Last Updated: 16 Sep 2024
Executive Summary
Northwest Pipe Company (NWPX), a leading manufacturer of engineered welded steel pipe systems in North America, has a market capitalization of $418.67 million. The company's strong financial performance, with an EPS of $2.50 and a profit margin of 5.33%, has contributed to its current stock price of $42.69. Despite a lack of dividends, analysts remain bullish on NWPX, with a consensus "Buy" rating.
Company Overview
Headquartered in Vancouver, Washington, Northwest Pipe Company has been in operation for over 100 years. The company serves a diverse range of industries, including water and wastewater, energy, and infrastructure. With a strong focus on innovation and quality, NWPX has established a reputation for providing reliable and efficient pipe systems.
Fundamental Analysis
Revenue: NWPX reported revenue of $471.61 million for the trailing twelve months (TTM), representing an 11.3% growth year-over-year.
Earnings: The company's diluted EPS for the TTM is $2.50, reflecting a quarterly earnings growth of 16.2% YoY.
Profitability: NWPX maintains a healthy profit margin of 5.33% and an operating margin of 10.5%.
Valuation: The stock is currently trading at a P/E ratio of 16.88, below its industry average. The forward P/E ratio of 13.19 indicates potential for future growth.
Technical Analysis
Trend: NWPX has been trending upwards in recent months, with the stock price breaking above its 50-day moving average.
Support and Resistance: The stock faces support at $39.43 (50-day moving average) and resistance at $46.25 (52-week high).
Momentum Indicators: The Relative Strength Index (RSI) is above 50, indicating positive momentum.
Short Term Outlook
In the short term, NWPX is expected to continue its upward trend. The company's strong financial performance and positive technical indicators suggest that the stock could reach its analyst target price of $48.67.
Long Term Outlook
The long-term outlook for NWPX is also positive. The company's focus on innovation, its diverse customer base, and the growing demand for steel pipe systems in various industries are expected to drive future growth.
Analyst Recommendations
Analysts have a consensus "Buy" rating on NWPX, with two analysts recommending a "Buy" and none recommending a "Sell." The average analyst target price is $48.67, representing a potential upside of 14.0% from the current price.
