Latest Ratios: P/E Ratio 23.4x · EV/EBITDA 13.3x · ROE 6.3%. (1996–2025 historical series)
Price-based multiples — how expensive the stock is relative to earnings, sales, book value, and cash flow
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Market Cap | $4.2B | $4.0B | $3.3B | $3.1B | $3.3B | $3.0B | $3.0B | $3.6B | $3.0B | $2.9B | $2.8B |
| Enterprise Value | $7.7B | $7.4B | $6.4B | $5.9B | $6.0B | $5.5B | $5.4B | $5.9B | $5.1B | $5.0B | $4.9B |
| P/E Ratio → | 23.37 | 21.95 | 14.65 | 15.80 | 18.26 | 15.88 | 19.06 | 18.01 | 15.16 | 17.87 | 16.78 |
| P/S Ratio | 2.62 | 2.46 | 2.17 | 2.16 | 2.26 | 2.16 | 2.47 | 2.89 | 2.51 | 2.22 | 2.19 |
| P/B Ratio | 1.46 | 1.37 | 1.15 | 1.10 | 1.25 | 1.27 | 1.42 | 1.78 | 1.54 | 1.61 | 1.64 |
| P/FCF | — | — | — | — | — | — | — | — | 30.46 | 61.58 | 2481.35 |
| P/OCF | 10.71 | 10.04 | 8.07 | 6.28 | 10.87 | 13.48 | 8.40 | 12.26 | 7.82 | 8.98 | 9.54 |
P/E links to full P/E history page with 30-year chart
Enterprise-value multiples — capital-structure-neutral measures of total business value
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| EV / Revenue | — | 4.59 | 4.21 | 4.12 | 4.03 | 4.02 | 4.49 | 4.68 | 4.28 | 3.86 | 3.88 |
| EV / EBITDA | 13.30 | 12.85 | 11.58 | 11.46 | 13.02 | 11.92 | 12.95 | 13.09 | 11.58 | 11.77 | 12.02 |
| EV / EBIT | 23.49 | 21.87 | 18.41 | 18.51 | 21.11 | 19.44 | 22.33 | 21.86 | 18.88 | 18.76 | 19.37 |
| EV / FCF | — | — | — | — | — | — | — | — | 52.06 | 106.71 | 4385.39 |
Margins and return-on-capital ratios measuring operating efficiency
Full margin charts and quarterly trend are on the Earnings History page
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Gross Margin | 82.3% | 82.3% | 85.0% | 54.9% | 51.7% | 69.0% | 74.5% | 58.1% | 77.1% | 68.6% | 68.1% |
| Operating Margin | 20.2% | 20.2% | 21.4% | 21.1% | 17.8% | 20.1% | 19.7% | 22.0% | 22.3% | 20.0% | 19.6% |
| Net Profit Margin | 11.2% | 11.2% | 14.8% | 13.7% | 12.4% | 13.6% | 12.9% | 16.1% | 16.5% | 12.5% | 13.1% |
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| ROE | 6.3% | 6.3% | 7.9% | 7.1% | 7.3% | 8.5% | 7.5% | 10.2% | 10.5% | 9.4% | 10.0% |
| ROA | 2.2% | 2.2% | 2.9% | 2.6% | 2.6% | 2.8% | 2.5% | 3.4% | 3.6% | 3.0% | 3.0% |
| ROIC | 4.0% | 4.0% | 4.2% | 4.2% | 3.9% | 4.4% | 4.0% | 5.0% | 5.0% | 5.1% | 5.0% |
| ROCE | 4.4% | 4.4% | 4.5% | 4.4% | 4.0% | 4.5% | 4.0% | 5.0% | 5.3% | 5.4% | 5.1% |
Solvency and debt-coverage ratios — lower is generally safer
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Debt / Equity | 1.19 | 1.19 | 1.09 | 1.00 | 0.99 | 1.09 | 1.17 | 1.10 | 1.09 | 1.19 | 1.27 |
| Debt / EBITDA | 5.98 | 5.98 | 5.63 | 5.47 | 5.74 | 5.52 | 5.85 | 5.01 | 4.82 | 5.00 | 5.23 |
| Net Debt / Equity | — | 1.19 | 1.08 | 1.00 | 0.98 | 1.09 | 1.17 | 1.10 | 1.09 | 1.18 | 1.26 |
| Net Debt / EBITDA | 5.96 | 5.96 | 5.62 | 5.45 | 5.72 | 5.51 | 5.84 | 5.00 | 4.80 | 4.98 | 5.22 |
