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NWN

Northwest Natural HoldingNYSE:NWN Stock Report

Market Cap

US$1.4b

7D

0.6%

1Y

-8.5%

Updated

03 Dec, 2021

Data

Company Financials +
NWN fundamental analysis
Snowflake Score
Valuation3/6
Future Growth1/6
Past Performance5/6
Financial Health1/6
Dividends6/6

NWN Stock Overview

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.

Northwest Natural Holding Competitors

Atmos Energy

NYSE:ATO

US$12.3b

UGI

NYSE:UGI

US$9.0b

National Fuel Gas

NYSE:NFG

US$5.5b

Southwest Gas Holdings

NYSE:SWX

US$4.0b

Price History & Performance

Summary of all time highs, changes and price drops for Northwest Natural Holding
Historical stock prices
Current Share PriceUS$44.51
52 Week HighUS$56.75
52 Week LowUS$41.71
Beta0.47
1 Month Change-4.01%
3 Month Change-12.73%
1 Year Change-8.51%
3 Year Change-33.55%
5 Year Change-25.57%
Change since IPO302.60%

Recent News & Updates

Dec 01
A Look At The Intrinsic Value Of Northwest Natural Holding Company (NYSE:NWN)

A Look At The Intrinsic Value Of Northwest Natural Holding Company (NYSE:NWN)

Does the December share price for Northwest Natural Holding Company ( NYSE:NWN ) reflect what it's really worth? Today...

Nov 30

Northwest Natural: Buy For The 4.2% Dividend Yield

The Northwest Natural share price has taken a large dip over the last several months for no apparent reason. The share price dip has provided the opportunity to lock in a 4.2% dividend yield paid by a dividend king. The share price has room to grow from here with little downside risk.

Oct 18
Northwest Natural Holding (NYSE:NWN) Will Pay A Dividend Of US$0.48

Northwest Natural Holding (NYSE:NWN) Will Pay A Dividend Of US$0.48

The board of Northwest Natural Holding Company ( NYSE:NWN ) has announced that it will pay a dividend of US$0.48 per...

Sep 25
Does Northwest Natural Holding (NYSE:NWN) Have A Healthy Balance Sheet?

Does Northwest Natural Holding (NYSE:NWN) Have A Healthy Balance Sheet?

Howard Marks put it nicely when he said that, rather than worrying about share price volatility, 'The possibility of...

Shareholder Returns

NWNUS Gas UtilitiesUS Market
7D0.6%-0.5%-2.7%
1Y-8.5%-0.3%16.6%

Return vs Industry: NWN underperformed the US Gas Utilities industry which returned -0.4% over the past year.

Return vs Market: NWN underperformed the US Market which returned 19.4% over the past year.

Price Volatility

Is NWN's price volatile compared to industry and market?
NWN volatility
NWN Average Weekly Movement2.7%
Gas Utilities Industry Average Movement3.3%
Market Average Movement6.1%
10% most volatile stocks in US Market14.8%
10% least volatile stocks in US Market2.4%

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

Volatility Over Time: NWN's weekly volatility (3%) has been stable over the past year.

About the Company

FoundedEmployeesCEOWebsite
18591,200David Andersonhttps://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 owns and operates 20 Bcf of underground gas storage capacity in Oregon. In addition, it is involved in water businesses and other investment activities.

Northwest Natural Holding Fundamentals Summary

How do Northwest Natural Holding's earnings and revenue compare to its market cap?
NWN fundamental statistics
Market CapUS$1.37b
Earnings (TTM)US$83.94m
Revenue (TTM)US$826.58m

16.3x

P/E Ratio

1.7x

P/S Ratio

Earnings & Revenue

Key profitability statistics from the latest earnings report
NWN income statement (TTM)
RevenueUS$826.58m
Cost of RevenueUS$460.48m
Gross ProfitUS$366.11m
ExpensesUS$282.16m
EarningsUS$83.94m

Last Reported Earnings

Sep 30, 2021

Next Earnings Date

n/a

Earnings per share (EPS)2.73
Gross Margin44.29%
Net Profit Margin10.16%
Debt/Equity Ratio147.6%

How did NWN perform over the long term?

