NasdaqGS:NWE

Stock Analysis Report

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Executive Summary

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


Snowflake Analysis

6 star dividend payer and good value.


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

Stable Share Price: NWE is less volatile than 75% of US stocks over the past 3 months, typically moving +/- 4% a week.

Volatility Over Time: NWE's weekly volatility (4%) has been stable over the past year.


Market Performance


7 Day Return

-0.9%

NWE

-2.3%

US Integrated Utilities

-3.4%

US Market


1 Year Return

-22.8%

NWE

-16.6%

US Integrated Utilities

29.4%

US Market

Return vs Industry: NWE underperformed the US Integrated Utilities industry which returned -16.6% over the past year.

Return vs Market: NWE underperformed the US Market which returned 29.4% over the past year.


Shareholder returns

NWEIndustryMarket
7 Day-0.9%-2.3%-3.4%
30 Day6.8%-4.1%0.6%
90 Day3.4%-8.7%6.3%
1 Year-19.5%-22.8%-13.8%-16.6%32.2%29.4%
3 Year30.2%16.3%20.7%8.6%51.3%41.7%
5 Year16.6%-2.8%40.2%17.8%119.6%95.2%

Long-Term 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

Valuation

Is NorthWestern undervalued compared to its fair value and its price relative to the market?

4.5%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: NWE ($58.78) is trading below our estimate of fair value ($61.97)

Significantly Below Fair Value: NWE is trading below fair value, but not by a significant amount.


Price To Earnings Ratio

PE vs Industry: NWE is good value based on its PE Ratio (19.1x) compared to the US Integrated Utilities industry average (19.8x).

PE vs Market: NWE is good value based on its PE Ratio (19.1x) compared to the US market (21.4x).


Price to Earnings Growth Ratio

PEG Ratio: NWE is poor value based on its PEG Ratio (2.4x)


Price to Book Ratio

PB vs Industry: NWE is good value based on its PB Ratio (1.4x) compared to the US Integrated Utilities industry average (1.8x).


Next Steps

Future Growth

How is NorthWestern forecast to perform in the next 1 to 3 years based on estimates from 5 analysts?

7.8%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: NWE's forecast earnings growth (7.8% per year) is above the savings rate (2%).

Earnings vs Market: NWE's earnings (7.8% per year) are forecast to grow slower than the US market (19.6% per year).

High Growth Earnings: NWE's earnings are forecast to grow, but not significantly.

Revenue vs Market: NWE's revenue (4.3% per year) is forecast to grow slower than the US market (10.1% per year).

High Growth Revenue: NWE's revenue (4.3% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: NWE's Return on Equity is forecast to be low in 3 years time (8.7%).


Next Steps

Past Performance

How has NorthWestern performed over the past 5 years?

3.6%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: NWE has high quality earnings.

Growing Profit Margin: NWE's current net profit margins (12.9%) are lower than last year (16.1%).


Past Earnings Growth Analysis

Earnings Trend: NWE's earnings have grown by 3.6% per year over the past 5 years.

Accelerating Growth: NWE's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: NWE had negative earnings growth (-23.1%) over the past year, making it difficult to compare to the Integrated Utilities industry average (8.4%).


Return on Equity

High ROE: NWE's Return on Equity (7.5%) is considered low.


Next Steps

  • Explore strong past performing companies in the Utilities industry.

Financial Health

How is NorthWestern's financial position?


Financial Position Analysis

Short Term Liabilities: NWE's short term assets ($308.7M) do not cover its short term liabilities ($466.4M).

Long Term Liabilities: NWE's short term assets ($308.7M) do not cover its long term liabilities ($3.8B).


Debt to Equity History and Analysis

Debt Level: NWE's debt to equity ratio (116.2%) is considered high.

Reducing Debt: NWE's debt to equity ratio has reduced from 124.7% to 116.2% over the past 5 years.

Debt Coverage: NWE's debt is not well covered by operating cash flow (14.6%).

Interest Coverage: NWE's interest payments on its debt are not well covered by EBIT (2.4x coverage).


Balance Sheet


Next Steps

Dividend

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

4.19%

Current Dividend Yield


Upcoming Dividend Payment


Dividend Yield vs Market

Notable Dividend: NWE's dividend (4.22%) is higher than the bottom 25% of dividend payers in the US market (1.31%).

