Northwest Natural Holding Co

Stable regulated gas utility with average returns whose headline distress metrics are capital-intensity artifacts.

Strengths

• Regulated franchise with 21.8% operating margin and 43.7% net income growth (63rd pct)
• Revenue growth 11.8% and ROIC ~5.9% (57th pct) consistent with rate-base growth

Risks

• Sub-par ROE 7.7% (50th pct) and ROA 1.8% (33rd pct) — returns are unremarkable
• High leverage (D/E 1.54, 86th pct), negative FCF (-$198M) and thin cash from heavy capex

Notable findings

• Cash burnNegative free cash flow (-197.8M)
• Weak liquidityCurrent ratio 0.72 (<1)