NORTHWESTERN ENERGY GROUP IN (NWE)
US6680743050 - Common Stock
Taking everything into account, NWE scores 4 out of 10 in our fundamental rating. NWE was compared to 26 industry peers in the Multi-Utilities industry. While NWE is still in line with the averages on profitability rating, there are concerns on its financial health. While showing a medium growth rate, NWE is valued expensive at the moment. Finally NWE also has an excellent dividend rating.
1. Profitability
1.1 Basic Checks
NWE had positive earnings in the past year.
In the past year NWE had a positive cash flow from operations.
NWE had positive earnings in each of the past 5 years.
In the past 5 years NWE always reported a positive cash flow from operatings.
1.2 Ratios
NWE has a Return On Assets of 2.58%. This is in the lower half of the industry: NWE underperforms 65.38% of its industry peers.
NWE has a Return On Equity of 6.99%. This is amonst the worse of the industry: NWE underperforms 80.77% of its industry peers.
With a Return On Invested Capital value of 3.37%, NWE is not doing good in the industry: 65.38% of the companies in the same industry are doing better.
NWE had an Average Return On Invested Capital over the past 3 years of 3.29%. This is in line with the industry average of 3.59%.
The 3 year average ROIC (3.29%) for NWE is below the current ROIC(3.37%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.58% | ||
| ROE | 6.99% | ||
| ROIC | 3.37% |
ROA(3y)2.6%
ROA(5y)2.71%
ROE(3y)7.27%
ROE(5y)7.84%
ROIC(3y)3.29%
ROIC(5y)3.35%
1.3 Margins
NWE's Profit Margin of 13.63% is fine compared to the rest of the industry. NWE outperforms 73.08% of its industry peers.
In the last couple of years the Profit Margin of NWE has declined.
With a decent Operating Margin value of 21.24%, NWE is doing good in the industry, outperforming 61.54% of the companies in the same industry.
In the last couple of years the Operating Margin of NWE has remained more or less at the same level.
NWE has a Gross Margin (70.24%) which is in line with its industry peers.
NWE's Gross Margin has declined in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 21.24% | ||
| PM (TTM) | 13.63% | ||
| GM | 70.24% |
OM growth 3Y2.35%
OM growth 5Y-1.11%
PM growth 3Y1.78%
PM growth 5Y-3.75%
GM growth 3Y-1.83%
GM growth 5Y-1.79%
2. Health
2.1 Basic Checks
NWE has a Return on Invested Capital (ROIC), which is below the Cost of Capital (WACC), which means it is destroying value.
NWE has more shares outstanding than it did 1 year ago.
Compared to 5 years ago, NWE has more shares outstanding
NWE has a worse debt/assets ratio than last year.
2.2 Solvency
NWE has an Altman-Z score of 0.86. This is a bad value and indicates that NWE is not financially healthy and even has some risk of bankruptcy.
With a Altman-Z score value of 0.86, NWE perfoms like the industry average, outperforming 57.69% of the companies in the same industry.
NWE has a Debt/Equity ratio of 0.99. This is a neutral value indicating NWE is somewhat dependend on debt financing.
With an excellent Debt to Equity ratio value of 0.99, NWE belongs to the best of the industry, outperforming 100.00% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.99 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 0.86 |
ROIC/WACC0.53
WACC6.34%
2.3 Liquidity
NWE has a Current Ratio of 0.89. This is a bad value and indicates that NWE is not financially healthy enough and could expect problems in meeting its short term obligations.
With a decent Current ratio value of 0.89, NWE is doing good in the industry, outperforming 65.38% of the companies in the same industry.
A Quick Ratio of 0.66 indicates that NWE may have some problems paying its short term obligations.
NWE's Quick ratio of 0.66 is fine compared to the rest of the industry. NWE outperforms 65.38% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.89 | ||
| Quick Ratio | 0.66 |
3. Growth
3.1 Past
The Earnings Per Share has been growing slightly by 5.41% over the past year.
The Earnings Per Share has been decreasing by -0.72% on average over the past years.
Looking at the last year, NWE shows a decrease in Revenue. The Revenue has decreased by -6.17% in the last year.
Measured over the past years, NWE shows a small growth in Revenue. The Revenue has been growing by 3.59% on average per year.
EPS 1Y (TTM)5.41%
EPS 3Y-0.1%
EPS 5Y-0.72%
EPS growth Q2Q3.81%
Revenue 1Y (TTM)-6.17%
Revenue growth 3Y5.86%
Revenue growth 5Y3.59%
Revenue growth Q2Q4.59%
3.2 Future
NWE is expected to show a small growth in Earnings Per Share. In the coming years, the EPS will grow by 5.61% yearly.
The Revenue is expected to grow by 4.34% on average over the next years.
EPS Next Y7.94%
EPS Next 2Y6.79%
EPS Next 3Y6.17%
EPS Next 5Y5.61%
Revenue Next Year3.34%
Revenue Next 2Y4.3%
Revenue Next 3Y4.05%
Revenue Next 5Y4.34%
3.3 Evolution
The EPS growth rate is accelerating: in the next years the growth will be better than in the last years.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.
4. Valuation
4.1 Price/Earnings Ratio
NWE is valuated correctly with a Price/Earnings ratio of 15.67.
