Is Northwest Natural Stock a Good Investment?
Northwest Natural Investment Advice | NWN |
- Examine Northwest Natural's financial health by looking at its balance sheet, income statement, and cash flow statement. Analyze key financial ratios, such as Price-to-Earnings (P/E), Price-to-Sales (P/S), and Price-to-Book (P/B), to determine whether the stock is fairly valued or over/undervalued.
- Research Northwest Natural's leadership team and their track record. Good management can help Northwest Natural navigate difficult times and make strategic decisions that benefit shareholders and increases its net worth.
- Consider the overall health of the Gas Utilities space and any emerging trends that could impact Northwest Natural's business and its evolving consumer preferences.
- Compare Northwest Natural's performance and market position to its competitors. Analyze how Northwest Natural is positioned in terms of product offerings, innovation, and market share.
- Check if Northwest Natural pays a dividend and its dividend yield and payout ratio.
- Review what financial analysts are saying about Northwest Natural's stock and their price targets. However, remember that analysts' opinions can vary, and their predictions may not always be accurate.
It's important to note that investing in Northwest Natural Gas stock, carries risks, and you should carefully consider your investment goals and risk tolerance before making any investment decisions. Also, remember that it's important for investors to have a long-term perspective and a well-diversified portfolio to manage the impact of stock market volatility on their investments. Below is a detailed guide on how to decide if Northwest Natural Gas is a good investment.
Sell | Buy |
Buy
Market Performance | OK | Details | |
Volatility | Very steady | Details | |
Hype Condition | Low key | Details | |
Current Valuation | Undervalued | Details | |
Odds Of Distress | Low | Details | |
Economic Sensitivity | Almost mirrors the market | Details | |
Investor Sentiment | Interested | Details | |
Analyst Consensus | Buy | Details | |
Financial Strenth (F Score) | Strong | Details | |
Financial Leverage | Not Rated | Details | |
Reporting Quality (M-Score) | Unlikely Manipulator | Details |
Examine Northwest Natural Stock
Researching Northwest Natural's stock involves analyzing various aspects of the company and its industry to make an informed investment decision. The key areas to focus on are fundamentals, business model and competitive advantage. It is also important to analyze trends in revenue, net income, and cash flow, as well as key financial ratios, such as price-to-earnings (P/E), price-to-sales (P/S), and debt-to-equity (D/E). About 80.0% of the company shares are owned by institutional investors. The company has price-to-book ratio of 1.24. Typically companies with comparable Price to Book (P/B) are able to outperform the market in the long run. Northwest Natural Gas last dividend was issued on the 31st of October 2024. The entity had 3:2 split on the 9th of September 1996.
To determine if Northwest Natural is a good investment, evaluating the company's potential for future growth is also very important. This may include expanding into new markets, launching new products or services, or improving operational efficiency. Companies with strong growth prospects can be more attractive investments. This aspect of the research should be conducted in the context of the overall market and industry in which the company operates and should include an analysis of growth potential, competitive landscape, and any regulatory or economic factors that could impact the business. Some of the essential points regarding Northwest Natural's research are outlined below:
| Northwest Natural Gas has 1.75 B in debt with debt to equity (D/E) ratio of 1.18, which is OK given its current industry classification. Northwest Natural Gas has a current ratio of 0.65, suggesting that it has not enough short term capital to pay financial commitments when the payables are due. Note however, debt could still be an excellent tool for Northwest to invest in growth at high rates of return. | |
| Northwest Natural has a strong financial position based on the latest SEC filings | |
| Over 80.0% of Northwest Natural shares are owned by institutional investors | |
| On 15th of November 2024 Northwest Natural paid $ 0.49 per share dividend to its current shareholders | |
| Latest headline from seekingalpha.com: NW Natural to buy Texas gas utility SiEnergy in 425M deal |
Northwest Natural uses earnings reports to provide investors with an update of all three financial statements, including the income statement, the balance sheet, and the cash flow statement. Therefore, it is also crucial when considering investing in Northwest Natural Gas. Every quarterly earnings report provides investors with an overview of sales, expenses, and net income for the most recent period. It also may provide a comparison to Northwest Natural's previous reporting period. The quarterly earnings reports are usually disseminated to the public via Form 10-Q, which is a legal document filed with the Securities and Exchange Commission every quarter.