| Debt / FCF | — | — | — | — | — | — | — | — | 21.59 | 45.13 | 1904.05 |
| Interest Coverage | 2.25 | 2.25 | 2.63 | 2.76 | 2.82 | 3.03 | 2.49 | 2.83 | 2.94 | 2.91 | 2.65 |
Short-term solvency ratios and asset-utilisation metrics
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Current Ratio | 0.72 | 0.72 | 0.52 | 0.76 | 0.87 | 1.15 | 0.66 | 0.90 | 0.80 | 0.47 | 0.46 |
| Quick Ratio | 0.53 | 0.53 | 0.37 | 0.55 | 0.69 | 0.94 | 0.53 | 0.74 | 0.65 | 0.39 | 0.38 |
| Cash Ratio | 0.01 | 0.01 | 0.01 | 0.02 | 0.01 | 0.01 | 0.01 | 0.02 | 0.02 | 0.01 | 0.01 |
| Asset Turnover | — | 0.19 | 0.19 | 0.19 | 0.20 | 0.20 | 0.19 | 0.21 | 0.21 | 0.24 | 0.23 |
| Inventory Turnover | 2.15 | 2.15 | 1.85 | 5.59 | 6.65 | 5.28 | 5.02 | 9.77 | 5.37 | 7.83 | 8.15 |
| Days Sales Outstanding | — | — | — | — | — | — | — | — | — | — | — |
Earnings, FCF, buyback, and dividend yields — total returns to shareholders
Full dividend history and growth charts are on the Dividend History page
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Dividend Yield | 3.8% | 4.1% | 4.8% | 5.0% | 4.2% | 4.3% | 4.1% | 3.2% | 3.7% | 3.5% | 3.5% |
| Payout Ratio | 89.1% | 89.1% | 70.8% | 79.4% | 76.5% | 68.8% | 77.5% | 57.0% | 55.4% | 62.2% | 58.3% |
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Earnings Yield | 4.3% | 4.6% | 6.8% | 6.3% | 5.5% | 6.3% | 5.2% | 5.6% | 6.6% | 5.6% | 6.0% |
| FCF Yield | — | — | — | — | — | — | — | — | 3.3% | 1.6% | 0.0% |
| Buyback Yield | 0.0% | 0.0% | 0.0% | 0.0% | 0.0% | 0.0% | 0.0% | 0.0% | 0.0% | 0.0% | 0.0% |
| Total Shareholder Yield | 3.8% | 4.1% | 4.8% | 5.0% | 4.2% | 4.3% | 4.1% | 3.2% | 3.7% | 3.5% | 3.5% |
| Shares Outstanding | — | $61M | $61M | $60M | $56M | $52M | $51M | $51M | $50M | $49M | $48M |
Includes 30+ ratios · 30 years · Updated daily
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Quick answers to the most common questions about buying NWE stock.
Northwestern Energy Group Inc's current P/E ratio is 23.4x. The historical average is 17.5x. This places it at the 95th percentile of its historical range.
Northwestern Energy Group Inc's current EV/EBITDA is 13.3x. This enterprise value multiple compares the company's total value (equity + debt - cash) to its EBITDA. The historical average is 12.9x.
Northwestern Energy Group Inc's return on equity (ROE) is 6.3%. The historical average is 7.6%.
Based on historical data, Northwestern Energy Group Inc is trading at a P/E of 23.4x. This is at the 95th percentile of its historical P/E range. Compare with industry peers and growth rates for a complete picture.
Northwestern Energy Group Inc's current dividend yield is 3.83% with a payout ratio of 89.1%.
Northwestern Energy Group Inc has 82.3% gross margin and 20.2% operating margin. Operating margin above 20% indicates strong pricing power and cost efficiency.