Compared to the rest of the industry, the Price/Earnings ratio of NWE indicates a somewhat cheap valuation: NWE is cheaper than 65.38% of the companies listed in the same industry.
NWE's Price/Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 28.32.
The Price/Forward Earnings ratio is 13.91, which indicates a correct valuation of NWE.
Based on the Price/Forward Earnings ratio, NWE is valued a bit cheaper than 69.23% of the companies in the same industry.
Compared to an average S&P500 Price/Forward Earnings ratio of 20.24, NWE is valued a bit cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 15.67 | ||
| Fwd PE | 13.91 |
4.2 Price Multiples
NWE's Enterprise Value to EBITDA is on the same level as the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 11.42 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
PEG (NY)1.97
PEG (5Y)N/A
EPS Next 2Y6.79%
EPS Next 3Y6.17%
5. Dividend
5.1 Amount
NWE has a Yearly Dividend Yield of 5.02%, which is a nice return.
NWE's Dividend Yield is a higher than the industry average which is at 4.09.
Compared to an average S&P500 Dividend Yield of 2.34, NWE pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 5.02% |
5.2 History
The dividend of NWE has a limited annual growth rate of 3.06%.
NWE has been paying a dividend for at least 10 years, so it has a reliable track record.
NWE has not decreased its dividend for at least 10 years, so it has a reliable track record of non decreasing dividend.
Dividend Growth(5Y)3.06%
Div Incr Years15
Div Non Decr Years15
5.3 Sustainability
NWE pays out 79.17% of its income as dividend. This is not a sustainable payout ratio.
NWE's earnings are growing more than its dividend. This makes the dividend growth sustainable.
DP79.17%
EPS Next 2Y6.79%
EPS Next 3Y6.17%
NORTHWESTERN ENERGY GROUP IN
NASDAQ:NWE (5/13/2024, 5:42:15 PM)
After market: 51.86 0 (0%)51.86
+0.09 (+0.17%)
Chartmill FA Rating
GICS SectorUtilities
GICS IndustryGroupUtilities
GICS IndustryMulti-Utilities
Earnings (Last)
Earnings (Next)
Inst Owners
Inst Owner Change
Ins Owners
Ins Owner Change
Market Cap3.18B
Analysts
Price Target
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 5.02% |
Dividend Growth(5Y)
DP
Div Incr Years
Div Non Decr Years
Ex-Date
Surprises & Revisions
EPS beat(2)
Avg EPS beat(2)
Min EPS beat(2)
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EPS beat(4)
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EPS beat(16)
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Revenue beat(2)
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PT rev (1m)
PT rev (3m)
EPS NQ rev (1m)
EPS NQ rev (3m)
EPS NY rev (1m)
EPS NY rev (3m)
Revenue NQ rev (1m)
Revenue NQ rev (3m)
Revenue NY rev (1m)
Revenue NY rev (3m)
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 15.67 | ||
| Fwd PE | 13.91 | ||
| P/S | |||
| P/FCF | |||
| P/OCF | |||
| P/B | |||
| P/tB | |||
| EV/EBITDA |
EPS(TTM)
EY
EPS(NY)
Fwd EY
FCF(TTM)
FCFY
OCF(TTM)
OCFY
SpS
BVpS
TBVpS
PEG (NY)1.97
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.58% | ||
| ROE | 6.99% | ||
| ROCE | |||
| ROIC | |||
| ROICexc | |||
| ROICexgc | |||
| OM | 21.24% | ||
| PM (TTM) | 13.63% | ||
| GM | 70.24% | ||
| FCFM |
ROA(3y)
ROA(5y)
ROE(3y)
ROE(5y)
ROIC(3y)
ROIC(5y)
ROICexc(3y)
ROICexc(5y)
ROICexgc(3y)
ROICexgc(5y)
ROCE(3y)
ROCE(5y)
ROICexcg growth 3Y
ROICexcg growth 5Y
ROICexc growth 3Y
ROICexc growth 5Y
OM growth 3Y
OM growth 5Y
PM growth 3Y
PM growth 5Y
GM growth 3Y
GM growth 5Y
F-Score
Asset Turnover0.19
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.99 | ||
| Debt/FCF | |||
| Debt/EBITDA | |||
| Cap/Depr | |||
| Cap/Sales | |||
| Interest Coverage | |||
| Cash Conversion | |||
| Profit Quality | |||
| Current Ratio | 0.89 | ||
| Quick Ratio | 0.66 | ||
| Altman-Z |
F-Score
WACC
ROIC/WACC
Cap/Depr(3y)
Cap/Depr(5y)
Cap/Sales(3y)
Cap/Sales(5y)
Profit Quality(3y)
Profit Quality(5y)
Growth
EPS 1Y (TTM)5.41%
EPS 3Y-0.1%
EPS 5Y
EPS growth Q2Q
EPS Next Y7.94%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)-6.17%
Revenue growth 3Y5.86%
Revenue growth 5Y
Revenue growth Q2Q
Revenue Next Year
Revenue Next 2Y
Revenue Next 3Y
Revenue Next 5Y
EBIT growth 1Y
EBIT growth 3Y
EBIT growth 5Y
EBIT Next Year
EBIT Next 3Y
EBIT Next 5Y
FCF growth 1Y
FCF growth 3Y
FCF growth 5Y
OCF growth 1Y
OCF growth 3Y
OCF growth 5Y