NorthWestern Net Income vs. Cash And Equivalents
| NWE Stock | USD 55.24 0.52 0.95% |
Net Income | First Reported 1989-06-30 | Previous Quarter 31.7 M | Current Value 46.8 M | Quarterly Volatility 73.2 M |
| Current Value | Last Year | Change From Last Year | 10 Year Trend | ||||||
|---|---|---|---|---|---|---|---|---|---|
| Gross Profit Margin | 0.58 | 0.5494 |
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| Net Profit Margin | 0.14 | 0.1365 |
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| Operating Profit Margin | 0.22 | 0.2113 |
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| Pretax Profit Margin | 0.15 | 0.1418 |
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| Return On Assets | 0.0268 | 0.0255 |
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| Return On Equity | 0.0662 | 0.0697 |
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For NorthWestern profitability analysis, we use financial ratios and fundamental drivers that measure the ability of NorthWestern to generate income relative to revenue, assets, operating costs, and current equity. These fundamental indicators attest to how well NorthWestern utilizes its assets to generate profit and value for its shareholders. The profitability module also shows relationships between NorthWestern's most relevant fundamental drivers. It provides multiple suggestions of what could affect the performance of NorthWestern over time as well as its relative position and ranking within its peers.
NorthWestern |
NorthWestern's Revenue Breakdown by Earning Segment
Check out Correlation Analysis.
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.
Please note, there is a significant difference between NorthWestern's value and its price as these two are different measures arrived at by different 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.
NorthWestern Cash And Equivalents vs. Net Income Fundamental Analysis
Comparative valuation techniques use various fundamental indicators to help in determining NorthWestern's current stock value. Our valuation model uses many indicators to compare NorthWestern value to that of its competitors to determine the firm's financial worth. NorthWestern is rated below average in net income category among its peers. It is rated below average in cash and equivalents category among its peers creating about 0.05 of Cash And Equivalents per Net Income. The ratio of Net Income to Cash And Equivalents for NorthWestern is roughly 21.40 . At present, NorthWestern's Net Income is projected to increase significantly based on the last few years of reporting. Comparative valuation analysis is a catch-all technique that is used if you cannot value NorthWestern by discounting back its dividends or cash flows. It compares the stock's price multiples to nearest competition to determine if the stock is relatively undervalued or overvalued.NorthWestern Cash And Equivalents vs. Net Income
Net income is the profit of a company for the reporting period, which is derived after taking revenues and gains and subtracting all expenses and losses. Net income is one of the most-watched numbers by money managers as well as individual investors.
NorthWestern |
| = | 194.13 M |
Because income is reported on the Income Statement of a company and is measured in dollars some investors prefer to use Profit Margin, which measures income as a percentage of sales.
Cash or Cash Equivalents are the most liquid of all assets found on the company's balance sheet. It is used in calculating many of the firm's liquidity ratios and is a good indicator of the overall financial health of a company. Companies with a lot of cash are usually attractive takeover targets. Cash Equivalents are balance sheet items that are typically reported using currency printed on notes.
NorthWestern |
| = | 9.07 M |
Cash equivalents represent current assets that are easily convertible to cash such as short term bonds, savings account, money market funds, or certificate of deposits (CDs). One of the important consideration companies make when classifying assets as cash equivalent is that investments they report on their balance sheets under current assets should have almost no risk of change in value over the next few months (usually three months).
NorthWestern Cash And Equivalents Comparison
NorthWestern is currently under evaluation in cash and equivalents category among its peers.
NorthWestern Profitability Projections
The most important aspect of a successful company is its ability to generate a profit. For investors in NorthWestern, profitability is also one of the essential criteria for including it into their portfolios because, without profit, NorthWestern will eventually generate negative long term returns. The profitability progress is the general direction of NorthWestern's change in net profit over the period of time. It can combine multiple indicators of NorthWestern, where stable trends show no significant progress. An accelerating trend is seen as positive, while a decreasing one is unfavorable. A rising trend means that profits are rising, and operational efficiency may be rising as well. A decreasing trend is a sign of poor performance and may indicate upcoming losses.
