NORTHWEST NATURAL HOLDING CO (NWN) Stock Fundamental Analysis
NYSE:NWN - New York Stock Exchange, Inc. - US66765N1054 - Common Stock - Currency: USD
Overall NWN gets a fundamental rating of 3 out of 10. We evaluated NWN against 14 industry peers in the Gas Utilities industry. Both the profitability and financial health of NWN have multiple concerns. 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
NWN has a Return On Assets of 1.51%. This is in the lower half of the industry: NWN underperforms 78.57% of its industry peers.
NWN has a worse Return On Equity (5.69%) than 71.43% of its industry peers.
NWN has a Return On Invested Capital of 2.94%. This is amonst the worse of the industry: NWN underperforms 92.86% of its industry peers.
NWN had an Average Return On Invested Capital over the past 3 years of 3.03%. This is significantly below the industry average of 8.03%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 1.51% | ||
| ROE | 5.69% | ||
| ROIC | 2.94% |
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 6.84% is in line compared to the rest of the industry. NWN outperforms 42.86% of its industry peers.
In the last couple of years the Profit Margin of NWN has declined.
NWN has a Operating Margin of 16.58%. This is comparable to the rest of the industry: NWN outperforms 42.86% 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 of 60.04%. This is comparable to the rest of the industry: NWN outperforms 42.86% of its industry peers.
NWN's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 16.58% | ||
| PM (TTM) | 6.84% | ||
| GM | 60.04% |
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.
Compared to 1 year ago, NWN has more shares outstanding
NWN has more shares outstanding than it did 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.
NWN has a worse Altman-Z score (0.70) than 71.43% of its industry peers.
A Debt/Equity ratio of 1.33 is on the high side and indicates that NWN has dependencies on debt financing.
Looking at the Debt to Equity ratio, with a value of 1.33, NWN is in line with its industry, outperforming 42.86% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.33 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 0.7 |
ROIC/WACC0.49
WACC5.96%
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.
The Current ratio of NWN (0.86) is better than 71.43% of its industry peers.
NWN has a Quick 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.
With a decent Quick ratio value of 0.69, 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 | 0.69 |
3. Growth
3.1 Past
NWN shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -10.77%.
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 decreased by -3.71% 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)-10.77%
EPS 3Y-3.23%
EPS 5Y-0.09%
EPS Q2Q%16.53%
Revenue 1Y (TTM)-3.71%
Revenue growth 3Y10.25%
Revenue growth 5Y9.09%
Sales Q2Q%4.26%
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 8.69% on average per year.
Based on estimates for the next years, NWN will show a small growth in Revenue. The Revenue will grow by 4.72% on average per year.
EPS Next Y24.22%
EPS Next 2Y15.04%
EPS Next 3Y12.49%
EPS Next 5Y8.69%
Revenue Next Year10.18%
Revenue Next 2Y8.18%
Revenue Next 3Y9.83%
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.
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 18.81, which indicates a rather expensive current valuation of NWN.
NWN's Price/Earnings is on the same level as the industry average.
NWN's Price/Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 24.29.
The Price/Forward Earnings ratio is 15.14, which 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 20.42. NWN is valued slightly cheaper when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 18.81 | ||
| Fwd PE | 15.14 |
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 | 9.81 |
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 12.49% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.78
PEG (5Y)N/A
EPS Next 2Y15.04%
EPS Next 3Y12.49%
5. Dividend
5.1 Amount
NWN has a Yearly Dividend Yield of 4.56%, which is a nice return.
Compared to an average industry Dividend Yield of 3.88, NWN pays a bit more dividend than its industry peers.
NWN's Dividend Yield is rather good when compared to the S&P500 average which is at 2.43.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.56% |
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
92.37% 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.
