NORTHWEST NATURAL HOLDING CO (NWN) Stock Fundamental Analysis
NYSE:NWN - New York Stock Exchange, Inc. - US66765N1054 - Common Stock - Currency: USD
NWN gets a fundamental rating of 4 out of 10. The analysis compared the fundamentals against 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 correct valuation and a medium growth rate. 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.
In the past 5 years NWN always reported a positive cash flow from operatings.
1.2 Ratios
NWN's Return On Assets of 1.80% is on the low side compared to the rest of the industry. NWN is outperformed by 78.57% of its industry peers.
NWN has a worse Return On Equity (7.07%) than 64.29% of its industry peers.
The Return On Invested Capital of NWN (3.26%) is worse than 92.86% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for NWN 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
With a Profit Margin value of 8.48%, NWN perfoms like the industry average, outperforming 57.14% of the companies in the same industry.
NWN's Profit Margin has declined in the last couple of years.
NWN's Operating Margin of 19.42% is in line compared to the rest of the industry. NWN outperforms 50.00% of its industry peers.
In the last couple of years the Operating Margin of NWN has remained more or less at the same level.
NWN has a Gross Margin (62.17%) which is comparable to the rest of the industry.
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
The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so NWN is destroying value.
The number of shares outstanding for NWN has been increased compared to 1 year ago.
Compared to 5 years ago, NWN has more shares outstanding
Compared to 1 year ago, NWN has a worse debt to assets ratio.
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.
NWN has a worse Altman-Z score (0.71) than 71.43% of its industry peers.
NWN has a Debt/Equity ratio of 1.56. This is a high value indicating a heavy dependency on external financing.
The Debt to Equity ratio of NWN (1.56) is worse than 78.57% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.56 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 0.71 |
ROIC/WACC0.55
WACC5.89%
2.3 Liquidity
NWN has a Current Ratio of 1.05. This is a normal value and indicates that NWN is financially healthy and should not expect problems in meeting its short term obligations.
NWN's Current ratio of 1.05 is fine compared to the rest of the industry. NWN outperforms 78.57% of its industry peers.
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 Quick ratio of 0.87. This is amongst the best in the industry. NWN outperforms 85.71% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.05 | ||
| Quick Ratio | 0.87 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an impressive 23.25% over the past year.
Measured over the past years, NWN shows a decrease in Earnings Per Share. The EPS has been decreasing by -0.09% on average per year.
The Revenue has been growing slightly by 3.88% in the past year.
NWN shows quite a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 9.09% yearly.
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
The Earnings Per Share is expected to grow by 8.69% on average over the next years. This is quite good.
NWN is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 4.72% yearly.
EPS Next Y23.06%
EPS Next 2Y14.8%
EPS Next 3Y12.38%
EPS Next 5Y8.69%
Revenue Next Year14.19%
Revenue Next 2Y11.26%
Revenue Next 3Y13.96%
Revenue Next 5Y4.72%
3.3 Evolution
The EPS growth rate is accelerating: in the next years the growth will be better than in the last years.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.
4. Valuation
4.1 Price/Earnings Ratio
With a Price/Earnings ratio of 14.58, NWN is valued correctly.
NWN's Price/Earnings is on the same level as the industry average.
When comparing the Price/Earnings ratio of NWN to the average of the S&P500 Index (26.17), we can say NWN is valued slightly cheaper.
With a Price/Forward Earnings ratio of 13.40, NWN is valued correctly.
71.43% of the companies in the same industry are more expensive than NWN, based on the Price/Forward Earnings ratio.
The average S&P500 Price/Forward Earnings ratio is at 22.10. NWN is valued slightly cheaper when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 14.58 | ||
| Fwd PE | 13.4 |
4.2 Price Multiples
NWN's Enterprise Value to EBITDA ratio is a bit cheaper when compared to the industry. NWN is cheaper than 71.43% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 9.34 |
4.3 Compensation for Growth
The low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
NWN's earnings are expected to grow with 12.38% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.63
PEG (5Y)N/A
EPS Next 2Y14.8%
EPS Next 3Y12.38%
5. Dividend
5.1 Amount
NWN has a Yearly Dividend Yield of 4.79%, which is a nice return.
NWN's Dividend Yield is rather good when compared to the industry average which is at 3.98. NWN pays more dividend than 85.71% of the companies 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 | 4.79% |
5.2 History
The dividend of NWN has a limited annual growth rate of 0.84%.
NWN has paid a dividend for at least 10 years, which is a reliable track record.
NWN has not decreased their dividend for at least 10 years, which is a reliable track record.
Dividend Growth(5Y)0.84%
Div Incr Years24
Div Non Decr Years24
5.3 Sustainability
NWN pays out 72.07% of its income as dividend. This is not a sustainable payout ratio.
The dividend of NWN is growing, but earnings are growing more, so the dividend growth is sustainable.
DP72.07%
EPS Next 2Y14.8%
EPS Next 3Y12.38%
40.96
-0.45 (-1.09%)
Chartmill FA Rating
GICS SectorUtilities
GICS IndustryGroupUtilities
GICS IndustryGas Utilities
Earnings (Last)
Earnings (Next)
Inst Owners81.74%
Inst Owner Change2.59%
Ins Owners0.84%
Ins Owner Change-7.32%
Market Cap1.65B
Analysts80
Price Target47.74 (16.55%)
Short Float %3.53%
Short Ratio4.59
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.79% |
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)0%
PT rev (3m)0.43%
EPS NQ rev (1m)-42.86%
EPS NQ rev (3m)21.05%
EPS NY rev (1m)-0.93%
EPS NY rev (3m)-1.97%
Revenue NQ rev (1m)10.53%
Revenue NQ rev (3m)13.74%
Revenue NY rev (1m)3.64%
Revenue NY rev (3m)5.39%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 14.58 | ||
| Fwd PE | 13.4 | ||
| P/S | 1.36 | ||
| P/FCF | N/A | ||
| P/OCF | 6.48 | ||
| P/B | 1.13 | ||
| P/tB | 1.5 | ||
| EV/EBITDA | 9.34 |
EPS(TTM)2.81
EY6.86%
EPS(NY)3.06
Fwd EY7.47%
FCF(TTM)-3.96
FCFYN/A
OCF(TTM)6.32
OCFY15.44%
SpS30.11
BVpS36.13
TBVpS27.33
PEG (NY)0.63
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 | 0.71 |
F-Score5
WACC5.89%
ROIC/WACC0.55
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 5Y8.69%
Revenue 1Y (TTM)3.88%
Revenue growth 3Y10.25%
Revenue growth 5Y9.09%
Sales Q2Q%14.03%
Revenue Next Year14.19%
Revenue Next 2Y11.26%
Revenue Next 3Y13.96%
Revenue Next 5Y4.72%
EBIT growth 1Y30.02%
EBIT growth 3Y5.43%
EBIT growth 5Y8.76%
EBIT Next Year118.83%
EBIT Next 3Y37.68%
EBIT Next 5Y22.92%
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%