Northwest Natural Holding Company
Northwest Natural Holding Company Fundamental Analysis
Northwest Natural Holding Company (NWN) shows weak financial fundamentals with a PE ratio of 19.71, profit margin of 8.79%, and ROE of 7.78%. The company generates $1.3B in annual revenue with weak year-over-year growth of -3.71%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 8.3/100 based on profitability, valuation, growth, and balance sheet metrics. The F grade reflects weak fundamentals and significant financial concerns.
Fundamental Health Score
We analyze NWN's fundamental strength across five key dimensions:
Efficiency Score
WeakNWN struggles to generate sufficient returns from assets.
Valuation Score
ExcellentNWN trades at attractive valuation levels.
Growth Score
WeakNWN faces weak or negative growth trends.
Financial Health Score
WeakNWN carries high financial risk with limited liquidity.
Profitability Score
WeakNWN struggles to sustain strong margins.
Key Financial Metrics
Is NWN Expensive or Cheap?
P/E Ratio
NWN trades at 19.71 times earnings. This indicates a fair valuation.
PEG Ratio
When adjusting for growth, NWN's PEG of 1.83 indicates fair valuation.
Price to Book
The market values Northwest Natural Holding Company at 1.51 times its book value. This may indicate undervaluation.
EV/EBITDA
Enterprise value stands at -0.96 times EBITDA. This is generally considered low.
How Well Does NWN Make Money?
Net Profit Margin
For every $100 in sales, Northwest Natural Holding Company keeps $8.79 as profit after all expenses.
Operating Margin
Core operations generate 26.21 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $7.78 in profit for every $100 of shareholder equity.
ROA
Northwest Natural Holding Company generates $1.82 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
Northwest Natural Holding Company produces operating cash flow of $273.73M, showing steady but balanced cash generation.
Free Cash Flow
Northwest Natural Holding Company generates weak or negative free cash flow of $-201.16M, restricting financial flexibility.
FCF Per Share
Each share generates $-4.84 in free cash annually.
FCF Yield
NWN converts -8.71% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
19.71
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
1.83
vs 25 benchmark
P/B Ratio
Price to book value ratio
1.51
vs 25 benchmark
P/S Ratio
Price to sales ratio
1.76
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
1.87
vs 25 benchmark
Current Ratio
Current assets to current liabilities
0.72
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.08
vs 25 benchmark
ROA
Return on assets percentage
0.02
vs 25 benchmark
ROCE
Return on capital employed
0.06
vs 25 benchmark
How NWN Stacks Against Its Sector Peers
| Metric | NWN Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 19.71 | 20.35 | Neutral |
| ROE | 7.78% | 922.00% | Weak |
| Net Margin | 8.79% | 765.00% | Weak |
| Debt/Equity | 1.87 | 1.50 | Weak (High Leverage) |
| Current Ratio | 0.72 | 1.44 | Weak Liquidity |
| ROA | 1.82% | -5800.00% (disorted) | Weak |
NWN outperforms its industry in 0 out of 6 key metrics, but lagging in ROE.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews Northwest Natural Holding Company's 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
18.56%
Industry Style: Defensive, Dividend, Income
High GrowthEPS CAGR
-1.95%
Industry Style: Defensive, Dividend, Income
DecliningFCF CAGR
-17.04%
Industry Style: Defensive, Dividend, Income
Declining