Northwest Pipe Company (NWPX) AI Stock Analysis

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Northwest Pipe Company

(NASDAQ:NWPX)

67Neutral

Northwest Pipe Company shows strong financial health with solid profit margins and excellent cash flow management. The technical indicators point to a bearish trend, which could pose short-term challenges. The valuation appears reasonable, though the absence of a dividend yield might deter some investors. The latest earnings call reflected both opportunities and challenges, with growth in key segments but also revenue pressure due to external factors. Overall, the stock presents a balanced risk-reward profile.

Northwest Pipe Company (NWPX) vs. S&P 500 (SPY)

Market Cap

$401.54M

Dividend YieldN/A

Average Volume (3M)62.33K

Price to Earnings (P/E)12.4

Beta (1Y)1.02

Revenue Growth8.06%

EPS Growth38.46%

CountryUS

Employees1,358

SectorIndustrials

Sector Strength91

IndustryManufacturing - Metal Fabrication

Share Statistics

EPS (TTM)0.39

Shares Outstanding9,878,073

10 Day Avg. Volume56,440

30 Day Avg. Volume62,329

Financial Highlights & Ratios

PEG Ratio-2.98

Price to Book (P/B)0.98

Price to Sales (P/S)0.00

P/FCF Ratio5.58

Enterprise Value/Market CapN/A

Enterprise Value/RevenueN/A

Enterprise Value/Gross ProfitN/A

Enterprise Value/EbitdaN/A

Forecast

1Y Price Target

$54.00

Price Target Upside32.84% Upside

Rating ConsensusModerate Buy

Number of Analyst Covering3

Northwest Pipe Company Business Overview & Revenue Model

Company DescriptionNorthwest Pipe Company (NWPX) is a leading manufacturer of engineered steel pipe systems primarily in the water infrastructure industry. The company serves a broad range of sectors including water transmission, plant piping, tunnels, and river crossings. Its core products include large-diameter, high-pressure steel pipeline systems for drinking water systems, hydroelectric power systems, and other water infrastructure applications.

How the Company Makes MoneyNorthwest Pipe Company generates revenue primarily through the manufacturing and sale of its engineered steel pipe products. The company's key revenue streams include contracts with municipalities, water agencies, and engineering firms involved in large-scale water infrastructure projects. The company benefits from long-term contracts and significant projects that require specialized, high-quality pipe systems. Additionally, Northwest Pipe Company may engage in strategic partnerships with construction and engineering companies to expand its market reach and secure more projects, contributing to its earnings.

Northwest Pipe Company Financial Statement Overview

Summary

Northwest Pipe Company demonstrates strong financial health, with consistent profitability and efficient cash flow management. While revenue growth is modest, the company maintains solid profit margins and a stable balance sheet. Cash flow indicators are particularly strong, showcasing excellent cash conversion and operational efficiency. The balanced debt-to-equity ratio and strong equity base contribute to financial stability, though close monitoring of equity trends is advisable.

Income Statement

Positive

The company shows a solid gross profit margin with a TTM figure of 19.1%, indicating efficient production management. The net profit margin is healthy at 6.6% TTM, reflecting profitability. However, revenue growth is modest, with a slight increase of 0.6% from the previous year, suggesting stable but slow growth. EBIT and EBITDA margins are strong at 9.1% and 11.1% TTM, respectively, highlighting good operational efficiency.

Balance Sheet

Positive

The debt-to-equity ratio is moderate at 0.34, showing a balanced financial structure. Return on equity is solid at 8.7% TTM, indicating effective utilization of shareholder funds. The equity ratio of 65.0% TTM suggests a strong capital base, reducing financial risk. However, a slight decrease in stockholders' equity compared to total assets may warrant attention.

Cash Flow

Very Positive

Free cash flow shows impressive growth at 92.9% TTM, reflecting strong cash management and operational efficiency. The operating cash flow to net income ratio is robust at 2.61, indicating excellent cash generation relative to accounting income. The free cash flow to net income ratio is also strong at 2.01, reinforcing the company's ability to convert net income into cash.

TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Breakdown
Income Statement		Total Revenue
495.44M	492.55M	444.36M	457.67M	333.31M	285.91M
	Gross Profit
94.63M	95.41M	77.64M	85.86M	44.25M	50.52M
	EBIT
45.11M	48.24M	33.86M	27.82M	2.74M	12.02M
	EBITDA
55.01M	67.42M	49.94M	62.15M	29.98M	41.56M
	Net Income Common Stockholders
32.93M	34.21M	21.07M	31.15M	11.52M	19.05M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
4.26M	5.01M	4.07M	3.68M	3.00M	37.93M
	Total Assets
621.30M	589.65M	597.88M	601.34M	547.68M	373.01M
	Total Debt
189.90M	129.88M	162.94M	188.63M	185.19M	43.70M
	Net Debt
185.63M	124.87M	158.87M	184.94M	182.19M	5.78M
	Total Liabilities
278.69M	215.65M	257.52M	283.07M	264.30M	103.39M
	Stockholders Equity
342.61M	374.00M	340.36M	318.27M	283.38M	269.63M
Cash Flow		Free Cash Flow
66.09M	34.25M	35.16M	-5.62M	-19.07M	41.74M
	Operating Cash Flow
85.99M	55.05M	53.45M	17.54M	-5.81M	56.09M
	Investing Cash Flow
-19.88M	-20.74M	-20.37M	-23.05M	-100.15M	-61.43M
	Financing Cash Flow
-65.08M	-33.38M	-32.70M	6.19M	71.03M	12.26M

Northwest Pipe Company Technical Analysis

Technical Analysis Sentiment

Neutral

Last Price40.65

Price Trends

50DMA

41.09

Negative

100DMA

44.72

Negative

200DMA

45.66

Negative

Market Momentum

MACD

-0.46

Negative

RSI

50.82

Neutral

STOCH

89.75

Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For NWPX, the sentiment is Neutral. The current price of 40.65 is above the 20-day moving average (MA) of 40.28, below the 50-day MA of 41.09, and below the 200-day MA of 45.66, indicating a neutral trend. The MACD of -0.46 indicates Negative momentum. The RSI at 50.82 is Neutral, neither overbought nor oversold. The STOCH value of 89.75 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for NWPX.