| 23rd of February 2024 Upcoming Quarterly Report | View | |
| 2nd of May 2024 Next Financial Report | View | |
| 31st of December 2023 Next Fiscal Quarter End | View | |
| 23rd of February 2024 Next Fiscal Year End | View | |
| 30th of September 2023 Last Quarter Report | View | |
| 31st of December 2022 Last Financial Announcement | View |
Earnings surprises can significantly impact Northwest Natural's stock price both in the short term and over time. Negative earnings surprises usually result in a price decline. However, it has been seen that positive earnings surprises lead to an immediate rise in a stock's price and a gradual increase over time. This is why we often hear news about some companies beating earning projections. Financial analysts spend a large amount of time predicting earnings per share (EPS) along with other important future indicators. Many analysts use forecasting models, management guidance, and additional fundamental information to derive an EPS estimate. Below are the table of largest EPS Surprises Northwest Natural's investors have experienced.
| Reported | Fiscal Date | Estimated EPS | Reported EPS | Surprise | |||
|---|---|---|---|---|---|---|---|
2016-08-02 | 2016-06-30 | 0.06 | 0.07 | 0.01 | 16 | ||
2013-08-07 | 2013-06-30 | 0.09 | 0.08 | -0.01 | 11 | ||
2015-08-04 | 2015-06-30 | 0.06 | 0.08 | 0.02 | 33 | ||
2007-08-06 | 2007-06-30 | 0.08 | 0.1 | 0.02 | 25 | ||
2006-08-03 | 2006-06-30 | 0.05 | 0.07 | 0.02 | 40 | ||
2011-08-03 | 2011-06-30 | 0.22 | 0.25 | 0.03 | 13 | ||
2008-07-25 | 2008-06-30 | 0.11 | 0.08 | -0.03 | 27 | ||
1998-07-28 | 1998-06-30 | 0.11 | 0.14 | 0.03 | 27 |
Know Northwest Natural's Top Institutional Investors
Have you ever been surprised when a price of an equity instrument such as Northwest Natural is soaring high without any particular reason? This is usually happening because many institutional investors are aggressively trading Northwest Natural Gas backward and forwards among themselves. Northwest Natural's institutional investor refers to the entity that pools money to purchase Northwest Natural's securities or originate loans. Institutional investors include commercial and private banks, credit unions, insurance companies, pension funds, hedge funds, endowments, and mutual funds. Operating companies that invest excess capital in these types of assets may also be included in the term and may influence corporate governance by exercising voting rights in their investments.
| Shares | Adage Capital Partners Gp Llc | 2024-06-30 | 479.9 K | Northern Trust Corp | 2024-09-30 | 478.9 K | Bank Of New York Mellon Corp | 2024-06-30 | 471.9 K | Mirae Asset Global Etfs Holdings Ltd. | 2024-06-30 | 353.7 K | Hotchkis & Wiley Capital Management Llc | 2024-06-30 | 336 K | Gamco Investors, Inc. Et Al | 2024-06-30 | 315.4 K | Mesirow Institutional Investment Management, Inc. | 2024-09-30 | 302.7 K | Thompson, Siegel & Walmsley Llc | 2024-09-30 | 300.1 K | Legal & General Group Plc | 2024-06-30 | 278.1 K | Blackrock Inc | 2024-06-30 | 6.5 M | Vanguard Group Inc | 2024-09-30 | 4.7 M |
Northwest Natural's market capitalization trends
The company currently falls under 'Mid-Cap' category with a total capitalization of 1.69 B.Market Cap |
|
Northwest Natural's profitablity analysis
| Last Reported | Projected for Next Year | ||
| Return On Tangible Assets | 0.07 | 0.08 | |
| Return On Capital Employed | 0.24 | 0.25 | |
| Return On Assets | 0.06 | 0.07 | |
| Return On Equity | 0.07 | 0.09 |
Determining Northwest Natural's profitability involves analyzing its financial statements and using various financial metrics to determine if Northwest Natural is a good buy. For example, gross profit margin measures Northwest Natural's profitability after accounting for the cost of goods sold, while net profit margin measures profitability after accounting for all expenses. Other important metrics include return on assets, return on equity, and free cash flow. By reviewing multiple sources and metrics, you can gain a complete picture of Northwest Natural's profitability and make more informed investment decisions.
Evaluate Northwest Natural's management efficiency
Northwest Natural Gas has Return on Asset of 0.024 % which means that on every $100 spent on assets, it made $0.024 of profit. This is way below average. In the same way, it shows a return on shareholders' equity (ROE) of 0.0609 %, implying that it generated $0.0609 on every 100 dollars invested. Northwest Natural's management efficiency ratios could be used to measure how well Northwest Natural manages its routine affairs as well as how well it operates its assets and liabilities. As of the 22nd of November 2024, Return On Tangible Assets is likely to grow to 0.07. Also, Return On Capital Employed is likely to grow to 0.25. At this time, Northwest Natural's Fixed Asset Turnover is very stable compared to the past year. As of the 22nd of November 2024, Return On Assets is likely to grow to 0.07, while Non Current Assets Total are likely to drop about 2.3 B.| Last Reported | Projected for Next Year | ||
| Book Value Per Share | 35.45 | 19.94 | |
| Tangible Book Value Per Share | 30.94 | 19.61 | |
| Enterprise Value Over EBITDA | 9.02 | 7.34 | |
| Price Book Value Ratio | 1.10 | 1.30 | |
| Enterprise Value Multiple | 9.02 | 7.34 | |
| Price Fair Value | 1.10 | 1.30 | |
| Enterprise Value | 2 B | 1.8 B |
Effective management at Northwest Natural has been a driving force behind its market achievements. We assess the correlation between management practices and financial success to determine the stock's value.
