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

-0.8%

NWE

-0.8%

US Integrated Utilities

2.3%

US Market


1 Year Return

24.1%

NWE

17.7%

US Integrated Utilities

5.6%

US Market

Return vs Industry: NWE exceeded the US Integrated Utilities industry which returned 17.7% over the past year.

Return vs Market: NWE exceeded the US Market which returned 5.6% over the past year.


Shareholder returns

NWEIndustryMarket
7 Day-0.8%-0.8%2.3%
30 Day2.1%1.2%-1.0%
90 Day4.1%2.8%-0.7%
1 Year28.2%24.1%21.8%17.7%7.9%5.6%
3 Year48.5%33.5%45.1%30.5%45.6%36.3%
5 Year75.2%46.8%72.8%38.7%65.8%47.6%

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?

17.44x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Undervalued: NWE ($74.51) is trading above our estimate of fair value ($50.12)

Significantly Undervalued: NWE is trading above our estimate of fair value.


Price To Earnings Ratio

PE vs Industry: NWE is good value based on its PE Ratio (17.4x) compared to the Integrated Utilities industry average (21.5x).

PE vs Market: NWE is good value based on its PE Ratio (17.4x) compared to the US market (17.7x).


Price to Earnings Growth Ratio

Low PEG Ratio: NWE's earnings are forecast to decline next year, so we can't calculate its PEG ratio.


Price to Book Ratio

PB vs Industry: NWE is good value based on its PB Ratio (1.9x) compared to the US Integrated Utilities industry average (2.2x).


Next Steps

Future Growth

How is NorthWestern forecast 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 Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: NWE's earnings are forecast to decline over the next 3 years (-2.4% per year).

Earnings vs Market: NWE's earnings are forecast to decline over the next 3 years (-2.4% per year).

High Growth Earnings: NWE's earnings are forecast to decline over the next 3 years.

Revenue vs Market: NWE's revenue (4% per year) is forecast to grow slower than the US market (7.3% per year).

High Growth Revenue: NWE's revenue (4% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

High Future ROE: NWE's Return on Equity is forecast to be low in 3 years time (8.9%).


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

Earnings Trend: NWE's earnings have grown by 11.7% per year over the past 5 years.

Accelerating Growth: NWE's earnings growth over the past year (15.3%) exceeds its 5-year average (11.7% per year).

Earnings vs Industry: NWE earnings growth over the past year (15.3%) exceeded the Integrated Utilities industry -11.4%.


Return on Equity

High ROE: NWE's Return on Equity (10.7%) is considered low.


Return on Assets

ROA vs Industry: NWE has a higher Return on Assets than the Integrated Utilities industry average last year.


Return on Capital Employed

ROCE Improving: NWE's Return on Capital Employed has declined over the past 3 years.


Next Steps

Financial Health

How is NorthWestern's financial position?


Financial Position Analysis

Short Term Liabilities: NWE's short term assets ($253.0M) do not cover its short term liabilities ($275.8M)

Long Term Liabilities: NWE's short term assets (253.0M) do not cover its long term liabilities (3.4B)


Debt to Equity History and Analysis

Debt Level: NWE's debt to equity ratio (107.4%) is considered high

Reducing Debt: NWE's debt to equity ratio has reduced from 124.5% to 107.4% over the past 5 years.

Debt Coverage: NWE's debt is not well covered by operating cash flow (12.9%).

Interest Coverage: NWE's interest payments on its debt are not well covered by EBIT (2.8x coverage).


Balance Sheet

Inventory Level: NWE has a high level of physical assets or inventory.

Debt Coverage by Assets: NWE's 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?

3.09%

Current Dividend Yield


Dividend Yield vs Market

company3.1%marketbottom25%1.5%markettop25%3.8%industryaverage3.2%forecastin3Years3.2%

Current dividend yield vs market & industry


Stability and Growth of Payments

Notable Dividend: NWE's dividend (3.09%) is higher than the bottom 25% of dividend payers in the US market (1.46%).

High Dividend: NWE's dividend (3.09%) is low compared to the top 25% of dividend payers in the US market (3.76%).

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 (52.7%), 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 (63.1% payout ratio).


Next Steps

Management

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

9.8yrs

Average management tenure


CEO

Bob Rowe (63yo)

11.2yrs

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

Compensation vs. Market: Bob's total compensation ($USD3.17M) is about average for companies of similar size in the US market ($USD5.13M).

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


Management Age and Tenure

9.8yrs

Average Tenure

59yo

Average Age

Experienced Management: NWE's management team is seasoned and experienced (9.8 years average tenure).


Board Age and Tenure

3.7yrs

Average Tenure

57.5yo

Average Age

Experienced Board: NWE's board of directors are considered experienced (3.7 years average tenure).


Insider Trading

Insider Buying: NWE 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: 9.8yrs
  • Bobbi Schroeppel (50yo)

    Vice President of Customer Care

    • Tenure: 14.1yrs
    • Compensation: US$654.07k
  • Curt Pohl (54yo)

    Vice President of Distribution

    • Tenure: 16.8yrs
    • Compensation: US$739.65k
  • Tim Olson

    Senior Corporate Counsel & Corporate Secretary

    • Tenure: 9.8yrs
  • Dan Rausch

    Treasurer

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

    President

    • Tenure: 11.2yrs
    • Compensation: US$3.17m
  • Heather Grahame (64yo)

    VP of Regulatory & Federal Government Affairs and General Counsel

    • Tenure: 9.2yrs
    • 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: 4.5yrs
    • Compensation: US$227.18k
  • Julia Johnson (56yo)

    Independent Director

    • Tenure: 14.9yrs
    • Compensation: US$193.69k
  • Steve Adik (75yo)

    Non-Executive Chairman

    • Tenure: 1.5yrs
    • Compensation: US$293.08k
  • Dana Dykhouse (61yo)

    Independent Director

    • Tenure: 10.8yrs
    • Compensation: US$235.18k
  • Linda Sullivan (55yo)

    Independent Director

    • Tenure: 2.5yrs
    • Compensation: US$209.44k
  • Bob Rowe (63yo)

    President

    • Tenure: 11.2yrs
    • Compensation: US$3.17m
  • Tony Clark (47yo)

    Independent Director

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

    Independent Director

    • Tenure: 2.5yrs
    • 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$3.759b
  • 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 Analysis2019/10/17 23:57
End of Day Share Price2019/10/17 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.