NORTHWEST NATURAL HOLDING CO (NWN)
US66765N1054 - Common Stock
Taking everything into account, NWN scores 3 out of 10 in our fundamental rating. NWN was compared to 14 industry peers in the Gas Utilities industry. There are concerns on the financial health of NWN while its profitability can be described as average. While showing a medium growth rate, NWN is valued expensive at the moment. NWN also has an excellent dividend rating.
1. Profitability
1.1 Basic Checks
NWN had positive earnings in the past year.
In the past year NWN had a positive cash flow from operations.
NWN had positive earnings in each of the past 5 years.
Each year in the past 5 years NWN had a positive operating cash flow.
1.2 Ratios
Looking at the Return On Assets, with a value of 1.93%, NWN is in line with its industry, outperforming 42.86% of the companies in the same industry.
NWN has a Return On Equity (7.31%) which is in line with its industry peers.
With a Return On Invested Capital value of 3.24%, NWN is not doing good in the industry: 92.86% of the companies in the same industry are doing better.
Measured over the past 3 years, the Average Return On Invested Capital for NWN is in line with the industry average of 5.09%.
The 3 year average ROIC (3.18%) for NWN is below the current ROIC(3.24%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 1.93% | ||
| ROE | 7.31% | ||
| ROIC | 3.24% |
ROA(3y)1.89%
ROA(5y)1.91%
ROE(3y)7.69%
ROE(5y)7.77%
ROIC(3y)3.18%
ROIC(5y)3.16%
1.3 Margins
NWN has a Profit Margin of 7.84%. This is comparable to the rest of the industry: NWN outperforms 57.14% of its industry peers.
NWN's Profit Margin has declined in the last couple of years.
The Operating Margin of NWN (15.44%) is comparable to the rest of the industry.
In the last couple of years the Operating Margin of NWN has declined.
The Gross Margin of NWN (54.19%) is comparable to the rest of the industry.
In the last couple of years the Gross Margin of NWN has declined.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 15.44% | ||
| PM (TTM) | 7.84% | ||
| GM | 54.19% |
OM growth 3Y-6.97%
OM growth 5Y-2.66%
PM growth 3Y-7.57%
PM growth 5Y-3.04%
GM growth 3Y-4.45%
GM growth 5Y-1.52%
2. Health
2.1 Basic Checks
With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), NWN is destroying value.
The number of shares outstanding for NWN has been increased compared to 1 year ago.
The number of shares outstanding for NWN has been increased compared to 5 years ago.
The debt/assets ratio for NWN is higher compared to a year ago.
2.2 Solvency
Based on the Altman-Z score of 0.71, we must say that NWN is in the distress zone and has some risk of bankruptcy.
The Altman-Z score of NWN (0.71) is worse than 64.29% of its industry peers.
NWN has a Debt/Equity ratio of 1.18. This is a high value indicating a heavy dependency on external financing.
NWN has a Debt to Equity ratio (1.18) which is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.18 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 0.71 |
ROIC/WACC0.51
WACC6.33%
2.3 Liquidity
NWN has a Current Ratio of 0.86. This is a bad value and indicates that NWN is not financially healthy enough and could expect problems in meeting its short term obligations.
NWN has a better Current ratio (0.86) than 71.43% of its industry peers.
A Quick Ratio of 0.70 indicates that NWN may have some problems paying its short term obligations.
With a decent Quick ratio value of 0.70, NWN is doing good in the industry, outperforming 71.43% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.86 | ||
| Quick Ratio | 0.7 |
3. Growth
3.1 Past
NWN shows a slight negative growth in Earnings Per Share. In the last year, the EPS has decreased by -1.89%.
Measured over the past 5 years, NWN shows a small growth in Earnings Per Share. The EPS has been growing by 3.03% on average per year.
The Revenue has grown by 15.44% in the past year. This is quite good.
Measured over the past years, NWN shows a quite strong growth in Revenue. The Revenue has been growing by 11.14% on average per year.
