Northwest Natural Holding Company Common Stock (NWN)

FairStock Score: 53/100 — MIXED

Key Financials

AI Analysis

AI-generated, general educational analysis — not personal investment advice.

I look for simple, understandable businesses with durable demand and conservative finances. Northwest Natural fits the first part: a regulated gas distributor with 1,619 employees, steady customer demand, and a 4.08% dividend yield. The regulated model can create a narrow moat because rates and returns are overseen, but it also means heavy capital spending and debt. In fiscal 2025, the year ended 2025-12-31, revenue was $1.2B and net income $113.3M, or $2.77 per diluted share, up from $78.9M and $2.03 in fiscal 2024. That profit recovery is encouraging. However, the latest filed quarter, fiscal Q2 2026 ended 2026-06-30, showed revenue of $213.6M and net income of only $600,000, or $0.01 per diluted share. Weather and seasonality matter. FairStock calculations at the 2026-10-13 close show a P/E of 16.30, P/B of 1.32, ROE of 8.35%, ROCE of 2.84%, and a debt-to-equity ratio of 1.73. Free cash flow is negative $266.0M, a negative 13.0% FCF yield, which is common for utilities funding infrastructure but still demands scrutiny. The Graham Number is $49.92, leaving only a 2.36% margin of safety. The Piotroski F-Score is 3/9 and Altman Z-Score is 0.39, signs of financial fragility on standard tests. FairStock calls NWN a Stalwart, based on five-year profit growth of 8.1% and revenue growth of 10.2%. At $48.74, I see a fair-to-fully priced utility with income appeal, not a bargain.

In plain English: Northwest Natural is a regulated gas utility that delivers natural gas to homes and businesses, with smaller water and gas storage operations. The business is steady but not especially strong right now: profits were tiny in the latest reported quarter, and it spends more cash than it takes in. At $48.74, the price looks close to fair rather than a bargain based on its earnings, assets, and dividend.

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Data as of 2026-10-13 close · note generated 2026-10-15 · model deepseek-flash

Sources (SEC EDGAR): fiscal Q2 2026 10-Q (period ended 2026-06-30) · fiscal Q1 2026 10-Q (period ended 2026-03-31) · fiscal Q3 2025 10-Q (period ended 2025-09-30) · fiscal Q2 2025 10-Q (period ended 2025-06-30) · FY2025 10-K (period ended 2025-12-31) · FY2024 10-K (period ended 2024-12-31) · FY2023 10-K (period ended 2023-12-31)

Fundamentals from company filings and market-data providers; prices are end-of-day, not real-time. AI-generated analysis is general and educational — not personal investment advice. Scoring methodology · Score test · Disclaimer