ROC % measures how well a company generates cash flow relative to the capital it has invested in its business. It is also called ROIC %. Northwest Natural Holding Co's annualized return on capital (ROC %) for the quarter that ended in Mar. 2026 was 7.81%.
As of today (2026-06-24), Northwest Natural Holding Co's WACC % is 4.21%. Northwest Natural Holding Co's ROC % is 3.66% (calculated using TTM income statement data).
Northwest Natural Holding Co earns returns that do not match up to its cost of capital. It will destroy value as it grows.
Northwest Natural Holding Co (STU:NN3) ROC % Explanation
ROC % measures how well a company generates cash flow relative to the capital it has invested in its business. It is also called ROIC %. The reason book values of debt and equity are used is because the book values are the capital the company received when issuing the debt or receiving the equity investments.
There are four key components to this definition. The first is the use of operating income or EBIT rather than net income in the numerator. The second is the tax adjustment to this operating income or EBIT, computed as a hypothetical tax based on an effective or marginal tax rate. The third is the use of book values for invested capital, rather than market values. The final is the timing difference; the capital invested is from the end of the prior year whereas the operating income or EBIT is the current year's number.
Why is ROC % important?
Because it costs money to raise capital. A firm that generates higher returns on investment than it costs the company to raise the capital needed for that investment is earning excess returns. A firm that expects to continue generating positive excess returns on new investments in the future will see its value increase as growth increases, whereas a firm that earns returns that do not match up to its cost of capital will destroy value as it grows.
As of today, Northwest Natural Holding Co's WACC % is 4.21%. Northwest Natural Holding Co's ROC % is 3.66% (calculated using TTM income statement data).
Northwest Natural Holding Co earns returns that do not match up to its cost of capital. It will destroy value as it grows.
Be Aware
Like ROE % and ROA %, ROC % is calculated with only 12 months of data. Fluctuations in the company's earnings or business cycles can affect the ratio drastically. It is important to look at the ratio from a long term perspective.
Northwest Natural Holding Co ROC % Related Terms
Northwest Natural Holding Co ROC % Historical Data
* 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.
Note:
The Operating Income data used here is four times the quarterly (Mar. 2026) data.
The tax rate is limited to between 0% and 100%.
* 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.
Northwest Natural Holding Co (STU:NN3) has a ROC % of 7.81% as of Mar. 2026. Return on capital is the ratio of current-period net income to average two-period capital. View historical data on Northwest Natural Holding Co and its competitors.
Is Northwest Natural Holding Co's ROC % too high?
Northwest Natural Holding Co's current ROC % is 7.81%. The Utilities - Regulated industry median ROC % is 4.18. Northwest Natural Holding Co's value of 7.81% is 86.8% above this industry median. Overall, Northwest Natural Holding Co has a GF Score™ of 70/100 and is considered Modestly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Northwest Natural Holding Co's ROC % compare to SPH and CPK?
Northwest Natural Holding Co's ROC % of 7.81% can be compared against companies in the Utilities - Regulated industry. The industry median ROC % is 4.18. Northwest Natural Holding Co's value of 7.81% is 86.8% above this benchmark. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good ROC % for an Utilities - Regulated company?
The median ROC % among Utilities - Regulated companies is 4.18, based on 501 companies in the industry. Companies in the top quartile (top 25%) have a ROC % significantly above this median, while those in the bottom quartile fall well below. However, ROC % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Northwest Natural Holding Co's current ROC % of 7.81% is 86.8% above the industry median. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high ROC % mean?
A high ROC % can signal that a stock is expensive relative to its fundamentals. Return on capital is the ratio of current-period net income to average two-period capital. View historical data on Northwest Natural Holding Co and its competitors. For the Utilities - Regulated industry, the median ROC % is 4.18 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Northwest Natural Holding Co's current ROC % is 7.81%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Northwest Natural Holding Co stock overvalued right now?
Based on GuruFocus' analysis, Northwest Natural Holding Co (STU:NN3) is currently considered Modestly Overvalued. The stock's GF Value™ is €37.03, compared to a current price of €43.68 — trading 18% above its estimated fair value. The current ROC % is 7.81% and 86.8% above the Utilities - Regulated industry median of 4.18. Northwest Natural Holding Co's overall GF Score™ is 70/100 with 8 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is ROC % calculated?
ROC % is calculated from a company's financial statements. For Northwest Natural Holding Co (STU:NN3), the current ROC % is 7.81% as of Mar. 2026. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.
Is Northwest Natural Holding Co (STU:NN3) Overvalued in 2026?
Based on GuruFocus' analysis, Northwest Natural Holding Co stock appears to be overvalued.
The current stock price of €43.68 is trading 18% above its estimated GF Value™ of €37.03.
GuruFocus considers Northwest Natural Holding Co to be Modestly Overvalued.
Key valuation signals for STU:NN3:
ROC %: 7.81%
GF Value™: €37.03 vs. price of €43.68 (18% above fair value)
Industry Position: 86.8% above the Utilities - Regulated median
No single metric tells the full story. See the STU:NN3 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
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 which operates in Oregon and southwest Washington. The company operates in three reportable business segments, which are NWN Gas Utility, SiEnergy, and NWN Water. The company generates maximum revenue from NWN Gas Utility segment. It also generates 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.
70GF Score
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