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Relative valuation derived from Utilities sector median benchmarks. Model weights: EV/EBITDA (40%), P/B (35%), P/S (25%). Multiples adjusted for extreme outliers and non-recurring volatility.
Auditing capital efficiency...
Quality Profile Audit
Score: 46.8GRADE C
Composite assessment of profitability, capital efficiency, and financial strength. Top-tier entities demonstrate sustainable cash flow generation.
Return on Equity
Profit generated per dollar of shareholder equity
1.9%
Sector: 9.9%
Dividend Analysis audit
No Dividend
This company does not currently pay a dividend.
Analyst Projections
Analyst Consensus
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Based on our 6-factor quantitative model, Northwest Natural Holding Co (NWN) receives a "Hold" rating with a composite score of 53.7/100, ranked #255 out of 4446 stocks. Key factor scores: Quality 47/100, Value 66/100, Momentum 58/100. This is quantitative analysis only — not investment advice.
Northwest Natural Holding Co (NWN) Stock Analysis — April 2026 Rating, Price, and Forecast
Company Overview — What Does Northwest Natural Holding Co Do?
Northwest Natural Holding Company, through its subsidiary, Northwest Natural Gas Company, provides regulated natural gas distribution services to residential, commercial, industrial, and transportation customers in Oregon and Southwest Washington. The company also owns and operates 20 Bcf of underground gas storage capacity in Oregon. In addition, it is involved in water businesses and other investment activities. It serves approximately 2.5 million natural gas customers in approximately 140 communities through 770,000 meters; and 63,000 people through approximately 26,000 connections in the Pacific Northwest and Texas. The company was founded in 1859 and is headquartered in Portland, Oregon. Northwest Natural Holding Co (NWN) is classified as a mid-cap stock in the Utilities sector. The company is led by CEO David H. Anderson and employs approximately 1,150 people. With a market capitalization of $2.2B, NWN is one of the notable companies in the Utilities sector.
Northwest Natural Holding Co (NWN) Stock Rating — Hold (April 2026)
As of April 2026, Northwest Natural Holding Co receives a Hold rating with a composite score of 53.7/100 and 3 out of 5 stars from the Blank Capital Research quantitative model.NWN ranks #255 out of 4,446 stocks in our coverage universe. Within the Utilities sector, Northwest Natural Holding Co ranks #22 of 112 stocks, placing it in the top quartile of its Utilities peers. The rating is generated by a multi-factor model that weighs quality (30%), momentum (25%), value (15%), investment (10%), stability (10%), and short interest (10%).
NWN Stock Price and 52-Week Range
Northwest Natural Holding Co (NWN) currently trades at $55.60. The stock lost $0.20 (0.4%) in the most recent trading session. The 52-week high for NWN is $53.56, which means the stock is currently trading 3.8% from its annual peak. The 52-week low is $38.94, putting the stock 42.8% above its annual trough. Recent trading volume was 204K shares, suggesting relatively thin trading activity.
Is NWN Overvalued or Undervalued? — Valuation Analysis
Northwest Natural Holding Co (NWN) carries a value factor score of 66/100 in the Blank Capital model, indicating fair valuation relative to historical norms. The trailing price-to-earnings ratio is 80.67x, compared to the Utilities sector average of 23.47x — a premium of 244%. The price-to-book ratio stands at 1.55x, versus the sector average of 1.98x. The price-to-sales ratio is 2.22x, compared to 0.82x for the average Utilities stock. On an enterprise value basis, NWN trades at 15.38x EV/EBITDA, versus 4.75x for the sector.
Overall, NWN's valuation appears roughly in line with sector benchmarks, suggesting the market is pricing the stock fairly given its current fundamentals and growth trajectory. Neither deep value nor significantly overpriced, the stock occupies a middle ground on valuation.
Northwest Natural Holding Co Profitability — ROE, Margins, and Quality Score
Northwest Natural Holding Co (NWN) earns a quality factor score of 47/100, signaling below-average profitability metrics relative to the broader market. The return on equity (ROE) is 1.9%, compared to the Utilities sector average of 9.9%, which is below typical expectations for high-quality companies. Return on assets (ROA) comes in at 0.5% versus the sector average of 3.1%.
On a margin basis, Northwest Natural Holding Co reports gross margins of 76.0%, compared to 53.1% for the sector. The operating margin is 5.3% (sector: 21.5%). Net profit margin stands at -5.3%, versus 12.8% for the average Utilities stock. Revenue growth is running at -22.2% on a trailing basis, compared to 20.1% for the sector. Profitability is below benchmark levels, which may reflect industry headwinds, elevated reinvestment, or structural challenges.
