📊 NWN Key Takeaways
Is Northwest Natural Holding Co (NWN) a Good Investment?
Northwest Natural exhibits strong profitability fundamentals with 33.2% operating margins and 36.5% EPS growth, supported by 6.6% revenue expansion in a stable regulated sector. However, severe cash flow constraints and liquidity concerns—with minimal 2.5M free cash flow, current ratio of 0.80x, and debt-to-equity of 1.54x—significantly limit financial flexibility and debt service capacity.
Northwest Natural shows steady revenue growth and sharply improved earnings, supported by a solid operating margin and consistent operating cash flow. However, leverage is elevated, liquidity is tight, and heavy capital spending results in negative free cash flow, making outcomes dependent on timely regulatory recovery and access to financing. Fundamentals appear stable but not yet compelling enough to offset cash flow and balance sheet risks.
Northwest Natural Holding Co Key Strengths (NWN)
- Exceptional profitability metrics: 33.2% operating margin and 19.9% net margin demonstrate strong cost control in regulated utility operations
- Robust earnings growth with 36.5% YoY EPS expansion and 6.6% revenue growth indicating solid business momentum
- Regulated natural gas distribution business model provides stable cash flows and customer base with inelastic demand
- Regulated utility with predictable demand and 6.6% YoY revenue growth
- Improving profitability: 21.8% operating margin; EPS and net income up strongly
- Solid operating cash flow generation of $269M
NWN Stock Risks: Northwest Natural Holding Co Investment Risks
- Critical liquidity position with current ratio and quick ratio both at 0.80x—unable to cover short-term liabilities with current assets
- Severely constrained free cash flow of only 2.5M (0.5% margin) after capex, with operating cash flow nearly entirely consumed by capital expenditures, limiting debt service and financial flexibility
- High leverage with debt-to-equity ratio of 1.54x, long-term debt of 2.4B exceeding stockholders equity of 1.6B, creating vulnerability to economic stress or rising interest rates
- Negative free cash flow from heavy capex (-15.3% FCF margin)
- Elevated leverage (1.65x D/E) and low liquidity (0.72x current ratio)
- Regulatory lag and higher-rate sensitivity; interest coverage not disclosed
Key Metrics to Watch
- Free cash flow sustainability and capital expenditure trajectory relative to operating cash flow generation
- Working capital management and current ratio improvement toward healthier 1.0x-1.5x levels
- Debt reduction progress and leverage ratio trends, particularly debt-to-equity movement below 1.5x
- Free cash flow (absolute and margin)
- Interest coverage
Northwest Natural Holding Co (NWN) Financial Metrics & Key Ratios
💡 AI Analyst Insight
The relatively thin 0.5% FCF margin may limit capital allocation flexibility. The current ratio below 1.0x warrants monitoring of short-term liquidity.
NWN Profit Margin, ROE & Profitability Analysis
NWN vs Utilities Sector: How Northwest Natural Holding Co Compares
How Northwest Natural Holding Co compares to Utilities sector averages
Sector benchmarks are approximate industry averages. Actual sector performance may vary.
Is Northwest Natural Holding Co Stock Overvalued? NWN Valuation Analysis 2026
Based on fundamental analysis, Northwest Natural Holding Co 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.
Northwest Natural Holding Co Balance Sheet: NWN Debt, Cash & Liquidity
NWN Revenue & Earnings Growth: 5-Year Financial Trend
5-Year Trend Summary: Northwest Natural Holding Co's revenue has grown significantly by 46% over the 5-year period, indicating strong business expansion. The most recent EPS of $2.59 reflects profitable operations.
NWN Revenue Growth, EPS Growth & YoY Performance
NWN Quarterly Earnings & Performance
| Quarter | Revenue | Net Income | EPS |
|---|---|---|---|
| Q1 2026 | $460.6M | $87.9M | $2.18 |
| Q3 2025 | $130.4M | -$27.2M | $-0.71 |
| Q2 2025 | $201.5M | -$2.5M | $-0.06 |
| Q1 2025 | $427.2M | $63.8M | $1.69 |
| Q3 2024 | $130.4M | -$23.7M | $-0.65 |
| Q2 2024 | $201.5M | $1.2M | $0.03 |
| Q1 2024 | $427.2M | $63.8M | $1.69 |
| Q3 2023 | $110.0M | -$19.6M | $-0.56 |
Data sourced from SEC EDGAR 10-Q quarterly filings. Figures may represent quarterly or cumulative values.
Northwest Natural Holding Co Dividends, Buybacks & Capital Allocation
NWN SEC Filings: Latest 10-K & 10-Q Analysis
Access official SEC EDGAR filings for Northwest Natural Holding Co (CIK: 0001733998)
📋 Recent SEC Filings
❓ Frequently Asked Questions about NWN
What is the AI rating for NWN?
Northwest Natural Holding Co (NWN) has a Combined AI Grade of B from Claude (B) and ChatGPT (B) with 70% combined confidence, based on fundamental analysis of SEC EDGAR filings.
What are NWN's key strengths?
Claude: Exceptional profitability metrics: 33.2% operating margin and 19.9% net margin demonstrate strong cost control in regulated utility operations. Robust earnings growth with 36.5% YoY EPS expansion and 6.6% revenue growth indicating solid business momentum. ChatGPT: Regulated utility with predictable demand and 6.6% YoY revenue growth. Improving profitability: 21.8% operating margin; EPS and net income up strongly.
What are the risks of investing in NWN?
Claude: Critical liquidity position with current ratio and quick ratio both at 0.80x—unable to cover short-term liabilities with current assets. Severely constrained free cash flow of only 2.5M (0.5% margin) after capex, with operating cash flow nearly entirely consumed by capital expenditures, limiting debt service and financial flexibility. ChatGPT: Negative free cash flow from heavy capex (-15.3% FCF margin). Elevated leverage (1.65x D/E) and low liquidity (0.72x current ratio).
What is NWN's revenue and growth?
Northwest Natural Holding Co reported revenue of $490.4M.
Does NWN pay dividends?
Northwest Natural Holding Co pays dividends, with $19.8M distributed to shareholders in the trailing twelve months.
Where can I find NWN SEC filings?
Official SEC filings for Northwest Natural Holding Co (CIK: 0001733998) including 10-K, 10-Q, and 8-K reports are available on SEC EDGAR.
What is NWN's EPS?
Northwest Natural Holding Co has a diluted EPS of $2.33.
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 NWN's fundamental grade?
Based on our AI fundamental analysis in May 2026, Northwest Natural Holding Co has a B grade with 70% confidence. Review the strengths and risks sections above for full context. This is not investment advice.
Is NWN stock overvalued or undervalued?
Valuation metrics for NWN: ROE of 6.2% (sector avg: 10%), net margin of 19.9% (sector avg: 12%). Compare these metrics with sector averages to assess valuation.
What is NWN's AI grade for 2026?
Our dual AI analysis gives Northwest Natural Holding Co a combined B grade for 2026. Revenue is data pending, with profitability above sector average. Always conduct your own research.
What is NWN's free cash flow?
Northwest Natural Holding Co's operating cash flow is $116.1M, with capital expenditures of $113.7M. FCF margin is 0.5%.
How does NWN compare to other Utilities stocks?
Vs Utilities sector averages: Net margin 19.9% (avg: 12%), ROE 6.2% (avg: 10%), current ratio 0.80 (avg: 0.8).
Is Northwest Natural Holding Co carrying too much debt?
NWN has a debt-to-equity ratio of 1.54x, which is above the Utilities sector average of 1.4x. Combined with a current ratio below 1, this warrants careful monitoring of the balance sheet.