DB:NWZA

Stock Analysis Report

Executive Summary

NorthWestern Corporation, doing business as NorthWestern Energy, provides electricity and natural gas to residential, commercial, and industrial customers.

Snowflake

Fundamentals

Established dividend payer with proven track record.


Similar Companies

Share Price & News

How has NorthWestern's share price performed over time and what events caused price changes?


Latest Share Price and Events


Market Performance


7 Day Return

1.4%

DB:NWZA

-0.2%

DE Integrated Utilities

-1.6%

DE Market


1 Year Return

14.7%

DB:NWZA

6.3%

DE Integrated Utilities

-10.5%

DE Market

NWZA outperformed the Integrated Utilities industry which returned 5.5% over the past year.

NWZA outperformed the Market in Germany which returned -12% over the past year.


Share holder returns

NWZAIndustryMarket
7 Day1.4%-0.2%-1.6%
30 Day-2.5%-1.2%-5.4%
90 Day-1.4%1.3%-6.0%
1 Year18.7%14.7%10.3%6.3%-7.7%-10.5%
3 Year35.4%21.4%37.6%24.3%9.4%-0.02%
5 Year105.3%71.8%-9.1%-23.8%25.5%8.1%

Price Volatility Vs. Market

How volatile is NorthWestern's share price compared to the market and industry in the last 5 years?


Simply Wall St News

No news available

Valuation

Is NorthWestern undervalued based on future cash flows and its price relative to the stock market?

16.64x

Price to Earnings (PE) ratio


Intrinsic Value Based on Future Cash Flows

NorthWestern's share price is above the future cash flow value, it's not available at a moderate discount (< 20%).

NorthWestern's share price is above the future cash flow value, it's not available at a substantial discount (< 40%).


Price Based on Earnings

NorthWestern is good value based on earnings compared to the Europe Integrated Utilities industry average.

NorthWestern is good value based on earnings compared to the Germany market.


Price Based on Expected Growth

NorthWestern earnings are not expected to grow next year, we can't assess if its growth is good value.


Price Based on Value of Assets

NorthWestern is good value based on assets compared to the DE Integrated Utilities industry average.


Next Steps

Future Growth

How is NorthWestern expected to perform in the next 1 to 3 years based on estimates from 4 analysts?

-3.4%

Forecasted annual earnings growth


Earnings and Revenue Growth Estimates


Future Annual Growth Analysis

NorthWestern's revenue is expected to grow by 4% yearly, however this is not considered high growth (20% yearly).

NorthWestern's earnings are expected to decrease over the next 1-3 years, this is not considered high growth.

NorthWestern's revenue growth is positive but not above the Germany market average.

NorthWestern's earnings are expected to decrease over the next 1-3 years, this is below the Germany market average.

NorthWestern's earnings are expected to decrease over the next 1-3 years, this is below the low risk savings rate of 0.2%.


Earnings per Share Growth Estimates


Future Return on Equity

NorthWestern is not expected to efficiently use shareholders’ funds in the future (Return on Equity less than 20%).


Next Steps

Past Performance

How has NorthWestern performed over the past 5 years?

11.7%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

NorthWestern's year on year earnings growth rate has been positive over the past 5 years.

NorthWestern's 1-year earnings growth exceeds its 5-year average (15.3% vs 11.7%)

NorthWestern's earnings growth has exceeded the Europe Integrated Utilities industry average in the past year (15.3% vs -2.8%).


Return on Equity

NorthWestern has not efficiently used shareholders’ funds last year (Return on Equity less than 20%).


Return on Assets

NorthWestern used its assets more efficiently than the Europe Integrated Utilities industry average last year based on Return on Assets.


Return on Capital Employed

NorthWestern's use of capital deteriorated last year versus 3 years ago (Return on Capital Employed).


Next Steps

Financial Health

How is NorthWestern's financial position?


Financial Position Analysis

NorthWestern's short term (1 year) commitments are greater than its holdings of cash and other short term assets.

NorthWestern's long term commitments exceed its cash and other short term assets.


Debt to Equity History and Analysis

NorthWestern's level of debt (107.4%) compared to net worth is high (greater than 40%).

The level of debt compared to net worth has been reduced over the past 5 years (124.5% vs 107.4% today).

Debt is not well covered by operating cash flow (12.9%, less than 20% of total debt).

Interest payments on debt are not well covered by earnings (EBIT is 2.8x annual interest expense, ideally 3x coverage).


Balance Sheet

High level of physical assets or inventory.

Debt is not covered by short term assets, assets are 0.1x debt.


Next Steps

Dividend

What is NorthWestern's current dividend yield, its reliability and sustainability?

3.36%

Expected Dividend Yield


Upcoming Dividend Payment

Purchase NorthWestern before the 'Buy Limit' to receive their next dividend payment.


Dividend Yield and Payments Analysis

NorthWestern's pays a higher dividend yield than the bottom 25% of dividend payers in Germany (1.61%).

NorthWestern's dividend is below the markets top 25% of dividend payers in Germany (4.29%).

Dividends per share have been stable in the past 10 years.

Dividends per share have increased over the past 10 years.


Current Payout to Shareholders

Dividends paid are covered by earnings (1.9x coverage).


Future Payout to Shareholders

Dividends after 3 years are expected to be covered by earnings (1.5x coverage).


Next Steps

Management

What is the CEO of NorthWestern's salary, the management and board of directors tenure and is there insider trading?

