NORTHWESTERN ENERGY GROUP IN (NWE) Stock Fundamental Analysis
USA - NASDAQ:NWE - US6680743050 - Common Stock
61.63 USD
+0.48 (+0.78%)
61.63 USD
0 (0%)
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. While NWE is still in line with the averages on profitability rating, there are concerns on its financial health. NWE has a expensive valuation and it also 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.
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
NWE has a Return On Assets of 2.77%. This is in the better half of the industry: NWE outperforms 72.00% of its industry peers.
NWE has a worse Return On Equity (7.83%) than 72.00% of its industry peers.
NWE's Return On Invested Capital of 3.54% is on the low side compared to the rest of the industry. NWE is outperformed by 72.00% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for NWE is in line with the industry average of 3.82%.
The 3 year average ROIC (3.32%) for NWE is below the current ROIC(3.54%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.77% | ||
| ROE | 7.83% | ||
| ROIC | 3.54% |
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 (14.76%) than 80.00% of its industry peers.
In the last couple of years the Profit Margin of NWE has declined.
The Operating Margin of NWE (22.59%) is better than 64.00% of its industry peers.
NWE's Operating Margin has been stable in the last couple of years.
The Gross Margin of NWE (74.08%) is better than 80.00% of its industry peers.
In the last couple of years the Gross Margin of NWE has remained more or less at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 22.59% | ||
| PM (TTM) | 14.76% | ||
| GM | 74.08% |
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.
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.
The debt/assets ratio for NWE is higher compared to a year ago.
2.2 Solvency
Based on the Altman-Z score of 0.89, we must say that NWE is in the distress zone and has some risk of bankruptcy.
NWE's Altman-Z score of 0.89 is in line compared to the rest of the industry. NWE outperforms 60.00% of its industry peers.
NWE has a Debt/Equity ratio of 1.09. This is a high value indicating a heavy dependency on external financing.
Looking at the Debt to Equity ratio, with a value of 1.09, NWE belongs to the top of the industry, outperforming 100.00% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.09 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 0.89 |
ROIC/WACC0.56
WACC6.35%
2.3 Liquidity
A Current Ratio of 0.75 indicates that NWE may have some problems paying its short term obligations.
The Current ratio of NWE (0.75) is worse than 72.00% of its industry peers.
NWE has a Quick Ratio of 0.75. This is a bad value and indicates that NWE is not financially healthy enough and could expect problems in meeting its short term obligations.
NWE's Quick ratio of 0.52 is on the low side compared to the rest of the industry. NWE is outperformed by 76.00% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.75 | ||
| Quick Ratio | 0.52 |
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 3.78%.
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)3.78%
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 5.48% on average per year.
The Revenue is expected to grow by 4.22% on average over the next years.
EPS Next Y6.41%
EPS Next 2Y6.94%
EPS Next 3Y5.95%
EPS Next 5Y5.48%
Revenue Next Year3.16%
Revenue Next 2Y3.89%
Revenue Next 3Y3.65%
Revenue Next 5Y4.22%
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.
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
NWE is valuated rather expensively with a Price/Earnings ratio of 18.13.
The rest of the industry has a similar Price/Earnings ratio as NWE.
NWE is valuated rather cheaply when we compare the Price/Earnings ratio to 27.57, which is the current average of the S&P500 Index.
A Price/Forward Earnings ratio of 15.85 indicates a correct valuation of NWE.
The rest of the industry has a similar Price/Forward Earnings ratio as NWE.
NWE is valuated rather cheaply when we compare the Price/Forward Earnings ratio to 23.09, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 18.13 | ||
| Fwd PE | 15.85 |
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 | 11.72 |
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)2.83
PEG (5Y)N/A
EPS Next 2Y6.94%
EPS Next 3Y5.95%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 4.47%, NWE is a good candidate for dividend investing.
NWE's Dividend Yield is rather good when compared to the industry average which is at 3.74. NWE pays more dividend than 84.00% of the companies in the same industry.
NWE's Dividend Yield is rather good when compared to the S&P500 average which is at 2.32.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.47% |
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 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
70.93% 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.