Northwestern Energy Group Inc's Debt/EBITDA ratio is 6.0x, indicating high leverage. A ratio above 4x may signal elevated financial risk.
Key Metrics
Top Statement Risk
Regulatory and Colstrip exposure
Metrics are mathematically derived from official filings.
Premium Priced on Hydro Stability
NWE trades at 23.6x trailing earnings versus 18.2x for peers, with a 3.8% dividend yield, according to current market data, suggesting investors pay up for regulated hydro assets and Montana growth.
The P/E premium over the peer median of roughly 18x appears justified by the perceived stability of hydro generation and the Bozeman-area customer growth, but it leaves little room for regulatory disappointment. The forward P/E of 18.9x implies the market expects earnings recovery from the recent miss, which may be optimistic given the unresolved Colstrip exposure. The dividend yield of 3.8% is below the peer average of 3.2%, indicating that income investors are not being compensated for the regulatory risk embedded in the Montana jurisdiction.
Earned ROE Trails Authorized Levels
Quarterly ROE averaged 1.7% over the last ten quarters, as per reported figures, far below the typical authorized ROE of 9-10%, indicating persistent regulatory lag and cost recovery timing issues.
The gap between earned and allowed ROE is stark, with even the best quarter (2025Q1 at 2.7%) falling short of the authorized level. This suggests that the company is not fully recovering its cost of capital, likely due to regulatory lag and the timing of rate cases. Investors should monitor the outcome of the pending merger and any rate case filings, as these could either close the gap or widen it further.
Operating Margin Volatility Reflects Timing
Operating margin swung from 26.7% in 2025Q1 to 14.5% in 2025Q4, based on financial statements, indicating that cost recovery mechanisms are working but with significant quarterly timing effects.
The high gross margin of 82.31% confirms that fuel and purchased power costs are largely passed through, but the operating margin volatility suggests that O&M expenses and regulatory deferrals are not perfectly matched. The recent EPS miss of $0.50 versus $0.79 consensus, as reported, may reflect such timing issues rather than a fundamental deterioration. However, the trend of declining operating margins from 2025Q1 to 2026Q2 warrants attention, as it could indicate rising O&M costs that are not being recovered promptly.
Leverage Creeps Toward Limits
Debt-to-capital rose from 0.50 in 2024Q1 to 0.55 in 2026Q2, as per balance sheet data, while interest coverage fell to 1.71x, approaching levels that could constrain financial flexibility.
The increasing leverage is consistent with the aggressive CAPEX program, but the declining interest coverage from 3.43x in 2024Q1 to 1.71x in 2026Q2 suggests that earnings are not keeping pace with debt service. FFO-to-debt of 3.25% is well below the 10-12% typically required for a strong credit rating, indicating that the company may face higher borrowing costs or equity issuance to fund its growth. The reported debt/equity of 1.14% in the snapshot appears to be a data anomaly, as the actual ratio is closer to 1.2x based on the D/Cap figures.
Payout Ratio Strained by Earnings Dip
Dividend payout spiked to 164% in 2026Q2, based on reported figures, as earnings fell, indicating that the dividend is not fully covered by net income in weak quarters.
The average payout ratio over the last ten quarters is roughly 90%, which is high for a utility and suggests limited internal retention for the CAPEX program. However, OCF-to-dividend coverage averaged 2.6x, as per cash flow data, indicating that the dividend is well covered by operating cash flow. The recent earnings miss may pressure the payout ratio further, but the company's commitment to the dividend appears intact, given the stable cash flow generation.
Misapplied P/E Ignores Rate Base Growth
Comparing NWE's P/E to industrial companies is misleading, as utilities' earnings are regulated and tied to rate base, not market growth, according to standard utility analysis.
The most commonly misapplied ratio for NWE is the P/E ratio, which is often compared to the broader market or growth companies. For utilities, P/E is anchored to the authorized ROE and interest rates, not growth expectations. NWE's P/E of 23.6x may appear expensive, but it reflects the stability of regulated earnings and the potential for rate base growth. A better metric is the price-to-rate base ratio or the implied ROE relative to the allowed ROE, which would provide a clearer picture of valuation relative to regulatory outcomes.