NORTHWEST NATURAL HOLDING CO (NWN) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:NWN - US66765N1054 - Common Stock
46.74 USD
-0.15 (-0.32%)
46.74 USD
0 (0%)
Overall NWN gets a fundamental rating of 3 out of 10. We evaluated NWN 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 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.
NWN had positive earnings in each of the past 5 years.
In the past 5 years NWN always reported a positive cash flow from operatings.
1.2 Ratios
Looking at the Return On Assets, with a value of 1.72%, NWN is doing worse than 85.71% of the companies in the same industry.
NWN's Return On Equity of 7.01% is on the low side compared to the rest of the industry. NWN is outperformed by 78.57% of its industry peers.
The Return On Invested Capital of NWN (3.50%) is worse than 85.71% of its industry peers.
NWN had an Average Return On Invested Capital over the past 3 years of 3.03%. This is below the industry average of 6.27%.
The last Return On Invested Capital (3.50%) for NWN is above the 3 year average (3.03%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 1.72% | ||
| ROE | 7.01% | ||
| ROIC | 3.5% |
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 of 7.94%. This is in the lower half of the industry: NWN underperforms 71.43% of its industry peers.
In the last couple of years the Profit Margin of NWN has declined.
NWN's Operating Margin of 20.07% is in line compared to the rest of the industry. NWN outperforms 57.14% of its industry peers.
NWN's Operating Margin has been stable in the last couple of years.
With a decent Gross Margin value of 64.40%, NWN is doing good in the industry, outperforming 64.29% of the companies in the same 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 | 20.07% | ||
| PM (TTM) | 7.94% | ||
| GM | 64.4% |
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 0.66, we must say that NWN is in the distress zone and has some risk of bankruptcy.
NWN's Altman-Z score of 0.66 is on the low side compared to the rest of the industry. NWN is outperformed by 71.43% of its industry peers.
NWN has a Debt/Equity ratio of 1.62. This is a high value indicating a heavy dependency on external financing.
The Debt to Equity ratio of NWN (1.62) is worse than 78.57% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.62 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 0.66 |
ROIC/WACC0.58
WACC6.01%
2.3 Liquidity
A Current Ratio of 0.59 indicates that NWN may have some problems paying its short term obligations.
Looking at the Current ratio, with a value of 0.59, NWN is in line with its industry, outperforming 42.86% of the companies in the same industry.
NWN has a Quick Ratio of 0.59. This is a bad value and indicates that NWN is not financially healthy enough and could expect problems in meeting its short term obligations.
Looking at the Quick ratio, with a value of 0.43, NWN is in line with its industry, outperforming 50.00% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.59 | ||
| Quick Ratio | 0.43 |
3. Growth
3.1 Past
NWN shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 35.38%, 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 quite strong growth in Revenue. The Revenue has grown by 11.27% in the last 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)35.38%
EPS 3Y-3.23%
EPS 5Y-0.09%
EPS Q2Q%-2.82%
Revenue 1Y (TTM)11.27%
Revenue growth 3Y10.25%
Revenue growth 5Y9.09%
Sales Q2Q%20.3%
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 9.04% on average per year.
Based on estimates for the next years, NWN will show a small growth in Revenue. The Revenue will grow by 6.47% on average per year.
EPS Next Y26.54%
EPS Next 2Y14.38%
EPS Next 3Y12.26%
EPS Next 5Y9.04%
Revenue Next Year10.85%
Revenue Next 2Y8.68%
Revenue Next 3Y7.13%
Revenue Next 5Y6.47%
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.
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 16.29, which indicates a correct valuation of NWN.
Based on the Price/Earnings ratio, NWN is valued a bit cheaper than 64.29% of the companies in the same industry.
When comparing the Price/Earnings ratio of NWN to the average of the S&P500 Index (26.51), we can say NWN is valued slightly cheaper.
With a Price/Forward Earnings ratio of 15.40, NWN is valued correctly.
Compared to the rest of the industry, the Price/Forward Earnings ratio of NWN is on the same level as its industry peers.
NWN is valuated rather cheaply when we compare the Price/Forward Earnings ratio to 23.13, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 16.29 | ||
| Fwd PE | 15.4 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, NWN is valued a bit cheaper than 64.29% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 9.5 |
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 12.26% in the coming years.
PEG (NY)0.61
PEG (5Y)N/A
EPS Next 2Y14.38%
EPS Next 3Y12.26%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 4.18%, NWN is a good candidate for dividend investing.
NWN's Dividend Yield is rather good when compared to the industry average which is at 3.83. NWN pays more dividend than 85.71% of the companies in the same industry.
NWN's Dividend Yield is rather good when compared to the S&P500 average which is at 2.00.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.18% |
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 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 76.25% 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.
