Northwest Natural Holding Co (NWN) stock analysis

P/E below its 5-year median

Northwest Natural's P/E of 17.4 is below its own 5-year median of 17.8.

P/E above the industry

Northwest Natural's P/E of 17.4 is above the Gas Production and Distribution median of 17.4.

EV/EBITDA above its 5-year median

Northwest Natural's EV/EBITDA of 10.3 is above its 5-year median of 10.2.

P/B below the industry

Northwest Natural's price-to-book of 1.41 is below the Gas Production and Distribution median of 2.13.

Trading below fair value

The share price of $52.11 is below our fair value estimate of $54.68.

Margin of safety under 20%

The price is 4.7% below fair value, less than the 20% cushion we look for.

Revenue growing under 10% a year

Revenue grew 7.5% a year over the last three fiscal years, short of the 10% we look for.

EPS growing under 10% a year

Diluted EPS grew 2.9% a year over the last three fiscal years.

Earnings growth accelerating

Net income grew 22.0% over the last twelve months, against a 5-year average of 8.1% a year.

Growing slower than the industry

Revenue grew 4.4% over the last twelve months; the Gas Production and Distribution median is 13.6%.

Guidance issued

The latest outlook (2026 EPS, Nov 4, 2026) was issued for the first time, 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 8.3% over the last twelve months and averaged 7.7% over five years; we look for 15% on both.

Return on capital under 10%

Return on invested capital was 5.9%, below the 10% that usually covers the cost of capital.

Return on equity below the industry

Northwest Natural's return on equity of 8.3% is below the Gas Production and Distribution median of 12.1%.

Earnings grew over 5 years

Net income grew 8.1% a year on average over the last five fiscal years.

Net margin above its 5-year average

Net margin was 9.7% over the last twelve months, against a 5-year average of 8.2%.

Net margin below the industry

Northwest Natural's net margin of 9.7% is below the Gas Production and Distribution median of 13.1%.

High debt

Debt is 168% of shareholders' equity, above the 40% we consider low.

Debt rising against equity

Debt to equity rose from 142% five years ago to 168%.

Debt not well covered by cash flow

Operating cash flow over the last twelve months equals 8.1% 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 0.77 times current liabilities.

Elevated bankruptcy risk

The Altman Z-score is 0.70; above 3 is the safe zone and below 1.8 the distress zone.

Pays a dividend

Northwest Natural paid dividends worth 2.8% of the share price over the last twelve months.

Yield below Treasuries

The 2.8% yield is below the 4.7% on a 1-year Treasury.

Yield below the top quarter

The top quarter of US dividend payers yield 3.8% or more; Northwest Natural yields 2.8%.

Dividend not cut

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

Covered by earnings

Dividends take 62.7% of net income.

Cash-flow cover

Needs dividends paid and free cash flow.