See historical performance and comparison

Dividends

4.3%

Current Dividend Yield

70%

Payout Ratio

Valuation

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

17.2%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: NWN ($44.51) is trading below our estimate of fair value ($53.77)

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 good value based on its PE Ratio (16.3x) compared to the US Gas Utilities industry average (17x).

PE vs Market: NWN is good value based on its PE Ratio (16.3x) compared to the US market (16.9x).


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 PB Ratio (1.5x) 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?

5.6%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: NWN's forecast earnings growth (5.6% per year) is above the savings rate (2%).

Earnings vs Market: NWN's earnings (5.6% per year) are forecast to grow slower than the US market (14.1% per year).

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

Revenue vs Market: NWN's revenue (3% per year) is forecast to grow slower than the US market (10% per year).

High Growth Revenue: NWN's revenue (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 (8.5%).


Past Performance

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

4.1%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: NWN has high quality earnings.

Growing Profit Margin: NWN's current net profit margins (10.2%) are higher than last year (8.3%).


Past Earnings Growth Analysis

Earnings Trend: NWN's earnings have grown by 4.1% per year over the past 5 years.

Accelerating Growth: NWN's earnings growth over the past year (33.6%) exceeds its 5-year average (4.1% per year).

Earnings vs Industry: NWN earnings growth over the past year (33.6%) exceeded the Gas Utilities industry 13%.


Return on Equity

High ROE: NWN's Return on Equity (9.4%) is considered low.


Financial Health

How is Northwest Natural Holding's financial position?


Financial Position Analysis

Short Term Liabilities: NWN's short term assets ($358.2M) do not cover its short term liabilities ($735.0M).

Long Term Liabilities: NWN's short term assets ($358.2M) do not cover its long term liabilities ($2.3B).


Debt to Equity History and Analysis

Debt Level: NWN's net debt to equity ratio (145.4%) is considered high.

Reducing Debt: NWN's debt to equity ratio has increased from 101.3% to 147.6% over the past 5 years.

Debt Coverage: NWN's debt is not well covered by operating cash flow (13.2%).

Interest Coverage: NWN's interest payments on its debt are well covered by EBIT (3.8x coverage).


Balance Sheet


Dividend

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

4.34%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: NWN's dividend (4.34%) is higher than the bottom 25% of dividend payers in the US market (1.35%).

High Dividend: NWN's dividend (4.34%) is in the top 25% of dividend payers in the US market (3.61%)


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.


Current Payout to Shareholders

Dividend Coverage: With its reasonable payout ratio (70.1%), NWN's dividend payments are covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: NWN's dividends in 3 years are forecast to be covered by earnings (71.1% payout ratio).


Next Steps

Management

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

4.6yrs

Average management tenure


CEO

David Anderson (59 yo)

5.33yrs

Tenure

US$3,824,428

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 ($USD3.82M) is about average for companies of similar size in the US market ($USD3.72M).

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 (4.6 years average tenure).


Board Members

Experienced Board: NWN's board of directors are considered experienced (3.3 years average tenure).


Ownership

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


Insider Trading Volume

Insider Buying: NWN 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

Northwest Natural Holding Company's employee growth, exchange listings and data sources


Key Information

  • Name: Northwest Natural Holding Company
  • Ticker: NWN
  • Exchange: NYSE
  • Founded: 1859
  • Industry: Gas Utilities
  • Sector: Utilities
  • Market Cap: US$1.368b
  • Shares outstanding: 30.73m
  • Website: https://www.nwnaturalholdings.com

Number of Employees


Location

  • Northwest Natural Holding Company
  • 250 S.W. Taylor Street
  • Portland
  • Oregon
  • 97204
  • United States

Listings


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2021/12/03 23:55
End of Day Share Price2021/12/03 00:00
Earnings2021/09/30
Annual Earnings2020/12/31


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.