Core Insights - The article emphasizes the importance of dividend-paying stocks for steady wealth accumulation during financial journeys [1] - The author has extensive experience in investment advising, corporate management, and entrepreneurship, which enhances the credibility of the insights provided [1] Company and Industry Summary - Guiding Mast Investments focuses on timely selections of dividend-paying stocks, aiming to assist investors in wealth accumulation [1] - The author has a background in corporate management at Georgia-Pacific Corp, which adds depth to the investment analysis [1] - The author has published books on investment strategies, indicating a commitment to educating investors about overlooked stocks and dividend reinvestment plans [1]

deepblue4you Thesis Northwest Natural Holding Company (NYSE:NWN) has been around forever and is known for keeping the Pacific Northwest powered with natural gas and water services. While they've bumped up their dividends for 68 years straight, which is impressive, my analysis argues that their growth doesn't stack up against the broader market. And while they're making moves in clean energy and water recycling, the financials-like revenue and earnings-aren't anything to write home about. Bottom line: if you ...

While the proven Zacks Rank places an emphasis on earnings estimates and estimate revisions to find strong stocks, we also know that investors tend to develop their own individual strategies. With this in mind, we are always looking at value, growth, and momentum trends to discover great companies. Looking at the history of these trends, perhaps none is more beloved than value investing. This strategy simply looks to identify companies that are being undervalued by the broader market. Value investors use fu ...

Northwest Natural Holding Company (NWN) benefits from its investments in infrastructure upgrade, customer base expansion and energy transition plans. Given its earnings growth opportunities and better debt management, NWN makes for a solid investment option in the utility sector. Let's focus on the factors that make this Zacks Rank #2 (Buy) company a strong investment pick at the moment. NWN's Growth Projections & Surprise History The Zacks Consensus Estimate for 2024 earnings per share (EPS) has moved up 1 ...

Here at Zacks, we focus on our proven ranking system, which places an emphasis on earnings estimates and estimate revisions, to find winning stocks. But we also understand that investors develop their own strategies, so we are constantly looking at the latest trends in value, growth, and momentum to find strong companies for our readers. Of these, value investing is easily one of the most popular ways to find great stocks in any market environment. Value investors use a variety of methods, including tried-a ...

Industry Overview - The utilities sector is recognized for providing a steady source of income through dividends, making it a preferred choice for investors during economic downturns [1] - Utility stocks are classified as defensive stocks, showing minimal impact from market volatility, and have historically performed well during financial crises, such as the 2008 crisis [2] Current Economic Context - The market anticipates interest rate cuts in September, marking a potential shift in monetary policy after a tightening period that began in early 2022, with expectations of at least two rate cuts this year due to signs of economic slowdown [3] - Inflation has significantly decreased recently, and while the jobs market has slowed, it remains robust, suggesting that once the Federal Reserve initiates rate cuts, they may occur rapidly [4] Performance Metrics - The utilities sector has performed well in 2024, with the S&P 500 Select Sector SPDR (XLU) increasing by 16.7% year-to-date as of July 31, 2024, indicating strong investor interest in utility stocks during macroeconomic downturns [4] Investment Considerations - Utility stocks are typically viewed as long-term buy-and-hold investments due to their regular dividend declarations and generally higher dividend yields compared to other equities, providing stability and growth potential [5] Company Highlights - UGI Corporation (UGI) is an integrated gas distributor with an expected earnings growth rate of 2.8% for the current year and holds a Zacks Rank 2 with a VGM Score of B [7] - Northwest Natural Holding Company (NWN) focuses on natural gas distribution and has an expected earnings growth rate of 2.5% for the next year, with a 26.3% improvement in the Zacks Consensus Estimate over the past 60 days, also holding a Zacks Rank 2 and a VGM Score of B [8] - Veolia Environnement SA (VEOEY) provides global water, waste, and energy management solutions, with an expected earnings growth rate of 207% for the current year and a slight improvement in the Zacks Consensus Estimate, holding a Zacks Rank 1 and a VGM Score of B [9]

The proven Zacks Rank system focuses on earnings estimates and estimate revisions to find winning stocks. Nevertheless, we know that our readers all have their own perspectives, so we are always looking at the latest trends in value, growth, and momentum to find strong picks. Considering these trends, value investing is clearly one of the most preferred ways to find strong stocks in any type of market. Value investors rely on traditional forms of analysis on key valuation metrics to find stocks that they be ...

Northwest Natural (NWN) came out with a quarterly loss of $0.07 per share versus the Zacks Consensus Estimate of a loss of $0.12. This compares to earnings of $0.03 per share a year ago. These figures are adjusted for non-recurring items. This quarterly report represents an earnings surprise of 41.67%. A quarter ago, it was expected that this natural gas distributor would post earnings of $1.82 per share when it actually produced earnings of $1.69, delivering a surprise of -7.14%. Over the last four quarter ...

