(NWN) Northwest Natural Gas - Overview
Sector: Utilities | Industry: Utilities - Regulated Gas | Exchange: NYSE (USA) | Market Cap: 2.101m USD | Total Return: 25.8% in 12m
Avg Turnover: 13.2M
EPS Trend: 31.2%
Qual. Beats: 0
Rev. Trend: 63.8%
Qual. Beats: -2
Warnings
High Debt while negative Cash Flow
Altman Z'' 0.82 < 1.0 - financial distress zone
Below Avwap Earnings
Tailwinds
No distinct edge detected
Northwest Natural Holding Company (NWN) is a Portland-based utility provider specializing in regulated natural gas distribution across Oregon and southwest Washington. The company operates through three primary segments: NWN Gas Utility, SiEnergy, and NWN Water, serving residential, commercial, and industrial clients. Beyond distribution, the firm manages interstate gas storage facilities, renewable natural gas investments, and wastewater treatment services.
As a regulated utility, the company operates under a cost-of-service model where rates are set by state commissions to allow for the recovery of capital expenditures plus a localized rate of return. This sector is characterized by high barriers to entry and capital-intensive infrastructure, often resulting in stable, predictable cash flows compared to non-regulated industries. Investors can utilize ValueRay to further analyze the companys historical dividend growth and valuation metrics.
The business model is further diversified through non-regulated asset management and appliance retail. By integrating water and wastewater utility connections alongside its traditional gas operations, the company seeks to leverage its infrastructure expertise across multiple essential service categories.
- Oregon Public Utility Commission rate case outcomes dictate annual revenue growth
- Expanding water and wastewater portfolio diversifies earnings away from gas utility
- Decarbonization mandates in Washington and Oregon increase long-term infrastructure transition costs
- Customer growth in the Pacific Northwest drives residential and commercial gas demand
- Higher interest rates elevate financing costs for capital-intensive utility infrastructure projects
| Net Income: 122.9m TTM > 0 and > 6% of Revenue |
| FCF/TA: -0.04 > 0.02 and ΔFCF/TA -1.45 > 1.0 |
| NWC/Revenue: -11.39% < 20% (prev 2.14%; Δ -13.53% < -1%) |
| CFO/TA 0.03 > 3% & CFO 205.6m > Net Income 122.9m |
| Net Debt (2.72b) to EBITDA (540.1m): 5.04 < 3 |
| Current Ratio: 0.80 > 1.5 & < 3 |
| Outstanding Shares: last quarter (41.0m) vs 12m ago 1.61% < -2% |
| Gross Margin: 42.26% > 18% (prev 0.37%; Δ 4.19k% > 0.5%) |
| Asset Turnover: 21.20% > 50% (prev 21.27%; Δ -0.07% > 0%) |
| Interest Coverage Ratio: 2.89 > 6 (EBITDA TTM 540.1m / Interest Expense TTM 115.5m) |
| A: -0.02 (Total Current Assets 584.1m - Total Current Liabilities 730.5m) / Total Assets 6.42b |
| B: 0.08 (Retained Earnings 512.2m / Total Assets 6.42b) |
| C: 0.06 (EBIT TTM 333.7m / Avg Total Assets 6.06b) |
| D: 0.33 (Book Value of Equity 1.58b / Total Liabilities 4.84b) |
| Altman-Z'' = 0.82 = B |
| DSRI: 0.93 (Receivables 207.3m/210.3m, Revenue 1.29b/1.21b) |
| GMI: 0.88 (GM 42.26% / 37.07%) |
| AQI: 1.23 (AQ_t 0.21 / AQ_t-1 0.17) |
| SGI: 1.06 (Revenue 1.29b / 1.21b) |
| TATA: -0.01 (NI 122.9m - CFO 205.6m) / TA 6.42b) |
| Beneish M = -3.03 (Cap -4..+1) = AA |
As of May 25, 2026, the stock is trading at USD 49.82 with a total of 194,359 shares traded.
Over the past week, the price has changed by +3.12%,
over one month by -5.55%,
over three months by +0.55% and
over the past year by +25.84%.
Northwest Natural Gas has received a consensus analysts rating of 4.20. Therefore, it is recommended to buy NWN.
