Northwest Natural Holding Balances Risk with Increased Use of Debt

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Northwest Natural Holding ($NYSE:NWN) Inc. (NWN) is a publicly traded company that provides natural gas and related products and services. As part of their business strategy, the company has recently increased its use of debt to finance new projects and acquisitions. While debt can be a powerful tool to fuel growth, it also carries certain risks that must be carefully managed. NWN has taken steps to mitigate the risks associated with its increased debt usage. NWN has also taken measures to diversify its revenue streams by expanding into new markets and investing in renewable energy projects.

Additionally, NWN’s management team has implemented cost-cutting measures and focused on providing customer service in order to drive revenue growth. By carefully balancing risk with increased use of debt, Northwest Natural Holding Inc. has positioned itself for long-term success. The company’s prudent approach to debt financing has allowed it to pursue opportunities that wouldn’t have been possible without additional capital, while at the same time protecting its balance sheet from potential risks. NWN is a prime example of how a company can use debt responsibly to drive growth and create value for shareholders.

Price History

Northwest Natural Holding Inc. has seen a notable rise in their stock prices on Wednesday, with their stock opening at $37.9 and closing at $38.3, up by 1.5% from prior closing price of 37.7. This notable rise in their stock prices has been attributed to their balanced approach to risk management by increasing their use of debt. This approach allows them to increase their financial flexibility and potentially access more capital, enabling them to pursue more ambitious strategies and business opportunities.

The increased use of debt also allows them to maintain a competitive balance sheet while still taking on calculated risks. This approach has allowed them to create a resilient and profitable business model, allowing them to continue to grow their business and create value for their shareholders. Live Quote…

About the Company

Income Snapshot

Below shows the total revenue, net income and net margin for NWN. More…

Cash Flow Snapshot

Below shows the cash from operations, investing and financing for NWN. More…

Balance Sheet Snapshot

Below shows the total assets, liabilities and book value per share for NWN. More…

Key Ratios Snapshot

Some of the financial key ratios for NWN are shown below. More…

Analysis

GoodWhale conducted an analysis of NORTHWEST NATURAL HOLDING’s wellbeing and found that the company is strong in asset, dividend, and growth and medium in profitability. After considering cashflows and debt, its health score is 4/10, meaning it is likely to sustain future operations in times of crisis. Moreover, NORTHWEST NATURAL HOLDING is classified as ‘cheetah’, a type of company that has achieved high revenue or earnings growth but is considered less stable due to lower profitability. Given its high growth potential, NORTHWEST NATURAL HOLDING may be attractive to investors who are looking for companies that are less stable than blue-chip stocks but may still yield higher returns in the long run. Investors with a risk-tolerance for high growth potential may be interested in such company. More…

Peers

Its competitors include RGC Resources Inc, ONE Gas Inc, and Indraprastha Gas Ltd. The company has a strong market position and is well-positioned to continue its growth.

– RGC Resources Inc ($NASDAQ:RGCO)

RGC Resources is a diversified energy services company that provides natural gas and electricity to residential, commercial, and industrial customers in Virginia, North Carolina, and South Carolina. The company also provides energy-related products and services to customers in Virginia and North Carolina. RGC Resources has a market cap of 206.32M as of 2022, a Return on Equity of -13.92%. The company has been in operation for over 100 years and is headquartered in Roanoke, Virginia.

– ONE Gas Inc ($NYSE:OGS)

Natl Gas Co is a holding company, which engages in the distribution of natural gas. It operates through the following segments: Natural Gas and Others. The Natural Gas segment offers natural gas to residential, commercial and industrial customers. The Others segment includes activities of the Company’s subsidiaries in the electricity, water and waste industries. The company was founded on December 28, 1922 and is headquartered in Buenos Aires, Argentina.

– Indraprastha Gas Ltd ($BSE:532514)

Indraprastha Gas Ltd (IGL) is an Indian natural gas distribution company. It is engaged in the business of marketing and distributing natural gas in the National Capital Region of India. IGL also has a city gas distribution network in the cities of Agra and Kanpur. The company has a customer base of over 2.6 million customers.

IGL has a market capitalization of Rs 296.1 billion as of March 31, 2022. The company has a return on equity of 17.79%. IGL is a leading player in the city gas distribution market in India. The company has a strong presence in the National Capital Region of India, with a customer base of over 2.6 million customers.

Summary

Northwest Natural Holding is a company that utilizes debt in its investment strategy, meaning that they accept some risk in order to generate returns. Investing in the company involves considering the balance between the company’s debt and equity. Analyzing the company’s debt-to-equity ratio and comparing it to industry peers is a key part of assessing its financial strength. The company’s debt structure should also be considered, such as its maturity profile and the cost of debt.

Additionally, investors should pay attention to how much cash the company has available to cover its liabilities and how much this amount is growing. Finally, assessing the company’s credit ratings and its ability to access capital markets are also important considerations.