NORTHWESTERN ENERGY GROUP IN (NWE) Stock Fundamental Analysis
NASDAQ:NWE - Nasdaq - US6680743050 - Common Stock - Currency: USD
Taking everything into account, NWE scores 4 out of 10 in our fundamental rating. NWE was compared to 25 industry peers in the Multi-Utilities industry. There are concerns on the financial health of NWE while its profitability can be described as average. NWE is valied quite expensively at the moment, while it does show a decent growth rate. Finally NWE also has an excellent dividend rating.
1. Profitability
1.1 Basic Checks
NWE had positive earnings in the past year.
NWE had a positive operating cash flow in the past year.
NWE had positive earnings in each of the past 5 years.
Each year in the past 5 years NWE had a positive operating cash flow.
1.2 Ratios
Looking at the Return On Assets, with a value of 2.91%, NWE is in the better half of the industry, outperforming 68.00% of the companies in the same industry.
Looking at the Return On Equity, with a value of 8.15%, NWE is doing worse than 64.00% of the companies in the same industry.
NWE's Return On Invested Capital of 3.55% is on the low side compared to the rest of the industry. NWE is outperformed by 72.00% of its industry peers.
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 3.83%.
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
NWE has a better Profit Margin (15.68%) than 80.00% of its industry peers.
In the last couple of years the Profit Margin of NWE has declined.
Looking at the Operating Margin, with a value of 22.99%, NWE is in the better half of the industry, outperforming 76.00% of the companies in the same industry.
NWE's Operating Margin has been stable in the last couple of years.
NWE has a better Gross Margin (73.61%) than 76.00% of its industry peers.
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
The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so NWE is destroying value.
Compared to 1 year ago, NWE has about the same amount of shares outstanding.
NWE has more shares outstanding than it did 5 years ago.
Compared to 1 year ago, NWE has a worse debt to assets ratio.
2.2 Solvency
NWE has an Altman-Z score of 0.88. This is a bad value and indicates that NWE is not financially healthy and even has some risk of bankruptcy.
NWE's Altman-Z score of 0.88 is fine compared to the rest of the industry. NWE outperforms 64.00% of its industry peers.
A Debt/Equity ratio of 1.08 is on the high side and indicates that NWE has dependencies on debt financing.
NWE's Debt to Equity ratio of 1.08 is amongst the best of 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/WACC0.55
WACC6.5%
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.
The Current ratio of NWE (1.19) is better than 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 Quick ratio of 0.89. This is amongst the best in the industry. NWE outperforms 92.00% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.19 | ||
| Quick Ratio | 0.89 |
3. Growth
3.1 Past
NWE shows a small growth in Earnings Per Share. In the last year, the EPS has grown by 6.65%.
The Earnings Per Share has been decreasing by -0.12% on average over the past years.
Looking at the last year, NWE shows a small growth in Revenue. The Revenue has grown by 4.31% in the last year.
NWE shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 3.77% yearly.
EPS 1Y (TTM)6.65%
EPS 3Y-2.34%
EPS 5Y-0.12%
EPS Q2Q%11.93%
Revenue 1Y (TTM)4.31%
Revenue growth 3Y3.33%
Revenue growth 5Y3.77%
Sales Q2Q%-1.83%
3.2 Future
NWE is expected to show a small growth in Earnings Per Share. In the coming years, the EPS will grow by 5.96% yearly.
NWE is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 4.23% yearly.
EPS Next Y6.32%
EPS Next 2Y7.05%
EPS Next 3Y6.02%
EPS Next 5Y5.96%
Revenue Next Year4.32%
Revenue Next 2Y4.47%
Revenue Next 3Y4%
Revenue Next 5Y4.23%
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 stable: in the next years the growth will be about the same than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
Based on the Price/Earnings ratio of 15.58, the valuation of NWE can be described as correct.
NWE's Price/Earnings is on the same level as the industry average.
NWE's Price/Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 25.82.
Based on the Price/Forward Earnings ratio of 14.11, the valuation of NWE can be described as correct.
Based on the Price/Forward 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/Forward Earnings ratio to 21.76, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 15.58 | ||
| Fwd PE | 14.11 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of NWE is on the same level as its industry peers.
| 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 NWE does not grow enough to justify the current Price/Earnings ratio.
The decent profitability rating of NWE may justify a higher PE ratio.
PEG (NY)2.47
PEG (5Y)N/A
EPS Next 2Y7.05%
EPS Next 3Y6.02%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 4.76%, NWE is a good candidate for dividend investing.
Compared to an average industry Dividend Yield of 3.67, NWE pays a better dividend. On top of this NWE pays more dividend than 88.00% of the companies listed in the same industry.
Compared to an average S&P500 Dividend Yield of 2.36, NWE pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.76% |
5.2 History
The dividend of NWE has a limited annual growth rate of 2.53%.
NWE has paid a dividend for at least 10 years, which is a reliable track record.
NWE has not decreased their dividend for at least 10 years, which is a reliable track record.
Dividend Growth(5Y)2.53%
Div Incr Years19
Div Non Decr Years19
5.3 Sustainability
NWE pays out 67.50% of its income as dividend. 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 2Y7.05%
EPS Next 3Y6.02%
54.98
+0.29 (+0.53%)
Chartmill FA Rating
GICS SectorUtilities
GICS IndustryGroupUtilities
GICS IndustryMulti-Utilities
Earnings (Last)
Earnings (Next)
Inst Owners100.76%
Inst Owner Change-1.09%
Ins Owners0.58%
Ins Owner Change4.23%
Market Cap3.37B
Analysts81.54
Price Target62.88 (14.37%)
Short Float %2.01%
Short Ratio2.18
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.76% |
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)2.86%
PT rev (3m)2.62%
EPS NQ rev (1m)-23.23%
EPS NQ rev (3m)-25.16%
EPS NY rev (1m)0.11%
EPS NY rev (3m)-7.67%
Revenue NQ rev (1m)-0.12%
Revenue NQ rev (3m)-0.87%
Revenue NY rev (1m)1%
Revenue NY rev (3m)-0.31%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 15.58 | ||
| Fwd PE | 14.11 | ||
| P/S | 2.24 | ||
| P/FCF | N/A | ||
| P/OCF | 8.46 | ||
| P/B | 1.16 | ||
| P/tB | 1.33 | ||
| EV/EBITDA | 11.11 |
EPS(TTM)3.53
EY6.42%
EPS(NY)3.9
Fwd EY7.09%
FCF(TTM)-2.19
FCFYN/A
OCF(TTM)6.5
OCFY11.82%
SpS24.54
BVpS47.23
TBVpS41.4
PEG (NY)2.47
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
WACC6.5%
ROIC/WACC0.55
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)6.65%
EPS 3Y-2.34%
EPS 5Y-0.12%
EPS Q2Q%11.93%
EPS Next Y6.32%
EPS Next 2Y7.05%
EPS Next 3Y6.02%
EPS Next 5Y5.96%
Revenue 1Y (TTM)4.31%
Revenue growth 3Y3.33%
Revenue growth 5Y3.77%
Sales Q2Q%-1.83%
Revenue Next Year4.32%
Revenue Next 2Y4.47%
Revenue Next 3Y4%
Revenue Next 5Y4.23%
EBIT growth 1Y12.9%
EBIT growth 3Y5.45%
EBIT growth 5Y3.15%
EBIT Next Year77.23%
EBIT Next 3Y26.41%
EBIT Next 5Y18.29%
FCF growth 1Y36.42%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y22.53%
OCF growth 3Y22.73%
OCF growth 5Y6.51%