Dividend Yield 0.0468 | Forward Dividend Yield 0.0468 | Forward Dividend Rate 1.96 | Beta 0.574 |
Basic technical analysis of Northwest Stock
As of the 22nd of November, Northwest Natural secures the Mean Deviation of 0.9371, risk adjusted performance of 0.0902, and Downside Deviation of 1.15. In connection with fundamental indicators, the technical analysis model lets you check existing technical drivers of Northwest Natural Gas, as well as the relationship between them.Northwest Natural's insider trading activities
Some recent studies suggest that insider trading raises the cost of capital for securities issuers and decreases overall economic growth. Trading by specific Northwest Natural insiders, such as employees or executives, is commonly permitted as long as it does not rely on Northwest Natural's material information that is not in the public domain. Local jurisdictions usually require such trading to be reported in order to monitor insider transactions. In many U.S. states, trading conducted by corporate officers, key employees, directors, or significant shareholders must be reported to the regulator or publicly disclosed, usually within a few business days of the trade. In these cases Northwest Natural insiders are required to file a Form 4 with the U.S. Securities and Exchange Commission (SEC) when buying or selling shares of their own companies.
Northwest Natural's Outstanding Corporate Bonds
Northwest Natural issues bonds to finance its operations. Corporate bonds make up one of the largest components of the U.S. bond market, which is considered the world's largest securities market. Northwest Natural Gas uses the proceeds from bond sales for a wide variety of purposes, including financing ongoing mergers and acquisitions, buying new equipment, investing in research and development, buying back their own stock, paying dividends to shareholders, and even refinancing existing debt. Most Northwest bonds can be classified according to their maturity, which is the date when Northwest Natural Gas has to pay back the principal to investors. Maturities can be short-term, medium-term, or long-term (more than ten years). Longer-term bonds usually offer higher interest rates but may entail additional risks.
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Understand Northwest Natural's technical and predictive indicators
Using predictive indicators to make investment decisions involves analyzing Northwest Natural's various financial and market-based factors to help forecast future trends and identify investment opportunities. Select the indicators that are most relevant to your investment strategy. Each indicator has its own strengths and weaknesses, so it's essential to combine multiple indicators to get a more comprehensive view of the market and reduce the risk of making poor decisions based on limited data.
| Risk Adjusted Performance | 0.0902 | |||
| Market Risk Adjusted Performance | 0.1418 | |||
| Mean Deviation | 0.9371 | |||
| Semi Deviation | 0.9706 | |||
| Downside Deviation | 1.15 | |||
| Coefficient Of Variation | 871.67 | |||
| Standard Deviation | 1.21 | |||
| Variance | 1.46 | |||
| Information Ratio | 0.0358 | |||
| Jensen Alpha | 0.0453 | |||
| Total Risk Alpha | (0.01) | |||
| Sortino Ratio | 0.0375 | |||
| Treynor Ratio | 0.1318 | |||
| Maximum Drawdown | 6.23 | |||
| Value At Risk | (1.64) | |||
| Potential Upside | 1.77 | |||
| Downside Variance | 1.33 | |||
| Semi Variance | 0.942 | |||
| Expected Short fall | (0.97) | |||
| Skewness | 0.6498 | |||
| Kurtosis | 1.64 |
| Risk Adjusted Performance | 0.0902 | |||
| Market Risk Adjusted Performance | 0.1418 | |||
| Mean Deviation | 0.9371 | |||
| Semi Deviation | 0.9706 | |||
| Downside Deviation | 1.15 | |||
| Coefficient Of Variation | 871.67 | |||
| Standard Deviation | 1.21 | |||
| Variance | 1.46 | |||
| Information Ratio | 0.0358 | |||
| Jensen Alpha | 0.0453 | |||
| Total Risk Alpha | (0.01) | |||
| Sortino Ratio | 0.0375 | |||
| Treynor Ratio | 0.1318 | |||
| Maximum Drawdown | 6.23 | |||
| Value At Risk | (1.64) | |||
| Potential Upside | 1.77 | |||
| Downside Variance | 1.33 | |||
| Semi Variance | 0.942 | |||
| Expected Short fall | (0.97) | |||
| Skewness | 0.6498 | |||
| Kurtosis | 1.64 |
Consider Northwest Natural's intraday indicators
Northwest Natural intraday indicators are useful technical analysis tools used by many experienced traders. Just like the conventional technical analysis, daily indicators help intraday investors to analyze the price movement with the timing of Northwest Natural stock daily movement. By combining multiple daily indicators into a single trading strategy, you can limit your risk while still earning strong returns on your managed positions.
