NORTHWEST NATURAL HOLDING CO (NWN) Stock Fundamental Analysis
USA - NYSE:NWN - US66765N1054 - Common Stock
43.69 USD
+0.09 (+0.21%)
43.69 USD
0 (0%)
We assign a fundamental rating of 4 out of 10 to NWN. 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. NWN has a correct valuation and a medium growth rate. 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 1.78%, NWN is doing worse than 78.57% of the companies in the same industry.
NWN has a worse Return On Equity (7.08%) than 78.57% of its industry peers.
With a Return On Invested Capital value of 3.43%, 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 below the industry average of 6.32%.
The last Return On Invested Capital (3.43%) for NWN is above the 3 year average (3.03%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 1.78% | ||
| ROE | 7.08% | ||
| ROIC | 3.43% |
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 has a Profit Margin (8.34%) which is comparable to the rest of the industry.
NWN's Profit Margin has declined in the last couple of years.
Looking at the Operating Margin, with a value of 19.96%, NWN is in line with its industry, outperforming 50.00% of the companies in the same industry.
In the last couple of years the Operating Margin of NWN has remained more or less at the same level.
With a Gross Margin value of 63.68%, NWN perfoms like the industry average, outperforming 57.14% of the companies in the same industry.
NWN's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 19.96% | ||
| PM (TTM) | 8.34% | ||
| GM | 63.68% |
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
NWN has a Return on Invested Capital (ROIC), which is below the Cost of Capital (WACC), which means it 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
NWN has a worse debt/assets ratio than last year.
2.2 Solvency
Based on the Altman-Z score of 0.67, we must say that NWN is in the distress zone and has some risk of bankruptcy.
With a Altman-Z score value of 0.67, NWN is not doing good in the industry: 71.43% of the companies in the same industry are doing better.
A Debt/Equity ratio of 1.54 is on the high side and indicates that NWN has dependencies on debt financing.
NWN has a Debt to Equity ratio of 1.54. This is in the lower half of the industry: NWN underperforms 78.57% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.54 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 0.67 |
ROIC/WACC0.58
WACC5.88%
2.3 Liquidity
NWN has a Current Ratio of 0.68. 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 Current ratio (0.68) which is comparable to the rest of the industry.
NWN has a Quick Ratio of 0.68. 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 0.52. This is comparable to the rest of the industry: NWN outperforms 57.14% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.68 | ||
| Quick Ratio | 0.52 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an impressive 32.57% over the past year.
The Earnings Per Share has been decreasing by -0.09% on average over the past years.
NWN shows quite a strong growth in Revenue. In the last year, the Revenue has grown by 8.40%.
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)32.57%
EPS 3Y-3.23%
EPS 5Y-0.09%
EPS Q2Q%114.29%
Revenue 1Y (TTM)8.4%
Revenue growth 3Y10.25%
Revenue growth 5Y9.09%
Sales Q2Q%11.56%
3.2 Future
NWN is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 8.16% yearly.
The Revenue is expected to grow by 5.10% on average over the next years.
EPS Next Y27.12%
EPS Next 2Y15.42%
EPS Next 3Y12.03%
EPS Next 5Y8.16%
Revenue Next Year13.52%
Revenue Next 2Y9.52%
Revenue Next 3Y8.45%
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.
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
The Price/Earnings ratio is 15.12, which indicates a correct valuation of NWN.
Compared to the rest of the industry, the Price/Earnings ratio of NWN indicates a somewhat cheap valuation: NWN is cheaper than 64.29% of the companies listed in the same industry.
Compared to an average S&P500 Price/Earnings ratio of 27.06, NWN is valued a bit cheaper.
Based on the Price/Forward Earnings ratio of 14.14, the valuation of NWN can be described as correct.
Based on the Price/Forward Earnings ratio, NWN is valued a bit cheaper than the industry average as 71.43% of the companies are valued more expensively.
When comparing the Price/Forward Earnings ratio of NWN to the average of the S&P500 Index (22.64), we can say NWN is valued slightly cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 15.12 | ||
| Fwd PE | 14.14 |
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 | 9.04 |
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 12.03% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.56
PEG (5Y)N/A
EPS Next 2Y15.42%
EPS Next 3Y12.03%
5. Dividend
5.1 Amount
NWN has a Yearly Dividend Yield of 4.62%, which is a nice return.
Compared to an average industry Dividend Yield of 3.97, 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 2.38, NWN pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.62% |
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
73.06% of the earnings are spent on dividend by NWN. This is not a sustainable payout ratio.