DP70.93%
EPS Next 2Y6.94%
EPS Next 3Y5.95%
61.63
+0.48 (+0.78%)
Chartmill FA Rating
GICS SectorUtilities
GICS IndustryGroupUtilities
GICS IndustryMulti-Utilities
Earnings (Last)
Earnings (Next)
Inst Owners101.55%
Inst Owner Change-0.52%
Ins Owners0.6%
Ins Owner Change0.69%
Market Cap3.78B
Revenue(TTM)1.53B
Net Income(TTM)225.54M
Analysts74
Price Target61.4 (-0.37%)
Short Float %1.4%
Short Ratio1.94
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.47% |
Yearly Dividend2.59
Dividend Growth(5Y)2.53%
DP70.93%
Div Incr Years19
Div Non Decr Years19
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)5.76%
Min EPS beat(2)2.61%
Max EPS beat(2)8.9%
EPS beat(4)2
Avg EPS beat(4)1.22%
Min EPS beat(4)-5.4%
Max EPS beat(4)8.9%
EPS beat(8)4
Avg EPS beat(8)0.93%
EPS beat(12)4
Avg EPS beat(12)-5.45%
EPS beat(16)6
Avg EPS beat(16)-4.14%
Revenue beat(2)1
Avg Revenue beat(2)-2.98%
Min Revenue beat(2)-6.75%
Max Revenue beat(2)0.78%
Revenue beat(4)1
Avg Revenue beat(4)-3.06%
Min Revenue beat(4)-6.75%
Max Revenue beat(4)0.78%
Revenue beat(8)2
Avg Revenue beat(8)-5.25%
Revenue beat(12)5
Avg Revenue beat(12)-2.85%
Revenue beat(16)8
Avg Revenue beat(16)-0.03%
PT rev (1m)0%
PT rev (3m)-1.31%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-1.77%
EPS NY rev (1m)-0.04%
EPS NY rev (3m)0.65%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)0.22%
Revenue NY rev (1m)-0.93%
Revenue NY rev (3m)-0.12%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 18.13 | ||
| Fwd PE | 15.85 | ||
| P/S | 2.48 | ||
| P/FCF | N/A | ||
| P/OCF | 9.59 | ||
| P/B | 1.31 | ||
| P/tB | 1.5 | ||
| EV/EBITDA | 11.72 |
EPS(TTM)3.4
EY5.52%
EPS(NY)3.89
Fwd EY6.31%
FCF(TTM)-2.09
FCFYN/A
OCF(TTM)6.42
OCFY10.42%
SpS24.89
BVpS46.9
TBVpS41.08
PEG (NY)2.83
PEG (5Y)N/A
Graham Number59.9
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.77% | ||
| ROE | 7.83% | ||
| ROCE | 4.54% | ||
| ROIC | 3.54% | ||
| ROICexc | 3.54% | ||
| ROICexgc | 3.72% | ||
| OM | 22.59% | ||
| PM (TTM) | 14.76% | ||
| GM | 74.08% | ||
| 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%
ROICexgc growth 3Y0.72%
ROICexgc 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 | 1.09 | ||
| Debt/FCF | N/A | ||
| Debt/EBITDA | 5.36 | ||
| Cap/Depr | 219.01% | ||
| Cap/Sales | 34.22% | ||
| Interest Coverage | 2.55 | ||
| Cash Conversion | 67.55% | ||
| Profit Quality | N/A | ||
| Current Ratio | 0.75 | ||
| Quick Ratio | 0.52 | ||
| Altman-Z | 0.89 |
F-Score6
WACC6.35%
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 Y6.41%
EPS Next 2Y6.94%
EPS Next 3Y5.95%
EPS Next 5Y5.48%
Revenue 1Y (TTM)3.78%
Revenue growth 3Y3.33%
Revenue growth 5Y3.77%
Sales Q2Q%7.13%
Revenue Next Year3.16%
Revenue Next 2Y3.89%
Revenue Next 3Y3.65%
Revenue Next 5Y4.22%
EBIT growth 1Y7.04%
EBIT growth 3Y5.45%
EBIT growth 5Y3.15%
EBIT Next Year85.69%
EBIT Next 3Y28.37%
EBIT Next 5Y18.66%
FCF growth 1Y26.89%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y7.06%
OCF growth 3Y22.73%
OCF growth 5Y6.51%