9.6yrs

Average management tenure


CEO

Bob Rowe (63yo)

11.0yrs

Tenure

US$3,165,931

Compensation

Mr. Robert C. Rowe, also known as Bob, Esq., has been the Chief Executive Officer and President of Northwestern Corporation and NorthWestern Energy since August 2008. Mr. Rowe serves as a Counsel of Gallat ...


CEO Compensation Analysis

Bob's remuneration is about average for companies of similar size in Germany.

Bob's compensation has been consistent with company performance over the past year, both up more than 20%.


Management Age and Tenure

9.6yrs

Average Tenure

59yo

Average Age

The average tenure for the NorthWestern management team is over 5 years, this suggests they are a seasoned and experienced team.


Board Age and Tenure

3.5yrs

Average Tenure

57.5yo

Average Age

The tenure for the NorthWestern board of directors is about average.


Insider Trading

NorthWestern individual insiders have only sold shares in the past 3 months.


Recent Insider Transactions

Sell€261,82508 Aug 19
Robert Rowe
EntityIndividual
Role
President
Member of the Board of Directors
Shares4,300
Max Price€60.89
Sell€36,18501 Aug 19
Bobbi Schroeppel
EntityIndividual
Role
Vice President of Customer Care
Shares570
Max Price€63.48
Sell€230,15229 Jul 19
Heather Grahame
EntityIndividual
Role
VP of Regulatory & Federal Government Affairs and General Counsel
Shares3,600
Max Price€63.93
Sell€96,54313 Jun 19
Robert Rowe
EntityIndividual
Role
President
Member of the Board of Directors
Shares1,500
Max Price€64.36
Sell€98,79828 Feb 19
Michael Cashell
EntityIndividual
Shares1,656
Max Price€59.66
Sell€136,48225 Feb 19
Jan Horsfall
EntityIndividual
Role
Member of the Board of Directors
Shares2,300
Max Price€59.34
Sell€127,24619 Feb 19
Curtis Pohl
EntityIndividual
Role
Vice President of Distribution
Shares2,200
Max Price€57.84
Sell€106,88116 Nov 18
Heather Grahame
EntityIndividual
Role
VP of Regulatory & Federal Government Affairs and General Counsel
Shares1,900
Max Price€56.25
Sell€48,04213 Nov 18
Jan Horsfall
EntityIndividual
Role
Member of the Board of Directors
Shares900
Max Price€53.38

Ownership Breakdown


Management Team

  • Michael Nieman

    Chief Audit & Compliance Officer

    • Tenure: 9.6yrs
  • Bobbi Schroeppel (50yo)

    Vice President of Customer Care

    • Tenure: 13.9yrs
    • Compensation: $654.07k
  • Brian Bird (59yo)

    Chief Financial Officer

    • Tenure: 15.7yrs
    • Compensation: $1.35m
  • Curt Pohl (54yo)

    Vice President of Distribution

    • Tenure: 16.6yrs
    • Compensation: $739.65k
  • Bob Rowe (63yo)

    President

    • Tenure: 11.0yrs
    • Compensation: $3.17m
  • Travis Meyer

    Director - Investor Relations & Corporate Finance

    • Tenure: 2.2yrs
  • Tim Olson

    Senior Corporate Counsel & Corporate Secretary

    • Tenure: 9.6yrs
  • Heather Grahame (64yo)

    VP of Regulatory & Federal Government Affairs and General Counsel

    • Tenure: 9.0yrs
    • Compensation: $1.13m
  • Dan Rausch

    Treasurer

    • Tenure: 6.7yrs
  • Jeanne Vold

    Business Technology Officer

    • Tenure: 6.7yrs

Board Members

  • Jan Horsfall (59yo)

    Independent Director

    • Tenure: 4.3yrs
    • Compensation: $227.18k
  • Julia Johnson (56yo)

    Independent Director

    • Tenure: 14.8yrs
    • Compensation: $193.69k
  • Steve Adik (75yo)

    Non-Executive Chairman

    • Tenure: 1.3yrs
    • Compensation: $293.08k
  • Dana Dykhouse (61yo)

    Independent Director

    • Tenure: 10.6yrs
    • Compensation: $235.18k
  • Linda Sullivan (55yo)

    Independent Director

    • Tenure: 2.3yrs
    • Compensation: $209.44k
  • Bob Rowe (63yo)

    President

    • Tenure: 11.0yrs
    • Compensation: $3.17m
  • Tony Clark (47yo)

    Independent Director

    • Tenure: 2.7yrs
    • Compensation: $204.44k
  • Britt Ide (48yo)

    Independent Director

    • Tenure: 2.3yrs
    • Compensation: $208.94k

Company Information

NorthWestern Corporation's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: NorthWestern Corporation
  • Ticker: NWZA
  • Exchange: DB
  • Founded: 1923
  • Industry: multi-utilities
  • Sector: utilities
  • Market Cap: US$3.586b
  • Listing Market Cap: US$3.232b
  • Shares outstanding: 50.44m
  • Website: Click here

Number of Employees


Location

  • NorthWestern Corporation
  • 3010 West 69th Street
  • Sioux Falls
  • South Dakota
  • 57108
  • United States

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
NWENYSE (New York Stock Exchange)YesCommon StockUSUSDNov 2004
NWZADB (Deutsche Boerse AG)YesCommon StockDEEURNov 2004

Biography

NorthWestern Corporation, doing business as NorthWestern Energy, provides electricity and natural gas to residential, commercial, and industrial customers. The company operates through Electric Operations  ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/08/16 22:29
End of Day Share Price2019/08/16 00:00
Earnings2019/06/30
Annual Earnings2018/12/31


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.