NORTHWEST NATURAL HOLDING CO (NWN) Stock Fundamental Analysis
NYSE:NWN - New York Stock Exchange, Inc. - US66765N1054 - Common Stock - Currency: USD
We assign a fundamental rating of 4 out of 10 to NWN. NWN was compared to 14 industry peers in the Gas Utilities industry. While NWN is still in line with the averages on profitability rating, there are concerns on its financial health. NWN has a decent growth rate and is not valued too expensively. NWN also has an excellent dividend rating.
1. Profitability
1.1 Basic Checks
In the past year NWN was profitable.
NWN had a positive operating cash flow in the past year.
Each year in the past 5 years NWN has been profitable.
NWN had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
NWN has a Return On Assets of 1.80%. This is in the lower half of the industry: NWN underperforms 78.57% of its industry peers.
NWN has a worse Return On Equity (7.07%) than 64.29% of its industry peers.
With a Return On Invested Capital value of 3.26%, NWN is not doing good in the industry: 92.86% of the companies in the same industry are doing better.
NWN had an Average Return On Invested Capital over the past 3 years of 3.03%. This is below the industry average of 6.29%.
The last Return On Invested Capital (3.26%) for NWN is above the 3 year average (3.03%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 1.8% | ||
| ROE | 7.07% | ||
| ROIC | 3.26% |
ROA(3y)1.75%
ROA(5y)1.85%
ROE(3y)6.78%
ROE(5y)7.48%
ROIC(3y)3.03%
ROIC(5y)3.09%
1.3 Margins
NWN's Profit Margin of 8.48% is in line compared 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.
NWN has a Operating Margin (19.42%) which is comparable to the rest of the industry.
NWN's Operating Margin has been stable in the last couple of years.
NWN's Gross Margin of 62.17% is in line compared to the rest of the industry. NWN outperforms 57.14% of its industry peers.
In the last couple of years the Gross Margin of NWN has remained more or less at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 19.42% | ||
| PM (TTM) | 8.48% | ||
| GM | 62.17% |
OM growth 3Y-4.37%
OM growth 5Y-0.3%
PM growth 3Y-9.23%
PM growth 5Y-3.72%
GM growth 3Y-1.06%
GM growth 5Y0.22%
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 0.70, we must say that NWN is in the distress zone and has some risk of bankruptcy.
With a Altman-Z score value of 0.70, NWN is not doing good in the industry: 71.43% of the companies in the same industry are doing better.
NWN has a Debt/Equity ratio of 1.56. This is a high value indicating a heavy dependency on external financing.
NWN has a worse Debt to Equity ratio (1.56) than 78.57% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.56 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 0.7 |
ROIC/WACC0.45
WACC7.23%
2.3 Liquidity
A Current Ratio of 1.05 indicates that NWN should not have too much problems paying its short term obligations.
Looking at the Current ratio, with a value of 1.05, NWN is in the better half of the industry, outperforming 78.57% of the companies in the same industry.
NWN has a Quick Ratio of 1.05. 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 Quick ratio (0.87) than 85.71% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.05 | ||
| Quick Ratio | 0.87 |
3. Growth
3.1 Past
NWN shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 23.25%, which is quite impressive.
The Earnings Per Share has been decreasing by -0.09% on average over the past years.
Looking at the last year, NWN shows a small growth in Revenue. The Revenue has grown by 3.88% in the last year.
Measured over the past years, NWN shows a quite strong growth in Revenue. The Revenue has been growing by 9.09% on average per year.
EPS 1Y (TTM)23.25%
EPS 3Y-3.23%
EPS 5Y-0.09%
EPS Q2Q%28.99%
Revenue 1Y (TTM)3.88%
Revenue growth 3Y10.25%
Revenue growth 5Y9.09%
Sales Q2Q%14.03%
3.2 Future
Based on estimates for the next years, NWN will show a quite strong growth in Earnings Per Share. The EPS will grow by 8.32% on average per year.
The Revenue is expected to grow by 5.10% on average over the next years.
EPS Next Y23.06%
EPS Next 2Y14.8%
EPS Next 3Y12.38%
EPS Next 5Y8.32%
Revenue Next Year12.85%
Revenue Next 2Y9.98%
Revenue Next 3Y10.19%
Revenue Next 5Y5.1%
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
A Price/Earnings ratio of 14.10 indicates a correct valuation of NWN.
64.29% of the companies in the same industry are more expensive than NWN, based on the Price/Earnings ratio.
NWN is valuated rather cheaply when we compare the Price/Earnings ratio to 26.34, which is the current average of the S&P500 Index.
A Price/Forward Earnings ratio of 12.95 indicates a correct valuation of NWN.
Based on the Price/Forward Earnings ratio, NWN is valued a bit cheaper than 71.43% of the companies in the same industry.
The average S&P500 Price/Forward Earnings ratio is at 22.19. NWN is valued slightly cheaper when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 14.1 | ||
| Fwd PE | 12.95 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of NWN indicates a somewhat cheap valuation: NWN is cheaper than 64.29% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 9.17 |
4.3 Compensation for Growth
NWN's low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
A more expensive valuation may be justified as NWN's earnings are expected to grow with 12.38% in the coming years.
PEG (NY)0.61
PEG (5Y)N/A
EPS Next 2Y14.8%
EPS Next 3Y12.38%
5. Dividend
5.1 Amount
NWN has a Yearly Dividend Yield of 4.87%, which is a nice return.
Compared to an average industry Dividend Yield of 4.01, NWN pays a better dividend. On top of this NWN pays more dividend than 85.71% of the companies listed in the same industry.
