NORTHWEST NATURAL HOLDING CO (NWN) Stock Fundamental Analysis
NYSE:NWN - New York Stock Exchange, Inc. - US66765N1054 - Common Stock - Currency: USD
NWN gets a fundamental rating of 4 out of 10. The analysis compared the fundamentals against 14 industry peers in the Gas Utilities industry. NWN has a medium profitability rating, but doesn't score so well on its financial health evaluation. NWN is not valued too expensively and it also shows a decent growth rate. NWN also has an excellent dividend rating.
1. Profitability
1.1 Basic Checks
NWN had positive earnings in the past year.
NWN had a positive operating cash flow in the past year.
In the past 5 years NWN has always been profitable.
Each year in the past 5 years NWN had a positive operating cash flow.
1.2 Ratios
The Return On Assets of NWN (1.80%) is worse than 78.57% of its industry peers.
NWN has a worse Return On Equity (7.07%) than 64.29% of its industry peers.
Looking at the Return On Invested Capital, with a value of 3.26%, NWN is doing worse than 92.86% of the companies in the same industry.
The Average Return On Invested Capital over the past 3 years for NWN is below the industry average of 6.29%.
The 3 year average ROIC (3.03%) for NWN is below the current ROIC(3.26%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 1.8% | ||
| ROE | 7.07% | ||
| ROIC | 3.26% |
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
NWN has a Profit Margin (8.48%) which is in line with its industry peers.
NWN's Profit Margin has declined in the last couple of years.
Looking at the Operating Margin, with a value of 19.42%, NWN is in line with its industry, outperforming 50.00% 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.
NWN has a Gross Margin (62.17%) which is in line with its industry peers.
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 | 19.42% | ||
| PM (TTM) | 8.48% | ||
| GM | 62.17% |
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.
Compared to 5 years ago, NWN has more shares outstanding
The debt/assets ratio for NWN is higher compared to a year ago.
2.2 Solvency
Based on the Altman-Z score of 0.70, we must say that NWN is in the distress zone and has some risk of bankruptcy.
NWN has a worse Altman-Z score (0.70) than 71.43% of its industry peers.
A Debt/Equity ratio of 1.56 is on the high side and indicates that NWN has dependencies on debt financing.
The Debt to Equity ratio of NWN (1.56) is worse than 78.57% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.56 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 0.7 |
ROIC/WACC0.56
WACC5.88%
2.3 Liquidity
NWN has a Current Ratio of 1.05. This is a normal value and indicates that NWN is financially healthy and should not expect problems in meeting its short term obligations.
Looking at the Current ratio, with a value of 1.05, NWN is in the better half of the industry, outperforming 78.57% of the companies in the same industry.
A Quick Ratio of 0.87 indicates that NWN may have some problems paying its short term obligations.
With an excellent Quick ratio value of 0.87, NWN belongs to the best of the industry, outperforming 85.71% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.05 | ||
| Quick Ratio | 0.87 |
3. Growth
3.1 Past
NWN shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 23.25%, which is quite impressive.
Measured over the past years, NWN shows a decrease in Earnings Per Share. The EPS has been decreasing by -0.09% on average per year.
Looking at the last year, NWN shows a small growth in Revenue. The Revenue has grown by 3.88% in the last 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)23.25%
EPS 3Y-3.23%
EPS 5Y-0.09%
EPS Q2Q%28.99%
Revenue 1Y (TTM)3.88%
Revenue growth 3Y10.25%
Revenue growth 5Y9.09%
Sales Q2Q%14.03%
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 8.16% on average per year.
Based on estimates for the next years, NWN will show a small growth in Revenue. The Revenue will grow by 5.10% on average per year.
EPS Next Y23.06%
EPS Next 2Y14.78%
EPS Next 3Y11.84%
EPS Next 5Y8.16%
Revenue Next Year12.52%
Revenue Next 2Y9.6%
Revenue Next 3Y10.19%
Revenue Next 5Y5.1%
3.3 Evolution
When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.
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
With a Price/Earnings ratio of 14.60, NWN is valued correctly.
The rest of the industry has a similar Price/Earnings ratio as NWN.
The average S&P500 Price/Earnings ratio is at 27.30. NWN is valued slightly cheaper when compared to this.
Based on the Price/Forward Earnings ratio of 13.42, the valuation of NWN can be described as correct.
71.43% of the companies in the same industry are more expensive than NWN, based on the Price/Forward Earnings ratio.
NWN is valuated rather cheaply when we compare the Price/Forward Earnings ratio to 21.76, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 14.6 | ||
| Fwd PE | 13.42 |
4.2 Price Multiples
NWN's Enterprise Value to EBITDA is on the same level as the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 9.3 |
4.3 Compensation for Growth
NWN's low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
PEG (NY)0.63
PEG (5Y)N/A
EPS Next 2Y14.78%
EPS Next 3Y11.84%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 4.75%, NWN is a good candidate for dividend investing.
