Northwest Natural Holding (NYSE:NWN) - Share price, News & Analysis

NWN fundamental analysis
Snowflake Score
Valuation	1/6
Future Growth	1/6
Past Performance	2/6
Financial Health	1/6
Dividends	4/6

NWN Stock Overview

Rewards

Trading at 5.4% below our estimate of its fair value

Earnings are forecast to grow 8.54% per year

Risk Analysis

Debt is not well covered by operating cash flow

Dividend of 3.5% is not well covered by earnings

Shareholders have been diluted in the past year

Northwest Natural Holding Competitors

Atmos Energy

NYSE:ATO

US$16.1b

UGI

NYSE:UGI

US$8.7b

Southwest Gas Holdings

NYSE:SWX

US$6.3b

ONE Gas

NYSE:OGS

US$4.8b

Price History & Performance

Summary of all time highs, changes and price drops for Northwest Natural Holding
Historical stock prices
Current Share Price	US$55.11
52 Week High	US$57.63
52 Week Low	US$43.07
Beta	0.48
1 Month Change	7.89%
3 Month Change	18.26%
1 Year Change	4.32%
3 Year Change	-20.47%
5 Year Change	-9.95%
Change since IPO	398.48%

Recent News & Updates

May 24

Northwest Natural Holding (NYSE:NWN) Hasn't Managed To Accelerate Its Returns

Finding a business that has the potential to grow substantially is not easy, but it is possible if we look at a few key...

May 13

Northwest Natural: Strong Earnings Stability As Company Moves Into Renewables

Northwest Natural Holding's latest results show the overall stability that we have come to expect from a natural gas utility. The YoY net income decline was caused by a one-off event and is not indicative of any problems at the company. The company continues to grow its customer base, which has been having a positive effect on its net income and revenues. The stock is positioned to deliver an 8% to 10% total return over the next five years. The company appears to be somewhat overvalued at the current price, so it may make sense to wait for the price to come down.

May 09

Is Northwest Natural Holding (NYSE:NWN) Using Too Much Debt?

The external fund manager backed by Berkshire Hathaway's Charlie Munger, Li Lu, makes no bones about it when he says...

Shareholder Returns

	NWN	US Gas Utilities	US Market
7D	7.8%	1.7%	-0.5%
1Y	4.3%	7.5%	-12.3%

Return vs Industry: NWN underperformed the US Gas Utilities industry which returned 7.5% over the past year.

Return vs Market: NWN exceeded the US Market which returned -12.3% over the past year.

Price Volatility

Is NWN's price volatile compared to industry and market?
NWN volatility
NWN Average Weekly Movement	3.9%
Gas Utilities Industry Average Movement	3.7%
Market Average Movement	7.8%
10% most volatile stocks in US Market	16.9%
10% least volatile stocks in US Market	2.9%

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

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

About the Company

Founded	Employees	CEO	Website
1859	1,237	David Anderson	https://www.nwnaturalholdings.com

Northwest Natural Holding Company, through its subsidiary, Northwest Natural Gas Company, provides regulated natural gas distribution services to residential, commercial, industrial, and transportation customers in Oregon and Southwest Washington. The company also operates 5.7 billion cubic feet of the Mist gas storage facility contracted to other utilities and third-party marketers; offers natural gas asset management services; and operates an appliance retail center. In addition, it engages in the gas storage, water, non-regulated renewable natural gas, and other investments and activities.

Northwest Natural Holding Fundamentals Summary

How do Northwest Natural Holding's earnings and revenue compare to its market cap?
NWN fundamental statistics
Market Cap	US$1.89b
Earnings (TTM)	US$75.39m
Revenue (TTM)	US$894.76m

25.0x

P/E Ratio

2.1x

P/S Ratio

Is NWN overvalued?

See Fair Value and valuation analysis

Earnings & Revenue

Key profitability statistics from the latest earnings report
NWN income statement (TTM)
Revenue	US$894.76m
Cost of Revenue	US$535.21m
Gross Profit	US$359.54m
Other Expenses	US$284.15m
Earnings	US$75.39m

Last Reported Earnings

Mar 31, 2022

Next Earnings Date

n/a

Earnings per share (EPS)	2.20
Gross Margin	40.18%
Net Profit Margin	8.43%
Debt/Equity Ratio	139.4%

How did NWN perform over the long term?

See historical performance and comparison

Dividends

3.5%

Current Dividend Yield

79%

Payout Ratio

Valuation

Is Northwest Natural Holding undervalued compared to its fair value and its price relative to the market?

Valuation Score

1/6

Valuation Score 1/6

Below Fair Value
Significantly Below Fair Value
PE vs Industry
PE vs Market
PEG Ratio
PB vs Industry

5.4%

Undervalued compared to fair value

Share Price vs. Fair Value

Below Fair Value: NWN ($55.11) is trading below our estimate of fair value ($58.24)

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

Price To Earnings Ratio

PE vs Industry: NWN is poor value based on its Price-To-Earnings Ratio (25x) compared to the US Gas Utilities industry average (22.3x).

