NORTHWESTERN ENERGY GROUP IN (NWE) Stock Fundamental Analysis
NASDAQ:NWE - Nasdaq - US6680743050 - Common Stock - Currency: USD
Overall NWE gets a fundamental rating of 4 out of 10. We evaluated NWE against 25 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. NWE has a valuation in line with the averages, but on the other hand it scores bad on growth. Finally NWE also has an excellent dividend rating.
1. Profitability
1.1 Basic Checks
In the past year NWE was profitable.
In the past year NWE had a positive cash flow from operations.
Each year in the past 5 years NWE has been profitable.
In the past 5 years NWE always reported a positive cash flow from operatings.
1.2 Ratios
NWE has a better Return On Assets (2.91%) than 68.00% of its industry peers.
With a Return On Equity value of 8.15%, NWE is not doing good in the industry: 64.00% of the companies in the same industry are doing better.
Looking at the Return On Invested Capital, with a value of 3.55%, NWE is doing worse than 80.00% of the companies in the same industry.
NWE had an Average Return On Invested Capital over the past 3 years of 3.32%. This is in line with the industry average of 3.93%.
The last Return On Invested Capital (3.55%) for NWE is above the 3 year average (3.32%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.91% | ||
| ROE | 8.15% | ||
| ROIC | 3.55% |
ROA(3y)2.62%
ROA(5y)2.61%
ROE(3y)7.23%
ROE(5y)7.43%
ROIC(3y)3.32%
ROIC(5y)3.29%
1.3 Margins
Looking at the Profit Margin, with a value of 15.68%, NWE is in the better half of the industry, outperforming 80.00% of the companies in the same industry.
NWE's Profit Margin has declined in the last couple of years.
The Operating Margin of NWE (22.99%) is better than 76.00% of its industry peers.
NWE's Operating Margin has been stable in the last couple of years.
With a decent Gross Margin value of 73.61%, NWE is doing good in the industry, outperforming 80.00% of the companies in the same industry.
NWE's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 22.99% | ||
| PM (TTM) | 15.68% | ||
| GM | 73.61% |
OM growth 3Y2.06%
OM growth 5Y-0.6%
PM growth 3Y2.84%
PM growth 5Y-1.62%
GM growth 3Y1.12%
GM growth 5Y-0.92%
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 about the same amout of shares outstanding than it did 1 year ago.
NWE has more shares outstanding than it did 5 years ago.
NWE has a worse debt/assets ratio than last year.
2.2 Solvency
Based on the Altman-Z score of 0.88, we must say that NWE is in the distress zone and has some risk of bankruptcy.
The Altman-Z score of NWE (0.88) is comparable to the rest of the industry.
A Debt/Equity ratio of 1.08 is on the high side and indicates that NWE has dependencies on debt financing.
NWE has a Debt to Equity ratio of 1.08. This is amongst the best in the industry. NWE outperforms 96.00% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.08 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 0.88 |
ROIC/WACC0.56
WACC6.32%
2.3 Liquidity
NWE has a Current Ratio of 1.19. This is a normal value and indicates that NWE is financially healthy and should not expect problems in meeting its short term obligations.
NWE's Current ratio of 1.19 is amongst the best of the industry. NWE outperforms 92.00% of its industry peers.
A Quick Ratio of 0.89 indicates that NWE may have some problems paying its short term obligations.
NWE has a better Quick ratio (0.89) than 84.00% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.19 | ||
| Quick Ratio | 0.89 |
3. Growth
3.1 Past
NWE shows a slight negative growth in Earnings Per Share. In the last year, the EPS has decreased by -2.58%.
NWE shows a decrease in Earnings Per Share. Measured over the last years, the EPS has been decreasing by -0.12% yearly.
NWE shows a small growth in Revenue. In the last year, the Revenue has grown by 6.45%.
NWE shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 3.77% yearly.