NWN Debt, Balance Sheet, and Financial Health
Northwest Natural Holding Co has a debt-to-equity ratio of 165.0%, compared to the Utilities sector average of 164.5%. This elevated leverage warrants close monitoring, as it increases the company's sensitivity to rising interest rates and economic downturns. The current ratio is 0.72x, which may signal near-term liquidity tightness. Total debt on the balance sheet is $2.43B. Cash and equivalents stand at $32M.
NWN has a beta of 0.05, meaning it is less volatile than the S&P 500, making it a relatively defensive holding. The stability factor score for Northwest Natural Holding Co is 95/100, indicating low-volatility characteristics and consistent price behavior that appeals to risk-averse investors.
Northwest Natural Holding Co Revenue and Earnings History — Quarterly Trend
In TTM 2026, Northwest Natural Holding Co reported revenue of $1.03B and earnings per share (EPS) of $2.77. Net income for the quarter was $28M. Gross margin was 76.0%. Operating income came in at $150M.
In FY 2025, Northwest Natural Holding Co reported revenue of $1.29B and earnings per share (EPS) of $2.77. Net income for the quarter was $113M. Revenue grew 11.8% year-over-year compared to FY 2024. Operating income came in at $281M.
In Q3 2025, Northwest Natural Holding Co reported revenue of $165M and earnings per share (EPS) of $-0.73. Net income for the quarter was $-30M. Revenue grew 20.3% year-over-year compared to Q3 2024. Operating income came in at $-12M.
In Q2 2025, Northwest Natural Holding Co reported revenue of $236M and earnings per share (EPS) of $-0.06. Net income for the quarter was $-3M. Revenue grew 11.6% year-over-year compared to Q2 2024. Operating income came in at $27M.
Over the past 8 quarters, Northwest Natural Holding Co has demonstrated a growth trajectory, with revenue expanding from $212M to $1.03B. Investors analyzing NWN stock should weigh these quarterly trends alongside the valuation and quality metrics discussed above.
NWN Dividend Yield and Income Analysis
Northwest Natural Holding Co (NWN) does not currently pay a dividend. This is common among smaller companies in the Utilities industry that prefer to reinvest cash flows into business expansion rather than returning capital to shareholders. Income-focused investors looking for Utilities dividend stocks may want to explore other Utilities stocks or use the stock screener to filter by dividend yield.
NWN Momentum and Technical Analysis Profile
Northwest Natural Holding Co (NWN) has a momentum factor score of 58/100, reflecting neutral trend characteristics. The stock is neither significantly outperforming nor underperforming the broader market on a momentum basis. The investment factor score is 38/100, which measures capital allocation efficiency and asset growth patterns. The short interest score of 20/100 signals elevated short interest, which can indicate bearish sentiment among institutional investors.
NWN vs Competitors — Utilities Sector Ranking and Peer Comparison
Comparing NWN against the S&P 500 benchmark is also instructive for understanding relative performance. Investors can view the full NWN vs S&P 500 (SPY) comparison to assess how Northwest Natural Holding Co stacks up against the broader market across all factor dimensions.
NWN Next Earnings Date
No upcoming earnings date has been announced for Northwest Natural Holding Co (NWN) at this time. Check the earnings calendar for the latest scheduling updates across all stocks in our coverage universe.
Should You Buy NWN? — Investment Thesis Summary
Northwest Natural Holding Co presents a balanced picture with arguments on both sides. The value score of 66/100 suggests attractive pricing relative to fundamentals. Low volatility (stability score 95/100) reduces downside risk.
In summary, Northwest Natural Holding Co (NWN) earns a Hold rating with a composite score of 53.7/100 as of April 2026. The rating is derived from the Blank Capital Research methodology, which combines six factor dimensions into a single quantitative ranking. Investors should consider these quantitative signals alongside their own fundamental research, risk tolerance, and investment time horizon before making buy or sell decisions on NWN stock.
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Institutional Research Dossier
Northwest Natural Holding Co (NWN) Deep Dive Analysis
Published on March 24, 2026
Action RatingHold
Sections
Executive Summary
Northwest Natural Holding Co (NWN) receives a Hold rating, driven by a mixed financial profile. While the company exhibits strong stability and attractive valuation multiples compared to its sector, concerns arise from negative free cash flow, low return on equity, and declining revenue growth. The company's regulated utility business provides a degree of predictability, but its ability to navigate evolving energy markets and maintain profitability remains a key uncertainty.
