Northwest Pipe Company

DB:NW7 Stock Report

Market Cap: €530.0m

Northwest Pipe Valuation

Is NW7 undervalued compared to its fair value, analyst forecasts and its price relative to the market?

Valuation Score

3/6

Valuation Score 3/6

  • Below Fair Value

  • Significantly Below Fair Value

  • Price-To-Earnings vs Peers

  • Price-To-Earnings vs Industry

  • Price-To-Earnings vs Fair Ratio

  • Analyst Forecast

Share Price vs Fair Value

What is the Fair Price of NW7 when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: NW7 (€51.5) is trading below our estimate of fair value (€91.98)

Significantly Below Fair Value: NW7 is trading below fair value by more than 20%.

Key Valuation Metric

Which metric is best to use when looking at relative valuation for NW7?

Key metric: As NW7 is profitable we use its Price-To-Earnings Ratio for relative valuation analysis.

The above table shows the Price to Earnings ratio for NW7. This is calculated by dividing NW7's market cap by their current earnings.
What is NW7's PE Ratio?
PE Ratio18.9x
EarningsUS$29.55m
Market CapUS$559.32m

Price to Earnings Ratio vs Peers

How does NW7's PE Ratio compare to its peers?

The above table shows the PE ratio for NW7 vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyForward PEEstimated GrowthMarket Cap
Peer Average62.5x
B5A0 BAUER
31.9x38.2%€174.3m
NCH2 thyssenkrupp nucera KGaA
189.7x55.9%€1.1b
HOT HOCHTIEF
12.1x2.5%€8.7b
MUB Mühlbauer Holding
16.5xn/a€527.9m
NW7 Northwest Pipe
18.9x4.2%€559.3m

Price-To-Earnings vs Peers: NW7 is good value based on its Price-To-Earnings Ratio (18.9x) compared to the peer average (62.5x).

Price to Earnings Ratio vs Industry

How does NW7's PE Ratio compare vs other companies in the European Construction Industry?

2 CompaniesPrice / EarningsEstimated GrowthMarket Cap
NW7 18.9xIndustry Avg. 13.1xNo. of Companies20PE01020304050+
2 CompaniesEstimated GrowthMarket Cap
No more companies

Price-To-Earnings vs Industry: NW7 is expensive based on its Price-To-Earnings Ratio (18.9x) compared to the European Construction industry average (13.1x).

Price to Earnings Ratio vs Fair Ratio

What is NW7's PE Ratio compared to its Fair PE Ratio? This is the expected PE Ratio taking into account the company's forecast earnings growth, profit margins and other risk factors.

NW7 PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio18.9x
Fair PE Ratio10.7x

Price-To-Earnings vs Fair Ratio: NW7 is expensive based on its Price-To-Earnings Ratio (18.9x) compared to the estimated Fair Price-To-Earnings Ratio (10.7x).

Analyst Price Targets

What is the analyst 12-month forecast and do we have any statistical confidence in the consensus price target?

The above table shows the analyst NW7 forecast and predictions for the stock price in 12 month’s time.
DateShare PriceAverage 1Y Price TargetDispersionHighLow1Y Actual priceAnalysts
Current€51.50
€50.26
-2.4%
6.0%€52.41€45.97n/a3
Nov ’25€41.00
€47.50
+15.9%
7.5%€52.41€44.13n/a3
Oct ’25€40.00
€44.59
+11.5%
1.9%€45.82€43.98n/a3
Sep ’25€39.60
€44.59
+12.6%
1.9%€45.82€43.98n/a3
Aug ’25€34.80
€40.77
+17.2%
7.4%€44.48€37.07n/a3
Jul ’25€31.20
€39.23
+25.7%
3.9%€41.10€37.36n/a3
Jun ’25€32.20
€39.00
+21.1%
3.9%€40.86€37.14n/a3
May ’25€29.60
€37.93
+28.1%
4.6%€40.38€36.71n/a3
Apr ’25€31.40
€37.93
+20.8%
4.6%€40.38€36.71n/a3
Mar ’25€27.20
€35.75
+31.4%
3.3%€37.31€34.51n/a3
Feb ’25€27.60
€35.75
+29.5%
3.3%€37.31€34.51n/a3
Jan ’25€27.20
€35.75
+31.4%
3.3%€37.31€34.51n/a3
Dec ’24€24.60
€35.75
+45.3%
3.3%€37.31€34.51n/a3
Nov ’24€25.20
€37.48
+48.7%
3.1%€38.74€35.91€41.003
Oct ’24€28.40
€37.20
+31.0%
3.1%€38.45€35.64€40.003
Sep ’24€30.20
€36.05
+19.4%
3.1%€37.26€34.53€39.603
Aug ’24€29.20
€36.42
+24.7%
2.0%€37.33€35.51€34.803
Jul ’24€26.80
€36.87
+37.6%
1.3%€37.34€36.41€31.202
Jun ’24€24.40
€35.84
+46.9%
1.3%€36.29€35.38€32.202
May ’24€24.80
€44.74
+80.4%
13.4%€50.73€38.74€29.602
Apr ’24€28.80
€44.74
+55.3%
13.4%€50.73€38.74€31.402
Mar ’24€36.00
€45.84
+27.3%
13.4%€51.99€39.70€27.202
Feb ’24€34.00
€44.63
+31.3%
13.4%€50.62€38.65€27.602

Analyst Forecast: Target price is lower than the current share price.

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