Northwest Natural HoldingNYSE: NWN

Northwest Natural Holding Company is a utility company providing natural gas and water services in multiple states. The company's recent stock performance has been weak, resulting in a high dividend yield of 5.40%. The NOAA is projecting a colder-than-normal winter in the Pacific Northwest this year, which should be a tailwind for revenues over the next nine months.

PORTLAND, Ore.--(BUSINESS WIRE)--NW Natural Water Company, LLC (NW Natural Water), a wholly-owned subsidiary of Northwest Natural Holding Company (NYSE:NWN) (NW Natural Holdings), has agreed to acquire all the interests of Infrastructure Capital Holdings (ICH), which includes the assets of Puttman Infrastructure (Puttman). The acquisition will add approximately 4,200 water, wastewater and recycled water customers across Oregon, Idaho and California, expanding to an expected 19,000 connections a.

PORTLAND, Ore.--(BUSINESS WIRE)--NW Natural Holding Company (NYSE: NWN) (NW Natural Holdings) and NW Natural Gas Company (NW Natural) chief executive officer (CEO) David H. Anderson announced today his intent to retire on April 1, 2025. The Board of Directors designated Justin B. Palfreyman, president of NW Natural Holdings and NW Natural, as the successor to Anderson. "David's been an exemplary leader for 20 years at the NW Natural companies,” Malia H. Wasson, chair of NW Natural Holdings' Boa.

Northwest Natural (NWN) reported quarterly earnings of $1.69 per share, falling short of the Zacks Consensus Estimate of $1.82 per share. This is lower than the earnings of $2.01 per share reported a year ago.

Northwest Natural is an undervalued utility company with a drop in stock price of over 20% in the past year. The company has a solid financial profile, including an A+ rating, low long-term debt, and a dividend yield of over 5.4%. Northwest Natural operates in the gas and water sectors, with a focus on serving customers in Oregon and Southwestern Washington state. I view the company as an attractive "BUY" here.

Northwest Natural Holding Company (NWN) Q4 2023 Earnings Call Transcript

Northwest Natural (NWN) came out with quarterly earnings of $1.21 per share, missing the Zacks Consensus Estimate of $1.30 per share. This compares to earnings of $1.36 per share a year ago.

Northwest Natural Holding Company's stock price has declined 16.24% over the past year, underperforming the broader market and the utility sector. The company's customer growth rate has slowed, potentially due to rising interest rates and population decline in certain areas. Northwest Natural Holding has stable cash flows and a relatively high dividend yield, but its net debt-to-equity ratio has increased and its valuation is considered expensive compared to peers.

Investor views on the gas market could be better with demand slowing and prices decreasing. The market's sentiment may continue to linger on the bearish side.