NORTHWEST NATURAL HOLDING CO (NWN) Stock Fundamental Analysis
USA - NYSE:NWN - US66765N1054 - Common Stock
42.27 USD
+0.06 (+0.14%)
42.27 USD
0 (0%)
We assign a fundamental rating of 4 out of 10 to NWN. NWN was compared to 14 industry peers in the Gas Utilities industry. There are concerns on the financial health of NWN while its profitability can be described as average. 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
With a Return On Assets value of 1.78%, NWN is not doing good in the industry: 78.57% of the companies in the same industry are doing better.
NWN's Return On Equity of 7.08% is on the low side compared to the rest of the industry. NWN is outperformed by 78.57% of its industry peers.
NWN has a Return On Invested Capital of 3.43%. This is amonst the worse of the industry: NWN underperforms 92.86% of its industry peers.
The Average Return On Invested Capital over the past 3 years for NWN is below the industry average of 6.32%.
The 3 year average ROIC (3.03%) for NWN is below the current ROIC(3.43%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 1.78% | ||
| ROE | 7.08% | ||
| ROIC | 3.43% |
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 of 8.34%. This is comparable to the rest of the industry: NWN outperforms 50.00% of its industry peers.
NWN's Profit Margin has declined in the last couple of years.
Looking at the Operating Margin, with a value of 19.96%, NWN is in line with its industry, outperforming 50.00% of the companies in the same industry.
NWN's Operating Margin has been stable in the last couple of years.
NWN has a Gross Margin (63.68%) which is comparable to the rest of the industry.
NWN's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 19.96% | ||
| PM (TTM) | 8.34% | ||
| GM | 63.68% |
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.
Compared to 1 year ago, NWN has more shares outstanding
NWN has more shares outstanding than it did 5 years ago.
The debt/assets ratio for NWN is higher compared to a year ago.
2.2 Solvency
Based on the Altman-Z score of 0.66, we must say that NWN is in the distress zone and has some risk of bankruptcy.
With a Altman-Z score value of 0.66, NWN is not doing good in the industry: 71.43% of the companies in the same industry are doing better.
A Debt/Equity ratio of 1.54 is on the high side and indicates that NWN has dependencies on debt financing.
With a Debt to Equity ratio value of 1.54, NWN is not doing good in the industry: 78.57% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.54 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 0.66 |
ROIC/WACC0.59
WACC5.78%
2.3 Liquidity
A Current Ratio of 0.68 indicates that NWN may have some problems paying its short term obligations.
Looking at the Current ratio, with a value of 0.68, NWN is in line with its industry, outperforming 42.86% of the companies in the same industry.
NWN has a Quick Ratio of 0.68. 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's Quick ratio of 0.52 is in line compared to the rest of the industry. NWN outperforms 57.14% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.68 | ||
| Quick Ratio | 0.52 |
3. Growth
3.1 Past
NWN shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 32.57%, which is quite impressive.
NWN shows a decrease in Earnings Per Share. Measured over the last years, the EPS has been decreasing by -0.09% yearly.
NWN shows quite a strong growth in Revenue. In the last year, the Revenue has grown by 8.40%.
The Revenue has been growing by 9.09% on average over the past years. This is quite good.
EPS 1Y (TTM)32.57%
EPS 3Y-3.23%
EPS 5Y-0.09%
EPS Q2Q%114.29%
Revenue 1Y (TTM)8.4%
Revenue growth 3Y10.25%
Revenue growth 5Y9.09%
Sales Q2Q%11.56%
3.2 Future
The Earnings Per Share is expected to grow by 8.16% on average over the next years. This is quite good.
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 Y27.12%
EPS Next 2Y15.42%
EPS Next 3Y12.03%
EPS Next 5Y8.16%
Revenue Next Year13.52%
Revenue Next 2Y9.52%
Revenue Next 3Y8.45%
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 14.63, NWN is valued correctly.
NWN's Price/Earnings ratio is a bit cheaper when compared to the industry. NWN is cheaper than 64.29% of the companies in the same industry.
Compared to an average S&P500 Price/Earnings ratio of 27.30, NWN is valued a bit cheaper.
With a Price/Forward Earnings ratio of 13.68, NWN is valued correctly.
NWN's Price/Forward Earnings ratio is a bit cheaper when compared to the industry. NWN is cheaper than 71.43% of the companies in the same industry.
The average S&P500 Price/Forward Earnings ratio is at 22.73. NWN is valued slightly cheaper when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 14.63 | ||
| Fwd PE | 13.68 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, NWN is valued a bit cheaper than 71.43% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 8.92 |
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.
