NYSE:NWE

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

1.9%

NWE

1.8%

US Integrated Utilities

-0.2%

US Market


1 Year Return

26.0%

NWE

19.1%

US Integrated Utilities

1.1%

US Market

NWE outperformed the Integrated Utilities industry which returned 18.8% over the past year.

NWE outperformed the Market in United States of America which returned 1.6% over the past year.


Share holder returns

NWEIndustryMarket
7 Day1.9%1.8%-0.2%
30 Day3.9%2.8%2.5%
90 Day1.1%3.0%1.6%
1 Year30.1%26.0%23.2%19.1%3.4%1.1%
3 Year38.4%24.4%37.9%24.0%45.2%35.8%
5 Year94.6%63.0%80.8%45.2%62.6%44.8%

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

17.44x

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 US Integrated Utilities industry average.

NorthWestern is good value based on earnings compared to the United States of America 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 US 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?

-2.4%

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 United States of America market average.

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

NorthWestern's earnings are expected to decrease over the next 1-3 years, this is below the low risk savings rate of 2.7%.


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 US Integrated Utilities industry average in the past year (15.3% vs -11.4%).


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 US 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?

3.21%

Expected Dividend Yield


Dividend Yield and Payments Analysis

NorthWestern's pays a higher dividend yield than the bottom 25% of dividend payers in United States of America (1.44%).

NorthWestern's dividend is below the markets top 25% of dividend payers in United States of America (3.71%).

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?

9.7yrs

Average management tenure


CEO

Bob Rowe (63yo)

11.1yrs

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 lower than average for companies of similar size in United States of America.

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


Management Age and Tenure

9.7yrs

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

3.6yrs

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

SellUS$293,13108 Aug 19
Robert Rowe
EntityIndividual
Role
Chief Executive Officer
President
Shares4,300
Max PriceUS$68.17
SellUS$40,03701 Aug 19
Bobbi Schroeppel
EntityIndividual
Role
Head of Corporate Communications
Vice President of Customer Care
Shares570
Max PriceUS$70.24
SellUS$255,92429 Jul 19
Heather Grahame
EntityIndividual
Role
Chief Legal Officer
VP of Regulatory & Federal Government Affairs and General Counsel
Shares3,600
Max PriceUS$71.09
SellUS$108,85513 Jun 19
Robert Rowe
EntityIndividual
Role
Chief Executive Officer
President
Shares1,500
Max PriceUS$72.57
SellUS$112,36028 Feb 19
Michael Cashell
EntityIndividual
Shares1,656
Max PriceUS$67.85
SellUS$154,88225 Feb 19
Jan Horsfall
EntityIndividual
Role
Member of the Board of Directors
Independent Director
Shares2,300
Max PriceUS$67.34
SellUS$144,18819 Feb 19
Curtis Pohl
EntityIndividual
Role
Other Key Executive
Vice President of Distribution
Shares2,200
Max PriceUS$65.54
SellUS$121,88516 Nov 18
Heather Grahame
EntityIndividual
Role
Chief Legal Officer
VP of Regulatory & Federal Government Affairs and General Counsel
Shares1,900
Max PriceUS$64.15
SellUS$54,85513 Nov 18
Jan Horsfall
EntityIndividual
Role
Member of the Board of Directors
Independent Director
Shares900
Max PriceUS$60.95

Ownership Breakdown


Management Team

  • Brian Bird (59yo)

    Chief Financial Officer

    • Tenure: 15.8yrs
    • Compensation: US$1.35m
  • Michael Nieman

    Chief Audit & Compliance Officer

    • Tenure: 9.7yrs
  • Bobbi Schroeppel (50yo)

    Vice President of Customer Care

    • Tenure: 14yrs
    • Compensation: US$654.07k
  • Curt Pohl (54yo)

    Vice President of Distribution

    • Tenure: 16.7yrs
    • Compensation: US$739.65k
  • Tim Olson

    Senior Corporate Counsel & Corporate Secretary

    • Tenure: 9.7yrs
  • Dan Rausch

    Treasurer

    • Tenure: 6.8yrs
  • Bob Rowe (63yo)

    President

    • Tenure: 11.1yrs
    • Compensation: US$3.17m
  • Heather Grahame (64yo)

    VP of Regulatory & Federal Government Affairs and General Counsel

    • Tenure: 9.1yrs
    • Compensation: US$1.13m
  • Jeanne Vold

    Business Technology Officer

    • Tenure: 6.8yrs
  • Travis Meyer

    Director - Investor Relations & Corporate Finance

    • Tenure: 2.3yrs

Board Members

  • Jan Horsfall (59yo)

    Independent Director

    • Tenure: 4.4yrs
    • Compensation: US$227.18k
  • Julia Johnson (56yo)

    Independent Director

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

    Non-Executive Chairman

    • Tenure: 1.4yrs
    • Compensation: US$293.08k
  • Dana Dykhouse (61yo)

    Independent Director

    • Tenure: 10.7yrs
    • Compensation: US$235.18k
  • Linda Sullivan (55yo)

    Independent Director

    • Tenure: 2.4yrs
    • Compensation: US$209.44k
  • Bob Rowe (63yo)

    President

    • Tenure: 11.1yrs
    • Compensation: US$3.17m
  • Tony Clark (47yo)

    Independent Director

    • Tenure: 2.8yrs
    • Compensation: US$204.44k
  • Britt Ide (48yo)

    Independent Director

    • Tenure: 2.4yrs
    • Compensation: US$208.94k

Company Information

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


Key Information

  • Name: NorthWestern Corporation
  • Ticker: NWE
  • Exchange: NYSE
  • Founded: 1923
  • Industry: Multi-Utilities
  • Sector: Utilities
  • Market Cap: US$3.758b
  • Shares outstanding: 50.44m
  • 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
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 Analysis2019/09/20 00:34
End of Day Share Price2019/09/19 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.