Northwest Natural Holding Co (Northwest Natural Holding Co) Gross Margin %

: 35.06% (As of Dec. 2023)

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Gross Margin % is calculated as gross profit divided by its revenue. Northwest Natural Holding Co's Gross Profit for the three months ended in Dec. 2023 was $125 Mil. Northwest Natural Holding Co's Revenue for the three months ended in Dec. 2023 was $356 Mil. Therefore, Northwest Natural Holding Co's Gross Margin % for the quarter that ended in Dec. 2023 was 35.06%.

Warning Sign:

Northwest Natural Holding Co gross margin has been in long-term decline. The average rate of decline per year is -3.7%.

The historical rank and industry rank for Northwest Natural Holding Co's Gross Margin % or its related term are showing as below:

NWN' s Gross Margin % Range Over the Past 10 Years
Min: 31.33 Med: 37.08 Max: 40.54
Current: 31.33

During the past 13 years, the highest Gross Margin % of Northwest Natural Holding Co was 40.54%. The lowest was 31.33%. And the median was 37.08%.

NWN's Gross Margin % is ranked better than
54.47% of 503 companies
in the Utilities - Regulated industry
Industry Median: 28.51 vs NWN: 31.33

Northwest Natural Holding Co had a gross margin of 35.06% for the quarter that ended in Dec. 2023 => Competition eroding margins

The 5-Year average Growth Rate of Gross Margin for Northwest Natural Holding Co was -3.70% per year.

Northwest Natural Holding Co Gross Margin % Historical Data

The historical data trend for Northwest Natural Holding Co's Gross Margin % can be seen below:

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

* Premium members only.

Northwest Natural Holding Co Annual Data

Trend

Dec14

Dec15

Dec16

Dec17

Dec18

Dec19

Dec20

Dec21

Dec22

Dec23

Gross Margin %

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37.91

38.84

38.25

32.89

31.33

Northwest Natural Holding Co Quarterly Data
	Mar19	Jun19	Sep19	Dec19	Mar20	Jun20	Sep20	Dec20	Mar21	Jun21	Sep21	Dec21	Mar22	Jun22	Sep22	Dec22	Mar23	Jun23	Sep23	Dec23
Gross Margin %	Get a 7-Day Free Trial															34.10	35.86	24.98	17.85	35.06

Competitive Comparison

For the Utilities - Regulated Gas subindustry, Northwest Natural Holding Co's Gross Margin %, along with its competitors' market caps and Gross Margin % data, can be viewed below:

* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.

Northwest Natural Holding Co Gross Margin % Distribution

For the Utilities - Regulated industry and Utilities sector, Northwest Natural Holding Co's Gross Margin % distribution charts can be found below:

* The bar in red indicates where Northwest Natural Holding Co's Gross Margin % falls into.

Northwest Natural Holding Co Gross Margin % Calculation

Gross Margin is the percentage of Gross Profit out of sales or Revenue.

Northwest Natural Holding Co's Gross Margin for the fiscal year that ended in Dec. 2023 is calculated as

Gross Margin % (A: Dec. 2023 )	=	Gross Profit (A: Dec. 2023 )	/	Revenue (A: Dec. 2023 )
	=	375.2	/	1197.475
	=	(Revenue - Cost of Goods Sold)	/	Revenue
	=	(1197.475 - 822.274)	/	1197.475
	=	31.33 %

Northwest Natural Holding Co's Gross Margin for the quarter that ended in Dec. 2023 is calculated as

Gross Margin % (Q: Dec. 2023 )	=	Gross Profit (Q: Dec. 2023 )	/	Revenue (Q: Dec. 2023 )
	=	124.7	/	355.714
	=	(Revenue - Cost of Goods Sold)	/	Revenue
	=	(355.714 - 231.002)	/	355.714
	=	35.06 %

A positive Gross Profit is only the first step for a company to make a net profit. The gross profit needs to be big enough to also cover related labor, equipment, rental, marketing/advertising, research and development and a lot of other costs in selling the products.

Northwest Natural Holding Co (NYSE:NWN) Gross Margin % Explanation

Warren Buffett believes that firms with excellent long term economics tend to have consistently higher margins.

Durable competitive advantage creates a high Gross Margin % because of the freedom to price in excess of cost. Companies can be categorized by their Gross Margin %

1. Greater than 40% = Durable competitive advantage
2. Less than 40% = Competition eroding margins
3. Less than 20% = no sustainable competitive advantage
Consistency of Gross Margin is key

Northwest Natural Holding Co had a gross margin of 35.06% for the quarter that ended in Dec. 2023 => Competition eroding margins

Be Aware

If a company loses its competitive advantages, usually its gross margin declines well before its sales declines. Watching Gross Margin % and Operating Margin % closely helps avoid value trap situations.

Northwest Natural Holding Co Gross Margin % Related Terms

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Northwest Natural Holding Co (Northwest Natural Holding Co) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Utilities » Utilities - Regulated » Northwest Natural Holding Co (NYSE:NWN) » Definitions » Gross Margin %

Comparable Companies

Traded in Other Exchanges

NN3:Germany

Address

250 S.W. Taylor Street, Portland, OR, USA, 97204

Website

https://www.nwnaturalholdings.com

Northwest Natural Holding Co is a public natural gas service supplier operating in the U.S. Pacific Northwest. Its subsidiary, NW Natural, operates through the natural gas distribution segment, which purchases and distributes natural gas through approximately 7,95,000 meters in Oregon and southwest Washington. The company generates its revenue from residential, commercial, and industrial customers, the majority of which are in Oregon. Residential and commercial customers account for the vast majority of profitability.

Executives

Jane L Peverett	director	1489 MARINE DRIVE, SUITE 802, WEST VANCOUVER A1 V7T 1B8
David A. Weber	officer: Pres. & CEO of Issuer's Sub.	250 SW TAYLOR ST, PORTLAND OR 97204
Joseph S Karney	officer: VP, Eng & Utility Operations, other: NW Natural	250 SW TAYLOR ST, PORTLAND OR 97204
David Hugo Anderson	director, officer: President & CEO
Jon G Huddleston	officer: VP, Eng. & Utility Operations	250 SW TAYLOR ST, PORTLAND OR 97204
Zachary D Kravitz	officer: VP, Rates & Regulatory, other: NW Natural	250 SW TAYLOR ST, PORTLAND OR 97204
Sandra Mcdonough	director	250 SW TAYLOR ST, PORTLAND OR 97204
James R Downing	officer: VP and CIO	250 SW TAYLOR ST, PORTLAND OR 97204
Malia H Wasson	director	220 NW SECOND AVE, PORTLAND OR 97209
Kimberly A. Heiting	officer: SVP Comm. & Chf. Mktg. Officer	250 SW TAYLOR ST, PORTLAND OR 97204
Shawn M Filippi	officer: VP, CCO & Corp. Secretary	250 SW TAYLOR ST, PORTLAND OR 97204
C Scott Gibson	director	PMB 316, PO BOX 30,000, JACKSON WY 83002
Karen Lee	director	250 SW TAYLOR ST, PORTLAND OR 97204
Nathan I Partain	director	DNP SELECT INCOME FUND INC, 55 E. MONROE, STE. 3600, CHICAGO IL 60603
Justin Palfreyman	officer: VP Strategy & Bus Dev	250 SW TAYLOR ST, PORTLAND OR 97204