NWN's earnings are expected to grow with 12.03% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.54
PEG (5Y)N/A
EPS Next 2Y15.42%
EPS Next 3Y12.03%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 4.64%, NWN is a good candidate for dividend investing.
Compared to an average industry Dividend Yield of 3.95, 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 2.38, NWN pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.64% |
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 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
NWN pays out 73.06% 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.
DP73.06%
EPS Next 2Y15.42%
EPS Next 3Y12.03%
42.27
+0.06 (+0.14%)
Chartmill FA Rating
GICS SectorUtilities
GICS IndustryGroupUtilities
GICS IndustryGas Utilities
Earnings (Last)
Earnings (Next)
Inst Owners85.58%
Inst Owner Change3.59%
Ins Owners0.72%
Ins Owner Change-13.19%
Market Cap1.73B
Analysts85
Price Target53.04 (25.48%)
Short Float %2.27%
Short Ratio3.08
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.64% |
Yearly Dividend1.87
Dividend Growth(5Y)0.84%
DP73.06%
Div Incr Years24
Div Non Decr Years24
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)59.04%
Min EPS beat(2)10.35%
Max EPS beat(2)107.74%
EPS beat(4)4
Avg EPS beat(4)32.57%
Min EPS beat(4)1.65%
Max EPS beat(4)107.74%
EPS beat(8)6
Avg EPS beat(8)20.72%
EPS beat(12)10
Avg EPS beat(12)38.06%
EPS beat(16)13
Avg EPS beat(16)42.86%
Revenue beat(2)1
Avg Revenue beat(2)-2.32%
Min Revenue beat(2)-7.45%
Max Revenue beat(2)2.82%
Revenue beat(4)2
Avg Revenue beat(4)-2.33%
Min Revenue beat(4)-7.45%
Max Revenue beat(4)2.82%
Revenue beat(8)3
Avg Revenue beat(8)-2.9%
Revenue beat(12)7
Avg Revenue beat(12)4.16%
Revenue beat(16)10
Avg Revenue beat(16)5.45%
PT rev (1m)2.97%
PT rev (3m)8.33%
EPS NQ rev (1m)-1.91%
EPS NQ rev (3m)4.89%
EPS NY rev (1m)1.92%
EPS NY rev (3m)3.3%
Revenue NQ rev (1m)-0.01%
Revenue NQ rev (3m)2.14%
Revenue NY rev (1m)0.89%
Revenue NY rev (3m)0.59%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 14.63 | ||
| Fwd PE | 13.68 | ||
| P/S | 1.4 | ||
| P/FCF | N/A | ||
| P/OCF | 7.33 | ||
| P/B | 1.19 | ||
| P/tB | 1.59 | ||
| EV/EBITDA | 8.92 |
EPS(TTM)2.89
EY6.84%
EPS(NY)3.09
Fwd EY7.31%
FCF(TTM)-4.45
FCFYN/A
OCF(TTM)5.76
OCFY13.64%
SpS30.25
BVpS35.64
TBVpS26.58
PEG (NY)0.54
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 1.78% | ||
| ROE | 7.08% | ||
| ROCE | 4.84% | ||
| ROIC | 3.43% | ||
| ROICexc | 3.5% | ||
| ROICexgc | 3.77% | ||
| OM | 19.96% | ||
| PM (TTM) | 8.34% | ||
| GM | 63.68% | ||
| 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 | 1.54 | ||
| Debt/FCF | N/A | ||
| Debt/EBITDA | 5.19 | ||
| Cap/Depr | 225.57% | ||
| Cap/Sales | 33.77% | ||
| Interest Coverage | 2.78 | ||
| Cash Conversion | 54.56% | ||
| Profit Quality | N/A | ||
| Current Ratio | 0.68 | ||
| Quick Ratio | 0.52 | ||
| Altman-Z | 0.66 |
F-Score5
WACC5.78%
ROIC/WACC0.59
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)32.57%
EPS 3Y-3.23%
EPS 5Y-0.09%
EPS Q2Q%114.29%
EPS Next Y27.12%
EPS Next 2Y15.42%
EPS Next 3Y12.03%
EPS Next 5Y8.16%
Revenue 1Y (TTM)8.4%
Revenue growth 3Y10.25%
Revenue growth 5Y9.09%
Sales Q2Q%11.56%
Revenue Next Year13.52%
Revenue Next 2Y9.52%
Revenue Next 3Y8.45%
Revenue Next 5Y5.1%
EBIT growth 1Y34.98%
EBIT growth 3Y5.43%
EBIT growth 5Y8.76%
EBIT Next Year118.87%
EBIT Next 3Y37.68%
EBIT Next 5Y24.24%
FCF growth 1Y-172.66%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y-5.22%
OCF growth 3Y7.69%
OCF growth 5Y1.57%