The primary takeaway is that NWN presents a balanced risk-reward proposition. Its stability and value metrics may appeal to income-seeking investors, but its financial performance and growth prospects warrant caution. A more compelling investment case would require demonstrable improvements in profitability, cash flow generation, and strategic execution in its core and emerging business segments.
Business Strategy & Overview
Northwest Natural Holding Company operates primarily as a regulated natural gas distribution utility through its subsidiary, Northwest Natural Gas Company. The core business involves delivering natural gas to residential, commercial, industrial, and transportation customers in Oregon and Southwest Washington. Revenue is generated through tariffs approved by regulatory bodies, providing a relatively stable and predictable income stream. The company also owns and operates underground gas storage facilities, which contribute to supply reliability and potentially offer arbitrage opportunities.
NWN's strategic positioning centers on maintaining and expanding its existing natural gas infrastructure while exploring opportunities in adjacent sectors. This includes investments in water businesses and other ventures aimed at diversifying revenue streams and capitalizing on regional growth. The company is also navigating the evolving energy landscape by exploring renewable natural gas (RNG) and hydrogen initiatives, aligning with broader decarbonization trends. These efforts are crucial for long-term sustainability and regulatory compliance.
The company's customer base is a key asset, with approximately 2.5 million customers served through 770,000 meters across 140 communities. This extensive network provides a significant barrier to entry for potential competitors. However, the company faces challenges in managing operating costs, maintaining infrastructure integrity, and adapting to changing customer preferences regarding energy sources.
NWN's investment activities, while intended to diversify revenue, introduce additional complexity and risk. The success of these ventures depends on effective capital allocation and operational execution. The company must carefully balance its investments in regulated and unregulated businesses to optimize shareholder value.
Execution Benchmarks audit
Revenue Growth
YOY expansion rate
-22.2%
Sector: 20.1%
-211% VS SCTR
Economic Moat Analysis
Northwest Natural possesses a Narrow economic moat, primarily derived from efficient scale and regulatory advantages. The natural gas distribution business is characterized by high infrastructure costs and regulatory oversight, making it difficult for new entrants to compete effectively. The existing infrastructure and established customer base provide NWN with a significant cost advantage over potential rivals.
The regulatory environment also contributes to the moat. NWN operates under tariffs approved by regulatory commissions, which provide a degree of revenue certainty and protect against excessive competition. These regulations also impose stringent safety and environmental standards, further increasing the barriers to entry for new players.
However, the moat is not impenetrable. The increasing adoption of renewable energy sources and electrification poses a long-term threat to the demand for natural gas. While NWN is exploring renewable natural gas and hydrogen initiatives, the success of these efforts is uncertain. The company must adapt to changing energy preferences and regulatory policies to maintain its competitive position.
Furthermore, the company's diversification efforts into water businesses and other ventures do not necessarily enhance its moat. These businesses operate in different competitive landscapes and may not benefit from the same regulatory advantages as the natural gas distribution business. The success of these ventures depends on effective management and capital allocation.
The company's underground gas storage capacity provides a modest competitive advantage, enhancing supply reliability and potentially offering arbitrage opportunities. However, this advantage is not substantial enough to warrant a Wide moat rating. The overall assessment is that NWN's moat is narrow and faces increasing challenges from evolving energy markets.
Financial Health & Profitability
Northwest Natural's financial health presents a mixed picture. While the company exhibits a stable profile, certain metrics raise concerns. The TTM revenue of $1.29 billion represents a significant decline of -22.2% compared to the sector average of 20.1%. This decline warrants close scrutiny, as it could indicate weakening demand or competitive pressures. Net income stands at $113.32 million, but the net margin is -5.3%, significantly lagging the sector average of 12.8%. This discrepancy suggests potential issues with cost management or pricing strategies.
The company's profitability metrics are also concerning. The return on equity (ROE) is a meager 1.9%, far below the sector average of 10.0%. This indicates that NWN is not effectively utilizing shareholder equity to generate profits. The gross margin of 76.0% is strong compared to the sector, but the operating margin of 5.3% is significantly lower than the sector average of 21.7%, indicating high operating expenses.
A major red flag is the negative free cash flow of -$789.45 million. This suggests that the company is not generating enough cash from its operations to cover its capital expenditures and other obligations. This could lead to increased borrowing or asset sales to fund its operations. The company's total debt stands at $2.43 billion, resulting in a debt-to-equity ratio of 165.00, which is in line with the sector average. However, the negative free cash flow raises concerns about the company's ability to service its debt.
