Northwest Pipe Company (NWPX) AI Stock Analysis

• Market Cap: $420.66M
• Dividend Yield: N/A
• Average Volume (3M): 74.09K
• Price to Earnings (P/E): 12.4
• Beta (1Y): 1.08
• Revenue Growth: 10.81%
• EPS Growth: 63.68%
• Country: US
• Employees: 1,358
• Sector: Industrials
• Sector Strength: 72
• Industry: Manufacturing - Metal Fabrication
• EPS (TTM): 3.40
• Shares Outstanding: 9,935,295
• 10 Day Avg. Volume: 50,782
• 30 Day Avg. Volume: 74,086
• PEG Ratio: 0.20
• Price to Book (P/B): N/A
• Price to Sales (P/S): 0.86
• Price to Cash Flow (P/CF): 2.90
• P/FCF Ratio: 3.20
• Enterprise Value/Market Cap: 1.47
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: 6.49
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: $54.67
• Price Target Upside: 29.12% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 3

Northwest Pipe Company's strong financial performance, marked by steady revenue growth and robust cash flow, is the primary driver of its stock score. While technical analysis indicates a bearish trend, the company's reasonable valuation and positive earnings call sentiment support its attractiveness. Challenges in the non-residential market and steel price volatility are risks, but the company's operational and financial strengths provide a solid foundation for potential growth.

Northwest Pipe Company Business Overview & Revenue Model

Company Description

Northwest Pipe Company (NWPX) is a leading manufacturer of engineered steel pipe systems primarily in the water infrastructure industry. The company serves a broad range of sectors including water transmission, plant piping, tunnels, and river crossings. Its core products include large-diameter, high-pressure steel pipeline systems for drinking water systems, hydroelectric power systems, and other water infrastructure applications.

How the Company Makes Money

Northwest Pipe Company generates revenue primarily through the manufacturing and sale of its engineered steel pipe products. The company's key revenue streams include contracts with municipalities, water agencies, and engineering firms involved in large-scale water infrastructure projects. The company benefits from long-term contracts and significant projects that require specialized, high-quality pipe systems. Additionally, Northwest Pipe Company may engage in strategic partnerships with construction and engineering companies to expand its market reach and secure more projects, contributing to its earnings.

Northwest Pipe Company Financial Statement Overview

Summary

Northwest Pipe Company exhibits robust financial health with steady revenue growth, improved profitability margins, and strong cash flow generation. The company's balance sheet is stable, with a prudent approach to leverage and equity management. While operational efficiency is improving, there is room for enhancement in EBIT margins and return on equity. The financial statements reflect a well-managed company with a solid financial foundation and potential for further growth.

Income Statement

Northwest Pipe Company shows a strong financial performance with a consistent increase in total revenue from $285.9 million in 2020 to $492.5 million in 2024, reflecting a solid revenue growth rate. The gross profit margin has also improved over time, showing efficient cost management. The net profit margin increased from 6.7% in 2020 to 6.9% in 2024, indicating profitability stability. Notably, EBIT and EBITDA margins have grown, underscoring operational efficiency. However, the EBIT margin is comparatively modest, suggesting room for improvement in operational expenses.

Balance Sheet

The balance sheet of Northwest Pipe Company is solid with a debt-to-equity ratio that has improved from 0.16 in 2019 to 0.35 in 2024, indicating manageable leverage. The equity ratio remains healthy at around 63.4% in 2024, showing financial stability and a strong equity base. Return on Equity (ROE) has seen fluctuations, reaching 9.1% in 2024, which is reasonable for the industry, though there is potential for higher returns. The overall trend reflects prudent financial management but suggests a need for enhanced returns on equity.

Cash Flow

The cash flow analysis reveals a remarkable improvement in free cash flow, from negative values in 2021 to positive $34.3 million in 2024, indicating strong cash generation capability. Operating cash flow consistently covers net income, with a robust operating cash flow to net income ratio, highlighting effective cash management. The free cash flow to net income ratio is favorable, suggesting efficient capital expenditure control and strong cash conversion. The consistent positive trend in cash flow metrics indicates financial resilience and effective liquidity management.

Breakdown
Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement		Total Revenue
492.55M	444.36M	457.67M	333.31M	285.91M
	Gross Profit
95.41M	77.64M	85.86M	44.25M	50.52M
	EBIT
48.24M	33.86M	27.82M	2.74M	12.02M
	EBITDA
48.24M	49.94M	62.15M	29.98M	41.56M
	Net Income Common Stockholders
34.21M	21.07M	31.15M	11.52M	19.05M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
5.01M	4.07M	3.68M	3.00M	37.93M
	Total Assets
589.65M	597.88M	601.34M	547.68M	373.01M
	Total Debt
129.88M	162.94M	188.63M	185.19M	43.70M
	Net Debt
124.87M	158.87M	184.94M	182.19M	5.78M
	Total Liabilities
215.65M	257.52M	283.07M	264.30M	103.39M
	Stockholders Equity
374.00M	340.36M	318.27M	283.38M	269.63M
Cash Flow		Free Cash Flow
34.25M	35.16M	-5.62M	-19.07M	41.74M
	Operating Cash Flow
55.05M	53.45M	17.54M	-5.81M	56.09M
	Investing Cash Flow
-20.74M	-20.37M	-23.05M	-100.15M	-61.43M
	Financing Cash Flow
-33.38M	-32.70M	6.19M	71.03M	12.26M

Northwest Pipe Company Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 42.34
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For NWPX, the sentiment is Neutral. The current price of 42.34 is above the 20-day moving average (MA) of 41.27, below the 50-day MA of 43.17, and below the 200-day MA of 45.38, indicating a neutral trend. The MACD of -0.34 indicates Negative momentum. The RSI at 52.11 is Neutral, neither overbought nor oversold. The STOCH value of 69.90 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for NWPX.

Northwest Pipe Company Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
NWPX	75 Outperform	$420.66M	12.44	9.58%	―	10.81%	63.68%
IIIN	72 Outperform	$519.77M	27.20	6.61%	0.36%	-0.33%	-7.06%
GIFI	68 Neutral	$113.99M	7.90	17.13%	―	5.38%	―
Sector *	63 Neutral	$4.27B	11.40	5.38%	214.63%	4.11%	-8.98%
MEC	61 Neutral	$255.45M	10.13	10.78%	―	-1.16%	227.49%
RYI	59 Neutral	$742.44M	37.86	-1.00%	3.22%	-9.98%	-106.51%
AP	55 Neutral	$39.79M	96.12	0.73%	―	-0.96%	―

Northwest Pipe Company Corporate Events

Northwest Pipe Company Approves Executive Incentive Grants

On March 27, 2025, Northwest Pipe Company announced the approval of performance share units (PSUs) and restricted stock units (RSUs) for its Named Executive Officers. These long-term incentive grants are based on a percentage of the executives’ annual base salary, with PSUs vesting in three installments from 2026 to 2028, contingent on the company’s financial performance. The RSUs also vest in three installments, based on continued service. The company’s 2025 Annual Meeting of Shareholders is scheduled for June 12, 2025, with a record date of April 10, 2025.