NORTHWEST NATURAL HOLDING CO (NWN) Stock Fundamental Analysis
USA - NYSE:NWN - US66765N1054 - Common Stock
48.13 USD
+0.36 (+0.75%)
47.75 USD
-0.38 (-0.79%)
We assign a fundamental rating of 3 out of 10 to NWN. NWN was compared to 14 industry peers in the Gas Utilities industry. While NWN is still in line with the averages on profitability rating, there are concerns on its financial health. 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.
In the past year NWN had a positive cash flow from operations.
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 (1.72%) is worse than 85.71% of its industry peers.
NWN's Return On Equity of 7.01% is on the low side compared to the rest of the industry. NWN is outperformed by 85.71% of its industry peers.
NWN has a worse Return On Invested Capital (3.50%) than 92.86% of its industry peers.
The Average Return On Invested Capital over the past 3 years for NWN is significantly below the industry average of 8.93%.
The 3 year average ROIC (3.03%) for NWN is below the current ROIC(3.50%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 1.72% | ||
| ROE | 7.01% | ||
| ROIC | 3.5% |
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
Looking at the Profit Margin, with a value of 7.94%, NWN is doing worse than 64.29% 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 20.07%, NWN perfoms like the industry average, 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.
The Gross Margin of NWN (64.40%) 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 | 20.07% | ||
| PM (TTM) | 7.94% | ||
| GM | 64.4% |
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
NWN has a Return on Invested Capital (ROIC), which is below the Cost of Capital (WACC), which means it is destroying value.
NWN has more shares outstanding than it did 1 year ago.
NWN has more shares outstanding than it did 5 years ago.
NWN has a worse debt/assets ratio than last year.
2.2 Solvency
NWN has an Altman-Z score of 0.66. This is a bad value and indicates that NWN is not financially healthy and even has some risk of bankruptcy.
Looking at the Altman-Z score, with a value of 0.66, NWN is doing worse than 71.43% of the companies in the same industry.
A Debt/Equity ratio of 1.62 is on the high side and indicates that NWN has dependencies on debt financing.
The Debt to Equity ratio of NWN (1.62) is worse than 78.57% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.62 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 0.66 |
ROIC/WACC0.58
WACC6.01%
2.3 Liquidity
A Current Ratio of 0.59 indicates that NWN may have some problems paying its short term obligations.
NWN has a Current ratio (0.59) which is comparable to the rest of the industry.
NWN has a Quick Ratio of 0.59. This is a bad value and indicates that NWN is not financially healthy enough and could expect problems in meeting its short term obligations.
NWN has a Quick ratio of 0.43. This is comparable to the rest of the industry: NWN outperforms 42.86% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.59 | ||
| Quick Ratio | 0.43 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an impressive 35.38% over the past year.
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 quite strong growth in Revenue. The Revenue has grown by 11.27% in the last year.
NWN shows quite a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 9.09% yearly.
EPS 1Y (TTM)35.38%
EPS 3Y-3.23%
EPS 5Y-0.09%
EPS Q2Q%-2.82%
Revenue 1Y (TTM)11.27%
Revenue growth 3Y10.25%
Revenue growth 5Y9.09%
Sales Q2Q%20.3%
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 9.04% on average per year.
Based on estimates for the next years, NWN will show a small growth in Revenue. The Revenue will grow by 6.47% on average per year.
EPS Next Y26.42%
EPS Next 2Y14.51%
EPS Next 3Y11.8%
EPS Next 5Y9.04%
Revenue Next Year13.69%
Revenue Next 2Y9.45%
Revenue Next 3Y8.12%
Revenue Next 5Y6.47%
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.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.
4. Valuation
4.1 Price/Earnings Ratio
A Price/Earnings ratio of 16.77 indicates a correct valuation of NWN.
The rest of the industry has a similar Price/Earnings ratio as NWN.
When comparing the Price/Earnings ratio of NWN to the average of the S&P500 Index (26.35), we can say NWN is valued slightly cheaper.
The Price/Forward Earnings ratio is 15.82, which indicates a correct valuation of NWN.
Compared to the rest of the industry, the Price/Forward Earnings ratio of NWN indicates a somewhat cheap valuation: NWN is cheaper than 71.43% of the companies listed in the same industry.
When comparing the Price/Forward Earnings ratio of NWN to the average of the S&P500 Index (33.72), we can say NWN is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 16.77 | ||
| Fwd PE | 15.82 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, NWN is valued a bit cheaper than the industry average as 64.29% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 9.53 |
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 2Y14.51%
EPS Next 3Y11.8%
5. Dividend
5.1 Amount
NWN has a Yearly Dividend Yield of 4.12%, which is a nice return.
Compared to an average industry Dividend Yield of 3.84, NWN pays a bit more dividend than its industry peers.
Compared to an average S&P500 Dividend Yield of 2.36, NWN pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.12% |
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 their dividend for at least 10 years, which is a reliable track record.
Dividend Growth(5Y)0.84%
Div Incr Years24
Div Non Decr Years24
5.3 Sustainability
76.25% of the earnings are spent on dividend by NWN. This is not a sustainable payout ratio.
NWN's earnings are growing more than its dividend. This makes the dividend growth sustainable.