DP92.37%
EPS Next 2Y15.04%
EPS Next 3Y12.49%
43.63
+0.08 (+0.18%)
Chartmill FA Rating
GICS SectorUtilities
GICS IndustryGroupUtilities
GICS IndustryGas Utilities
Earnings (Last)
Earnings (Next)
Inst Owners81.74%
Inst Owner Change-0.04%
Ins Owners0.84%
Ins Owner Change-5.29%
Market Cap1.76B
Analysts80
Price Target47.74 (9.42%)
Short Float %1.86%
Short Ratio2.56
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.56% |
Yearly Dividend1.87
Dividend Growth(5Y)0.84%
DP92.37%
Div Incr Years24
Div Non Decr Years24
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)6.09%
Min EPS beat(2)1.65%
Max EPS beat(2)10.53%
EPS beat(4)3
Avg EPS beat(4)12.6%
Min EPS beat(4)-7.76%
Max EPS beat(4)45.99%
EPS beat(8)6
Avg EPS beat(8)39.33%
EPS beat(12)9
Avg EPS beat(12)46.31%
EPS beat(16)13
Avg EPS beat(16)41.17%
Revenue beat(2)1
Avg Revenue beat(2)-2.35%
Min Revenue beat(2)-7.05%
Max Revenue beat(2)2.35%
Revenue beat(4)1
Avg Revenue beat(4)-4.91%
Min Revenue beat(4)-9.64%
Max Revenue beat(4)2.35%
Revenue beat(8)4
Avg Revenue beat(8)2.76%
Revenue beat(12)8
Avg Revenue beat(12)7.04%
Revenue beat(16)10
Avg Revenue beat(16)5.84%
PT rev (1m)0%
PT rev (3m)0.43%
EPS NQ rev (1m)-1.31%
EPS NQ rev (3m)-7.21%
EPS NY rev (1m)0%
EPS NY rev (3m)-1.04%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)0.43%
Revenue NY rev (1m)0%
Revenue NY rev (3m)1.23%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 18.81 | ||
| Fwd PE | 15.14 | ||
| P/S | 1.53 | ||
| P/FCF | N/A | ||
| P/OCF | 8.78 | ||
| P/B | 1.27 | ||
| P/tB | 1.46 | ||
| EV/EBITDA | 9.81 |
EPS(TTM)2.32
EY5.32%
EPS(NY)2.88
Fwd EY6.61%
FCF(TTM)-4.82
FCFYN/A
OCF(TTM)4.97
OCFY11.39%
SpS28.6
BVpS34.37
TBVpS29.81
PEG (NY)0.78
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 1.51% | ||
| ROE | 5.69% | ||
| ROCE | 4.17% | ||
| ROIC | 2.94% | ||
| ROICexc | 2.96% | ||
| ROICexgc | 3.08% | ||
| OM | 16.58% | ||
| PM (TTM) | 6.84% | ||
| GM | 60.04% | ||
| 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-Score4
Asset Turnover0.22
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.33 | ||
| Debt/FCF | N/A | ||
| Debt/EBITDA | 5.3 | ||
| Cap/Depr | 249.53% | ||
| Cap/Sales | 34.21% | ||
| Interest Coverage | 2.68 | ||
| Cash Conversion | 57.35% | ||
| Profit Quality | N/A | ||
| Current Ratio | 0.86 | ||
| Quick Ratio | 0.69 | ||
| Altman-Z | 0.7 |
F-Score4
WACC5.96%
ROIC/WACC0.49
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)-10.77%
EPS 3Y-3.23%
EPS 5Y-0.09%
EPS Q2Q%16.53%
EPS Next Y24.22%
EPS Next 2Y15.04%
EPS Next 3Y12.49%
EPS Next 5Y8.69%
Revenue 1Y (TTM)-3.71%
Revenue growth 3Y10.25%
Revenue growth 5Y9.09%
Sales Q2Q%4.26%
Revenue Next Year10.18%
Revenue Next 2Y8.18%
Revenue Next 3Y9.83%
Revenue Next 5Y4.72%
EBIT growth 1Y3.35%
EBIT growth 3Y5.43%
EBIT growth 5Y8.76%
EBIT Next Year114.41%
EBIT Next 3Y35.99%
EBIT Next 5Y22.92%
FCF growth 1Y-309.55%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y-28.46%
OCF growth 3Y7.69%
OCF growth 5Y1.57%