- StrongBuy: 3
- Buy: 0
- Hold: 2
- Sell: 0
- StrongSell: 0
| Analysts Target Price | 57.5 | 15.4% |
P/E Forward = 16.3934
P/S = 1.6341
P/B = 1.3396
P/EG = 2.5239
Revenue TTM = 1.29b USD
EBIT TTM = 333.7m USD
EBITDA TTM = 540.1m USD
Long Term Debt = 2.27b USD (from longTermDebt, last quarter)
Short Term Debt = 335.2m USD (from shortTermDebt, last quarter)
Debt = 2.76b USD (from shortLongTermDebtTotal, last quarter) + Leases 78.2m
Net Debt = 2.72b USD (calculated: Debt 2.76b - CCE 37.7m)
Enterprise Value = 4.82b USD (2.10b + Debt 2.76b - CCE 37.7m)
Interest Coverage Ratio = 2.89 (Ebit TTM 333.7m / Interest Expense TTM 115.5m)
EV/FCF = -17.69x (Enterprise Value 4.82b / FCF TTM -272.7m)
FCF Yield = -5.65% (FCF TTM -272.7m / Enterprise Value 4.82b)
FCF Margin = -21.22% (FCF TTM -272.7m / Revenue TTM 1.29b)
Net Margin = 9.56% (Net Income TTM 122.9m / Revenue TTM 1.29b)
Gross Margin = 42.26% ((Revenue TTM 1.29b - Cost of Revenue TTM 742.3m) / Revenue TTM)
Gross Margin QoQ = 52.04% (prev 49.95%)
Tobins Q-Ratio = 0.75 (Enterprise Value 4.82b / Total Assets 6.42b)
Interest Expense / Debt = 4.18% (Interest Expense 115.5m / Debt 2.76b)
Taxrate = 25.02% (32.5m / 130.0m)
NOPAT = 250.2m (EBIT 333.7m * (1 - 25.02%))
Current Ratio = 0.80 (Total Current Assets 584.1m / Total Current Liabilities 730.5m)
Debt / Equity = 1.75 (Debt 2.76b / totalStockholderEquity, last quarter 1.58b)
Debt / EBITDA = 5.04 (Net Debt 2.72b / EBITDA 540.1m)
Debt / FCF = -9.98 (negative FCF - burning cash) (Net Debt 2.72b / FCF TTM -272.7m)
Total Stockholder Equity = 1.49b (last 4 quarters mean from totalStockholderEquity)
RoA = 2.03% (Net Income 122.9m / Total Assets 6.42b)
RoE = 8.27% (Net Income TTM 122.9m / Total Stockholder Equity 1.49b)
RoCE = 8.88% (EBIT 333.7m / Capital Employed (Equity 1.49b + L.T.Debt 2.27b))
RoIC = 4.18% (NOPAT 250.2m / Invested Capital 5.99b)
WACC = 4.40% (E(2.10b)/V(4.86b) * Re(6.06%) + D(2.76b)/V(4.86b) * Rd(4.18%) * (1-Tc(0.25)))
Discount Rate = 6.06% (= CAPM, Blume Beta Adj.)
Shares (quarterly) Correlation: 89.89 | Cagr: 3.83%
[DCF] Fair Price = unknown (Cash Flow -272.7m)
EPS Correlation: 31.19 | EPS CAGR: 4.13% | SUE: -0.84 | # QB: 0
Revenue Correlation: 63.76 | Revenue CAGR: 3.16% | SUE: -1.84 | # QB: -2
EPS current Quarter (2026-06-30): EPS=-0.06 | Chg30d=+11.53% | Revisions=-20% | Analysts=5
EPS next Quarter (2026-09-30): EPS=-0.85 | Chg30d=+7.37% | Revisions=-20% | Analysts=5
EPS current Year (2026-12-31): EPS=3.06 | Chg30d=+0.16% | Revisions=N/A | GrowthEPS=+4.3% | GrowthRev=+9.3%
EPS next Year (2027-12-31): EPS=3.23 | Chg30d=-0.33% | Revisions=-20% | GrowthEPS=+5.6% | GrowthRev=+4.0%
[Analyst] Revisions Ratio: -20%