Core Viewpoint - Northwest Natural Holding Company is a utility company that primarily provides natural gas services and is often overlooked by investors who favor electric utilities, despite its strong market position in natural gas and water services [2][3][4]. Company Overview - Northwest Natural Holding Company operates primarily in Oregon and Washington, serving approximately 2 million people through its natural gas utility, which accounts for 96.40% of its first-quarter 2024 revenue [6][7]. - The company has a long history of over 165 years and is committed to safety, environmental stewardship, and community care [6]. Financial Performance - The company's share price has declined by 7.67% since the last analysis, underperforming both the S&P 500 Index and the U.S. Utilities ETF [3][4]. - Despite the share price decline, the dividend yield has increased to 5.40%, making it attractive for income-focused investors [4][18]. - In the first quarter of 2024, the natural gas distribution segment's net income decreased by $6.2 million due to higher operating expenses and warmer weather, which negatively impacted natural gas consumption [9][10]. Customer Mix and Consumption Patterns - The majority of the company's customers are residential, which leads to revenue fluctuations based on seasonal demand for heating [9]. - The trend towards remote work may benefit the company as residential consumption of natural gas could increase while commercial consumption decreases [9]. Weather Impact - Warmer-than-normal winter temperatures negatively affected the company's performance in the first quarter of 2024, but forecasts suggest a colder winter ahead, which could boost revenue [9][10]. Debt and Financial Structure - As of March 31, 2024, the company has a net debt-to-equity ratio of 1.25, indicating a moderate reliance on debt compared to peers [13][17]. - Interest expenses have stabilized, with the company paying between $19 million to $21 million per quarter, a significant increase from pre-pandemic levels but no longer exhibiting rapid growth [11][17]. Dividend Sustainability - The company has maintained its quarterly dividend at $0.48750 per share, supported by an operating cash flow of $228.1 million against dividend payments of $68.6 million [18][19]. Valuation - Northwest Natural Holding has a forward price-to-earnings ratio of 15.87, which is reasonable compared to its peers, but the company faces potential earnings pressure due to increased depreciation expenses [20][21]. - The stock appears fairly valued, with no immediate catalysts for price appreciation, making it more suitable for income-focused investors rather than growth-oriented ones [21].

