NORTHWEST NATURAL HOLDING CO (NWN) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:NWN - US66765N1054 - Common Stock
46.21 USD
-1.65 (-3.45%)
46.21 USD
0 (0%)
Overall NWN gets a fundamental rating of 4 out of 10. We evaluated NWN against 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. 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.
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
Looking at the Return On Assets, with a value of 1.72%, NWN is doing worse than 85.71% of the companies in the same industry.
With a Return On Equity value of 7.01%, NWN is not doing good in the industry: 78.57% of the companies in the same industry are doing better.
NWN's Return On Invested Capital of 3.50% is on the low side compared to the rest of the industry. NWN is outperformed by 85.71% of its industry peers.
The Average Return On Invested Capital over the past 3 years for NWN is significantly below the industry average of 8.77%.
The last Return On Invested Capital (3.50%) for NWN is above the 3 year average (3.03%), which is a sign of increasing profitability.
| 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
With a Profit Margin value of 7.94%, NWN is not doing good in the industry: 71.43% of the companies in the same industry are doing better.
NWN's Profit Margin has declined in the last couple of years.
NWN has a Operating Margin (20.07%) which is comparable to the rest of the industry.
In the last couple of years the Operating Margin of NWN has remained more or less at the same level.
NWN's Gross Margin of 64.40% is fine compared to the rest of the industry. NWN outperforms 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.
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 0.65, we must say that NWN is in the distress zone and has some risk of bankruptcy.
The Altman-Z score of NWN (0.65) is worse than 71.43% of its industry peers.
NWN has a Debt/Equity ratio of 1.62. This is a high value indicating a heavy dependency on external 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 | 0.65 |
ROIC/WACC0.59
WACC5.93%
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.
NWN's Current ratio of 0.59 is on the low side compared to the rest of the industry. NWN is outperformed by 64.29% of its industry peers.
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.
The Quick ratio of NWN (0.43) is comparable to the rest of the industry.
| 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.
The Earnings Per Share has been decreasing by -0.09% on average over the past years.
NWN shows quite a strong growth in Revenue. In the last year, the Revenue has grown by 11.27%.
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
NWN is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 9.04% yearly.
The Revenue is expected to grow by 6.47% on average over the next years.
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
The EPS growth rate is accelerating: in the next years the growth will be better than in the last years.
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 16.10, 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.
When comparing the Price/Earnings ratio of NWN to the average of the S&P500 Index (26.41), we can say NWN is valued slightly cheaper.
Based on the Price/Forward Earnings ratio of 15.19, the valuation of NWN can be described as correct.
Based on the Price/Forward Earnings ratio, NWN is valued a bit cheaper than the industry average as 71.43% of the companies are valued more expensively.
When comparing the Price/Forward Earnings ratio of NWN to the average of the S&P500 Index (35.40), we can say NWN is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 16.1 | ||
| Fwd PE | 15.19 |
4.2 Price Multiples
NWN's Enterprise Value to EBITDA ratio is a bit cheaper when compared to the industry. NWN is cheaper than 64.29% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 9.45 |
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)0.61
PEG (5Y)N/A
EPS Next 2Y14.51%
EPS Next 3Y11.8%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 4.00%, NWN is a good candidate for dividend investing.
NWN's Dividend Yield is rather good when compared to the industry average which is at 3.71. NWN pays more dividend than 85.71% of the companies in the same industry.
Compared to an average S&P500 Dividend Yield of 2.32, NWN pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4% |
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 76.25% 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.
DP76.25%
EPS Next 2Y14.51%
EPS Next 3Y11.8%
46.21
-1.65 (-3.45%)
Chartmill FA Rating
GICS SectorUtilities
GICS IndustryGroupUtilities
GICS IndustryGas Utilities
Earnings (Last)
Earnings (Next)
Inst Owners83.65%
Inst Owner Change1.72%
Ins Owners0.68%
Ins Owner Change-19.57%
Market Cap1.92B
Revenue(TTM)1.27B
Net Income(TTM)100.53M
Analysts86.67
Price Target53.81 (16.45%)
Short Float %2.6%
Short Ratio4.45
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4% |
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)1.44%
PT rev (3m)1.44%
EPS NQ rev (1m)-3.12%
EPS NQ rev (3m)-4.78%
EPS NY rev (1m)-0.29%
EPS NY rev (3m)-0.55%
Revenue NQ rev (1m)-5.31%
Revenue NQ rev (3m)-5.01%
Revenue NY rev (1m)0.15%
Revenue NY rev (3m)0.15%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 16.1 | ||
| Fwd PE | 15.19 | ||
| P/S | 1.52 | ||
| P/FCF | N/A | ||
| P/OCF | 7.78 | ||
| P/B | 1.34 | ||
| P/tB | 1.8 | ||
| EV/EBITDA | 9.45 |
EPS(TTM)2.87
EY6.21%
EPS(NY)3.04
Fwd EY6.58%
FCF(TTM)-4.49
FCFYN/A
OCF(TTM)5.94
OCFY12.85%
SpS30.5
BVpS34.55
TBVpS25.61
PEG (NY)0.61
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 | 0.65 |
F-Score5
WACC5.93%
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)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 4 / 10 to NWN.
What is the valuation status for NWN stock?
ChartMill assigns a valuation rating of 5 / 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 16.1 and the Price/Book (PB) ratio is 1.34.
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.