Northwest Natural Gas Company (NYSE:NWN) is expected to deliver a solid 13.91% in earnings growth per share over the next three years. Presently, with an EPS of $2.242, we can expect an upcoming EPS of $2.553. To assess the reasonability of NWN’s earnings growth per share, we should look at its most recent growth rate delivered. See our latest analysis for NWN
Exciting times ahead for NWN
NWN is covered by 4 analysts who by consensus are expecting earnings to increase from today’s level of $2.242 to $2.553 over the next couple of years. This indicates a relatively solid earnings per share growth rate of 13.91% over the next few years, which is an optimistic outlook in the near term. In the same period we should see the revenue grow from $755M to $783M and profits (net income) are predicted to slightly grow from $63M to $72M in the next couple of years, growing by 13.91%. Margins are expected to be rather acceptable at 9.78%.
Is the growth built on solid basis?
The past can be an insightful indicator for future performance for a stock. We can determine whether this level of expected growth indicates a change in tides or if the company continues to struggle reaching higher growth. NWN exhibits a sound change as it delivered negative growth of -14.16% over the last five years, which is expected to turn positive according to analysts’ forecasts. This could indicate a relatively successful turnaround, which is likely to please current investors.
For NWN, I’ve compiled three fundamental aspects you should further research:
1. Financial Health: Does it have a healthy balance sheet? Take a look at our free balance sheet analysis with six simple checks on key factors like leverage and risk.
2. Valuation: What is NWN worth today? Is the stock undervalued, even when its growth outlook is factored into its intrinsic value? The intrinsic value infographic in our free research report helps visualize whether NWN is currently mispriced by the market.
3. Other High-Growth Alternatives : Are there other high-growth stocks you could be holding instead of NWN? Explore our interactive list of stocks with large growth potential to get an idea of what else is out there you may be missing!
To help readers see pass the short term volatility of the financial market, we aim to bring you a long-term focused research analysis purely driven by fundamental data. Note that our analysis does not factor in the latest price sensitive company announcements.
The author is an independent contributor and at the time of publication had no position in the stocks mentioned.