📊 NWE Key Takeaways
Is NorthWestern Energy Group, Inc. (NWE) a Good Investment?
NorthWestern Energy demonstrates solid operational performance with 6.4% YoY revenue growth and a 22.9% operating margin, supported by strong operating cash flow of $159.4M. However, a sharp 19.2% YoY decline in net income despite revenue growth—combined with severe liquidity constraints (current ratio 0.70x, minimal $5.9M cash position)—raises material concerns about cost structure, capital efficiency, and financial stability that require immediate clarification.
Revenue grew steadily and operating margin remains solid, but earnings fell sharply and free cash flow is negative due to elevated capex, pressuring near-term returns. Liquidity is tight with minimal cash and sub-1x current ratio, while leverage is moderate, increasing sensitivity to funding and rate environments. Neutral until cash generation improves and earnings stabilize via timely regulatory recovery.
NorthWestern Energy Group, Inc. Key Strengths (NWE)
- Solid revenue growth of 6.4% YoY indicates stable utility operations and customer demand
- Operating margin of 22.9% reflects reasonable operational efficiency for regulated utility sector
- Strong operating cash flow of $159.4M with 8.7% FCF margin provides debt service and capex capacity
- Stable regulated revenue with 6.4% YoY growth
- Healthy operating margin (~20%) and solid operating cash flow
- Significant asset base supporting long-term rate recovery
NWE Stock Risks: NorthWestern Energy Group, Inc. Investment Risks
- Net income declined 19.2% YoY despite revenue growth—indicates margin compression, elevated financing costs, or one-time charges requiring investigation
- Critical liquidity concerns: current ratio 0.70x and quick ratio 0.52x well below healthy thresholds; extremely low cash balance of $5.9M relative to $5.7B liabilities
- Poor capital efficiency with ROE of 2.2% and ROA of 0.7% suggests capital is not generating adequate returns for shareholders
- Negative free cash flow driven by high capex
- Weak liquidity (current 0.72x, very low cash)
- Earnings compression and interest-rate sensitivity with moderate leverage
Key Metrics to Watch
- Net income trajectory and granular breakdown of YoY decline drivers (cost structure, interest expense, non-operating charges)
- Working capital management and cash position recovery—critical given current/quick ratio weakness
- Interest coverage ratio and debt service sustainability under current capital structure
- Free cash flow and FCF margin
- Interest coverage and regulatory recovery progress
NorthWestern Energy Group, Inc. (NWE) Financial Metrics & Key Ratios
💡 AI Analyst Insight
The current ratio below 1.0x warrants monitoring of short-term liquidity.
NWE Profit Margin, ROE & Profitability Analysis
NWE vs Utilities Sector: How NorthWestern Energy Group, Inc. Compares
How NorthWestern Energy Group, Inc. compares to Utilities sector averages
Sector benchmarks are approximate industry averages. Actual sector performance may vary.
Is NorthWestern Energy Group, Inc. Stock Overvalued? NWE Valuation Analysis 2026
Based on fundamental analysis, NorthWestern Energy Group, Inc. has mixed fundamental signals relative to the Utilities 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.
NorthWestern Energy Group, Inc. Balance Sheet: NWE Debt, Cash & Liquidity
NWE Revenue & Earnings Growth: 5-Year Financial Trend
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 Revenue Growth, EPS Growth & YoY Performance
NWE Quarterly Earnings & 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.
NorthWestern Energy Group, Inc. Dividends, Buybacks & Capital Allocation
NWE SEC Filings: Latest 10-K & 10-Q Analysis
Access official SEC EDGAR filings for NorthWestern Energy Group, Inc. (CIK: 0001993004)
📋 Recent SEC Filings
❓ Frequently Asked Questions about NWE
What is the AI rating for NWE?
NorthWestern Energy Group, Inc. (NWE) has a Combined AI Grade of B from Claude (B) and ChatGPT (B) with 66% combined confidence, based on fundamental analysis of SEC EDGAR filings.
What are NWE's key strengths?
Claude: Solid revenue growth of 6.4% YoY indicates stable utility operations and customer demand. Operating margin of 22.9% reflects reasonable operational efficiency for regulated utility sector. ChatGPT: Stable regulated revenue with 6.4% YoY growth. Healthy operating margin (~20%) and solid operating cash flow.
What are the risks of investing in NWE?
Claude: Net income declined 19.2% YoY despite revenue growth—indicates margin compression, elevated financing costs, or one-time charges requiring investigation. Critical liquidity concerns: current ratio 0.70x and quick ratio 0.52x well below healthy thresholds; extremely low cash balance of $5.9M relative to $5.7B liabilities. ChatGPT: Negative free cash flow driven by high capex. Weak liquidity (current 0.72x, very low cash).
What is NWE's revenue and growth?
NorthWestern Energy Group, Inc. reported revenue of $497.6M.
Does NWE pay dividends?
NorthWestern Energy Group, Inc. pays dividends, with $41.0M 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 $1.03.
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 grade reflects both perspectives for balanced insights.
What is NWE's fundamental grade?
Based on our AI fundamental analysis in May 2026, NorthWestern Energy Group, Inc. has a B grade with 66% confidence. Review the strengths and risks sections above for full context. This is not investment advice.
Is NWE stock overvalued or undervalued?
Valuation metrics for NWE: ROE of 2.2% (sector avg: 10%), net margin of 12.8% (sector avg: 12%). Compare these metrics with sector averages to assess valuation.
What is NWE's AI grade for 2026?
Our dual AI analysis gives NorthWestern Energy Group, Inc. a combined B grade for 2026. Revenue is data pending, with profitability above sector average. Always conduct your own research.
What is NWE's free cash flow?
NorthWestern Energy Group, Inc.'s operating cash flow is $159.4M, with capital expenditures of $116.1M. FCF margin is 8.7%.
How does NWE compare to other Utilities stocks?
Vs Utilities sector averages: Net margin 12.8% (avg: 12%), ROE 2.2% (avg: 10%), current ratio 0.70 (avg: 0.8).