Northwest Pipe Company manufactures and markets welded steel pipe and tube products primarily in the United States, Canada, and Mexico. It operates in two segments, Water Transmission and Tubular Products. The company was founded in 1966 and is based in Vancouver, Washington.
NWPX Price Forecast Based on DCF Valuation
DCF Fair Value Target:
Below please find a table outlining a discounted cash flow forecast for NWPX, in which we model out valuation assuming a variety of terminal growth rates. To summarize, we found that Northwest Pipe Co ranked in the 66th percentile in terms of potential gain offered. Specifically, our DCF analysis implies the stock is trading below its fair value by an estimated 162%. As for the metrics that stood out in our discounted cash flow analysis of Northwest Pipe Co, consider:
The company's balance sheet shows it gets 86% of its capital from equity, and 14% of its capital from debt. Its equity weight surpasses that of 70.84% of free cash flow generating stocks in the Industrials sector.
NWPX's estimated cost of debt, based largely on its market capitalization and its interest coverage ratio, is 2%; for context, that number is higher than 28.42% of tickers in our DCF set.
Northwest Pipe Co's interest coverage rate -- a measure of gross earnings relative to interest payments -- comes in at 52.4. This coverage rate is greater than that of 93.92% of stocks we're observing for the purpose of forecasting via discounted cash flows.
Terminal Growth Rate in Free Cash Flow
Return Relative to Current Share Price
Want more companies with a valuation profile/forecast similar to that of Northwest Pipe Co? See LII, KFY, NEWA, ULH, and DXPE.
Garney Construction selects Northwest Pipe Company (NWPX) to provide a steel water pipe engineered system for a large regional water supply project.The company will manufacture over 9,285 tons of engineered steel pipe for the new 28-mile raw water pipeline that will move water from the lake intake to a new water treatment...
Northwest Pipe (NWPX) was selected to supply steel water pipe for an infrastructure modernization project for the Central Oregon Irrigation District. The Smith Rock-King Way Infrastructure Modernization project will convert 7.9 miles of open-ditch irrigation canals into an underground, closed-piped system. The pressurized system will reduce water loss from seepage.Water...
Northwest Pipe Company (NASDAQ: NWPX), an industry leader of engineered pipeline systems for water infrastructure, announced today that Scott Montross, President and Chief Executive Officer, and Aaron Wilkins, Chief Financial Officer, will participate in the Jefferies Virtual Industrials Conference on Thursday, August 6, 2020. Northwest Pipe is scheduled to present virtually at 3:00 p.m. ET and will participate in virtual meetings with investors throughout the day.
Northwest Pipe Company (NASDAQ: NWPX), an industry leader of engineered pipeline systems for water infrastructure, announced today it intends to release its financial results for the second quarter ended June 30, 2020 on Tuesday, August 4, 2020.