| Last Reported | Projected for Next Year | ||
| Accumulated Other Comprehensive Income | -7.7 M | -7.3 M | |
| Operating Income | 300.5 M | 315.5 M | |
| Net Income | 194.1 M | 203.8 M | |
| Income Tax Expense | 7.5 M | 7.9 M | |
| Income Before Tax | 201.7 M | 211.8 M | |
| Total Other Income Expense Net | -98.8 M | -93.8 M | |
| Net Income Applicable To Common Shares | 210.5 M | 146.8 M | |
| Net Income From Continuing Ops | 194.1 M | 163.4 M | |
| Non Operating Income Net Other | 22.3 M | 23.5 M | |
| Interest Income | 109.3 M | 102.6 M | |
| Net Interest Income | -114.6 M | -120.3 M | |
| Change To Netincome | -21.8 M | -20.7 M | |
| Net Income Per Share | 3.22 | 3.38 | |
| Income Quality | 2.52 | 2.35 | |
| Net Income Per E B T | 0.96 | 1.01 |
NorthWestern Profitability Driver Comparison
Profitability drivers are factors that can directly affect your investment outlook on NorthWestern. Investors often realize that things won't turn out the way they predict. There are maybe way too many unforeseen events and contingencies during the holding period of NorthWestern position where the market behavior may be hard to predict, tax policy changes, gold or oil price hikes, calamities change, and many others. The question is, are you prepared for these unexpected events? Although some of these situations are obviously beyond your control, you can still follow the important profit indicators to know where you should focus on when things like this occur. Below are some of the NorthWestern's important profitability drivers and their relationship over time.
Use NorthWestern in pair-trading
One of the main advantages of trading using pair correlations is that every trade hedges away some risk. Because there are two separate transactions required, even if NorthWestern position performs unexpectedly, the other equity can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in NorthWestern will appreciate offsetting losses from the drop in the long position's value.NorthWestern Pair Trading
NorthWestern Pair Trading Analysis
The ability to find closely correlated positions to NorthWestern could be a great tool in your tax-loss harvesting strategies, allowing investors a quick way to find a similar-enough asset to replace NorthWestern when you sell it. If you don't do this, your portfolio allocation will be skewed against your target asset allocation. So, investors can't just sell and buy back NorthWestern - that would be a violation of the tax code under the "wash sale" rule, and this is why you need to find a similar enough asset and use the proceeds from selling NorthWestern to buy it.
The correlation of NorthWestern is a statistical measure of how it moves in relation to other instruments. This measure is expressed in what is known as the correlation coefficient, which ranges between -1 and +1. A perfect positive correlation (i.e., a correlation coefficient of +1) implies that as NorthWestern moves, either up or down, the other security will move in the same direction. Alternatively, perfect negative correlation means that if NorthWestern moves in either direction, the perfectly negatively correlated security will move in the opposite direction. If the correlation is 0, the equities are not correlated; they are entirely random. A correlation greater than 0.8 is generally described as strong, whereas a correlation less than 0.5 is generally considered weak.
Correlation analysis and pair trading evaluation for NorthWestern can also be used as hedging techniques within a particular sector or industry or even over random equities to generate a better risk-adjusted return on your portfolios.Use Investing Themes to Complement your NorthWestern position
In addition to having NorthWestern in your portfolios, you can quickly add positions using our predefined set of ideas and optimize them against your very unique investing style. A single investing idea is a collection of funds, stocks, ETFs, or cryptocurrencies that are programmatically selected from a pull of investment themes. After you determine your investment opportunity, you can then find an optimal portfolio that will maximize potential returns on the chosen idea or minimize its exposure to market volatility.Did You Try This Idea?
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Funds or Etfs that invest in entities that are involved in mining, processing or dealing of precious metals. The Precious Metals Funds theme has 31 constituents at this time.
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Check out Correlation Analysis. For information on how to trade NorthWestern Stock refer to our How to Trade NorthWestern Stock guide.You can also try the Competition Analyzer module to analyze and compare many basic indicators for a group of related or unrelated entities.
To fully project NorthWestern's future profitability, investors should examine all historical financial statements. These statements provide investors with a comprehensive snapshot of the financial position of NorthWestern at a specified time, usually calculated after every quarter, six months, or one year. Three primary documents fall into the category of financial statements. These documents include NorthWestern's income statement, its balance sheet, and the statement of cash flows.