Northwestern Energy Group Inc
Northwestern Energy Group Inc Fundamental Analysis
Northwestern Energy Group Inc (NWE) shows moderate financial fundamentals with a PE ratio of 26.39, profit margin of 10.21%, and ROE of 5.80%. The company generates $1.6B in annual revenue with moderate year-over-year growth of 6.38%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 28.5/100 based on profitability, valuation, growth, and balance sheet metrics. The F grade reflects weak fundamentals and significant financial concerns.
Fundamental Health Score
We analyze NWE's fundamental strength across five key dimensions:
Efficiency Score
WeakNWE struggles to generate sufficient returns from assets.
Valuation Score
ModerateNWE shows balanced valuation metrics.
Growth Score
ModerateNWE shows steady but slowing expansion.
Financial Health Score
WeakNWE carries high financial risk with limited liquidity.
Profitability Score
WeakNWE struggles to sustain strong margins.
Key Financial Metrics
Is NWE Expensive or Cheap?
P/E Ratio
NWE trades at 26.39 times earnings. This indicates a fair valuation.
PEG Ratio
When adjusting for growth, NWE's PEG of -0.91 indicates potential undervaluation.
Price to Book
The market values Northwestern Energy Group Inc at 1.52 times its book value. This may indicate undervaluation.
EV/EBITDA
Enterprise value stands at 1.99 times EBITDA. This is generally considered low.
How Well Does NWE Make Money?
Net Profit Margin
For every $100 in sales, Northwestern Energy Group Inc keeps $10.21 as profit after all expenses.
Operating Margin
Core operations generate 19.20 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $5.80 in profit for every $100 of shareholder equity.
ROA
Northwestern Energy Group Inc generates $1.95 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
Northwestern Energy Group Inc produces operating cash flow of $400.73M, showing steady but balanced cash generation.
Free Cash Flow
Northwestern Energy Group Inc generates weak or negative free cash flow of $-148.03M, restricting financial flexibility.
FCF Per Share
Each share generates $-2.41 in free cash annually.
FCF Yield
NWE converts -3.37% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
26.39
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
-0.91
vs 25 benchmark
P/B Ratio
Price to book value ratio
1.52
vs 25 benchmark
P/S Ratio
Price to sales ratio
2.70
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
1.13
vs 25 benchmark
Current Ratio
Current assets to current liabilities
0.70
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.06
vs 25 benchmark
ROA
Return on assets percentage
0.02
vs 25 benchmark
ROCE
Return on capital employed
0.04
vs 25 benchmark
How NWE Stacks Against Its Sector Peers
| Metric | NWE Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 26.39 | 20.39 | Worse (Expensive) |
| ROE | 5.80% | 911.00% | Weak |
| Net Margin | 10.21% | 735.00% | Weak |
| Debt/Equity | 1.13 | 1.46 | Strong (Low Leverage) |
| Current Ratio | 0.70 | 1.30 | Weak Liquidity |
| ROA | 1.95% | 934.00% | Weak |
NWE outperforms its industry in 1 out of 6 key metrics, but lagging in P/E Ratio.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews Northwestern Energy Group Inc's 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
10.67%
Industry Style: Defensive, Dividend, Income
High GrowthEPS CAGR
-3.90%
Industry Style: Defensive, Dividend, Income
DecliningFCF CAGR
-7.73%
Industry Style: Defensive, Dividend, Income
Declining