NorthWestern
Market Cap
US$3.3b
Last Updated
2021/05/13 22:20 UTC
Data Sources
Company Financials +
Executive Summary
NorthWestern Corporation, doing business as NorthWestern Energy, provides electricity and natural gas to residential, commercial, and industrial customers. More Details
Rewards
Risk Analysis
Snowflake Analysis
6 star dividend payer and fair 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 +/- 3% a week.
Volatility Over Time: NWE's weekly volatility (3%) has been stable over the past year.
Market Performance
7 Day Return
-4.8%
NWE
-0.8%
US Integrated Utilities
-2.8%
US Market
1 Year Return
18.6%
NWE
17.3%
US Integrated Utilities
49.0%
US Market
Return vs Industry: NWE exceeded the US Integrated Utilities industry which returned 17.1% over the past year.
Return vs Market: NWE underperformed the US Market which returned 49.4% over the past year.
Shareholder returns
| NWE | Industry | Market | |
|---|---|---|---|
| 7 Day | -4.8% | -0.8% | -2.8% |
| 30 Day | -3.2% | 1.4% | -2.6% |
| 90 Day | 15.5% | 10.3% | -1.5% |
| 1 Year | 23.8%18.6% | 21.4%17.3% | 51.5%49.0% |
| 3 Year | 37.0%22.4% | 42.3%28.0% | 58.2%48.3% |
| 5 Year | 38.8%15.5% | 60.3%34.4% | 123.8%98.9% |
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
1 week ago | Simply Wall St
Slowing Rates Of Return At NorthWestern (NASDAQ:NWE) Leave Little Room For Excitement1 month ago | Simply Wall St
Does NorthWestern Corporation (NASDAQ:NWE) Have A Place In Your Dividend Stock Portfolio?1 month ago | Simply Wall St
Is NorthWestern Corporation's (NASDAQ:NWE) 7.5% ROE Strong Compared To Its Industry?Valuation
Is NorthWestern undervalued compared to its fair value and its price relative to the market?
5.3%
Undervalued compared to fair value
Share Price vs. Fair Value
Below Fair Value: NWE ($65.2) is trading below our estimate of fair value ($68.86)
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 (19.7x) compared to the US Integrated Utilities industry average (20.9x).
PE vs Market: NWE is poor value based on its PE Ratio (19.7x) compared to the US market (19.5x).
Price to Earnings Growth Ratio
PEG Ratio: NWE is poor value based on its PEG Ratio (3.9x)
Price to Book Ratio
PB vs Industry: NWE is good value based on its PB Ratio (1.6x) compared to the US Integrated Utilities industry average (2x).
Future Growth
How is NorthWestern forecast to perform in the next 1 to 3 years based on estimates from 5 analysts?
5.1%
Forecasted annual earnings growth
Earnings and Revenue Growth Forecasts
Analyst Future Growth Forecasts
Earnings vs Savings Rate: NWE's forecast earnings growth (5.1% per year) is above the savings rate (2%).
Earnings vs Market: NWE's earnings (5.1% per year) are forecast to grow slower than the US market (14.7% per year).
High Growth Earnings: NWE's earnings are forecast to grow, but not significantly.
Revenue vs Market: NWE's revenue (3.9% per year) is forecast to grow slower than the US market (9% per year).
High Growth Revenue: NWE's revenue (3.9% 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 (8.4%).
Past Performance
How has NorthWestern performed over the past 5 years?
2.7%
Historical annual earnings growth
Earnings and Revenue History
Quality Earnings: NWE has high quality earnings.
Growing Profit Margin: NWE's current net profit margins (13.3%) are lower than last year (14.9%).
Past Earnings Growth Analysis
Earnings Trend: NWE's earnings have grown by 2.7% 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 (-6.9%) over the past year, making it difficult to compare to the Integrated Utilities industry average (21.3%).
Return on Equity
High ROE: NWE's Return on Equity (7.9%) is considered low.
Financial Health
How is NorthWestern's financial position?
Financial Position Analysis
Short Term Liabilities: NWE's short term assets ($358.7M) do not cover its short term liabilities ($386.4M).
Long Term Liabilities: NWE's short term assets ($358.7M) do not cover its long term liabilities ($4.0B).
Debt to Equity History and Analysis
Debt Level: NWE's debt to equity ratio (116.6%) is considered high.
Reducing Debt: NWE's debt to equity ratio has reduced from 119.6% to 116.6% over the past 5 years.
Debt Coverage: NWE's debt is not well covered by operating cash flow (10.5%).
Interest Coverage: NWE's interest payments on its debt are not well covered by EBIT (2.5x coverage).
Balance Sheet
Dividend
What is NorthWestern current dividend yield, its reliability and sustainability?
3.80%
Current Dividend Yield
Upcoming Dividend Payment
Dividend Yield vs Market
Notable Dividend: NWE's dividend (3.8%) is higher than the bottom 25% of dividend payers in the US market (1.28%).
High Dividend: NWE's dividend (3.8%) is in the top 25% of dividend payers in the US market (3.48%)
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: With its reasonable payout ratio (73.1%), NWE's dividend 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 (68.5% payout ratio).
Next Steps
Management
How experienced are the management team and are they aligned to shareholders interests?
9.2yrs
Average management tenure
CEO
Bob Rowe (64 yo)
12.75yrs
Tenure
US$3,102,048
Compensation
Mr. Robert C. Rowe, also known as Bob, Esq., has been the Chief Executive Officer of Northwestern Corporation since August 2008 and was its President since August 2008 until February 15, 2021. Mr. Rowe ser...
CEO Compensation Analysis
Compensation vs Market: Bob's total compensation ($USD3.10M) is below average for companies of similar size in the US market ($USD5.40M).
Compensation vs Earnings: Bob's compensation has been consistent with company performance over the past year.
Leadership Team
Experienced Management: NWE's management team is seasoned and experienced (9.2 years average tenure).
Board Members
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$3.304b
- Shares outstanding: 50.68m
- Website: https://www.northwesternenergy.com
Number of Employees
Location
- NorthWestern Corporation
- 3010 West 69th Street
- Sioux Falls
- South Dakota
- 57108
- United States
Listings
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
| Data | Last Updated (UTC time) |
|---|---|
| Company Analysis | 2021/05/13 22:20 |
| End of Day Share Price | 2021/05/13 00:00 |
| Earnings | 2021/03/31 |
| Annual Earnings | 2020/12/31 |
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.