DP76.25%
EPS Next 2Y14.38%
EPS Next 3Y12.26%
46.74
-0.15 (-0.32%)
Chartmill FA Rating
GICS SectorUtilities
GICS IndustryGroupUtilities
GICS IndustryGas Utilities
Earnings (Last)
Earnings (Next)
Inst Owners82.98%
Inst Owner Change1.73%
Ins Owners0.58%
Ins Owner Change-17.29%
Market Cap1.94B
Revenue(TTM)1.27B
Net Income(TTM)100.53M
Analysts86.67
Price Target53.81 (15.13%)
Short Float %3.02%
Short Ratio4.55
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.18% |
Yearly Dividend1.87
Dividend Growth(5Y)0.84%
DP76.25%
Div Incr Years24
Div Non Decr Years24
Ex-DateN/A
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)60.12%
Min EPS beat(2)12.5%
Max EPS beat(2)107.74%
EPS beat(4)4
Avg EPS beat(4)33.06%
Min EPS beat(4)1.65%
Max EPS beat(4)107.74%
EPS beat(8)6
Avg EPS beat(8)21.88%
EPS beat(12)10
Avg EPS beat(12)37.18%
EPS beat(16)13
Avg EPS beat(16)42.99%
Revenue beat(2)0
Avg Revenue beat(2)-7.13%
Min Revenue beat(2)-7.45%
Max Revenue beat(2)-6.8%
Revenue beat(4)1
Avg Revenue beat(4)-4.62%
Min Revenue beat(4)-7.45%
Max Revenue beat(4)2.82%
Revenue beat(8)2
Avg Revenue beat(8)-4.24%
Revenue beat(12)6
Avg Revenue beat(12)2.76%
Revenue beat(16)10
Avg Revenue beat(16)5.05%
PT rev (1m)0%
PT rev (3m)1.44%
EPS NQ rev (1m)-1.97%
EPS NQ rev (3m)-6.66%
EPS NY rev (1m)0.09%
EPS NY rev (3m)-0.2%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-5.01%
Revenue NY rev (1m)-2.5%
Revenue NY rev (3m)-2.35%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 16.29 | ||
| Fwd PE | 15.4 | ||
| P/S | 1.53 | ||
| P/FCF | N/A | ||
| P/OCF | 7.87 | ||
| P/B | 1.35 | ||
| P/tB | 1.83 | ||
| EV/EBITDA | 9.5 |
EPS(TTM)2.87
EY6.14%
EPS(NY)3.04
Fwd EY6.49%
FCF(TTM)-4.49
FCFYN/A
OCF(TTM)5.94
OCFY12.7%
SpS30.5
BVpS34.55
TBVpS25.61
PEG (NY)0.61
PEG (5Y)N/A
Graham Number47.23
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 1.72% | ||
| ROE | 7.01% | ||
| ROCE | 4.97% | ||
| ROIC | 3.5% | ||
| ROICexc | 3.52% | ||
| ROICexgc | 3.79% | ||
| OM | 20.07% | ||
| PM (TTM) | 7.94% | ||
| GM | 64.4% | ||
| 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%
ROICexgc growth 3Y-2%
ROICexgc 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 Turnover0.22
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.62 | ||
| Debt/FCF | N/A | ||
| Debt/EBITDA | 5.32 | ||
| Cap/Depr | 236.47% | ||
| Cap/Sales | 34.18% | ||
| Interest Coverage | 2.45 | ||
| Cash Conversion | 56.38% | ||
| Profit Quality | N/A | ||
| Current Ratio | 0.59 | ||
| Quick Ratio | 0.43 | ||
| Altman-Z | 0.66 |
F-Score5
WACC6.01%
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)35.38%
EPS 3Y-3.23%
EPS 5Y-0.09%
EPS Q2Q%-2.82%
EPS Next Y26.54%
EPS Next 2Y14.38%
EPS Next 3Y12.26%
EPS Next 5Y9.04%
Revenue 1Y (TTM)11.27%
Revenue growth 3Y10.25%
Revenue growth 5Y9.09%
Sales Q2Q%20.3%
Revenue Next Year10.85%
Revenue Next 2Y8.68%
Revenue Next 3Y7.13%
Revenue Next 5Y6.47%
EBIT growth 1Y40.09%
EBIT growth 3Y5.43%
EBIT growth 5Y8.76%
EBIT Next Year123.93%
EBIT Next 3Y36.39%
EBIT Next 5Y23.44%
FCF growth 1Y-302.55%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y-12.99%
OCF growth 3Y7.69%
OCF growth 5Y1.57%
NORTHWEST NATURAL HOLDING CO / NWN FAQ
What is the fundamental rating for NWN stock?
ChartMill assigns a fundamental rating of 3 / 10 to NWN.
What is the valuation status of NORTHWEST NATURAL HOLDING CO (NWN) stock?
ChartMill assigns a valuation rating of 4 / 10 to NORTHWEST NATURAL HOLDING CO (NWN). This can be considered as Fairly Valued.
What is the profitability of NWN stock?
NORTHWEST NATURAL HOLDING CO (NWN) has a profitability rating of 4 / 10.
What is the valuation of NORTHWEST NATURAL HOLDING CO based on its PE and PB ratios?
The Price/Earnings (PE) ratio for NORTHWEST NATURAL HOLDING CO (NWN) is 16.29 and the Price/Book (PB) ratio is 1.35.
Is the dividend of NORTHWEST NATURAL HOLDING CO sustainable?
The dividend rating of NORTHWEST NATURAL HOLDING CO (NWN) is 8 / 10 and the dividend payout ratio is 76.25%.