NWN

Northwest Natural Hldg

Fundamental data last updated:April 13, 2026

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company profile

SECTOR

Utilities

industry

Utilities - Regulated Gas

Exchange

NYSE

County of HQ

United States

Next Earnings Date

05/05/26

Business Summary

NWN operates as a regulated natural gas utility, generating revenue by distributing gas to residential, commercial, and industrial customers under state-approved rate structures. Its cash flow is largely driven by regulated returns on infrastructure assets, where capital expenditures are added to rate base and recovered over time. This creates predictable, utility-style revenue streams but caps upside through regulatory oversight. The moat is rooted in local monopoly infrastructure, high switching costs, and the capital intensity required to replicate pipeline and distribution networks.

 


Analyze NWN on TradingView

VALUATION

P/E

20.1

Market Cap ($M USD)

$2,310

Forward P/E

17.2

PEG

2.1

PRICE TO SALES

1.8

PRICE TO BOOK

1.6

EV / EBITDA

10.6

5-Year Average P/E

Free Cash Flow Yield

DCF Value

Graham Number

Price to FCF

EV to FCF

Earnings Yield

FCF Yield

DIVIDEND

Yield

3.50%

Annual Payout

$1.97

Payout Ratio

70.90%

Consecutive Years of Dividend Growth

10+

5-Year Dividend Growth Rate

0.50%

Financial Health & Profitability

Earnings Per Share

$2.77

Next Year EPS Growth Estimate

$3.24

Next Year Revenue Growth Estimate

4.40%

Return on Equity (ROE)

7.70%

FREE CASH FLOW

Operating Margin

21.80%

Debt-to-Equity

1.8

Piotroski F-Score

5

Altman Z-Score

0.7

Return on Invested Capital (ROIC)

5.40%

Current Ratio

0.7

Quick Ratio

Net Debt to EBITDA

Interest Coverage

Gross Profit margin

FCF PER SHARE

REVENUE PER SHARE

Analyze NWN on TradingView

Gainseekers Quantitative Analysis

Summary

At 20.1x earnings and 17.2x forward earnings, NWN is not priced like a distressed utility, yet the 0.7 Altman Z-Score signals real balance sheet fragility beneath the surface. A PEG Forward of 2.1 implies investors are paying a premium relative to expected growth, which is hard to justify given a 4.40% ROE and 5.40% ROIC. The market appears to be assigning defensive utility multiples to a company with weak financial strength metrics and thin operating efficiency. This is not an obvious deep value mispricing; it is a middling utility priced for stability despite measurable financial stress signals.

AI Exposure / Tech Reliance

As a regulated gas utility in the Utilities - Regulated Gas industry, NWN’s AI exposure is indirect and operational rather than transformative. AI adoption would likely focus on grid optimization, predictive maintenance, and demand forecasting rather than revenue acceleration. The business model is infrastructure-heavy and rate-regulated, meaning technological shifts enhance efficiency but rarely drive step-change growth.

The Bull Case

A disciplined GARP investor could argue that 17.2x forward earnings for a regulated utility with a 1.8% yield and 3.50% dividend per share offers relative stability in volatile markets. The company posts a positive 7.70% operating margin and a 5.40% ROIC that exceeds its 4.40% ROE dynamic in a leveraged structure, suggesting capital is at least producing returns above minimal thresholds. A Piotroski F-Score of 5 indicates middling but not deteriorating fundamentals, and institutional ownership at $56.50% shows that professional capital remains committed. With a Price/Book of 1.6 and Price/Sales of 1.8, the valuation is not stretched relative to regulated asset-heavy peers, which could make it attractive for income-oriented mandates seeking defensive exposure ahead of its 05/05/26 earnings catalyst.

The Bear Case

The red flags are impossible to ignore: a 0.7 Altman Z-Score places the company deep in financial stress territory, and a Current Ratio of 0.7 reinforces near-term liquidity constraints. A PEG Forward of 2.1 signals that growth expectations do not justify the multiple, particularly with ROE at just 4.40%. Debt/Equity of 21.80% may look manageable in isolation, but in combination with weak profitability metrics and a Payout Ratio listed at $1.97 alongside a 1.8 yield and 3.50% dividend per share, capital allocation clarity is questionable. The Mean Consensus Target Price of 2 versus a $2,310 market cap suggests muted upside expectations, and while Short % of Float is only 0.50%, that reflects complacency rather than conviction.

Market Sentiment & Smart Money

Short Interest %

3.60%

Analyst Consensus

2

Average Analyst Price Target

$56.50

Institutional Ownership %

82.10%

1-Year Beta

0

Insider Buying % (6 Mo)

0.70%%

Distance to 52-Week High

99.30%

Distance to 52-Week Low

142.20%

EARNINGS SURPRISE %

50-DAY SMA

200-DAY SMA

⚠️ Financial Disclaimer:
This content is for informational purposes only and is not financial advice. Information may be delayed or inaccurate. We may earn a commission from partner links.