Northwest Natural Corporate Filings
8K | 18th of November 2024 Report filed with the SEC to announce major events that shareholders should know about | ViewVerify |
10Q | 12th of November 2024 Quarterly performance report mandated by Securities and Exchange Commission (SEC), to be filed by publicly traded corporations | ViewVerify |
F4 | 1st of October 2024 The report filed by a party regarding the acquisition or disposition of a company's common stock, as well as derivative securities such as options, warrants, and convertible securities | ViewVerify |
F3 | 27th of September 2024 The report used by insiders such as officers, directors, and major shareholders (beneficial owners holding more than 10% of any class of the company's equity securities) to declare their ownership of a company's stock | ViewVerify |
Northwest Stock media impact
Far too much social signal, news, headlines, and media speculation about Northwest Natural that are available to investors today. That information is available publicly through Northwest media outlets and privately through word of mouth or via Northwest internal channels. However, regardless of the origin, that massive amount of Northwest data is challenging to quantify into actionable patterns, especially for investors that are not very sophisticated with ever-evolving tools and techniques used in the investment management field.
A primary focus of Northwest Natural news analysis is to determine if its current price reflects all relevant headlines and social signals impacting the current market conditions. A news analyst typically looks at the history of Northwest Natural relative headlines and hype rather than examining external drivers such as technical or fundamental data. It is believed that price action tends to repeat itself due to investors' collective, patterned thinking related to Northwest Natural's headlines and news coverage data. This data is often completely overlooked or insufficiently analyzed for actionable insights to drive Northwest Natural alpha.
Northwest Natural Sentiment by Major News Outlets
Investor sentiment, mood or attitude towards Northwest Natural can have a significant impact on its stock price or the market as a whole. This sentiment can be positive or negative, and various factors, such as economic indicators, news events, or market trends, can influence it. When investor sentiment is positive, investors are more likely to buy stocks, increasing demand and increasing the stock price. Positive investor sentiment can be driven by good news about the company or the broader market, such as solid earnings reports or positive economic data.
Note that negative investor sentiment can cause investors to sell stocks, leading to a decrease in demand and a drop in the stock price. Negative sentiment can be driven by factors such as poor earnings reports, negative news about the company or industry, or broader economic concerns. It's important to note that investor sentiment is just one of many factors that can affect stock prices. Other factors, such as company performance, industry trends, and global economic conditions, can also play a significant role in determining the value of a stock.
Northwest Natural Corporate Directors
| Jane Peverett | Independent Director | Profile | |
| Monica Enand | Independent Director | Profile | |
| Timothy Boyle | Independent Director | Profile | |
| Kenneth Thrasher | Independent Director | Profile |
Check out Correlation Analysis to better understand how to build diversified portfolios, which includes a position in Northwest Natural Gas. Also, note that the market value of any company could be closely tied with the direction of predictive economic indicators such as signals in housing. You can also try the Equity Search module to search for actively traded equities including funds and ETFs from over 30 global markets.
Is Gas Utilities space expected to grow? Or is there an opportunity to expand the business' product line in the future? Factors like these will boost the valuation of Northwest Natural. If investors know Northwest will grow in the future, the company's valuation will be higher. The financial industry is built on trying to define current growth potential and future valuation accurately. All the valuation information about Northwest Natural listed above have to be considered, but the key to understanding future value is determining which factors weigh more heavily than others.
Quarterly Earnings Growth (0.16) | Dividend Share 1.95 | Earnings Share 2.1 | Revenue Per Share 29.929 | Quarterly Revenue Growth (0.03) |
The market value of Northwest Natural Gas is measured differently than its book value, which is the value of Northwest that is recorded on the company's balance sheet. Investors also form their own opinion of Northwest Natural's value that differs from its market value or its book value, called intrinsic value, which is Northwest Natural's true underlying value. Investors use various methods to calculate intrinsic value and buy a stock when its market value falls below its intrinsic value. Because Northwest Natural's market value can be influenced by many factors that don't directly affect Northwest Natural's underlying business (such as a pandemic or basic market pessimism), market value can vary widely from intrinsic value.
In summary, please note that there is a difference between Northwest Natural's value and its price, as these two are different measures arrived at by various means. Investors typically determine if Northwest Natural is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Northwest Natural's price is the amount at which it trades on the open market and represents the number that a seller and buyer find agreeable to each party.