PART I. FINANCIAL INFORMATION [Forward-Looking Statements](index=3&type=section&id=Forward-Looking%20Statements) This section outlines forward-looking statements, emphasizing their basis in current expectations and inherent uncertainties - Forward-looking statements are based on current expectations and assumptions, subject to inherent uncertainties, risks, and changes in circumstances that are difficult to predict[10](index=10&type=chunk) - Examples of forward-looking statements include plans, projections, objectives, economic conditions (inflation, interest rates), earnings, dividends, capital expenditures, climate change matters, regulatory outcomes, and growth[9](index=9&type=chunk) - Actual results may differ materially from those contemplated by forward-looking statements, and the company undertakes no obligation to publicly update them, except as required by law[10](index=10&type=chunk)[11](index=11&type=chunk) [Item 1. Unaudited Financial Statements](index=5&type=section&id=Item%201.%20Unaudited%20Financial%20Statements) This section presents unaudited consolidated financial statements for NW Holdings and NW Natural, including income, balance sheets, equity, and cash flows [Consolidated Statements of Comprehensive Income (NW Holdings)](index=5&type=section&id=Consolidated%20Statements%20of%20Comprehensive%20Income%20of%20Northwest%20Natural%20Holding%20Company) Consolidated Statements of Comprehensive Income (NW Holdings, in thousands) | Metric | Three Months Ended March 31, 2024 (in thousands) | Three Months Ended March 31, 2023 (in thousands) | Change (in thousands) | Change (%) | | :-------------------------- | :------------------------------------------------ | :------------------------------------------------ | :-------------------- | :--------- | | Operating revenues | $433,470 | $462,423 | $(28,953) | -6.26% | | Total operating expenses | $323,643 | $348,915 | $(25,272) | -7.24% | | Income from operations | $109,827 | $113,508 | $(3,681) | -3.24% | | Net income | $63,823 | $71,671 | $(7,848) | -10.95% | | Basic EPS | $1.69 | $2.01 | $(0.32) | -15.92% | | Diluted EPS | $1.69 | $2.01 | $(0.32) | -15.92% | - **NW Holdings' net income decreased by $7.85 million**, or 10.95%, for the three months ended March 31, 2024, compared to the same period in 2023, primarily due to lower operating revenues and higher interest expense[12](index=12&type=chunk) [Consolidated Balance Sheets (NW Holdings)](index=6&type=section&id=Consolidated%20Balance%20Sheets%20of%20Northwest%20Natural%20Holding%20Company) Consolidated Balance Sheets (NW Holdings, in thousands) | Metric | March 31, 2024 (in thousands) | December 31, 2023 (in thousands) | March 31, 2023 (in thousands) | | :-------------------------------- | :------------------------------ | :------------------------------- | :------------------------------ | | Total assets | $4,849,066 | $4,867,092 | $4,592,096 | | Total current assets | $537,714 | $601,440 | $576,173 | | Total non-current assets | $4,311,352 | $4,265,652 | $4,015,923 | | Total liabilities and equity | $4,849,066 | $4,867,092 | $4,592,096 | | Total current liabilities | $468,344 | $696,878 | $644,080 | | Long-term debt | $1,574,735 | $1,425,435 | $1,294,590 | | Total equity | $1,343,386 | $1,283,838 | $1,248,307 | - **NW Holdings' total assets increased by $256.97 million** (5.59%) from March 31, 2023, to March 31, 2024, primarily driven by an increase in property, plant, and equipment, net[14](index=14&type=chunk) - **Long-term debt for NW Holdings increased by $280.14 million** (21.64%) from March 31, 2023, to March 31, 2024[16](index=16&type=chunk) [Consolidated Statements of Shareholders' Equity (NW Holdings)](index=8&type=section&id=Consolidated%20Statements%20of%20Shareholders'%20Equity%20of%20Northwest%20Natural%20Holding%20Company) Consolidated Statements of Shareholders' Equity (NW Holdings, in thousands) | Metric | Three Months Ended March 31, 2024 (in thousands) | Three Months Ended March 31, 2023 (in thousands) | Change (in thousands) | | :-------------------------------- | :------------------------------------------------ | :------------------------------------------------ | :-------------------- | | Total shareholders' equity, beginning balances | $1,283,838 | $1,175,441 | $108,397 | | Net income | $63,823 | $71,671 | $(7,848) | | Dividends on common stock | $(18,676) | $(17,547) | $(1,129) | | Total shareholders' equity, ending balances | $1,343,386 | $1,248,307 | $95,079 | | Dividends per share of common stock | $0.4875 | $0.4850 | $0.0025 | - **NW Holdings' total shareholders' equity increased by $95.08 million** year-over-year, reaching $1.34 billion, driven by common stock issuances and retained earnings, despite a decrease in net income[17](index=17&type=chunk) [Consolidated Statements of Cash Flows (NW Holdings)](index=9&type=section&id=Consolidated%20Statements%20of%20Cash%20Flows%20of%20Northwest%20Natural%20Holding%20Company) Consolidated Statements of Cash Flows (NW Holdings, in thousands) | Metric | Three Months Ended March 31, 2024 (in thousands) | Three Months Ended March 31, 2023 (in thousands) | Change (in thousands) | | :-------------------------------- | :------------------------------------------------ | :------------------------------------------------ | :-------------------- | | Cash provided by operating activities | $125,039 | $176,861 | $(51,822) | | Cash used in investing activities | $(82,488) | $(73,018) | $(9,470) | | Cash (used in) provided by financing activities | $(2,917) | $11,187 | $(14,104) | | Increase in cash, cash equivalents and restricted cash | $39,634 | $115,030 | $(75,396) | | Cash, cash equivalents and restricted cash, end of period | $89,258 | $155,994 | $(66,736) | - **Cash provided by operating activities for NW Holdings decreased by $51.82 million**, while **cash used in investing activities increased by $9.47 million**, and financing activities shifted from providing cash to using cash, resulting in a significant decrease in overall cash and cash equivalents[18](index=18&type=chunk) [Consolidated Statements of Comprehensive Income (NW Natural)](index=10&type=section&id=Consolidated%20Statements%20of%20Comprehensive%20Income%20of%20Northwest%20Natural%20Gas%20Company) Consolidated Statements of Comprehensive Income (NW Natural, in thousands) | Metric | Three Months Ended March 31, 2024 (in thousands) | Three Months Ended March 31, 2023 (in thousands) | Change (in thousands) | Change (%) | | :-------------------------- | :------------------------------------------------ | :------------------------------------------------ | :-------------------- | :--------- | | Operating revenues | $422,775 | $454,513 | $(31,738) | -6.98% | | Total operating expenses | $312,144 | $340,385 | $(28,241) | -8.30% | | Income from operations | $110,631 | $114,128 | $(3,497) | -3.06% | | Net income | $67,558 | $75,540 | $(7,982) | -10.57% | - **NW Natural's net income decreased by $7.98 million**, or 10.57%, for the three months ended March 31, 2024, compared to the same period in 2023, primarily due to lower operating revenues and higher interest expense[19](index=19&type=chunk) [Consolidated Balance Sheets (NW Natural)](index=11&type=section&id=Consolidated%20Balance%20Sheets%20of%20Northwest%20Natural%20Gas%20Company) Consolidated Balance Sheets (NW Natural, in thousands) | Metric | March 31, 2024 (in thousands) | December 31, 2023 (in thousands) | March 31, 2023 (in thousands) | | :-------------------------------- | :------------------------------ | :------------------------------- | :------------------------------ | | Total assets | $4,494,642 | $4,511,377 | $4,300,635 | | Total current assets | $521,218 | $576,624 |