Northwest Pipe Intrinsic Value Calculation – Northwest Pipe (NASDAQ:NWPX) Shareholders Rejoice as ROCE Trajectory Soars
April 9, 2023
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Shareholders of Northwest Pipe ($NASDAQ:NWPX) (NASDAQ: NWPX) have been celebrating recently as the company’s return on capital employed (ROCE) trajectory has been soaring. Northwest Pipe is a leading manufacturer of engineered welded steel pipe water systems in North America. The company supplies a variety of product solutions to many industries, such as water transmission and treatment, energy and mining, as well as structural and tubular products. Northwest Pipe has seen its ROCE trajectory rise rapidly in recent years, as the company’s management has implemented a number of cost-cutting measures and strategic investments. This has resulted in improved efficiencies, resulting in higher profit margins and increased shareholder value.
Northwest Pipe has also been able to capitalize on lucrative opportunities in the energy sector, which has helped to drive up their ROCE even further. The increased ROCE trajectory is great news for shareholders of Northwest Pipe. With the right investments and cost-cutting strategies, the company should be able to continue to increase its profits and reward its shareholders with returns. Shareholders will no doubt be hoping that the ROCE trajectory remains ongoing so that they can continue to see the rewards of their investment in the company.
Market Price
On Monday, NORTHWEST PIPE (NASDAQ: NWPX) shareholders had reason to rejoice as the company’s Return on Capital Employed (ROCE) trajectory soared. The stock opened at $31.2 and closed at $31.0, down by a slight 0.6% from last closing price of 31.2. The increase in ROCE can be attributed to NORTHWEST PIPE’s robust balance sheet and prudent management of costs.
In addition, the company has been able to capitalize on the current market conditions to maximize profits and generate long-term growth. Shareholders will likely benefit from the company’s continued success as it continues to expand its operations and maximize its returns. Live Quote…
About the Company
Income Snapshot
Below shows the total revenue, net income and net margin for Northwest Pipe. More…
| Total Revenues | Net Income | Net Margin |
| 457.67 | 31.15 | 6.8% |
Cash Flow Snapshot
Below shows the cash from operations, investing and financing for Northwest Pipe. More…
| Operations | Investing | Financing |
| 17.54 | -23.05 | 6.19 |
Balance Sheet Snapshot
Below shows the total assets, liabilities and book value per share for Northwest Pipe. More…
| Total Assets | Total Liabilities | Book Value Per Share |
| 601.34 | 283.07 | 32.06 |
Key Ratios Snapshot
Some of the financial key ratios for Northwest Pipe are shown below. More…
| 3Y Rev Growth | 3Y Operating Profit Growth | Operating Margin |
| 17.9% | 16.0% | 9.8% |
| FCF Margin | ROE | ROA |
| -1.2% | 9.0% | 4.7% |
Analysis – Northwest Pipe Intrinsic Value Calculation
At GoodWhale, we have conducted a comprehensive analysis of NORTHWEST PIPE‘s fundamentals. After careful consideration of the company’s financial statements, we have determined that the fair value of a NORTHWEST PIPE share is around $39.0, calculated by our proprietary Valuation Line. Currently, the stock is trading at $31.0, representing an undervaluation of 20.5%. We believe this offers an attractive opportunity to investors who are looking to invest in the stock. More…
Peers
The company’s primary competitors are Seychelle Environmental Technologies Inc, Mueller Water Products, Inc., Water Now, Inc.
– Seychelle Environmental Technologies Inc ($OTCPK:SYEV)
Seychelle Environmental Technologies Inc is a company that produces and sells water filtration products. The company has a market cap of 63.94k as of 2022 and a return on equity of -2.17%. The company’s products are designed to remove contaminants from water, making it safe to drink. The company’s products are sold in over 60 countries around the world.
– Mueller Water Products, Inc. ($NYSE:MWA)
Mueller Water Products, Inc. is a manufacturer and marketer of water infrastructure and flow control products in the United States. The company operates in three segments: Infrastructure, Residential, and Industrial. The Infrastructure segment provides water and gas distribution products, service, and solutions for the water, gas, and energy industries. The Residential segment provides water service line and plumbing repair products, and solutions for the residential do-it-yourself and professional markets. The Industrial segment provides flow control products and solutions for the oil and gas, mining, power generation, and other industrial applications. Mueller Water Products, Inc. was founded in 1857 and is headquartered in Atlanta, Georgia.
– Water Now, Inc. ($OTCPK:WTNW)
Water Now, Inc. is a leading provider of water treatment solutions. The company has a market cap of 40.45k and a ROE of 29.93%. The company’s products are used in a variety of industries, including oil and gas, power generation, food and beverage, pharmaceuticals, and more. Water Now is committed to providing innovative, cost-effective solutions to meet the challenges of water scarcity and water pollution.
Summary
Northwest Pipe (NASDAQ:NWPX) is a company that manufactures steel pipe for water infrastructure, energy, and industrial markets. The company has seen an increase in its return on capital employed (ROCE) over the past several years, indicating improved profitability and efficiency. This is a positive sign for shareholders, as higher ROCE typically translates into higher returns for investors. The company has been successful in controlling cost structure, increasing productivity, and gaining market share in its primary markets.
Additionally, the company’s debt-to-equity ratio is below the industry average, which reduces financial risk and provides the company with greater financial flexibility. Northwest Pipe’s shareholders are likely to be pleased with the current ROCE trajectory and will be looking for it to continue in the future.