The dividend of NWN is growing, but earnings are growing more, so the dividend growth is sustainable.
DP73.06%
EPS Next 2Y15.42%
EPS Next 3Y12.03%
43.69
+0.09 (+0.21%)
Chartmill FA Rating
GICS SectorUtilities
GICS IndustryGroupUtilities
GICS IndustryGas Utilities
Earnings (Last)
Earnings (Next)
Inst Owners85.58%
Inst Owner Change3.59%
Ins Owners0.72%
Ins Owner Change-15.63%
Market Cap1.79B
Analysts85
Price Target53.04 (21.4%)
Short Float %1.86%
Short Ratio2.94
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.62% |
Yearly Dividend1.87
Dividend Growth(5Y)0.84%
DP73.06%
Div Incr Years24
Div Non Decr Years24
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)59.04%
Min EPS beat(2)10.35%
Max EPS beat(2)107.74%
EPS beat(4)4
Avg EPS beat(4)32.57%
Min EPS beat(4)1.65%
Max EPS beat(4)107.74%
EPS beat(8)6
Avg EPS beat(8)20.72%
EPS beat(12)10
Avg EPS beat(12)38.06%
EPS beat(16)13
Avg EPS beat(16)42.86%
Revenue beat(2)1
Avg Revenue beat(2)-2.32%
Min Revenue beat(2)-7.45%
Max Revenue beat(2)2.82%
Revenue beat(4)2
Avg Revenue beat(4)-2.33%
Min Revenue beat(4)-7.45%
Max Revenue beat(4)2.82%
Revenue beat(8)3
Avg Revenue beat(8)-2.9%
Revenue beat(12)7
Avg Revenue beat(12)4.16%
Revenue beat(16)10
Avg Revenue beat(16)5.45%
PT rev (1m)2.97%
PT rev (3m)6.56%
EPS NQ rev (1m)0%
EPS NQ rev (3m)4.89%
EPS NY rev (1m)0%
EPS NY rev (3m)3.3%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)2.14%
Revenue NY rev (1m)0%
Revenue NY rev (3m)0.89%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 15.12 | ||
| Fwd PE | 14.14 | ||
| P/S | 1.44 | ||
| P/FCF | N/A | ||
| P/OCF | 7.58 | ||
| P/B | 1.23 | ||
| P/tB | 1.64 | ||
| EV/EBITDA | 9.04 |
EPS(TTM)2.89
EY6.61%
EPS(NY)3.09
Fwd EY7.07%
FCF(TTM)-4.45
FCFYN/A
OCF(TTM)5.76
OCFY13.19%
SpS30.25
BVpS35.64
TBVpS26.58
PEG (NY)0.56
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 1.78% | ||
| ROE | 7.08% | ||
| ROCE | 4.84% | ||
| ROIC | 3.43% | ||
| ROICexc | 3.5% | ||
| ROICexgc | 3.77% | ||
| OM | 19.96% | ||
| PM (TTM) | 8.34% | ||
| GM | 63.68% | ||
| 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 | 1.54 | ||
| Debt/FCF | N/A | ||
| Debt/EBITDA | 5.19 | ||
| Cap/Depr | 225.57% | ||
| Cap/Sales | 33.77% | ||
| Interest Coverage | 2.78 | ||
| Cash Conversion | 54.56% | ||
| Profit Quality | N/A | ||
| Current Ratio | 0.68 | ||
| Quick Ratio | 0.52 | ||
| Altman-Z | 0.67 |
F-Score5
WACC5.88%
ROIC/WACC0.58
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)32.57%
EPS 3Y-3.23%
EPS 5Y-0.09%
EPS Q2Q%114.29%
EPS Next Y27.12%
EPS Next 2Y15.42%
EPS Next 3Y12.03%
EPS Next 5Y8.16%
Revenue 1Y (TTM)8.4%
Revenue growth 3Y10.25%
Revenue growth 5Y9.09%
Sales Q2Q%11.56%
Revenue Next Year13.52%
Revenue Next 2Y9.52%
Revenue Next 3Y8.45%
Revenue Next 5Y5.1%
EBIT growth 1Y34.98%
EBIT growth 3Y5.43%
EBIT growth 5Y8.76%
EBIT Next Year118.87%
EBIT Next 3Y37.68%
EBIT Next 5Y24.24%
FCF growth 1Y-172.66%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y-5.22%
OCF growth 3Y7.69%
OCF growth 5Y1.57%