Compared to an average S&P500 Dividend Yield of 2.40, NWN pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.87% |
5.2 History
The dividend of NWN has a limited annual growth rate of 0.84%.
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)0.84%
Div Incr Years24
Div Non Decr Years24
5.3 Sustainability
72.07% 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.
DP72.07%
EPS Next 2Y14.8%
EPS Next 3Y12.38%
NYSE:NWN (6/20/2025, 1:05:46 PM)
39.61
-0.1 (-0.25%)
Chartmill FA Rating
GICS SectorUtilities
GICS IndustryGroupUtilities
GICS IndustryGas Utilities
Earnings (Last)
Earnings (Next)
Inst Owners82.69%
Inst Owner Change2.62%
Ins Owners0.75%
Ins Owner Change-7.32%
Market Cap1.60B
Analysts80
Price Target48.96 (23.61%)
Short Float %2.22%
Short Ratio2.77
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.87% |
Yearly Dividend1.87
Dividend Growth(5Y)0.84%
DP72.07%
Div Incr Years24
Div Non Decr Years24
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)6%
Min EPS beat(2)1.65%
Max EPS beat(2)10.35%
EPS beat(4)4
Avg EPS beat(4)17.13%
Min EPS beat(4)1.65%
Max EPS beat(4)45.99%
EPS beat(8)6
Avg EPS beat(8)40.01%
EPS beat(12)10
Avg EPS beat(12)47.73%
EPS beat(16)13
Avg EPS beat(16)41.49%
Revenue beat(2)1
Avg Revenue beat(2)-2.12%
Min Revenue beat(2)-7.05%
Max Revenue beat(2)2.82%
Revenue beat(4)2
Avg Revenue beat(4)-2.88%
Min Revenue beat(4)-9.64%
Max Revenue beat(4)2.82%
Revenue beat(8)4
Avg Revenue beat(8)-0.14%
Revenue beat(12)8
Avg Revenue beat(12)6.68%
Revenue beat(16)11
Avg Revenue beat(16)6.12%
PT rev (1m)2.56%
PT rev (3m)3%
EPS NQ rev (1m)11.43%
EPS NQ rev (3m)-47.62%
EPS NY rev (1m)0%
EPS NY rev (3m)-1.97%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)10.53%
Revenue NY rev (1m)-1.17%
Revenue NY rev (3m)3.05%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 14.1 | ||
| Fwd PE | 12.95 | ||
| P/S | 1.32 | ||
| P/FCF | N/A | ||
| P/OCF | 6.27 | ||
| P/B | 1.1 | ||
| P/tB | 1.45 | ||
| EV/EBITDA | 9.17 |
EPS(TTM)2.81
EY7.09%
EPS(NY)3.06
Fwd EY7.72%
FCF(TTM)-3.96
FCFYN/A
OCF(TTM)6.32
OCFY15.96%
SpS30.11
BVpS36.13
TBVpS27.33
PEG (NY)0.61
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 1.8% | ||
| ROE | 7.07% | ||
| ROCE | 4.54% | ||
| ROIC | 3.26% | ||
| ROICexc | 3.33% | ||
| ROICexgc | 3.57% | ||
| OM | 19.42% | ||
| PM (TTM) | 8.48% | ||
| GM | 62.17% | ||
| FCFM | N/A |
ROA(3y)1.75%
ROA(5y)1.85%
ROE(3y)6.78%
ROE(5y)7.48%
ROIC(3y)3.03%
ROIC(5y)3.09%
ROICexc(3y)3.05%
ROICexc(5y)3.11%
ROICexgc(3y)3.17%
ROICexgc(5y)3.21%
ROCE(3y)4.32%
ROCE(5y)4.52%
ROICexcg growth 3Y-2%
ROICexcg growth 5Y0.38%
ROICexc growth 3Y-2.67%
ROICexc growth 5Y-0.09%
OM growth 3Y-4.37%
OM growth 5Y-0.3%
PM growth 3Y-9.23%
PM growth 5Y-3.72%
GM growth 3Y-1.06%
GM growth 5Y0.22%
F-Score5
Asset Turnover0.21
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.56 | ||
| Debt/FCF | N/A | ||
| Debt/EBITDA | 5.59 | ||
| Cap/Depr | 242.26% | ||
| Cap/Sales | 34.14% | ||
| Interest Coverage | 2.83 | ||
| Cash Conversion | 62.66% | ||
| Profit Quality | N/A | ||
| Current Ratio | 1.05 | ||
| Quick Ratio | 0.87 | ||
| Altman-Z | 0.7 |
F-Score5
WACC7.23%
ROIC/WACC0.45
Cap/Depr(3y)266.77%
Cap/Depr(5y)264.49%
Cap/Sales(3y)31.39%
Cap/Sales(5y)32.73%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)23.25%
EPS 3Y-3.23%
EPS 5Y-0.09%
EPS Q2Q%28.99%
EPS Next Y23.06%
EPS Next 2Y14.8%
EPS Next 3Y12.38%
EPS Next 5Y8.32%
Revenue 1Y (TTM)3.88%
Revenue growth 3Y10.25%
Revenue growth 5Y9.09%
Sales Q2Q%14.03%
Revenue Next Year12.85%
Revenue Next 2Y9.98%
Revenue Next 3Y10.19%
Revenue Next 5Y5.1%
EBIT growth 1Y30.02%
EBIT growth 3Y5.43%
EBIT growth 5Y8.76%
EBIT Next Year118.83%
EBIT Next 3Y37.68%
EBIT Next 5Y24.24%
FCF growth 1Y-1.05%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y38.89%
OCF growth 3Y7.69%
OCF growth 5Y1.57%