NORTHWESTERN ENERGY GROUP IN (NWE) Stock Fundamental Analysis
NASDAQ:NWE - Nasdaq - US6680743050 - Common Stock - Currency: USD
Overall NWE gets a fundamental rating of 5 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 correct valuation and a medium growth rate. Finally NWE also has an excellent dividend rating.
1. Profitability
1.1 Basic Checks
In the past year NWE was profitable.
NWE had a positive operating cash flow in the past year.
In the past 5 years NWE has always been profitable.
NWE had a positive operating cash flow in each of the past 5 years.
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.
NWE has a Return On Equity of 8.15%. This is in the lower half of the industry: NWE underperforms 64.00% of its industry peers.
The Return On Invested Capital of NWE (3.55%) is worse than 80.00% of its industry peers.
The Average Return On Invested Capital over the past 3 years for NWE is in line with the industry average of 3.92%.
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.
In the last couple of years the Operating Margin of NWE has remained more or less at the same level.
NWE's Gross Margin of 73.61% is amongst the best of the industry. NWE outperforms 84.00% 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 | 22.99% | ||
| 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.
The number of shares outstanding for NWE remains at a similar level compared to 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 0.86, we must say that NWE is in the distress zone and has some risk of bankruptcy.
NWE has a Altman-Z score (0.86) which 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 | 0.86 |
ROIC/WACC0.56
WACC6.33%
2.3 Liquidity
A Current Ratio of 1.19 indicates that NWE should not have too much problems paying 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 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
The Earnings Per Share has been growing slightly by 6.65% over the past year.
Measured over the past years, NWE shows a decrease in Earnings Per Share. The EPS has been decreasing by -0.12% on average per year.
NWE shows a small growth in Revenue. In the last year, the Revenue has grown by 4.31%.
The Revenue has been growing slightly by 3.77% on average over the past years.
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
Based on estimates for the next years, NWE will show a small growth in Earnings Per Share. The EPS will grow by 5.84% 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 Y6.32%
EPS Next 2Y7.05%
EPS Next 3Y6.02%
EPS Next 5Y5.84%
Revenue Next Year3.22%
Revenue Next 2Y3.79%
Revenue Next 3Y3.34%
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
With a Price/Earnings ratio of 14.49, NWE is valued correctly.
Based on the Price/Earnings ratio, NWE is valued a bit cheaper than 64.00% of the companies in the same industry.
NWE's Price/Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 26.57.
The Price/Forward Earnings ratio is 13.13, which indicates a correct valuation of NWE.
68.00% of the companies in the same industry are more expensive than NWE, based on the Price/Forward Earnings ratio.
NWE's Price/Forward Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 22.41.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 14.49 | ||
| Fwd PE | 13.13 |
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 | 10.79 |
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.
NWE has a very decent profitability rating, which may justify a higher PE ratio.
PEG (NY)2.29
PEG (5Y)N/A
EPS Next 2Y7.05%
EPS Next 3Y6.02%
5. Dividend
5.1 Amount
NWE has a Yearly Dividend Yield of 5.01%, which is a nice return.
NWE's Dividend Yield is a higher than the industry average which is at 4.23.
Compared to an average S&P500 Dividend Yield of 2.40, NWE pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 5.01% |
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
NWE pays out 67.50% 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.
DP67.5%
EPS Next 2Y7.05%
EPS Next 3Y6.02%
51.14
-0.48 (-0.93%)
Chartmill FA Rating
GICS SectorUtilities
GICS IndustryGroupUtilities
GICS IndustryMulti-Utilities
Earnings (Last)
Earnings (Next)
Inst Owners98.84%
Inst Owner Change-1.05%
Ins Owners0.59%
Ins Owner Change4.79%
Market Cap3.14B
Analysts80
Price Target62.67 (22.55%)
Short Float %2.02%
Short Ratio2.47
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 5.01% |
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)-0.33%
PT rev (3m)3.26%
EPS NQ rev (1m)-9.18%
EPS NQ rev (3m)-27.27%
EPS NY rev (1m)0%
EPS NY rev (3m)0.22%
Revenue NQ rev (1m)-0.99%
Revenue NQ rev (3m)-1.49%
Revenue NY rev (1m)-1.05%
Revenue NY rev (3m)0.13%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 14.49 | ||
| Fwd PE | 13.13 | ||
| P/S | 2.09 | ||
| P/FCF | N/A | ||
| P/OCF | 7.88 | ||
| P/B | 1.08 | ||
| P/tB | 1.24 | ||
| EV/EBITDA | 10.79 |
EPS(TTM)3.53
EY6.9%
EPS(NY)3.9
Fwd EY7.62%
FCF(TTM)-2.19
FCFYN/A
OCF(TTM)6.49
OCFY12.69%
SpS24.52
BVpS47.19
TBVpS41.36
PEG (NY)2.29
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 | 0.86 |
F-Score6
WACC6.33%
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)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 5Y5.84%
Revenue 1Y (TTM)4.31%
Revenue growth 3Y3.33%
Revenue growth 5Y3.77%
Sales Q2Q%-1.83%
Revenue Next Year3.22%
Revenue Next 2Y3.79%
Revenue Next 3Y3.34%
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%