NorthWestern Corporation
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NorthWestern Corporation Financial Snapshot
Operating Performance
Fast Facts
3010 W. 69th Street, Sioux Falls, The company reported revenue of US$1,110.72
Headquarters Address
57108,Other million during the fiscal year 2010 (2010). The
company's revenue declined at a compounded rate of
Telephone + 1 605 9782900
-0.49% during 2006–2010, with an annual decline of -
2.73% over 2009. In 2010, the company recorded an
Fax N/A operating margin of 14.64%, as against 13.48% in
2009.
Website www.northwesternenergy.com
Ticker Symbol, Stock Exchange NWE, New York Stock Exchange Revenue and Margins
Number of Employees 1,363
Fiscal Year End December
Revenue (in US$ million) 1,110.72
SWOT Analysis
Strengths Weaknesses
Return on Equity
Large customer base Declining Market Share in Sector
The company recorded a return on equity (ROE) of
Robust electric and natural gas 9.43% for 2010, as compared to its peers, MDU
Decreased revenues Resources Group, Inc. (Ticker: MDU), American
network
Electric Power Company, Inc. (Ticker: AEP) and Duke
Strong bottom-line performance Growing indebtedness Energy Corporation (Ticker: DUK), which recorded
ROEs of 8.94%, 8.87% and 5.86% respectively. The
company reported a net profit margin of 14.64% in
Vertically integrated structure Lawsuits
2010.
Limited Investor Confidence
Return on Equity
Limited Liquidity Position
Opportunities Threats
Agreement with Compass Wind, LLC Growing environmental concerns
Expanding natural gas reserves Volatility in price level
Weather conditions and seasonality of
Rising demand for electricity
business
Liquidity Position
The company reported a current ratio of 1.00 in 2010,
as compared to its peers, MDU Resources Group,
Inc., American Electric Power Company, Inc. and
Duke Energy Corporation, which recorded current
ratios of 1.52, 0.77 and 1.60 respectively. As of
December 2010, the company recorded cash and
short-term investments of worth US$6.23 million,
against US$7.85 million current debt. The company
reported a debt to equity ratio of 1.35 in 2010 as
compared to its peers, MDU Resources Group, Inc.,
American Electric Power Company, Inc. and Duke
Energy Corporation, which recorded debt to equity
ratios of 0.57, 1.33 and 0.82 respectively.
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NorthWestern Corporation - SWOT Profile Page 1
NorthWestern Corporation
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TABLE OF CONTENTS
1 Business Analysis ................................................................................................................................... 5
1.1 Company Overview ................................................................................................................................................5
1.2 Business Description ..............................................................................................................................................5
1.3 Major Products and Services .................................................................................................................................6
2 Analysis of Key Performance Indicators ............................................................................................... 7
2.1 Five Year Snapshot: Overview of Financial and Operational Performance Indicators ..........................................7
2.2 Key Financial Performance Indicators .................................................................................................................10
2.2.1 Revenue and Operating Profit .........................................................................................................................10
2.2.2 Asset, Liabilities and Capex .............................................................................................................................11
2.2.3 Net Debt vs. Gearing Ratio ..............................................................................................................................12
2.2.4 Solvency ..........................................................................................................................................................13
2.2.5 Valuation ..........................................................................................................................................................14
2.3 Competitive Benchmarking ..................................................................................................................................15
2.3.1 Market Capitalization .......................................................................................................................................15
2.3.2 Efficiency ..........................................................................................................................................................16
2.3.3 Capital Expenditure ..........................................................................................................................................17
2.3.4 Valuation ..........................................................................................................................................................18
2.3.5 Turnover – Inventory and Asset .......................................................................................................................19
2.3.6 Liquidity ............................................................................................................................................................20
3 Recent Developments ........................................................................................................................... 21
4 SWOT Analysis ...................................................................................................................................... 23