PE vs Market: NWN is poor value based on its Price-To-Earnings Ratio (25x) compared to the US market (15.1x).

Price to Earnings Growth Ratio

PEG Ratio: NWN is poor value based on its PEG Ratio (2.9x)

Price to Book Ratio

PB vs Industry: NWN's Price-To-Book Ratio (1.9x) is in line with the US Gas Utilities industry average.

Future Growth

How is Northwest Natural Holding forecast to perform in the next 1 to 3 years based on estimates from 7 analysts?

Future Growth Score

1/6

Future Growth Score 1/6

Earnings vs Savings Rate
Earnings vs Market
High Growth Earnings
Revenue vs Market
High Growth Revenue
Future ROE

8.5%

Forecasted annual earnings growth

Earnings and Revenue Growth Forecasts

Analyst Future Growth Forecasts

Earnings vs Savings Rate: NWN's forecast earnings growth (8.5% per year) is above the savings rate (1.9%).

Earnings vs Market: NWN's earnings (8.5% per year) are forecast to grow slower than the US market (12.3% per year).

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

Revenue vs Market: NWN's revenue (2.3% per year) is forecast to grow slower than the US market (7.8% per year).

High Growth Revenue: NWN's revenue (2.3% per year) is forecast to grow slower than 20% per year.

Earnings per Share Growth Forecasts

Future Return on Equity

Future ROE: NWN's Return on Equity is forecast to be low in 3 years time (8.4%).

Past Performance

How has Northwest Natural Holding performed over the past 5 years?

Past Performance Score

2/6

Past Performance Score 2/6

Quality Earnings
Growing Profit Margin
Earnings Trend
Accelerating Growth
Earnings vs Industry
High ROE

3.8%

Historical annual earnings growth

Earnings and Revenue History

Quality Earnings: NWN has high quality earnings.

Growing Profit Margin: NWN's current net profit margins (8.4%) are lower than last year (10.1%).

Past Earnings Growth Analysis

Earnings Trend: NWN's earnings have grown by 3.8% per year over the past 5 years.

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

Earnings vs Industry: NWN had negative earnings growth (-7.5%) over the past year, making it difficult to compare to the Gas Utilities industry average (4%).

Return on Equity

High ROE: NWN's Return on Equity (7.6%) is considered low.

Financial Health

How is Northwest Natural Holding's financial position?

Financial Health Score

1/6

Financial Health Score 1/6

Short Term Liabilities
Long Term Liabilities
Debt Level
Reducing Debt
Debt Coverage
Interest Coverage

Financial Position Analysis

Short Term Liabilities: NWN's short term assets ($391.4M) do not cover its short term liabilities ($658.3M).

Long Term Liabilities: NWN's short term assets ($391.4M) do not cover its long term liabilities ($2.4B).

Debt to Equity History and Analysis

Debt Level: NWN's net debt to equity ratio (137%) is considered high.

Reducing Debt: NWN's debt to equity ratio has increased from 82.3% to 139.4% over the past 5 years.

Debt Coverage: NWN's debt is not well covered by operating cash flow (11.9%).

Interest Coverage: NWN's interest payments on its debt are well covered by EBIT (3.6x coverage).

Balance Sheet

Dividend

What is Northwest Natural Holding current dividend yield, its reliability and sustainability?

Dividend Score

5/6

Dividend Score 5/6

Notable Dividend
High Dividend
Stable Dividend
Growing Dividend
Earnings Coverage
Future Dividend Coverage

3.50%

Current Dividend Yield

Dividend Yield vs Market

Notable Dividend: NWN's dividend (3.5%) is higher than the bottom 25% of dividend payers in the US market (1.57%).

High Dividend: NWN's dividend (3.5%) is low compared to the top 25% of dividend payers in the US market (4.05%).

Stability and Growth of Payments

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

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

Earnings Payout to Shareholders

Earnings Coverage: At its current payout ratio (78.8%), NWN's payments are covered by earnings.

Cash Payout to Shareholders

Cash Flow Coverage: NWN is paying a dividend but the company has no free cash flows.

Discover strong dividend paying companies

Management

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

4.8yrs

Average management tenure

CEO

David Anderson (59 yo)

6.75yrs

Tenure

US$3,759,354

Compensation

Mr. David Hugo Anderson has been the President of Northwest Natural Holding Company and Northwest Natural Gas Company since July 1, 2015 and as its Chief Executive Officer and Director since August 1, 2016...

CEO Compensation Analysis

Compensation vs Market: David's total compensation ($USD3.76M) is below average for companies of similar size in the US market ($USD5.43M).

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

Leadership Team

Experienced Management: NWN's management team is considered experienced (4.8 years average tenure).

Board Members

Experienced Board: NWN's board of directors are considered experienced (3.8 years average tenure).

Ownership

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

Insider Trading Volume

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.

Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: Shareholders have been diluted in the past year, with total shares outstanding growing by 11.7%.

Data	Last Updated (UTC time)
Company Analysis	2022/05/24 00:00
End of Day Share Price	2022/05/24 00:00
Earnings	2022/03/31
Annual Earnings	2021/12/31