DP76.25%
EPS Next 2Y14.51%
EPS Next 3Y11.8%
48.13
+0.36 (+0.75%)
Chartmill FA Rating
GICS SectorUtilities
GICS IndustryGroupUtilities
GICS IndustryGas Utilities
Earnings (Last)
Earnings (Next)
Inst Owners83.65%
Inst Owner Change0.84%
Ins Owners0.68%
Ins Owner Change-19.17%
Market Cap1.97B
Revenue(TTM)1.27B
Net Income(TTM)100.53M
Analysts86.67
Price Target53.3 (10.74%)
Short Float %2.04%
Short Ratio3.49
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.12% |
Yearly Dividend1.87
Dividend Growth(5Y)0.84%
DP76.25%
Div Incr Years24
Div Non Decr Years24
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)60.12%
Min EPS beat(2)12.5%
Max EPS beat(2)107.74%
EPS beat(4)4
Avg EPS beat(4)33.06%
Min EPS beat(4)1.65%
Max EPS beat(4)107.74%
EPS beat(8)6
Avg EPS beat(8)21.88%
EPS beat(12)10
Avg EPS beat(12)37.18%
EPS beat(16)13
Avg EPS beat(16)42.99%
Revenue beat(2)0
Avg Revenue beat(2)-7.13%
Min Revenue beat(2)-7.45%
Max Revenue beat(2)-6.8%
Revenue beat(4)1
Avg Revenue beat(4)-4.62%
Min Revenue beat(4)-7.45%
Max Revenue beat(4)2.82%
Revenue beat(8)2
Avg Revenue beat(8)-4.24%
Revenue beat(12)6
Avg Revenue beat(12)2.76%
Revenue beat(16)10
Avg Revenue beat(16)5.05%
PT rev (1m)0.48%
PT rev (3m)3.47%
EPS NQ rev (1m)1.08%
EPS NQ rev (3m)6.35%
EPS NY rev (1m)-0.29%
EPS NY rev (3m)1.36%
Revenue NQ rev (1m)0.19%
Revenue NQ rev (3m)3.63%
Revenue NY rev (1m)0.15%
Revenue NY rev (3m)1.04%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 16.77 | ||
| Fwd PE | 15.82 | ||
| P/S | 1.56 | ||
| P/FCF | N/A | ||
| P/OCF | 8 | ||
| P/B | 1.37 | ||
| P/tB | 1.85 | ||
| EV/EBITDA | 9.53 |
EPS(TTM)2.87
EY5.96%
EPS(NY)3.04
Fwd EY6.32%
FCF(TTM)-4.55
FCFYN/A
OCF(TTM)6.02
OCFY12.51%
SpS30.93
BVpS35.03
TBVpS25.97
PEG (NY)0.63
PEG (5Y)N/A
Graham Number47.56
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 1.72% | ||
| ROE | 7.01% | ||
| ROCE | 4.97% | ||
| ROIC | 3.5% | ||
| ROICexc | 3.52% | ||
| ROICexgc | 3.79% | ||
| OM | 20.07% | ||
| PM (TTM) | 7.94% | ||
| GM | 64.4% | ||
| 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%
ROICexgc growth 3Y-2%
ROICexgc 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 Turnover0.22
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.62 | ||
| Debt/FCF | N/A | ||
| Debt/EBITDA | 5.32 | ||
| Cap/Depr | 236.47% | ||
| Cap/Sales | 34.18% | ||
| Interest Coverage | 2.45 | ||
| Cash Conversion | 56.38% | ||
| Profit Quality | N/A | ||
| Current Ratio | 0.59 | ||
| Quick Ratio | 0.43 | ||
| Altman-Z | 0.66 |
F-Score5
WACC6.01%
ROIC/WACC0.58
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)35.38%
EPS 3Y-3.23%
EPS 5Y-0.09%
EPS Q2Q%-2.82%
EPS Next Y26.42%
EPS Next 2Y14.51%
EPS Next 3Y11.8%
EPS Next 5Y9.04%
Revenue 1Y (TTM)11.27%
Revenue growth 3Y10.25%
Revenue growth 5Y9.09%
Sales Q2Q%20.3%
Revenue Next Year13.69%
Revenue Next 2Y9.45%
Revenue Next 3Y8.12%
Revenue Next 5Y6.47%
EBIT growth 1Y40.09%
EBIT growth 3Y5.43%
EBIT growth 5Y8.76%
EBIT Next Year120.39%
EBIT Next 3Y37.68%
EBIT Next 5Y23.44%
FCF growth 1Y-302.55%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y-12.99%
OCF growth 3Y7.69%
OCF growth 5Y1.57%
NORTHWEST NATURAL HOLDING CO / NWN FAQ
What is the fundamental rating for NWN stock?
ChartMill assigns a fundamental rating of 3 / 10 to NWN.
What is the valuation status for NWN stock?
ChartMill assigns a valuation rating of 4 / 10 to NORTHWEST NATURAL HOLDING CO (NWN). This can be considered as Fairly Valued.
How profitable is NORTHWEST NATURAL HOLDING CO (NWN) stock?
NORTHWEST NATURAL HOLDING CO (NWN) has a profitability rating of 4 / 10.
Can you provide the PE and PB ratios for NWN stock?
The Price/Earnings (PE) ratio for NORTHWEST NATURAL HOLDING CO (NWN) is 16.77 and the Price/Book (PB) ratio is 1.37.
What is the expected EPS growth for NORTHWEST NATURAL HOLDING CO (NWN) stock?
The Earnings per Share (EPS) of NORTHWEST NATURAL HOLDING CO (NWN) is expected to grow by 26.42% in the next year.