Is NorthWestern Stock a Good Investment?
NorthWestern Investment Advice | NWE |
- Examine NorthWestern'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 NorthWestern's leadership team and their track record. Good management can help NorthWestern navigate difficult times and make strategic decisions that benefit shareholders and increases its net worth.
- Consider the overall health of the Multi-Utilities space and any emerging trends that could impact NorthWestern's business and its evolving consumer preferences.
- Compare NorthWestern's performance and market position to its competitors. Analyze how NorthWestern is positioned in terms of product offerings, innovation, and market share.
- Check if NorthWestern pays a dividend and its dividend yield and payout ratio.
- Review what financial analysts are saying about NorthWestern'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 NorthWestern 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 NorthWestern is a good investment.
Sell | Buy |
Cautious Hold
Market Performance | Modest | Details | |
Volatility | Very steady | Details | |
Hype Condition | Low key | Details | |
Current Valuation | Fairly Valued | Details | |
Odds Of Distress | Below Average | Details | |
Economic Sensitivity | Follows the market closely | Details | |
Investor Sentiment | Impartial | Details | |
Analyst Consensus | Buy | Details | |
Financial Strenth (F Score) | Strong | Details | |
Financial Leverage | Not Rated | Details | |
Reporting Quality (M-Score) | Unlikely Manipulator | Details |
Examine NorthWestern Stock
Researching NorthWestern'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 99.0% of the company shares are owned by institutional investors. The company has price-to-book ratio of 1.21. Typically companies with comparable Price to Book (P/B) are able to outperform the market in the long run. NorthWestern has Price/Earnings To Growth (PEG) ratio of 2.92. The entity last dividend was issued on the 13th of December 2024. The firm had 1:1 split on the 2nd of October 2023.
To determine if NorthWestern 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 NorthWestern's research are outlined below:
| NorthWestern has 2.79 B in debt with debt to equity (D/E) ratio of 1.01, which is OK given its current industry classification. NorthWestern has a current ratio of 0.74, 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 NorthWestern to invest in growth at high rates of return. | |
| NorthWestern has a strong financial position based on the latest SEC filings | |
| Over 99.0% of NorthWestern shares are owned by institutional investors | |
| On 30th of September 2024 NorthWestern paid $ 0.65 per share dividend to its current shareholders | |
| Latest headline from news.google.com: Acquisition by Dana Dykhouse of 3750 shares of NorthWestern at 59.34 subject to Rule 16b-3 |
NorthWestern Quarterly Good Will |
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NorthWestern 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 NorthWestern. 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 NorthWestern'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.
| 14th of February 2024 Upcoming Quarterly Report | View | |
| 25th of April 2024 Next Financial Report | View | |
| 31st of December 2023 Next Fiscal Quarter End | View | |
| 14th 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 NorthWestern'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 NorthWestern's investors have experienced.
| Reported | Fiscal Date | Estimated EPS | Reported EPS | Surprise | |||
|---|---|---|---|---|---|---|---|
1996-10-24 | 1996-09-30 | 0.04 | 0.03 | -0.01 | 25 | ||
1995-08-03 | 1995-06-30 | 0.17 | 0.2 | 0.03 | 17 | ||
1995-11-01 | 1995-09-30 | 0.12 | 0.16 | 0.04 | 33 | ||
2015-10-22 | 2015-09-30 | 0.57 | 0.51 | -0.06 | 10 | ||
1998-02-04 | 1997-12-31 | 0.39 | 0.45 | 0.06 | 15 | ||
1996-08-23 | 1996-06-30 | 0.08 | 0.14 | 0.06 | 75 | ||
2021-10-24 | 2021-09-30 | 0.58 | 0.65 | 0.07 | 12 | ||
2016-10-20 | 2016-09-30 | 0.59 | 0.66 | 0.07 | 11 |
Know NorthWestern's Top Institutional Investors
