NorthWestern Corporation, doing business as NorthWestern Energy, provides electricity and natural gas to residential, commercial, and industrial customers.
Established dividend payer and good value.
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's share price has been volatile over the past 3 months.
7 Day Return
US Integrated Utilities
1 Year Return
US Integrated Utilities
Return vs Industry: NWE underperformed the US Integrated Utilities industry which returned -15% over the past year.
Return vs Market: NWE underperformed the US Market which returned -15.9% over the past year.
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
3 weeks ago | Simply Wall StIs NorthWestern Corporation (NYSE:NWE) Better Than Average At Deploying Capital?
1 month ago | Simply Wall StDo You Know What NorthWestern Corporation's (NYSE:NWE) P/E Ratio Means?
1 month ago | Simply Wall StIndependent Director Jan Horsfall Just Sold A Bunch Of Shares In NorthWestern Corporation (NYSE:NWE)
Is NorthWestern undervalued compared to its fair value and its price relative to the market?
Undervalued compared to fair value
Share Price vs. Fair Value
Below Fair Value: NWE ($52.84) is trading below our estimate of fair value ($185.68)
Significantly Below Fair Value: NWE is trading below fair value by more than 20%.
Price To Earnings Ratio
PE vs Industry: NWE is good value based on its PE Ratio (13.2x) compared to the Integrated Utilities industry average (17.1x).
PE vs Market: NWE is poor value based on its PE Ratio (13.2x) compared to the US market (12.2x).
Price to Earnings Growth Ratio
PEG Ratio: NWE is poor value based on its PEG Ratio (3.6x)
Price to Book Ratio
PB vs Industry: NWE is good value based on its PB Ratio (1.3x) compared to the US Integrated Utilities industry average (1.5x).
How is NorthWestern forecast to perform in the next 1 to 3 years based on estimates from 5 analysts?
Forecasted annual earnings growth
Earnings and Revenue Growth Forecasts
Analyst Future Growth Forecasts
Earnings vs Savings Rate: NWE's forecast earnings growth (3.7% per year) is above the savings rate (1.7%).
Earnings vs Market: NWE's earnings (3.7% per year) are forecast to grow slower than the US market (13.4% per year).
High Growth Earnings: NWE's earnings are forecast to grow, but not significantly.
Revenue vs Market: NWE's revenue (3.7% per year) is forecast to grow slower than the US market (7% per year).
High Growth Revenue: NWE's revenue (3.7% 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 (8.8%).
How has NorthWestern performed over the past 5 years?
Historical annual earnings growth
Earnings and Revenue History
Quality Earnings: NWE has high quality earnings.
Growing Profit Margin: NWE's current net profit margins (16.1%) are lower than last year (16.5%).
Past Earnings Growth Analysis
Earnings Trend: NWE's earnings have grown by 9.8% per year over the past 5 years.
Accelerating Growth: NWE's earnings growth over the past year (2.6%) is below its 5-year average (9.8% per year).
Earnings vs Industry: NWE earnings growth over the past year (2.6%) underperformed the Integrated Utilities industry 5.7%.
Return on Equity
High ROE: NWE's Return on Equity (9.9%) is considered low.
How is NorthWestern's financial position?
Financial Position Analysis
Short Term Liabilities: NWE's short term assets ($301.7M) do not cover its short term liabilities ($334.3M).
Long Term Liabilities: NWE's short term assets ($301.7M) do not cover its long term liabilities ($3.5B).
Debt to Equity History and Analysis
Debt Level: NWE's debt to equity ratio (109.5%) is considered high.
Reducing Debt: NWE's debt to equity ratio has reduced from 130.5% to 109.5% over the past 5 years.
Debt Coverage: NWE's debt is not well covered by operating cash flow (13.3%).
Interest Coverage: NWE's interest payments on its debt are not well covered by EBIT (2.8x coverage).
What is NorthWestern's current dividend yield, its reliability and sustainability?
Current Dividend Yield
Dividend Yield vs Market
Notable Dividend: NWE's dividend (4.54%) is higher than the bottom 25% of dividend payers in the US market (2.07%).
High Dividend: NWE's dividend (4.54%) is low compared to the top 25% of dividend payers in the US market (5.82%).
