Northwest Gas (NWN) AI Stock Analysis

• Market Cap: $1.93B
• Dividend Yield: 4.19%
• Average Volume (3M): 232.14K
• Price to Earnings (P/E): 18.5
• Beta (1Y): 0.15
• Revenue Growth: 11.27%
• EPS Growth: 20.04%
• Country: US
• Employees: 1,452
• Sector: Utilities
• Sector Strength: 65
• Industry: Regulated Gas
• EPS (TTM): -0.73
• Shares Outstanding: 41,507,042
• 10 Day Avg. Volume: 242,173
• 30 Day Avg. Volume: 232,136
• PEG Ratio: -1.05
• Price to Book (P/B): 1.11
• Price to Sales (P/S): 1.33
• P/FCF Ratio: -7.91
• Enterprise Value/Market Cap: 2.24
• Enterprise Value/Revenue: 3.42
• Enterprise Value/Gross Profit: 9.68
• Enterprise Value/Ebitda: 11.20
• 1Y Price Target: $51.50
• Price Target Upside: 10.04% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 3
• EPS Forecast (FY): 2.9
• Revenue Forecast (FY): $1.35B

• Rating: 73 Outperform
• Price Target: $52.00 ▲(11.11% Upside)

Northwest Gas's overall score reflects strong earnings call highlights, including robust customer growth and strategic expansions, which are the most significant factors. The technical analysis supports a positive trend, while valuation remains fair with an attractive dividend yield. Financial performance is stable but challenged by high leverage and negative free cash flow.

Positive Factors

Customer Growth

Strong customer growth, particularly from acquisitions, indicates expanding market presence and potential for increased revenue.

Regulatory Achievements

Favorable regulatory outcomes enhance revenue stability and provide a solid foundation for future growth and investment.

Dividend Stability

Consistent dividend growth reflects financial stability and a strong commitment to returning value to shareholders.

Negative Factors

High Leverage

High leverage can limit financial flexibility and increase risk, potentially impacting long-term financial health.

Negative Free Cash Flow

Negative free cash flow suggests challenges in covering net income, which could hinder reinvestment and growth opportunities.

Higher Interest Expenses

Rising interest expenses can erode profitability and strain cash flow, affecting the company's ability to finance future growth.

Northwest Gas Business Overview & Revenue Model

Company Description

Northwest Gas (NWN) is a leading utility company that provides natural gas distribution services to residential, commercial, and industrial customers in the Pacific Northwest region of the United States. The company focuses on delivering safe, reliable, and efficient natural gas services while also investing in infrastructure improvements and sustainability initiatives. NWN operates in the energy sector, primarily focusing on the distribution of natural gas, and is committed to supporting clean energy solutions and enhancing customer service.

How the Company Makes Money

Northwest Gas generates revenue primarily through the distribution of natural gas to its customers, which includes residential, commercial, and industrial sectors. The company earns money by charging customers for the volume of gas consumed, in addition to a fixed distribution charge that covers the costs of operating and maintaining its pipeline infrastructure. Revenue is also derived from utility rates approved by state regulatory bodies, which allow NWN to recover costs and earn a reasonable return on investment. Significant partnerships with local governments and regulatory agencies play a crucial role in setting these rates and ensuring compliance with safety standards. Additionally, NWN may benefit from incentive programs or grants aimed at promoting energy efficiency and cleaner energy sources, which can create additional revenue streams.

Northwest Gas Financial Statement Overview

Summary

Northwest Gas demonstrates stable revenue growth and profitability, but high leverage and negative free cash flow pose risks. The company needs to manage its debt levels and improve cash flow generation to enhance financial stability.

Income Statement

Northwest Gas shows a stable revenue growth trend with a TTM revenue growth rate of 2.25%. The gross profit margin is healthy at 34.82%, and the net profit margin is 7.94%, indicating profitability. However, the EBIT and EBITDA margins show room for improvement compared to industry leaders.

Balance Sheet

The company's debt-to-equity ratio is relatively high at 1.68, indicating significant leverage. Return on equity is moderate at 7.01%, suggesting efficient use of equity but with potential risk due to high debt levels. The equity ratio of 24.49% indicates a balanced asset structure.