Have you ever been surprised when a price of an equity instrument such as NorthWestern is soaring high without any particular reason? This is usually happening because many institutional investors are aggressively trading NorthWestern backward and forwards among themselves. NorthWestern's institutional investor refers to the entity that pools money to purchase NorthWestern'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 | Massachusetts Financial Services Company | 2024-09-30 | 1.1 M | Dimensional Fund Advisors, Inc. | 2024-09-30 | 1 M | Systematic Financial Management Lp | 2024-06-30 | 957.2 K | Neuberger Berman Group Llc | 2024-06-30 | 933.7 K | Jpmorgan Chase & Co | 2024-06-30 | 891.1 K | Bank Of New York Mellon Corp | 2024-06-30 | 849.1 K | Charles Schwab Investment Management Inc | 2024-09-30 | 848.3 K | Morgan Stanley - Brokerage Accounts | 2024-06-30 | 847.8 K | Amvescap Plc. | 2024-06-30 | 812.4 K | Blackrock Inc | 2024-06-30 | 9.4 M | Vanguard Group Inc | 2024-09-30 | 6.8 M |
NorthWestern's market capitalization trends
The company currently falls under 'Mid-Cap' category with a total capitalization of 3.41 B.Market Cap |
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NorthWestern's profitablity analysis
| Last Reported | Projected for Next Year | ||
| Return On Tangible Assets | 0.03 | 0.03 | |
| Return On Capital Employed | 0.04 | 0.03 | |
| Return On Assets | 0.03 | 0.03 | |
| Return On Equity | 0.07 | 0.07 |
Determining NorthWestern's profitability involves analyzing its financial statements and using various financial metrics to determine if NorthWestern is a good buy. For example, gross profit margin measures NorthWestern'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 NorthWestern's profitability and make more informed investment decisions.
NorthWestern's Earnings Breakdown by Geography
Please note, the presentation of NorthWestern's financial position, as portrayed in its financial statements, is often influenced by management's estimates, judgments, and sometimes even manipulations. In the best case, NorthWestern's management is honest, while the outside auditors are strict and uncompromising. Please utilize our Beneish M Score to check the likelihood of NorthWestern's management manipulating its earnings.
Evaluate NorthWestern's management efficiency
NorthWestern has Return on Asset of 0.0273 % which means that on every $100 spent on assets, it made $0.0273 of profit. This is way below average. In the same way, it shows a return on shareholders' equity (ROE) of 0.0816 %, implying that it generated $0.0816 on every 100 dollars invested. NorthWestern's management efficiency ratios could be used to measure how well NorthWestern manages its routine affairs as well as how well it operates its assets and liabilities. At present, NorthWestern's Return On Assets are projected to slightly decrease based on the last few years of reporting. At present, NorthWestern's Non Currrent Assets Other are projected to increase significantly based on the last few years of reporting. The current year's Other Current Assets is expected to grow to about 81.8 M, whereas Total Current Assets are forecasted to decline to about 375.4 M.| Last Reported | Projected for Next Year | ||
| Book Value Per Share | 46.17 | 48.48 | |
| Tangible Book Value Per Share | 40.25 | 42.26 | |
| Enterprise Value Over EBITDA | 11.57 | 15.30 | |
| Price Book Value Ratio | 1.11 | 2.00 | |
| Enterprise Value Multiple | 11.57 | 15.30 | |
| Price Fair Value | 1.11 | 2.00 | |
| Enterprise Value | 5.9 B | 3.4 B |
Effective management at NorthWestern 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 0.0467 | Forward Dividend Yield 0.0467 | Forward Dividend Rate 2.6 | Beta 0.489 |
Basic technical analysis of NorthWestern Stock
As of the 22nd of November, NorthWestern secures the Mean Deviation of 0.8108, risk adjusted performance of 0.0657, and Downside Deviation of 1.15. In connection with fundamental indicators, the technical analysis model lets you check existing technical drivers of NorthWestern, as well as the relationship between them. Please verify NorthWestern information ratio, potential upside, as well as the relationship between the Potential Upside and kurtosis to decide if NorthWestern is priced some-what accurately, providing market reflects its recent price of 56.51 per share. Given that NorthWestern has jensen alpha of 0.0197, we recommend you to check NorthWestern's last-minute market performance to make sure the company can sustain itself at a future point.NorthWestern'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 NorthWestern insiders, such as employees or executives, is commonly permitted as long as it does not rely on NorthWestern'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 NorthWestern 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.