High Dividend: NWE's dividend (4.22%) is in the top 25% of dividend payers in the US market (3.69%)


Stability and Growth of Payments

Stable Dividend: NWE's dividends per share have been stable in the past 10 years.

Growing Dividend: NWE's dividend payments have increased over the past 10 years.


Current Payout to Shareholders

Dividend Coverage: At its current payout ratio (78.2%), NWE's payments are covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: NWE's dividends in 3 years are forecast to be covered by earnings (69% payout ratio).


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

9.0yrs

Average management tenure


CEO

Bob Rowe (64 yo)

12.58yrs

Tenure

US$3,298,304

Compensation

Mr. Robert C. Rowe, also known as Bob, Esq., has been the Chief Executive Officer of Northwestern Corporation since August 2008 and was its President since August 2008 until February 15, 2021. Mr. Rowe ser...


CEO Compensation Analysis

Compensation vs Market: Bob's total compensation ($USD3.30M) is below average for companies of similar size in the US market ($USD4.96M).

Compensation vs Earnings: Bob's compensation has been consistent with company performance over the past year.


Leadership Team

NamePositionTenureCompensationOwnership
Robert Rowe
CEO & Director12.58yrsUS$3.30m0.37%
$ 11.0m
Brian Bird
President & COO0.083yrUS$1.42m0.18%
$ 5.5m
Heather Grahame
VP of Regulatory & Federal Government Affairs and General Counsel10.58yrsUS$1.21m0.057%
$ 1.7m
Bobbi Schroeppel
Vice President of Customer Care15.5yrsUS$708.97k0.045%
$ 1.4m
Crystal Lail
VP & CFO0.083yrno data0.014%
$ 425.8k
Travis Meyer
Director - Investor Relations & Corporate Finance3.75yrsno datano data
Jeanne Vold
Vice President of Technology8.25yrsno data0.014%
$ 413.8k
Michael Nieman
Chief Audit & Compliance Officer11.17yrsno datano data
Daniel Rausch
Treasurer8.25yrsno datano data
Timothy Olson
Senior Corporate Counsel & Corporate Secretary11.17yrsno datano data
Jeffrey Berzina
Controller0.92yrno data0.00040%
$ 12.0k
John Hines
Vice President of Supply & Montana Government Affairs9.83yrsno data0.045%
$ 1.3m

9.0yrs

Average Tenure

60yo

Average Age

Experienced Management: NWE's management team is seasoned and experienced (9 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Robert Rowe
CEO & Director12.58yrsUS$3.30m0.37%
$ 11.0m
Jan Horsfall
Independent Director5.92yrsUS$226.58k0.012%
$ 373.4k
Julia Johnson
Independent Director16.33yrsUS$234.58k0.016%
$ 488.4k
Stephen Adik
Independent Non-Executive Chairman2.92yrsUS$364.66k0.040%
$ 1.2m
Mahvash Yazdi
Independent Director1.25yrsUS$91.44k0.0039%
$ 117.8k
Dana Dykhouse
Independent Director12.17yrsUS$234.58k0.067%
$ 2.0m
Linda Sullivan
Independent Director3.92yrsUS$257.00k0.00015%
$ 4.5k
Anthony Clark
Independent Director4.25yrsUS$232.83k0.0054%
$ 161.2k
Britt Ide
Independent Director3.92yrsUS$236.75k0.018%
$ 537.9k
Jeffrey Yingling
Independent Director1.42yrsUS$124.92k0.0020%
$ 59.3k

4.1yrs

Average Tenure

59.5yo

Average Age

Experienced Board: NWE's board of directors are considered experienced (4.1 years average tenure).


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: NWE insiders have only sold shares in the past 3 months.


Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Top Shareholders

Company Information

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


Key Information

  • Name: NorthWestern Corporation
  • Ticker: NWE
  • Exchange: NasdaqGS
  • Founded: 1923
  • Industry: Multi-Utilities
  • Sector: Utilities
  • Market Cap: US$2.996b
  • Shares outstanding: 50.62m
  • Website: https://www.northwesternenergy.com

Number of Employees


Location

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

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
NWENasdaqGS (Nasdaq Global Select)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 and Natural...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2021/03/05 00:15
End of Day Share Price2021/03/04 00:00
Earnings2020/12/31
Annual Earnings2020/12/31


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.