NWN pays more dividend than 85.71% of the companies listed in the same industry.
NWN's Dividend Yield is rather good when compared to the S&P500 average which is at 2.33.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.73% |
5.2 History
The dividend of NWN has a limited annual growth rate of 0.84%.
NWN has paid a dividend for at least 10 years, which is a reliable track record.
NWN has not decreased its dividend for at least 10 years, so it has a reliable track record of non decreasing dividend.
Dividend Growth(5Y)0.84%
Div Incr Years24
Div Non Decr Years24
5.3 Sustainability
NWN pays out 92.37% of its income as dividend. This is not a sustainable payout ratio.
The dividend of NWN is growing, but earnings are growing more, so the dividend growth is sustainable.
DP92.37%
EPS Next 2Y15.1%
EPS Next 3Y11.31%
41.93
+0.51 (+1.23%)
Chartmill FA Rating
GICS SectorUtilities
GICS IndustryGroupUtilities
GICS IndustryGas Utilities
Earnings (Last)
Earnings (Next)
Inst Owners81.74%
Inst Owner Change0.41%
Ins Owners0.84%
Ins Owner Change-0.61%
Market Cap1.69B
Analysts80
Price Target47.53 (13.36%)
Short Float %1.94%
Short Ratio3.5
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.73% |
Yearly Dividend1.87
Dividend Growth(5Y)0.84%
DP92.37%
Div Incr Years24
Div Non Decr Years24
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)6.09%
Min EPS beat(2)1.65%
Max EPS beat(2)10.53%
EPS beat(4)3
Avg EPS beat(4)12.6%
Min EPS beat(4)-7.76%
Max EPS beat(4)45.99%
EPS beat(8)6
Avg EPS beat(8)39.33%
EPS beat(12)9
Avg EPS beat(12)46.31%
EPS beat(16)13
Avg EPS beat(16)41.17%
Revenue beat(2)1
Avg Revenue beat(2)-2.35%
Min Revenue beat(2)-7.05%
Max Revenue beat(2)2.35%
Revenue beat(4)1
Avg Revenue beat(4)-4.91%
Min Revenue beat(4)-9.64%
Max Revenue beat(4)2.35%
Revenue beat(8)4
Avg Revenue beat(8)2.76%
Revenue beat(12)8
Avg Revenue beat(12)7.04%
Revenue beat(16)10
Avg Revenue beat(16)5.84%
PT rev (1m)0%
PT rev (3m)2.79%
EPS NQ rev (1m)0%
EPS NQ rev (3m)2.95%
EPS NY rev (1m)0%
EPS NY rev (3m)2.76%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)0.43%
Revenue NY rev (1m)1.08%
Revenue NY rev (3m)1.71%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 18.07 | ||
| Fwd PE | 14.4 | ||
| P/S | 1.46 | ||
| P/FCF | N/A | ||
| P/OCF | 8.42 | ||
| P/B | 1.22 | ||
| P/tB | 1.4 | ||
| EV/EBITDA | 9.62 |
EPS(TTM)2.32
EY5.53%
EPS(NY)2.91
Fwd EY6.95%
FCF(TTM)-4.83
FCFYN/A
OCF(TTM)4.98
OCFY11.88%
SpS28.67
BVpS34.44
TBVpS29.87
PEG (NY)0.71
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 1.51% | ||
| ROE | 5.69% | ||
| ROCE | 4.17% | ||
| ROIC | 2.94% | ||
| ROICexc | 2.96% | ||
| ROICexgc | 3.08% | ||
| OM | 16.58% | ||
| PM (TTM) | 6.84% | ||
| GM | 60.04% | ||
| FCFM | N/A |
ROA(3y)1.75%
ROA(5y)1.85%
ROE(3y)6.78%
ROE(5y)7.48%
ROIC(3y)3.03%
ROIC(5y)3.09%
ROICexc(3y)3.05%
ROICexc(5y)3.11%
ROICexgc(3y)3.17%
ROICexgc(5y)3.21%
ROCE(3y)4.32%
ROCE(5y)4.52%
ROICexcg growth 3Y-2%
ROICexcg growth 5Y0.38%
ROICexc growth 3Y-2.67%
ROICexc growth 5Y-0.09%
OM growth 3Y-4.37%
OM growth 5Y-0.3%
PM growth 3Y-9.23%
PM growth 5Y-3.72%
GM growth 3Y-1.06%
GM growth 5Y0.22%
F-Score4
Asset Turnover0.22
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.33 | ||
| Debt/FCF | N/A | ||
| Debt/EBITDA | 5.3 | ||
| Cap/Depr | 249.53% | ||
| Cap/Sales | 34.21% | ||
| Interest Coverage | 2.68 | ||
| Cash Conversion | 57.35% | ||
| Profit Quality | N/A | ||
| Current Ratio | 0.86 | ||
| Quick Ratio | 0.69 | ||
| Altman-Z | 0.69 |
F-Score4
WACC5.87%
ROIC/WACC0.5
Cap/Depr(3y)266.77%
Cap/Depr(5y)264.49%
Cap/Sales(3y)31.39%
Cap/Sales(5y)32.73%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)-10.77%
EPS 3Y-3.23%
EPS 5Y-0.09%
EPS Q2Q%16.53%
EPS Next Y25.52%
EPS Next 2Y15.1%
EPS Next 3Y11.31%
EPS Next 5Y8.63%
Revenue 1Y (TTM)-3.71%
Revenue growth 3Y10.25%
Revenue growth 5Y9.09%
Sales Q2Q%4.26%
Revenue Next Year9.52%
Revenue Next 2Y7.41%
Revenue Next 3Y8.21%
Revenue Next 5Y4.61%
EBIT growth 1Y3.35%
EBIT growth 3Y5.43%
EBIT growth 5Y8.76%
EBIT Next Year110.44%
EBIT Next 3Y31.13%
EBIT Next 5Y22.79%
FCF growth 1Y-309.55%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y-28.46%
OCF growth 3Y7.69%
OCF growth 5Y1.57%