📊 NWE Key Takeaways
Is NWE a Good Investment? Thesis Analysis
While NorthWestern Energy demonstrates steady revenue growth (6.4% YoY) and maintains reasonable operating margins (20.2%), the company exhibits concerning fundamental deterioration: net income declined 19.2% YoY despite revenue expansion, indicating margin compression, and free cash flow is deeply negative (-$130M) despite positive operating cash flow, signaling the company is unable to fund capex from operations. Weak liquidity ratios (current 0.72x, quick 0.53x) combined with moderate leverage (1.14x debt-to-equity) and minimal cash reserves ($8.8M) creates material solvency risk.
Why Buy NWE? Key Strengths
- Consistent revenue growth of 6.4% YoY in regulated utility sector provides stable top-line expansion
- Strong operating cash flow generation of $394.5M demonstrates operational cash-generation capability
- Operating margin of 20.2% reflects reasonable operational efficiency within the utility segment
NWE Investment Risks to Consider
- Negative free cash flow of -$130M indicates capex exceeds operating cash flow, creating funding gap and potential dividend/debt sustainability concerns
- Net income declined 19.2% YoY and EPS fell 19.5% YoY despite revenue growth, signaling significant margin compression and operational challenges
- Weak liquidity position with current ratio of 0.72x and quick ratio of 0.53x, combined with only $8.8M cash reserves, creates short-term financial stress
- Moderate-to-high leverage at 1.14x debt-to-equity with $3.3B long-term debt; negative FCF makes debt service sustainability questionable
Key Metrics to Watch
- Free cash flow trend and path to positive FCF; capex-to-operating cash flow ratio
- Net profit margin trajectory and drivers of margin compression relative to revenue growth
- Liquidity metrics (current ratio, days cash on hand) and debt refinancing needs
NWE Financial Metrics
💡 AI Analyst Insight
The current ratio below 1.0x warrants monitoring of short-term liquidity.
NWE Profitability Ratios
NWE vs Default Sector
How NorthWestern Energy Group, Inc. compares to Default sector averages
Sector benchmarks are approximate industry averages. Actual sector performance may vary.
Is NWE Overvalued or Undervalued?
Based on fundamental analysis, NorthWestern Energy Group, Inc. has mixed fundamental signals relative to the Default sector in 2026.
Note: This is a fundamental analysis based on SEC filings. For P/E ratio, price targets, and market-based valuation, consult financial data providers. This is not investment advice.
NWE Balance Sheet & Liquidity
NWE 5-Year Financial Trend & Growth Analysis
5-Year Trend Summary: NorthWestern Energy Group, Inc.'s revenue has remained relatively flat over the 5-year period, with a 0% decline. The most recent EPS of $3.22 reflects profitable operations.
NWE Growth Metrics (YoY)
NWE Quarterly Performance
| Quarter | Revenue | Net Income | EPS |
|---|---|---|---|
| Q3 2024 | $332.3M | $29.3M | $0.48 |
| Q2 2024 | $327.6M | $19.1M | $0.32 |
| Q1 2024 | $432.8M | $62.5M | $1.05 |
| Q3 2023 | $307.3M | $27.4M | $0.47 |
Data sourced from SEC EDGAR 10-Q quarterly filings. Figures may represent quarterly or cumulative values.
NWE Capital Allocation
NWE SEC 10-K & 10-Q Filing Analysis
Access official SEC EDGAR filings for NorthWestern Energy Group, Inc. (CIK: 0001993004)
📋 Recent SEC Filings
| Date | Form | Document | Action |
|---|---|---|---|
| Apr 7, 2026 | 4 | xslF345X06/wk-form4_1775581160.xml | View → |
| Apr 7, 2026 | 4 | xslF345X06/wk-form4_1775581060.xml | View → |
| Apr 7, 2026 | 4 | xslF345X06/wk-form4_1775580980.xml | View → |
| Apr 7, 2026 | 4 | xslF345X06/wk-form4_1775580926.xml | View → |
| Apr 7, 2026 | 4 | xslF345X06/wk-form4_1775580868.xml | View → |
❓ Frequently Asked Questions about NWE
What is the AI rating for NWE?
NorthWestern Energy Group, Inc. (NWE) has an AI rating of SELL with 75% confidence, based on fundamental analysis of SEC EDGAR filings.
What are NWE's key strengths?
Claude: Consistent revenue growth of 6.4% YoY in regulated utility sector provides stable top-line expansion. Strong operating cash flow generation of $394.5M demonstrates operational cash-generation capability.
What are the risks of investing in NWE?
Claude: Negative free cash flow of -$130M indicates capex exceeds operating cash flow, creating funding gap and potential dividend/debt sustainability concerns. Net income declined 19.2% YoY and EPS fell 19.5% YoY despite revenue growth, signaling significant margin compression and operational challenges.
What is NWE's revenue and growth?
NorthWestern Energy Group, Inc. reported revenue of $1.6B.
Does NWE pay dividends?
NorthWestern Energy Group, Inc. pays dividends, with $161.4M distributed to shareholders in the trailing twelve months.
Where can I find NWE SEC filings?
Official SEC filings for NorthWestern Energy Group, Inc. (CIK: 0001993004) including 10-K, 10-Q, and 8-K reports are available on SEC EDGAR.
What is NWE's EPS?
NorthWestern Energy Group, Inc. has a diluted EPS of $2.94.
How is the AI analysis conducted?
Two independent AI systems — Claude (Anthropic) and ChatGPT (OpenAI) — analyze SEC EDGAR filings including 10-K annual reports and 10-Q quarterly reports. Each AI evaluates financial health, profitability ratios, balance sheet strength, and growth metrics. The combined rating reflects both perspectives for balanced insights.
Is NWE a good stock to buy right now?
Based on our AI fundamental analysis in April 2026, NorthWestern Energy Group, Inc. has a SELL rating with 75% confidence. Review the strengths and risks sections above before making a decision. This is not investment advice.
Is NWE stock overvalued or undervalued?
Valuation metrics for NWE: ROE of 6.3% (sector avg: 15%), net margin of 11.2% (sector avg: 12%). Compare these metrics with sector averages to assess valuation.
Should I buy NWE stock in 2026?
Our dual AI analysis gives NorthWestern Energy Group, Inc. a combined SELL rating for 2026. Revenue is data pending, with profitability at or below sector average. Always conduct your own research.
What is NWE's free cash flow?
NorthWestern Energy Group, Inc.'s operating cash flow is $394.5M, with capital expenditures of $524.5M. FCF margin is -8.1%.
How does NWE compare to other Default stocks?
Vs Default sector averages: Net margin 11.2% (avg: 12%), ROE 6.3% (avg: 15%), current ratio 0.72 (avg: 1.8).