NorthWestern Energy Group, Inc. (NWE) stock analysis

P/E above its 5-year median

NorthWestern Energy's P/E of 32.1 is above its own 5-year median of 16.5.

P/E above the industry

NorthWestern Energy's P/E of 32.1 is above the Combination Electric and Gas, and Other Utility median of 19.2.

EV/EBITDA above its 5-year median

NorthWestern Energy's EV/EBITDA of 15.4 is above its 5-year median of 11.6.

P/B above the industry

NorthWestern Energy's price-to-book of 1.81 is above the Combination Electric and Gas, and Other Utility median of 1.74.

Trading above fair value

The share price of $84.97 is above our fair value estimate of $55.20.

Margin of safety under 20%

The price is 53.9% above fair value, so there is no margin of safety.

Revenue growing under 10% a year

Revenue grew 2.9% a year over the last three fiscal years, short of the 10% we look for.

EPS growing under 10% a year

Diluted EPS grew -3.3% a year over the last three fiscal years.

Earnings acceleration

Needs positive net income now, a year ago and five years ago.

Growing faster than the industry

Revenue grew 10.1% over the last twelve months; the Combination Electric and Gas, and Other Utility median is 5.2%.

Guidance unchanged

The latest outlook (2026 non-GAAP earnings guidance, Jul 30, 2026) was maintained, so it neither adds nor takes away points.

Gross margin trend

This company does not report gross profit.

Return on equity under 15%

Return on equity was 5.7% over the last twelve months and averaged 7.4% over five years; we look for 15% on both.

Return on capital under 10%

Return on invested capital was 4.9%, below the 10% that usually covers the cost of capital.

Return on equity below the industry

NorthWestern Energy's return on equity of 5.7% is below the Combination Electric and Gas, and Other Utility median of 9.2%.

Earnings over 5 years

Needs positive net income five years ago and in the latest year.

Net margin below its 5-year average

Net margin was 9.5% over the last twelve months, against a 5-year average of 13.1%.

Net margin below the industry

NorthWestern Energy's net margin of 9.5% is below the Combination Electric and Gas, and Other Utility median of 12.7%.

High debt

Debt is 127% of shareholders' equity, above the 40% we consider low.

Debt trend

Needs a balance sheet from five years ago with positive equity.

Debt not well covered by cash flow

Operating cash flow over the last twelve months equals 11.5% of total debt; we look for at least 20%.

Interest coverage

Interest expense is not reported separately.

Short-term assets don't cover short-term debts

Current assets are 0.90 times current liabilities.

Elevated bankruptcy risk

The Altman Z-score is 0.97; above 3 is the safe zone and below 1.8 the distress zone.

Pays a dividend

NorthWestern Energy paid dividends worth 3.1% of the share price over the last twelve months.

Yield below Treasuries

The 3.1% yield is below the 4.4% on a 1-year Treasury.

Yield below the top quarter

The top quarter of US dividend payers yield 3.8% or more; NorthWestern Energy yields 3.1%.

Dividend not cut

The dividend per share has not fallen by more than 10% in any of the last 5 fiscal years.

Not covered by earnings

Dividends take 99.8% of net income, leaving little room.

Cash-flow cover

Needs dividends paid and free cash flow.