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Northwest Natural Gas Co (NWN)



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Upturn Advisory Summary
03/27/2025: NWN (1-star) has a low Upturn Star Rating. Not recommended to BUY.
Analysis of Past Performance
Type Stock | Historic Profit -28.23% | Avg. Invested days 36 | Today’s Advisory Consider higher Upturn Star rating |
Upturn Star Rating ![]() ![]() | Upturn Advisory Performance ![]() | Stock Returns Performance ![]() |
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Key Highlights
Company Size Small-Cap Stock | Market Capitalization 1.68B USD | Price to earnings Ratio 20.54 | 1Y Target Price 46.8 |
Price to earnings Ratio 20.54 | 1Y Target Price 46.8 | ||
Volume (30-day avg) 232550 | Beta 0.58 | 52 Weeks Range 33.55 - 43.71 | Updated Date 03/27/2025 |
52 Weeks Range 33.55 - 43.71 | Updated Date 03/27/2025 | ||
Dividends yield (FY) 4.70% | Basic EPS (TTM) 2.03 |
Analyzing Revenue: Products, Geography and Growth
Revenue by Products
Product revenue - Year on Year
Earnings Date
Report Date - | When - | Estimate - | Actual - |
Profitability
Profit Margin 6.84% | Operating Margin (TTM) 21.65% |
Management Effectiveness
Return on Assets (TTM) 2.31% | Return on Equity (TTM) 5.91% |
Valuation
Trailing PE 20.54 | Forward PE 14.43 | Enterprise Value 3597058856 | Price to Sales(TTM) 1.45 |
Enterprise Value 3597058856 | Price to Sales(TTM) 1.45 | ||
Enterprise Value to Revenue 3.12 | Enterprise Value to EBITDA 10.33 | Shares Outstanding 40238500 | Shares Floating 39948778 |
Shares Outstanding 40238500 | Shares Floating 39948778 | ||
Percent Insiders 0.81 | Percent Institutions 81.75 |
Analyst Ratings
Rating 3.86 | Target Price 45.33 | Buy - | Strong Buy 3 |
Buy - | Strong Buy 3 | ||
Hold 4 | Sell - | Strong Sell - | |
Strong Sell - |
Upturn AI SWOT
Northwest Natural Gas Co

Company Overview
History and Background
Northwest Natural Gas Co. was founded in 1859 as the Portland Gas Light Company. It initially provided gas lighting to Portland, Oregon. Over time, it expanded its operations to include natural gas distribution for heating, cooking, and other uses, becoming a major utility in the Pacific Northwest.
Core Business Areas
- Natural Gas Distribution: The core business segment involves distributing natural gas to residential, commercial, and industrial customers in Oregon and Southwest Washington. This includes maintaining and operating pipelines, storage facilities, and related infrastructure.
- Renewable Natural Gas: Investments in and partnerships related to sourcing and distributing renewable natural gas (RNG).
Leadership and Structure
Northwest Natural Gas Co. is led by a board of directors and an executive management team. The company is structured into various departments, including operations, finance, customer service, and regulatory affairs.
Top Products and Market Share
Key Offerings
- Natural Gas Distribution: Delivery of natural gas to approximately 790,000 customers in Oregon and southwest Washington. Market share is estimated at around 70% in its service area. Competitors include electric utilities and alternative energy providers.
- Renewable Natural Gas (RNG): Sourcing and supplying RNG to customers, aiming to reduce carbon emissions. Market share is still developing but represents a growing segment. Competition includes other RNG suppliers and providers of other renewable energy sources. No significant revenue stream from this yet.
Market Dynamics
Industry Overview
The natural gas distribution industry is mature and highly regulated. Key trends include increasing focus on environmental sustainability, infrastructure modernization, and regulatory compliance.
Positioning
Northwest Natural Gas Co. is a leading natural gas distributor in the Pacific Northwest, with a strong reputation for reliability and customer service. Its competitive advantages include its established infrastructure, extensive customer base, and strong relationships with regulators.