Northwest Pipe Company Risk Analysis

Northwest Pipe Company disclosed 27 risk factors in its most recent earnings report. Northwest Pipe Company reported the most risks in the “Finance & Corporate” category.

Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy

Latest Risks Added 0 New Risks

Northwest Pipe Company Peers Comparison

Overall Rating

UnderperformOutperform

Sector (64)

Financial Indicators

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
IIIN	72 Outperform	$724.83M	32.38	6.61%	0.32%	-0.33%	-7.06%
MEC	69 Neutral	$318.99M	14.44	9.40%	―	-8.42%	164.82%
NWPX	67 Neutral	$401.54M	12.42	9.13%	―	8.06%	38.46%
GIFI	67 Neutral	$100.10M	8.37	13.54%	―	18.83%	―
AP	65 Neutral	$55.06M	12.74	7.11%	―	-3.60%	―
Sector *	64 Neutral	$4.43B	12.01	5.16%	249.23%	4.03%	-11.73%
RYI	58 Neutral	$702.52M	37.86	-0.78%	3.44%	-9.04%	-108.47%

* Industrials Sector Average

Performance Comparison

NWPX

Northwest Pipe Company

40.65

5.13

14.44%

Ampco-Pittsburgh

2.74

1.25

83.89%

GIFI

Gulf Island Fabrication

6.17

-0.51

-7.63%

IIIN

Insteel Industries

37.34

6.15

19.72%

RYI

Ryerson Holdings

21.82

-0.95

-4.17%

MEC

Mayville Engineering Company

15.59

-0.09

-0.57%

Northwest Pipe Company Earnings Call Summary

Earnings Call Date:Apr 30, 2025

(Q1-2025)

% Change Since: -4.04%|

Next Earnings Date:Jul 30, 2025

Earnings Call Sentiment Neutral

The earnings call presented a mixed outlook with positive growth in net sales and precast segments, but challenges in SPP revenue and increased operational costs due to trade policies and SG&A expenses. Despite these challenges, there is optimism for the future with significant backlog recovery and strong order books.

Q1-2025 Updates

Positive Updates

Net Sales Increase

Net sales of $116.1 million were up 2.6% over the prior year period despite challenges.

Precast Segment Growth

Precast revenue increased 13.4% year-over-year to $37.7 million, driven by strong residential demand.

Precast Order Book Improvement

Precast order book improved to $64 million, approaching record levels, driven by non-residential sector growth.

Efficient Cash Management

Positive free cash flow of $1.1 million was generated, compared to negative $30.7 million in the previous year.

SPP Backlog Recovery

SPP backlog increased to over $300 million intra-quarter, indicating recovery and strong future outlook.

Negative Updates

SPP Revenue Decline

SPP segment revenue was $78.4 million, down 2% year-over-year due to weather-related downtime and trade policy effects.

Gross Margin Decrease

Consolidated gross margin decreased to 16.7% from 17.8% in the prior year, primarily due to lower production volumes.

Impact of New Trade Policies

New trade policies resulted in shipment delays and increased costs, impacting revenues and margins.

Increased SG&A Expenses

Selling, general, and administrative expenses increased by 20.6% due to higher incentive compensation and employee benefits.

Company Guidance

During the Northwest Pipe Company's first quarter 2025 earnings call, the company provided detailed guidance on several key financial metrics, despite initial challenges. Net sales reached $116.1 million, a 2.6% increase over the previous year, driven by a strong performance in the precast segment, which saw a 13.4% revenue increase to $37.7 million. However, the Steel Pressure Pipe (SPP) segment faced a 2% revenue decline to $78.4 million due to adverse weather conditions and new trade policies. This led to shipment delays and a decrease in backlog from $310 million at the end of 2024 to $289 million as of March 31, 2025. The company is optimistic about the year ahead, citing a current intra-quarter backlog exceeding $300 million, indicating a rebound in bidding activity. The precast order book improved to $64 million, reflecting strong demand in both the residential and growing non-residential sectors. Gross profit was $19.4 million, with the SPP and precast segments reporting gross margins of 15.5% and 19.1%, respectively. Despite challenges, the company anticipates improved margins and revenues for the second quarter of 2025, consistent with 2024 levels in the second half, while continuing to focus on strategic acquisitions and operational efficiencies.

Northwest Pipe Company Corporate Events

Executive/Board ChangesShareholder Meetings

Northwest Pipe Company Approves Executive Incentive Grants

Neutral

Apr 2, 2025

On March 27, 2025, Northwest Pipe Company announced the approval of performance share units (PSUs) and restricted stock units (RSUs) for its Named Executive Officers. These long-term incentive grants are based on a percentage of the executives’ annual base salary, with PSUs vesting in three installments from 2026 to 2028, contingent on the company’s financial performance. The RSUs also vest in three installments, based on continued service. The company’s 2025 Annual Meeting of Shareholders is scheduled for June 12, 2025, with a record date of April 10, 2025.

Glossary

OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.

NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.

UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.