EPS 1Y (TTM)-1.89%
EPS 3Y1.05%
EPS 5Y3.03%
EPS growth Q2Q-11.03%
Revenue 1Y (TTM)15.44%
Revenue growth 3Y15.67%
Revenue growth 5Y11.14%
Revenue growth Q2Q-5.21%
3.2 Future
NWN is expected to show a small growth in Earnings Per Share. In the coming years, the EPS will grow by 5.84% yearly.
NWN is expected to show a decrease in Revenue. In the coming years, the Revenue will decrease by -0.34% yearly.
EPS Next Y-10.73%
EPS Next 2Y4.44%
EPS Next 3Y4.76%
EPS Next 5Y5.84%
Revenue Next Year-1.67%
Revenue Next 2Y3.01%
Revenue Next 3Y1.67%
Revenue Next 5Y-0.34%
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 decreasing: in the next years the growth will be less than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
The Price/Earnings ratio is 14.92, which indicates a correct valuation of NWN.
78.57% of the companies in the same industry are more expensive than NWN, based on the Price/Earnings ratio.
NWN's Price/Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 28.06.
A Price/Forward Earnings ratio of 16.71 indicates a correct valuation of NWN.
Compared to the rest of the industry, the Price/Forward Earnings ratio of NWN is on the same level as its industry peers.
NWN's Price/Forward Earnings ratio indicates a similar valuation than the S&P500 average which is at 20.72.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 14.92 | ||
| Fwd PE | 16.71 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, NWN is valued a bit cheaper than the industry average as 64.29% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 9.72 |
4.3 Compensation for Growth
PEG (NY)N/A
PEG (5Y)4.93
EPS Next 2Y4.44%
EPS Next 3Y4.76%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 5.04%, NWN is a good candidate for dividend investing.
Compared to an average industry Dividend Yield of 4.52, NWN pays a bit more dividend than its industry peers.
Compared to an average S&P500 Dividend Yield of 2.41, NWN pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 5.04% |
5.2 History
The dividend of NWN has a limited annual growth rate of 0.67%.
NWN has been paying a dividend for at least 10 years, so it has a reliable track record.
NWN has not decreased its dividend for at least 10 years, so it has a reliable track record of non decreasing dividend.
Dividend Growth(5Y)0.67%
Div Incr Years19
Div Non Decr Years19
5.3 Sustainability
71.74% of the earnings are spent on dividend by NWN. This is not a sustainable payout ratio.
NWN's earnings are growing more than its dividend. This makes the dividend growth sustainable.
DP71.74%
EPS Next 2Y4.44%
EPS Next 3Y4.76%
NORTHWEST NATURAL HOLDING CO
NYSE:NWN (5/2/2024, 7:10:42 PM)
After market: 38.79 0 (0%)38.79
+0.62 (+1.62%)
Chartmill FA Rating
GICS SectorUtilities
GICS IndustryGroupUtilities
GICS IndustryGas Utilities
Earnings (Last)
Earnings (Next)
Inst Owners
Inst Owner Change
Ins Owners
Ins Owner Change
Market Cap1.48B
Analysts
Price Target
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 5.04% |
Dividend Growth(5Y)
DP
Div Incr Years
Div Non Decr Years
Ex-Date
Surprises & Revisions
EPS beat(2)
Avg EPS beat(2)
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EPS beat(8)
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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 | 14.92 | ||
| Fwd PE | 16.71 | ||
| 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)N/A
PEG (5Y)4.93
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 1.93% | ||
| ROE | 7.31% | ||
| ROCE | |||
| ROIC | |||
| ROICexc | |||
| ROICexgc | |||
| OM | 15.44% | ||
| PM (TTM) | 7.84% | ||
| GM | 54.19% | ||
| 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 Turnover0.25
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.18 | ||
| Debt/FCF | |||
| Debt/EBITDA | |||
| Cap/Depr | |||
| Cap/Sales | |||
| Interest Coverage | |||
| Cash Conversion | |||
| Profit Quality | |||
| Current Ratio | 0.86 | ||
| Quick Ratio | 0.7 | ||
| 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)-1.89%
EPS 3Y1.05%
EPS 5Y
EPS growth Q2Q
EPS Next Y-10.73%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)15.44%
Revenue growth 3Y15.67%
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