Total Addressable Market (TAM)
The TAM for natural gas distribution in Oregon and Southwest Washington is estimated at $2-3 billion annually. Northwest Natural Gas Co. captures a significant portion of this TAM, with opportunities to expand its share through customer growth and infrastructure investments.
Upturn SWOT Analysis
Strengths
- Established infrastructure network
- Large customer base
- Strong brand reputation
- Experienced management team
- Stable regulatory environment
Weaknesses
- Dependence on natural gas prices
- Exposure to regulatory changes
- Geographic concentration in the Pacific Northwest
- Aging infrastructure requiring ongoing maintenance and upgrades
Opportunities
- Expansion into renewable natural gas (RNG)
- Infrastructure modernization investments
- Customer growth in existing service areas
- Strategic acquisitions of smaller utilities
- Partnerships with other energy providers
Threats
- Increasing competition from electric utilities
- Environmental regulations restricting natural gas use
- Fluctuations in natural gas prices
- Economic downturns reducing customer demand
- Cybersecurity risks to infrastructure
Competitors and Market Share
Key Competitors
- Avista Corp (AVA)
- Black Hills Corporation (BKH)
- ONE Gas Inc. (OGS)
Competitive Landscape
Northwest Natural Gas Co. competes with other utility companies and alternative energy providers. Its advantages include its established infrastructure and strong brand reputation. Its disadvantages include its geographic concentration and dependence on natural gas prices.
Major Acquisitions
West Coast Energy
- Year: 2021
- Acquisition Price (USD millions): 171
- Strategic Rationale: Expanded NW Natural Wateru2019s footprint into Washington state.
Growth Trajectory and Initiatives
Historical Growth: Historically, Northwest Natural Gas Co. has experienced slow but steady growth in customer base and revenue. Growth has been primarily organic, driven by population growth in its service areas.
Future Projections: Analyst estimates project continued slow growth in revenue and earnings over the next few years. Key growth drivers are expected to be infrastructure investments, RNG initiatives, and customer growth.
Recent Initiatives: Recent strategic initiatives include investments in renewable natural gas projects, infrastructure modernization programs, and customer service enhancements.
Summary
Northwest Natural Gas is a stable utility company with consistent revenue, but its dependence on natural gas and increasing environmental regulations pose challenges. Its strong brand and established infrastructure provide a competitive advantage, but transitioning to renewable sources is vital for long-term growth. While its dividend history is attractive, it should also consider growing its RNG sector to stay relevant. The company should be wary of increasing competition from electric utilities.
Similar Companies
- AVA
- BKH
- OGS
Sources and Disclaimers
Data Sources:
- Company Filings (10-K, 10-Q)
- Analyst Reports
- Industry Associations (e.g., AGA)
- Company Website
- SEC Filings
Disclaimers:
This analysis is based on publicly available information and analyst estimates. Actual results may vary. This is not financial advice; consult with a qualified financial advisor before making any investment decisions.
AI Summarization is directionally correct and might not be accurate.
Summarized information shown could be a few years old and not current.
Fundamental Rating based on AI could be based on old data.
AI-generated summaries may have inaccuracies (hallucinations). Please verify the information before taking action.
About Northwest Natural Gas Co
Exchange NYSE | Headquaters Portland, OR, United States | ||
IPO Launch date 1990-03-26 | CEO & Director Mr. David Hugo Anderson | ||
Sector Utilities | Industry Utilities - Regulated Gas | Full time employees 1452 | |
Full time employees 1452 |
Northwest Natural Holding Company, through its subsidiary, Northwest Natural Gas Company, provides regulated natural gas distribution services to residential, commercial, and industrial customers in the United States. The company operates mist gas storage facility contracted to other utilities, third-party marketers, and electric generators; offers natural gas asset management services; and operates an appliance retail center. It also engages in gas storage, water and wastewater, non-regulated renewable natural gas, and other investment businesses. In addition, the company offers natural gas service in Oregon and southwest Washington; and water and wastewater connections. Northwest Natural Holding Company was founded in 1859 and is headquartered in Portland, Oregon.
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