NorthWestern Price To Book vs. Current Valuation
| NWE Stock | USD 57.05 0.30 0.53% |
| 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 Current Valuation vs. Price To Book 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 price to book category among its peers. It is rated below average in current valuation category among its peers reporting about 5,209,045,152 of Current Valuation per Price To Book. 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 Current Valuation vs. Price To Book
Price to Book (P/B) ratio is used to relate a company book value to its current market price. A high P/B ratio indicates that investors expect executives to generate more returns on their investments from a given set of assets. Book value is the accounting value of assets minus liabilities.
NorthWestern |
| = | 1.24 X |
Price to Book ratio is mostly used in financial services industries where assets and liabilities are typically represented by dollars. Although low Price to Book ratio generally implies that the firm is undervalued, it is often a good indicator that the company may be in financial or managerial distress and should be investigated more carefully.
Enterprise Value is a firm valuation proxy that approximates the current market value of a company. It is typically used to determine the takeover or merger price of a firm. Unlike Market Cap, this measure takes into account the entire liquid asset, outstanding debt, and exotic equity instruments that the company has on its balance sheet. When a takeover occurs, the parent company will have to assume the target company's liabilities but will take possession of all cash and cash equivalents.
NorthWestern |
| = | 6.47 B |
Enterprise Value can be a useful tool to compare companies with different capital structures. Long term liability and current cash or cash equivalents can have a huge impact on market valuation of a given company.
NorthWestern Current Valuation vs Competition
NorthWestern is rated below average in current valuation category among its peers. After adjusting for long-term liabilities, total market size of Utilities industry is now estimated at about 239.82 Billion. NorthWestern holds roughly 6.47 Billion in current valuation claiming about 2.7% of Utilities industry.
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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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 Bonds Directory module to find actively traded corporate debentures issued by US companies.
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.