The current ratio of 0.72 indicates that the company may face liquidity challenges in the short term. This ratio suggests that NWN has less than $1 of current assets for every $1 of current liabilities. Reviewing the quarterly financial history reveals fluctuating operating margins, with negative margins in Q3 FY2025 and Q3 FY2024. This volatility highlights the sensitivity of NWN's profitability to seasonal factors and operating costs. Overall, NWN's financial health requires careful monitoring, particularly regarding its revenue growth, profitability, and cash flow generation.
Valuation Assessment
Northwest Natural's valuation presents a mixed picture. The company's P/E ratio of 18.6x is lower than the sector average of 22.7x, suggesting that the stock may be undervalued relative to its earnings. Similarly, the EV/EBITDA ratio of 2.6x is significantly lower than the sector average of 4.8x, further indicating potential undervaluation. These metrics suggest that the market may be discounting NWN's future growth prospects or assigning a higher risk premium to its earnings.
However, the negative free cash flow complicates the valuation assessment. Traditional valuation methods, such as discounted cash flow analysis, may not be reliable due to the company's inability to generate positive free cash flow. In this case, relative valuation metrics, such as P/E and EV/EBITDA, may provide a more useful indication of the company's value.
Given the company's declining revenue growth and low profitability, it is difficult to argue that the stock is significantly undervalued. While the P/E and EV/EBITDA ratios are attractive compared to the sector, they must be considered in the context of NWN's financial performance. The market may be appropriately discounting the stock to reflect the company's challenges.
A fair valuation would likely fall within a range that reflects the company's stable utility business and its potential for future growth in renewable energy and water businesses. However, investors should demand a discount to account for the company's negative free cash flow and low profitability. A more compelling investment case would require demonstrable improvements in these areas.
Risk & Uncertainty
Northwest Natural faces several specific risks that could negatively impact its business and financial performance. Regulatory risk is paramount, as the company's tariffs and operations are subject to oversight by regulatory commissions. Changes in regulatory policies, such as stricter environmental standards or limitations on rate increases, could significantly affect NWN's profitability and capital expenditures. The transition to cleaner energy sources also poses a regulatory risk, as policymakers may favor renewable energy over natural gas.
Competition from alternative energy sources is another significant risk. The increasing adoption of solar, wind, and other renewable energy technologies could reduce the demand for natural gas, particularly in the residential and commercial sectors. NWN must adapt to this changing energy landscape by investing in renewable natural gas and hydrogen initiatives. However, the success of these efforts is uncertain, and the company may face challenges in competing with established renewable energy providers.
Commodity price volatility also presents a risk. While NWN passes through the cost of natural gas to its customers, fluctuations in gas prices can affect customer demand and the company's working capital requirements. Unexpected spikes in gas prices could lead to customer attrition or regulatory scrutiny. The company's storage facilities provide some protection against price volatility, but they are not a complete hedge.
The company's diversification efforts into water businesses and other ventures introduce additional operational and financial risks. These businesses operate in different competitive landscapes and may require significant capital investments. The success of these ventures depends on effective management and capital allocation. Failure to execute these ventures successfully could negatively impact NWN's financial performance.
Bulls Say / Bears Say
The Bull Case
BULL VIEWNWN's regulated utility business provides a stable and predictable revenue stream, making it an attractive investment for income-seeking investors.
BULL VIEWThe company's investments in renewable natural gas and hydrogen position it to benefit from the transition to a cleaner energy future.
The Bear Case
BEAR VIEWNWN's negative free cash flow and low profitability raise concerns about its financial sustainability and ability to generate shareholder value.
BEAR VIEWThe increasing adoption of renewable energy sources poses a long-term threat to the demand for natural gas, potentially eroding NWN's competitive advantage.
About the Author
Marques Blank
Founder & Chief Investment Officer, Blank Capital
Marques brings 15 years of institutional finance and investing experience, having overseen financial planning for a $1.6B defense business unit. He developed the proprietary 6-factor quantitative model used to score NWN and 4,400+ other equities.
Northwest Natural Holding Co exhibits a 154% valuation premium relative to institutional benchmarks. This represents a potential valuation overextension based on current multiples.
Return on Assets
Efficiency of asset utilization
0.5%
Sector: 3.1%
Gross Margin
Pricing power and cost efficiency
76.0%
Sector: 53.1%
Operating Margin
Core business profitability
5.3%
Sector: 21.5%
Net Margin
Bottom-line profitability
-5.3%
Sector: 12.8%
Factor Methodology
The Quality factor evaluates the persistence and magnitude of cash flows. Companies with scores >70 exhibit superior competitive moats and financial resilience through economic cycles.