Compared to an average industry Dividend Yield of 3.98, NWN pays a better dividend. On top of this NWN pays more dividend than 85.71% of the companies listed in the same industry.
Compared to an average S&P500 Dividend Yield of 2.37, NWN pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.75% |
5.2 History
The dividend of NWN has a limited annual growth rate of 0.84%.
NWN has been paying a dividend for at least 10 years, so it has 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 72.07% of its income as dividend. This is not a sustainable payout ratio.
NWN's earnings are growing more than its dividend. This makes the dividend growth sustainable.
DP72.07%
EPS Next 2Y14.78%
EPS Next 3Y11.84%
41.03
-0.09 (-0.22%)
Chartmill FA Rating
GICS SectorUtilities
GICS IndustryGroupUtilities
GICS IndustryGas Utilities
Earnings (Last)
Earnings (Next)
Inst Owners82.69%
Inst Owner Change0%
Ins Owners0.75%
Ins Owner Change-7.46%
Market Cap1.65B
Analysts82.22
Price Target49.78 (21.33%)
Short Float %2.13%
Short Ratio2.46
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.75% |
Yearly Dividend1.87
Dividend Growth(5Y)0.84%
DP72.07%
Div Incr Years24
Div Non Decr Years24
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)6%
Min EPS beat(2)1.65%
Max EPS beat(2)10.35%
EPS beat(4)4
Avg EPS beat(4)17.13%
Min EPS beat(4)1.65%
Max EPS beat(4)45.99%
EPS beat(8)6
Avg EPS beat(8)40.01%
EPS beat(12)10
Avg EPS beat(12)47.73%
EPS beat(16)13
Avg EPS beat(16)41.49%
Revenue beat(2)1
Avg Revenue beat(2)-2.12%
Min Revenue beat(2)-7.05%
Max Revenue beat(2)2.82%
Revenue beat(4)2
Avg Revenue beat(4)-2.88%
Min Revenue beat(4)-9.64%
Max Revenue beat(4)2.82%
Revenue beat(8)4
Avg Revenue beat(8)-0.14%
Revenue beat(12)8
Avg Revenue beat(12)6.68%
Revenue beat(16)11
Avg Revenue beat(16)6.12%
PT rev (1m)4.27%
PT rev (3m)4.27%
EPS NQ rev (1m)-11.29%
EPS NQ rev (3m)-64.29%
EPS NY rev (1m)0%
EPS NY rev (3m)-0.93%
Revenue NQ rev (1m)-2.49%
Revenue NQ rev (3m)7.78%
Revenue NY rev (1m)-0.3%
Revenue NY rev (3m)2.12%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 14.6 | ||
| Fwd PE | 13.42 | ||
| P/S | 1.36 | ||
| P/FCF | N/A | ||
| P/OCF | 6.49 | ||
| P/B | 1.14 | ||
| P/tB | 1.5 | ||
| EV/EBITDA | 9.3 |
EPS(TTM)2.81
EY6.85%
EPS(NY)3.06
Fwd EY7.45%
FCF(TTM)-3.96
FCFYN/A
OCF(TTM)6.32
OCFY15.41%
SpS30.11
BVpS36.13
TBVpS27.33
PEG (NY)0.63
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 1.8% | ||
| ROE | 7.07% | ||
| ROCE | 4.54% | ||
| ROIC | 3.26% | ||
| ROICexc | 3.33% | ||
| ROICexgc | 3.57% | ||
| OM | 19.42% | ||
| PM (TTM) | 8.48% | ||
| GM | 62.17% | ||
| 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-Score5
Asset Turnover0.21
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.56 | ||
| Debt/FCF | N/A | ||
| Debt/EBITDA | 5.59 | ||
| Cap/Depr | 242.26% | ||
| Cap/Sales | 34.14% | ||
| Interest Coverage | 2.83 | ||
| Cash Conversion | 62.66% | ||
| Profit Quality | N/A | ||
| Current Ratio | 1.05 | ||
| Quick Ratio | 0.87 | ||
| Altman-Z | 0.7 |
F-Score5
WACC5.88%
ROIC/WACC0.56
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)23.25%
EPS 3Y-3.23%
EPS 5Y-0.09%
EPS Q2Q%28.99%
EPS Next Y23.06%
EPS Next 2Y14.78%
EPS Next 3Y11.84%
EPS Next 5Y8.16%
Revenue 1Y (TTM)3.88%
Revenue growth 3Y10.25%
Revenue growth 5Y9.09%
Sales Q2Q%14.03%
Revenue Next Year12.52%
Revenue Next 2Y9.6%
Revenue Next 3Y10.19%
Revenue Next 5Y5.1%
EBIT growth 1Y30.02%
EBIT growth 3Y5.43%
EBIT growth 5Y8.76%
EBIT Next Year118.83%
EBIT Next 3Y37.68%
EBIT Next 5Y24.24%
FCF growth 1Y-1.05%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y38.89%
OCF growth 3Y7.69%
OCF growth 5Y1.57%