NORTHWEST NATURAL HOLDING CO (NWN) Stock Fundamental Analysis
USA - NYSE:NWN - US66765N1054 - Common Stock
45.2 USD
+0.79 (+1.78%)
45.2 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. 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
In the past year NWN was profitable.
In the past year NWN had a positive cash flow from operations.
NWN had positive earnings in each of the past 5 years.
In the past 5 years NWN always reported a positive cash flow from operatings.
1.2 Ratios
NWN has a Return On Assets of 1.78%. This is in the lower half of the industry: NWN underperforms 78.57% of its industry peers.
Looking at the Return On Equity, with a value of 7.08%, NWN is doing worse than 78.57% of the companies in the same industry.
NWN has a worse Return On Invested Capital (3.43%) than 92.86% of its industry peers.
NWN had an Average Return On Invested Capital over the past 3 years of 3.03%. This is below the industry average of 6.32%.
The last Return On Invested Capital (3.43%) for NWN is above the 3 year average (3.03%), which is a sign of increasing profitability.
| 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 (8.34%) which is in line with its industry peers.
NWN's Profit Margin has declined in the last couple of years.
NWN's Operating Margin of 19.96% is in line compared to the rest of the industry. NWN outperforms 50.00% of its industry peers.
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 (63.68%) 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
The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so 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.
NWN has a worse debt/assets ratio than last year.
2.2 Solvency
Based on the Altman-Z score of 0.67, we must say that NWN is in the distress zone and has some risk of bankruptcy.
NWN has a Altman-Z score of 0.67. This is in the lower half of the industry: NWN underperforms 71.43% of its industry peers.
A Debt/Equity ratio of 1.54 is on the high side and indicates that NWN has dependencies on debt financing.
The Debt to Equity ratio of NWN (1.54) is worse than 78.57% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.54 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 0.67 |
ROIC/WACC0.59
WACC5.86%
2.3 Liquidity
A Current Ratio of 0.68 indicates that NWN may have some problems paying its short term obligations.
NWN's Current ratio of 0.68 is in line compared to the rest of the industry. NWN outperforms 42.86% of its industry peers.
A Quick Ratio of 0.52 indicates that NWN may have some problems paying its short term obligations.
With a Quick ratio value of 0.52, NWN perfoms like the industry average, outperforming 57.14% of the companies in the same industry.
| 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.
The Revenue has grown by 8.40% in the past year. This is quite good.
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)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
NWN is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 8.16% yearly.
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 Y26.79%
EPS Next 2Y14.76%
EPS Next 3Y12.38%
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.
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 15.64 indicates a correct valuation of NWN.
64.29% of the companies in the same industry are more expensive than NWN, based on the Price/Earnings ratio.
When comparing the Price/Earnings ratio of NWN to the average of the S&P500 Index (27.55), we can say NWN is valued slightly cheaper.
With a Price/Forward Earnings ratio of 14.79, NWN is valued correctly.
Based on the Price/Forward Earnings ratio, NWN is valued a bit cheaper than 64.29% of the companies in the same industry.
When comparing the Price/Forward Earnings ratio of NWN to the average of the S&P500 Index (23.04), we can say NWN is valued slightly cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 15.64 | ||
| Fwd PE | 14.79 |
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 | 9.12 |
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.
NWN's earnings are expected to grow with 12.38% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.58
PEG (5Y)N/A
EPS Next 2Y14.76%
EPS Next 3Y12.38%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 4.49%, NWN is a good candidate for dividend investing.
NWN's Dividend Yield is a higher than the industry average which is at 3.87.
NWN's Dividend Yield is rather good when compared to the S&P500 average which is at 2.43.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.49% |
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
73.06% of the earnings are spent on dividend by NWN. 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 2Y14.76%
EPS Next 3Y12.38%
45.2
+0.79 (+1.78%)
Chartmill FA Rating
GICS SectorUtilities
GICS IndustryGroupUtilities
GICS IndustryGas Utilities
Earnings (Last)
Earnings (Next)
Inst Owners83.65%
Inst Owner Change0.05%
Ins Owners0.68%
Ins Owner Change-13.66%
Market Cap1.85B
Analysts85
Price Target53.04 (17.35%)
Short Float %1.93%
Short Ratio3.1
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.49% |
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)0%
PT rev (3m)6.56%
EPS NQ rev (1m)-0.91%
EPS NQ rev (3m)5.33%
EPS NY rev (1m)-0.26%
EPS NY rev (3m)1.66%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)3.43%
Revenue NY rev (1m)0%
Revenue NY rev (3m)0.89%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 15.64 | ||
| Fwd PE | 14.79 | ||
| P/S | 1.49 | ||
| P/FCF | N/A | ||
| P/OCF | 7.84 | ||
| P/B | 1.27 | ||
| P/tB | 1.7 | ||
| EV/EBITDA | 9.12 |
EPS(TTM)2.89
EY6.39%
EPS(NY)3.06
Fwd EY6.76%
FCF(TTM)-4.45
FCFYN/A
OCF(TTM)5.76
OCFY12.75%
SpS30.25
BVpS35.64
TBVpS26.58
PEG (NY)0.58
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 | 0.67 |
F-Score5
WACC5.86%
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 Y26.79%
EPS Next 2Y14.76%
EPS Next 3Y12.38%
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 Year120.39%
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%