Cash Flow

Operating cash flow is positive, but the free cash flow is negative, indicating potential liquidity issues. The operating cash flow to net income ratio is 0.52, showing some cash generation efficiency. However, the negative free cash flow to net income ratio highlights challenges in covering net income with free cash flow.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	1.27B	1.15B	1.20B	1.04B	860.40M	773.68M
Gross Profit	447.62M	397.61M	423.87M	341.23M	329.12M	300.50M
EBITDA	386.77M	348.09M	344.49M	303.37M	264.09M	238.09M
Net Income	100.53M	78.87M	93.87M	86.30M	78.67M	76.78M
Balance Sheet
Total Assets	5.85B	5.23B	4.87B	4.75B	4.06B	3.76B
Cash, Cash Equivalents and Short-Term Investments	35.83M	38.49M	32.92M	29.27M	18.56M	30.17M
Total Debt	2.52B	1.96B	1.75B	1.68B	1.52B	1.34B
Total Liabilities	4.42B	3.85B	3.58B	3.57B	3.13B	2.87B
Stockholders Equity	1.43B	1.39B	1.28B	1.18B	935.15M	888.73M
Cash Flow
Free Cash Flow	-186.35M	-194.12M	-47.40M	-191.69M	-134.90M	-137.87M
Operating Cash Flow	246.44M	200.28M	279.95M	147.67M	160.35M	143.02M
Investing Cash Flow	-770.17M	-428.99M	-335.50M	-435.46M	-300.12M	-294.28M
Financing Cash Flow	512.76M	227.06M	64.21M	301.63M	131.44M	171.78M

Northwest Gas Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 46.80
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For NWN, the sentiment is Positive. The current price of 46.8 is above the 20-day moving average (MA) of 45.93, above the 50-day MA of 43.86, and above the 200-day MA of 41.08, indicating a bullish trend. The MACD of 0.76 indicates Positive momentum. The RSI at 62.36 is Neutral, neither overbought nor oversold. The STOCH value of 65.56 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for NWN.

Northwest Gas Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
NWN	73 Outperform	$1.93B	18.54	7.20%	4.19%	11.27%	20.04%
OGS	72 Outperform	$4.91B	19.08	8.51%	3.28%	15.06%	12.27%
SR	72 Outperform	$5.29B	19.39	8.37%	3.50%	-6.65%	11.47%
CPK	68 Neutral	$3.10B	23.48	9.13%	1.99%	17.15%	15.00%
Sector *	66 Neutral	$17.65B	18.10	5.60%	3.62%	6.62%	11.55%
SWX	63 Neutral	$5.76B	12.44	5.42%	3.11%	-23.15%	157.45%
CTRI	51 Neutral	$1.75B	-533.60	0.45%	―	―	―

Northwest Gas Corporate Events

Northwest Natural Holdings Reports Mixed Q3 2025 Results

Northwest Natural Holding Company, headquartered in Portland, Oregon, is a key player in the energy sector, providing natural gas, water, and wastewater services across seven states. The company is recognized for its commitment to safety, environmental stewardship, and customer satisfaction.

Northwest Natural Gas: Positive Growth Amid Challenges

Northwest Natural Gas’s recent earnings call painted a generally positive picture, highlighting substantial customer growth, a long-standing dividend increase, and favorable regulatory outcomes. Despite these positives, the company acknowledged challenges such as higher interest expenses and seasonal earnings losses.

Northwest Gas Gains Approval for Rate Increase

On December 30, 2024, NW Natural filed a request with the Public Utility Commission of Oregon for a $59.4 million annual revenue increase, including $10 million for an updated depreciation study. Following negotiations with various stakeholders, a stipulation was reached, resulting in a $21.3 million increase, later adjusted to $20.7 million after final regulatory approval on October 24, 2025. The new rates, reflecting a capital structure of 50% equity and 50% debt, are expected to take effect on October 31, 2025.

The most recent analyst rating on (NWN) stock is a Buy with a $45.00 price target. To see the full list of analyst forecasts on Northwest Gas stock, see the NWN Stock Forecast page.

Northwest Gas Subsidiary Issues $185M Senior Notes

On August 25, 2025, SiEnergy Gas, LLC, a subsidiary of Northwest Natural Holding Company, issued $185 million in senior notes to institutional investors. The proceeds from these notes, which are secured by a lien on SiEnergy’s assets, will be used for general corporate purposes, including debt repayment, potentially impacting the company’s financial flexibility and market positioning.

The most recent analyst rating on (NWN) stock is a Buy with a $45.00 price target. To see the full list of analyst forecasts on Northwest Gas stock, see the NWN Stock Forecast page.