NorthWestern's Outstanding Corporate Bonds
NorthWestern 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. NorthWestern 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 NorthWestern bonds can be classified according to their maturity, which is the date when NorthWestern 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 NorthWestern's technical and predictive indicators
Using predictive indicators to make investment decisions involves analyzing NorthWestern'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 | 0.0657 | |||
| Market Risk Adjusted Performance | 0.124 | |||
| Mean Deviation | 0.8108 | |||
| Semi Deviation | 1.03 | |||
| Downside Deviation | 1.15 | |||
| Coefficient Of Variation | 1200.0 | |||
| Standard Deviation | 1.06 | |||
| Variance | 1.13 | |||
| Information Ratio | (0.01) | |||
| Jensen Alpha | 0.0197 | |||
| Total Risk Alpha | (0.04) | |||
| Sortino Ratio | (0.01) | |||
| Treynor Ratio | 0.114 | |||
| Maximum Drawdown | 5.3 | |||
| Value At Risk | (2.04) | |||
| Potential Upside | 1.58 | |||
| Downside Variance | 1.32 | |||
| Semi Variance | 1.06 | |||
| Expected Short fall | (0.83) | |||
| Skewness | (0.43) | |||
| Kurtosis | 0.7684 |
| Risk Adjusted Performance | 0.0657 | |||
| Market Risk Adjusted Performance | 0.124 | |||
| Mean Deviation | 0.8108 | |||
| Semi Deviation | 1.03 | |||
| Downside Deviation | 1.15 | |||
| Coefficient Of Variation | 1200.0 | |||
| Standard Deviation | 1.06 | |||
| Variance | 1.13 | |||
| Information Ratio | (0.01) | |||
| Jensen Alpha | 0.0197 | |||
| Total Risk Alpha | (0.04) | |||
| Sortino Ratio | (0.01) | |||
| Treynor Ratio | 0.114 | |||
| Maximum Drawdown | 5.3 | |||
| Value At Risk | (2.04) | |||
| Potential Upside | 1.58 | |||
| Downside Variance | 1.32 | |||
| Semi Variance | 1.06 | |||
| Expected Short fall | (0.83) | |||
| Skewness | (0.43) | |||
| Kurtosis | 0.7684 |
Consider NorthWestern's intraday indicators
NorthWestern 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 NorthWestern 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.
NorthWestern Corporate Filings
13A | 8th of November 2024 An amended filing to the original Schedule 13G | ViewVerify |
F4 | 4th of November 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 |
8K | 30th of October 2024 Report filed with the SEC to announce major events that shareholders should know about | ViewVerify |
10Q | 29th of October 2024 Quarterly performance report mandated by Securities and Exchange Commission (SEC), to be filed by publicly traded corporations | ViewVerify |
NorthWestern Stock media impact
Far too much social signal, news, headlines, and media speculation about NorthWestern that are available to investors today. That information is available publicly through NorthWestern media outlets and privately through word of mouth or via NorthWestern internal channels. However, regardless of the origin, that massive amount of NorthWestern 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 NorthWestern 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 NorthWestern 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 NorthWestern's headlines and news coverage data. This data is often completely overlooked or insufficiently analyzed for actionable insights to drive NorthWestern alpha.
NorthWestern Sentiment by Major News Outlets
Investor sentiment, mood or attitude towards NorthWestern 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.
NorthWestern Corporate Directors
| Julia Johnson | Independent Director | Profile | |
| Linda Sullivan | Independent Director | Profile | |
| Jeffrey Yingling | Independent Director | Profile | |
| Britt Ide | Independent Director | Profile |
Check out Correlation Analysis to better understand how to build diversified portfolios, which includes a position in NorthWestern. 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. For information on how to trade NorthWestern Stock refer to our How to Trade NorthWestern Stock guide.You can also try the Money Flow Index module to determine momentum by analyzing Money Flow Index and other technical indicators.
Is Multi-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 NorthWestern. If investors know NorthWestern 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 NorthWestern 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 0.583 | Dividend Share 2.59 | Earnings Share 3.71 | Revenue Per Share 24.421 | Quarterly Revenue Growth 0.075 |
The market value of NorthWestern is measured differently than its book value, which is the value of NorthWestern that is recorded on the company's balance sheet. Investors also form their own opinion of NorthWestern's value that differs from its market value or its book value, called intrinsic value, which is NorthWestern'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 NorthWestern's market value can be influenced by many factors that don't directly affect NorthWestern'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 NorthWestern's value and its price, as these two are different measures arrived at by various means. Investors typically determine if NorthWestern is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, NorthWestern'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.