EPS 1Y (TTM)-2.58%
EPS 3Y-2.34%
EPS 5Y-0.12%
EPS Q2Q%-24.53%
Revenue 1Y (TTM)6.45%
Revenue growth 3Y3.33%
Revenue growth 5Y3.77%
Sales Q2Q%7.13%
3.2 Future
Based on estimates for the next years, NWE will show a small growth in Earnings Per Share. The EPS will grow by 5.71% on average per year.
NWE is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 3.83% yearly.
EPS Next Y5.72%
EPS Next 2Y6.22%
EPS Next 3Y5.6%
EPS Next 5Y5.71%
Revenue Next Year3.41%
Revenue Next 2Y4.2%
Revenue Next 3Y3.9%
Revenue Next 5Y3.83%
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 stable.
4. Valuation
4.1 Price/Earnings Ratio
Based on the Price/Earnings ratio of 16.04, the valuation of NWE can be described as correct.
Based on the Price/Earnings ratio, NWE is valued a bit cheaper than the industry average as 64.00% of the companies are valued more expensively.
NWE is valuated rather cheaply when we compare the Price/Earnings ratio to 27.03, which is the current average of the S&P500 Index.
With a Price/Forward Earnings ratio of 14.22, NWE is valued correctly.
NWE's Price/Forward Earnings ratio is a bit cheaper when compared to the industry. NWE is cheaper than 64.00% of the companies in the same industry.
NWE is valuated cheaply when we compare the Price/Forward Earnings ratio to 36.28, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 16.04 | ||
| Fwd PE | 14.22 |
4.2 Price Multiples
NWE's Enterprise Value to EBITDA ratio is in line with the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 11.11 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
NWE has a very decent profitability rating, which may justify a higher PE ratio.
PEG (NY)2.81
PEG (5Y)N/A
EPS Next 2Y6.22%
EPS Next 3Y5.6%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 4.93%, NWE is a good candidate for dividend investing.
NWE's Dividend Yield is rather good when compared to the industry average which is at 3.57. NWE pays more dividend than 92.00% of the companies in the same industry.
Compared to an average S&P500 Dividend Yield of 2.40, NWE pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.93% |
5.2 History
The dividend of NWE has a limited annual growth rate of 2.53%.
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)2.53%
Div Incr Years19
Div Non Decr Years19
5.3 Sustainability
67.50% of the earnings are spent on dividend by NWE. This is not a sustainable payout ratio.
The dividend of NWE is growing, but earnings are growing more, so the dividend growth is sustainable.
DP67.5%
EPS Next 2Y6.22%
EPS Next 3Y5.6%
54.535
-0.17 (-0.3%)
Chartmill FA Rating
GICS SectorUtilities
GICS IndustryGroupUtilities
GICS IndustryMulti-Utilities
Earnings (Last)
Earnings (Next)
Inst Owners98.84%
Inst Owner Change-0.11%
Ins Owners0.59%
Ins Owner Change4.72%
Market Cap3.35B
Analysts75.38
Price Target62.22 (14.09%)
Short Float %2.2%
Short Ratio3.17
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.93% |
Yearly Dividend2.59
