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Northwestern Energy Group Inc (NWE)

Company Dividend Discount ModelIndustry: Diversified UtilitiesSector: Utilities

Valuation Snapshot

Stable Growth$51.23 - $92.96$68.60
Multi-Stage$54.91 - $59.91$57.37
Blended Fair Value$62.98
Current Price$58.61
Upside7.46%
DecisionDon't Buy

Dividend History & Growth Metrics (10Y)

Metric5Y CAGR10Y CAGR2024202320222021202020192018201720162015
DPS6.62%9.33%2.582.512.282.091.961.881.781.651.561.47
YoY Growth--2.95%9.99%9.01%6.76%4.54%5.43%7.83%5.75%6.34%38.51%
Dividend Yield--4.47%4.96%3.95%3.46%3.01%3.14%2.53%3.07%2.66%2.38%

Stable Growth Model (Adjusted)

(USD in Millions except Per Share Data)
Net Income To Common (M)216.93
(-) Cash Dividends Paid (M)160.68
(=) Cash Retained (M)56.25
MetricLOWBASEHIGH
Required Retention Ratio20.0%12.5%7.5%
(=) Cash Required (M)43.3927.1216.27
Cash Retained (M)56.2556.2556.25
(-) Cash Required (M)-43.39-27.12-16.27
(=) Excess Retained (M)12.8629.1339.98
(/) Shares Outstanding (M)61.3661.3661.36
(=) Excess Retained per Share0.210.470.65
LTM Dividend per Share2.622.622.62
(+) Excess Retained per Share0.210.470.65
(=) Adjusted Dividend2.833.093.27
WACC / Discount Rate9.08%9.08%9.08%
Growth Rate3.37%4.37%5.37%
Fair Value$51.23$68.60$92.96
Upside / Downside-12.59%17.04%58.61%

Multi-Stage Model: Projections

(USD in Millions)
MetricTTMDec-27Dec-28Dec-29Dec-30Dec-31Terminal
Net Income (M)216.93226.41236.31246.65257.43268.69276.75
Payout Ratio74.07%77.26%80.44%83.63%86.81%90.00%92.50%
Projected Dividends (M)160.68174.92190.10206.27223.49241.82255.99

Multi-Stage Valuation

MetricLOWBASEHIGH
WACC / Discount Rate9.08%9.08%9.08%
Growth Rate3.37%4.37%5.37%
Year 1 PV (M)158.82160.36161.89
Year 2 PV (M)156.72159.77162.84
Year 3 PV (M)154.40158.93163.54
Year 4 PV (M)151.90157.86164.00
Year 5 PV (M)149.23156.59164.24
PV of Terminal Value (M)2,598.332,726.462,859.60
Equity Value (M)3,369.403,519.963,676.11
Shares Outstanding (M)61.3661.3661.36
Fair Value$54.91$57.37$59.91
Upside / Downside-6.30%-2.12%2.22%

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