Northwest Natural Holding: Strong Fundamentals, But Challenges Ahead

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Northwest Natural Holding ($NYSE:NWN) is a diversified energy company operating primarily in the Pacific Northwest region of the United States. The company offers a wide range of services such as natural gas distribution, liquefied natural gas storage and transportation, and natural gas retail services. Northwest Natural Holding has strong fundamentals, including an established customer base, well-positioned infrastructure and a strong management team. Despite these foundational strengths, the company does face certain headwinds in the current energy environment. The primary challenge Northwest Natural Holding is facing is the low price of natural gas. As a result of the weak pricing environment, the company’s revenues have been negatively impacted. Additionally, the company is facing increased competition from other energy providers and is having to meet tougher regulatory requirements.

In addition, the company is also having to adapt to changing customer preferences and needs, such as increasing demand for renewable energy sources. While the company is currently facing certain headwinds, they do have the potential to be mitigated through improved pricing, greater efficiency and strategic investments. With management’s commitment to innovation and customer service, Northwest Natural Holding should continue to be a reliable provider of energy services in the Pacific Northwest region.

Price History

On Tuesday, Northwest Natural Holding (NNH) opened at $39.0 and closed at $39.1, down by 0.1% from previous closing price of 39.2. NNH has strong fundamentals, particularly its financial position and sound cash flow.

However, the company faces some challenges in the near future. These include a potential decline in demand for natural gas, increased competition from renewable energy sources, and potential regulation changes. NNH must navigate these obstacles and continue to diversify its business in order to remain profitable. For now, NNH appears to have strong fundamentals and can handle the challenges ahead. 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 has conducted an analysis of NORTHWEST NATURAL HOLDING’s wellbeing. Based on the results of the Star Chart, NORTHWEST NATURAL HOLDING has an intermediate health score of 4/10. This indicates that the company might be able to safely ride out any crisis without the risk of bankruptcy. Additionally, NORTHWEST NATURAL HOLDING is classified as a ‘cheetah’- a type of company that has achieved high revenue or earnings growth but is considered to be less stable due to lower profitability. In terms of its wellbeing, NORTHWEST NATURAL HOLDING is strong in assets, dividend, and growth, and medium in profitability. Given its characteristics, NORTHWEST NATURAL HOLDING could be an attractive option for investors looking for companies with potential for high returns despite some associated risk. Therefore, investors who are willing to take on greater risk in pursuit of larger returns may be interested in NORTHWEST NATURAL HOLDING. 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 an energy services company that provides natural gas distribution and storage services. It has a strong financial position, with stable income, low debt and good cash flow. While the company has experienced some growth, it has also been facing some headwinds from increasingly stringent regulations, higher commodity costs and decreased demand. However, Northwest Natural Holding may offer a good opportunity for those looking for an established, resilient firm with a strong dividend yield.