Dividend Growth(5Y)2.53%
DP67.5%
Div Incr Years19
Div Non Decr Years19
Ex-Date
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)0.69%
Min EPS beat(2)-1.24%
Max EPS beat(2)2.61%
EPS beat(4)2
Avg EPS beat(4)1.21%
Min EPS beat(4)-5.4%
Max EPS beat(4)8.87%
EPS beat(8)3
Avg EPS beat(8)-4.31%
EPS beat(12)4
Avg EPS beat(12)-6.11%
EPS beat(16)6
Avg EPS beat(16)-1.19%
Revenue beat(2)0
Avg Revenue beat(2)-5.28%
Min Revenue beat(2)-6.75%
Max Revenue beat(2)-3.82%
Revenue beat(4)1
Avg Revenue beat(4)-2.75%
Min Revenue beat(4)-6.75%
Max Revenue beat(4)2.04%
Revenue beat(8)1
Avg Revenue beat(8)-7.5%
Revenue beat(12)5
Avg Revenue beat(12)-1.75%
Revenue beat(16)8
Avg Revenue beat(16)0.53%
PT rev (1m)-0.41%
PT rev (3m)0.59%
EPS NQ rev (1m)-3.54%
EPS NQ rev (3m)-32.06%
EPS NY rev (1m)-0.43%
EPS NY rev (3m)-0.45%
Revenue NQ rev (1m)0.52%
Revenue NQ rev (3m)-0.74%
Revenue NY rev (1m)0.12%
Revenue NY rev (3m)0.06%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 16.04 | ||
| Fwd PE | 14.22 | ||
| P/S | 2.22 | ||
| P/FCF | N/A | ||
| P/OCF | 8.4 | ||
| P/B | 1.16 | ||
| P/tB | 1.32 | ||
| EV/EBITDA | 11.11 |
EPS(TTM)3.4
EY6.23%
EPS(NY)3.84
Fwd EY7.03%
FCF(TTM)-2.19
FCFYN/A
OCF(TTM)6.49
OCFY11.9%
SpS24.52
BVpS47.19
TBVpS41.36
PEG (NY)2.81
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.91% | ||
| ROE | 8.15% | ||
| ROCE | 4.49% | ||
| ROIC | 3.55% | ||
| ROICexc | 3.57% | ||
| ROICexgc | 3.75% | ||
| OM | 22.99% | ||
| PM (TTM) | 15.68% | ||
| GM | 73.61% | ||
| FCFM | N/A |
ROA(3y)2.62%
ROA(5y)2.61%
ROE(3y)7.23%
ROE(5y)7.43%
ROIC(3y)3.32%
ROIC(5y)3.29%
ROICexc(3y)3.32%
ROICexc(5y)3.3%
ROICexgc(3y)3.5%
ROICexgc(5y)3.48%
ROCE(3y)4.22%
ROCE(5y)4.19%
ROICexcg growth 3Y0.72%
ROICexcg growth 5Y-1.93%
ROICexc growth 3Y0.96%
ROICexc growth 5Y-1.66%
OM growth 3Y2.06%
OM growth 5Y-0.6%
PM growth 3Y2.84%
PM growth 5Y-1.62%
GM growth 3Y1.12%
GM growth 5Y-0.92%
F-Score6
Asset Turnover0.19
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.08 | ||
| Debt/FCF | N/A | ||
| Debt/EBITDA | 5.41 | ||
| Cap/Depr | 228.3% | ||
| Cap/Sales | 35.39% | ||
| Interest Coverage | 2.42 | ||
| Cash Conversion | 68.79% | ||
| Profit Quality | N/A | ||
| Current Ratio | 1.19 | ||
| Quick Ratio | 0.89 | ||
| Altman-Z | 0.88 |
F-Score6
WACC6.32%
ROIC/WACC0.56
Cap/Depr(3y)258.26%
Cap/Depr(5y)246.47%
Cap/Sales(3y)37%
Cap/Sales(5y)35.3%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)-2.58%
EPS 3Y-2.34%
EPS 5Y-0.12%
EPS Q2Q%-24.53%
EPS Next Y5.72%
EPS Next 2Y6.22%
EPS Next 3Y5.6%
EPS Next 5Y5.71%
Revenue 1Y (TTM)6.45%
Revenue growth 3Y3.33%
Revenue growth 5Y3.77%
Sales Q2Q%7.13%
Revenue Next Year3.41%
Revenue Next 2Y4.2%
Revenue Next 3Y3.9%
Revenue Next 5Y3.83%
EBIT growth 1Y12.9%
EBIT growth 3Y5.45%
EBIT growth 5Y3.15%
EBIT Next Year77.99%
EBIT Next 3Y25.19%
EBIT Next 5Y18.66%
FCF growth 1Y36.42%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y22.53%
OCF growth 3Y22.73%
OCF growth 5Y6.51%