NORTHWEST NATURAL HOLDING CO (NWN) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:NWN - US66765N1054 - Common Stock
47.13 USD
+0.29 (+0.62%)
47.13 USD
0 (0%)
Overall NWN gets a fundamental rating of 3 out of 10. We evaluated NWN 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 has a correct valuation and a medium growth rate. Finally 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.
Each year in the past 5 years NWN has been profitable.
In the past 5 years NWN always reported a positive cash flow from operatings.
1.2 Ratios
NWN has a worse Return On Assets (1.72%) than 85.71% of its industry peers.
The Return On Equity of NWN (7.01%) is worse than 78.57% of its industry peers.
With a Return On Invested Capital value of 3.50%, NWN is not doing good in the industry: 85.71% of the companies in the same industry are doing better.
NWN had an Average Return On Invested Capital over the past 3 years of 3.03%. This is below the industry average of 6.27%.
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
NWN has a Profit Margin of 7.94%. This is in the lower half of the industry: NWN underperforms 71.43% of its industry peers.
In the last couple of years the Profit Margin of NWN has declined.
NWN has a Operating Margin of 20.07%. This is comparable to the rest of the industry: NWN outperforms 57.14% of its industry peers.
NWN's Operating Margin has been stable in the last couple of years.
NWN has a better Gross Margin (64.40%) than 64.29% of 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 | 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.
The number of shares outstanding for NWN has been increased compared to 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
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.
NWN has a Debt/Equity ratio of 1.62. This is a high value indicating a heavy dependency on external financing.
Looking at the Debt to Equity ratio, with a value of 1.62, NWN is doing worse than 78.57% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.62 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 0.66 |
ROIC/WACC0.58
WACC6%
2.3 Liquidity
NWN has a Current 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.
Looking at the Current ratio, with a value of 0.59, NWN is in line with its industry, outperforming 42.86% of the companies in the same 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 (0.43) which is in line with its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.59 | ||
| Quick Ratio | 0.43 |
3. Growth
3.1 Past
NWN shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 35.38%, 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 11.27%.
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)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
The Earnings Per Share is expected to grow by 9.04% on average over the next years. This is quite good.
NWN is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 6.47% yearly.
EPS Next Y26.54%
EPS Next 2Y14.38%
EPS Next 3Y12.26%
EPS Next 5Y9.04%
Revenue Next Year10.85%
Revenue Next 2Y8.68%
Revenue Next 3Y7.13%
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.
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
Based on the Price/Earnings ratio of 16.42, the valuation of NWN can be described as correct.
Compared to the rest of the industry, the Price/Earnings ratio of NWN indicates a somewhat cheap valuation: NWN is cheaper than 64.29% of the companies listed in the same industry.
Compared to an average S&P500 Price/Earnings ratio of 26.84, NWN is valued a bit cheaper.
The Price/Forward Earnings ratio is 15.53, which indicates a correct valuation of NWN.
NWN's Price/Forward Earnings is on the same level as the industry average.
NWN is valuated rather cheaply when we compare the Price/Forward Earnings ratio to 23.40, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 16.42 | ||
| Fwd PE | 15.53 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of NWN indicates a somewhat cheap valuation: NWN is cheaper than 64.29% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 9.51 |
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.
A more expensive valuation may be justified as NWN's earnings are expected to grow with 12.26% in the coming years.
PEG (NY)0.62
PEG (5Y)N/A
EPS Next 2Y14.38%
EPS Next 3Y12.26%
5. Dividend
5.1 Amount
NWN has a Yearly Dividend Yield of 4.18%, which is a nice return.
NWN's Dividend Yield is rather good when compared to the industry average which is at 3.83. NWN pays more dividend than 85.71% of the companies in the same industry.
Compared to an average S&P500 Dividend Yield of 2.00, NWN pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.18% |
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 76.25% 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.
DP76.25%
EPS Next 2Y14.38%
EPS Next 3Y12.26%
47.13
+0.29 (+0.62%)
Chartmill FA Rating
GICS SectorUtilities
GICS IndustryGroupUtilities
GICS IndustryGas Utilities
Earnings (Last)
Earnings (Next)
Inst Owners82.98%
Inst Owner Change1.73%
Ins Owners0.58%
Ins Owner Change-17.29%
Market Cap1.96B
Revenue(TTM)1.27B
Net Income(TTM)100.53M
Analysts86.67
Price Target53.81 (14.17%)
Short Float %2.6%
Short Ratio4.21
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.18% |
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%
PT rev (3m)1.44%
EPS NQ rev (1m)-1.97%
EPS NQ rev (3m)-6.66%
EPS NY rev (1m)0.09%
EPS NY rev (3m)-0.2%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-5.01%
Revenue NY rev (1m)-2.5%
Revenue NY rev (3m)-2.35%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 16.42 | ||
| Fwd PE | 15.53 | ||
| P/S | 1.55 | ||
| P/FCF | N/A | ||
| P/OCF | 7.94 | ||
| P/B | 1.36 | ||
| P/tB | 1.84 | ||
| EV/EBITDA | 9.51 |
EPS(TTM)2.87
EY6.09%
EPS(NY)3.04
Fwd EY6.44%
FCF(TTM)-4.49
FCFYN/A
OCF(TTM)5.94
OCFY12.6%
SpS30.5
BVpS34.55
TBVpS25.61
PEG (NY)0.62
PEG (5Y)N/A
Graham Number47.23
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%
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 Y26.54%
EPS Next 2Y14.38%
EPS Next 3Y12.26%
EPS Next 5Y9.04%
Revenue 1Y (TTM)11.27%
Revenue growth 3Y10.25%
Revenue growth 5Y9.09%
Sales Q2Q%20.3%
Revenue Next Year10.85%
Revenue Next 2Y8.68%
Revenue Next 3Y7.13%
Revenue Next 5Y6.47%
EBIT growth 1Y40.09%
EBIT growth 3Y5.43%
EBIT growth 5Y8.76%
EBIT Next Year123.93%
EBIT Next 3Y36.39%
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 16.42 and the Price/Book (PB) ratio is 1.36.
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 26.54% in the next year.