Northwest Pipe Company (NWPX) AI Stock Analysis

• Market Cap: $390.97M
• Dividend Yield: N/A
• Average Volume (3M): 52.63K
• Price to Earnings (P/E): 12.1
• Beta (1Y): 0.99
• Revenue Growth: 8.06%
• EPS Growth: 38.46%
• Country: US
• Employees: 1,358
• Sector: Industrials
• Sector Strength: 91
• Industry: Manufacturing - Metal Fabrication
• EPS (TTM): 0.39
• Shares Outstanding: 9,878,073
• 10 Day Avg. Volume: 38,265
• 30 Day Avg. Volume: 52,634
• PEG Ratio: -3.17
• Price to Book (P/B): 1.04
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 5.92
• Enterprise Value/Market Cap: 1.32
• Enterprise Value/Revenue: 0.26
• Enterprise Value/Gross Profit: 5.44
• Enterprise Value/Ebitda: 2.15
• 1Y Price Target: $52.50
• Price Target Upside: 32.64% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 2

• Rating: 67 Neutral
• Price Target: ―

Northwest Pipe Company shows strong financial health with solid profit margins and excellent cash flow management. The technical indicators point to a bearish trend, which could pose short-term challenges. The valuation appears reasonable, though the absence of a dividend yield might deter some investors. The latest earnings call reflected both opportunities and challenges, with growth in key segments but also revenue pressure due to external factors. Overall, the stock presents a balanced risk-reward profile.

Northwest Pipe Company Business Overview & Revenue Model

Company Description

Northwest Pipe Company, together with its subsidiaries, manufactures and supplies water related infrastructure products in North America. It operates in two segments, Engineered Steel Pressure Pipe (SPP) and Precast Infrastructure and Engineered Systems (Precast). The SPP segment offers large-diameter, high-pressure steel pipeline systems for use in water infrastructure applications, which are primarily related to drinking water systems. Its products are also used for hydroelectric power systems, wastewater systems, and other applications. In addition, this segment makes products for industrial plant piping systems and certain structural applications. The Precast segment provides precast and reinforced concrete products, including manholes, box culverts, vaults, catch basins, oil water separators, pump lift stations, biofiltration, and other environmental and engineered solutions. The company sells its water infrastructure products primarily to installation contractors. Northwest Pipe Company was incorporated in 1966 and is headquartered in Vancouver, Washington.

How the Company Makes Money

Northwest Pipe Company generates revenue primarily through the manufacturing and sale of engineered steel pipes and related water infrastructure products. Its key revenue streams include contracts with municipalities and water agencies for large-scale water transmission projects, sales to industrial customers requiring specialized piping systems, and partnerships with construction firms involved in water infrastructure development. The company's revenue is influenced by factors such as government spending on infrastructure, regional water management needs, and the overall economic environment impacting construction and infrastructure investment.

Northwest Pipe Company Financial Statement Overview

Summary

Northwest Pipe Company demonstrates strong financial health, with consistent profitability and efficient cash flow management. While revenue growth is modest, the company maintains solid profit margins and a stable balance sheet. Cash flow indicators are particularly strong, showcasing excellent cash conversion and operational efficiency. The balanced debt-to-equity ratio and strong equity base contribute to financial stability, though close monitoring of equity trends is advisable.

Income Statement

The company shows a solid gross profit margin with a TTM figure of 19.1%, indicating efficient production management. The net profit margin is healthy at 6.6% TTM, reflecting profitability. However, revenue growth is modest, with a slight increase of 0.6% from the previous year, suggesting stable but slow growth. EBIT and EBITDA margins are strong at 9.1% and 11.1% TTM, respectively, highlighting good operational efficiency.

Balance Sheet

The debt-to-equity ratio is moderate at 0.34, showing a balanced financial structure. Return on equity is solid at 8.7% TTM, indicating effective utilization of shareholder funds. The equity ratio of 65.0% TTM suggests a strong capital base, reducing financial risk. However, a slight decrease in stockholders' equity compared to total assets may warrant attention.

Cash Flow

Free cash flow shows impressive growth at 92.9% TTM, reflecting strong cash management and operational efficiency. The operating cash flow to net income ratio is robust at 2.61, indicating excellent cash generation relative to accounting income. The free cash flow to net income ratio is also strong at 2.01, reinforcing the company's ability to convert net income into cash.

Breakdown
TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement		Total Revenue
495.44M	492.55M	444.36M	457.67M	333.31M	285.91M
	Gross Profit
94.63M	95.41M	77.64M	85.86M	44.25M	50.52M
	EBIT
45.11M	48.24M	33.86M	27.82M	2.74M	12.02M
	EBITDA
55.01M	67.42M	49.94M	62.15M	29.98M	41.56M
	Net Income Common Stockholders
32.93M	34.21M	21.07M	31.15M	11.52M	19.05M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
3.30M	5.01M	4.07M	3.68M	3.00M	37.93M
	Total Assets
559.52M	589.65M	597.88M	601.34M	547.68M	373.01M
	Total Debt
187.56M	129.88M	162.94M	188.63M	185.19M	43.70M
	Net Debt
184.26M	124.87M	158.87M	184.94M	182.19M	5.78M
	Total Liabilities
272.52M	215.65M	257.52M	283.07M	264.30M	103.39M
	Stockholders Equity
287.00M	374.00M	340.36M	318.27M	283.38M	269.63M
Cash Flow		Free Cash Flow
66.09M	34.25M	35.16M	-5.62M	-19.07M	41.74M
	Operating Cash Flow
85.99M	55.05M	53.45M	17.54M	-5.81M	56.09M
	Investing Cash Flow
-19.88M	-20.74M	-20.37M	-23.05M	-100.15M	-61.43M
	Financing Cash Flow
-65.08M	-33.38M	-32.70M	6.19M	71.03M	12.26M

Northwest Pipe Company Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 39.58
• 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 Negative. The current price of 39.58 is below the 20-day moving average (MA) of 39.83, below the 50-day MA of 40.44, and below the 200-day MA of 45.65, indicating a bearish trend. The MACD of -0.32 indicates Negative momentum. The RSI at 47.46 is Neutral, neither overbought nor oversold. The STOCH value of 58.36 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for NWPX.

Northwest Pipe Company Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
AP	75 Outperform	$74.35M	17.21	7.11%	―	-3.60%	―
IIIN	75 Outperform	$696.88M	31.13	6.61%	0.33%	-0.33%	-7.06%
GIFI	72 Outperform	$108.37M	9.06	13.54%	―	18.83%	―
MEC	70 Outperform	$306.92M	13.89	9.40%	―	-8.42%	164.82%
NWPX	67 Neutral	$390.97M	12.09	9.13%	―	8.06%	38.46%
Sector *	66 Neutral	$4.51B	12.29	5.40%	248.53%	4.14%	-12.41%
RYI	59 Neutral	$704.77M	37.86	-0.78%	3.43%	-9.04%	-108.47%

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.