Stability and Growth of Payments
Stable Dividend: NWE's dividends per share have been stable in the past 10 years.
Growing Dividend: NWE's dividend payments have increased over the past 10 years.
Current Payout to Shareholders
Dividend Coverage: With its reasonable payout ratio (57.4%), NWE's dividend payments are covered by earnings.
Future Payout to Shareholders
Future Dividend Coverage: NWE's dividends in 3 years are forecast to be covered by earnings (67.6% payout ratio).
How experienced are the management team and are they aligned to shareholders interests?
Average management tenure
Bob Rowe (63yo)
Mr. Robert C. Rowe, also known as Bob, Esq., has been the Chief Executive Officer and President of Northwestern Corporation and NorthWestern Energy since August 2008. Mr. Rowe serves as a Counsel of Gallat ...
CEO Compensation Analysis
Compensation vs Market: Bob's total compensation ($USD3.30M) is below average for companies of similar size in the US market ($USD5.71M).
Compensation vs Earnings: Bob's compensation has been consistent with company performance over the past year.
|Chief Financial Officer||16.33yrs||US$1.42m||0.17% $5.0m|
|VP of Regulatory & Federal Government Affairs and General Counsel||9.67yrs||US$1.21m||0.050% $1.5m|
|Vice President of Customer Care||14.58yrs||US$708.97k||0.042% $1.3m|
|Director - Investor Relations & Corporate Finance||2.83yrs||no data||no data|
|Business Technology Officer||7.33yrs||no data||no data|
|Chief Audit & Compliance Officer||10.25yrs||no data||no data|
|Treasurer||7.33yrs||no data||no data|
|Senior Corporate Counsel & Corporate Secretary||10.25yrs||no data||no data|
|VP & Controller||4.5yrs||no data||0.013% $373.1k|
Experienced Management: NWE's management team is seasoned and experienced (10 years average tenure).
|Independent Director||5yrs||US$226.58k||0.0070% $209.5k|
|Independent Director||15.42yrs||US$234.58k||0.011% $324.1k|
|Independent Non-Executive Chairman||2yrs||US$364.66k||0.040% $1.2m|
|Independent Director||0.33yr||US$91.44k||0.0039% $117.2k|
|Independent Director||11.25yrs||US$234.58k||0.062% $1.8m|
|Independent Director||3yrs||US$257.00k||0.00015% $4.5k|
|Independent Director||3.33yrs||US$232.83k||0.0054% $160.4k|
|Independent Director||3yrs||US$236.75k||0.000010% $297.6|
|Independent Director||0.50yr||US$124.92k||no data|
Experienced Board: NWE's board of directors are considered experienced (3.2 years average tenure).
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
Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.
NorthWestern Corporation's company bio, employee growth, exchange listings and data sources
- Name: NorthWestern Corporation
- Ticker: NWE
- Exchange: NYSE
- Founded: 1923
- Industry: Multi-Utilities
- Sector: Utilities
- Market Cap: US$2.976b
- Shares outstanding: 50.49m
- Website: https://www.northwesternenergy.com
Number of Employees
- NorthWestern Corporation
- 3010 West 69th Street
- Sioux Falls
- South Dakota
- United States
|Ticker||Exchange||Primary Security||Security Type||Country||Currency||Listed on|
|NWE||NYSE (New York Stock Exchange)||Yes||Common Stock||US||USD||Nov 2004|
|NWZA||DB (Deutsche Boerse AG)||Yes||Common Stock||DE||EUR||Nov 2004|
NorthWestern Corporation, doing business as NorthWestern Energy, provides electricity and natural gas to residential, commercial, and industrial customers. The company operates through Electric Operations and Natural Gas Operations segments. It generates, transmits, and distributes electricity; and produces, purchases, stores, transmits, and distributes natural gas, as well as owns municipal franchises to provide natural gas service in the communities. The company’s natural gas transmission system covers approximately 4,810 miles of pipeline. It serves approximately 734,800 customers in Montana, South Dakota, and Nebraska, the United States. NorthWestern Corporation was founded in 1923 and is based in Sioux Falls, South Dakota.
Company Analysis and Financial Data Status
|Data||Last Updated (UTC time)|
|Company Analysis||2020/04/07 02:23|
|End of Day Share Price||2020/04/06 00:00|