NORTHLAND POWER INC (NPI.CA) Stock Fundamental Analysis
TSX:NPI - Toronto Stock Exchange - CA6665111002 - Common Stock - Currency: CAD
Taking everything into account, NPI scores 5 out of 10 in our fundamental rating. NPI was compared to 36 industry peers in the Independent Power and Renewable Electricity Producers industry. NPI has a medium profitability rating, but doesn't score so well on its financial health evaluation. NPI has a correct valuation and a medium growth rate.
1. Profitability
1.1 Basic Checks
In the past year NPI was profitable.
NPI had a positive operating cash flow in the past year.
Of the past 5 years NPI 4 years were profitable.
NPI had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
NPI's Return On Assets of 1.82% is fine compared to the rest of the industry. NPI outperforms 72.22% of its industry peers.
NPI has a Return On Equity of 5.89%. This is in the better half of the industry: NPI outperforms 75.00% of its industry peers.
NPI has a Return On Invested Capital of 3.83%. This is in the better half of the industry: NPI outperforms 75.00% of its industry peers.
NPI had an Average Return On Invested Capital over the past 3 years of 4.68%. This is in line with the industry average of 4.97%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 1.82% | ||
| ROE | 5.89% | ||
| ROIC | 3.83% |
ROA(3y)2.12%
ROA(5y)2.16%
ROE(3y)6.87%
ROE(5y)9.86%
ROIC(3y)4.68%
ROIC(5y)4.77%
1.3 Margins
Looking at the Profit Margin, with a value of 11.46%, NPI is in the better half of the industry, outperforming 77.78% of the companies in the same industry.
In the last couple of years the Profit Margin of NPI has declined.
NPI's Operating Margin of 32.20% is fine compared to the rest of the industry. NPI outperforms 75.00% of its industry peers.
In the last couple of years the Operating Margin of NPI has declined.
Looking at the Gross Margin, with a value of 96.36%, NPI belongs to the top of the industry, outperforming 94.44% of the companies in the same industry.
In the last couple of years the Gross Margin of NPI has remained more or less at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 32.2% | ||
| PM (TTM) | 11.46% | ||
| GM | 96.36% |
OM growth 3Y-0.41%
OM growth 5Y-4.87%
PM growth 3Y9.7%
PM growth 5Y-9.55%
GM growth 3Y0.7%
GM growth 5Y-0.28%
2. Health
2.1 Basic Checks
The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so NPI is destroying value.
NPI has more shares outstanding than it did 1 year ago.
Compared to 5 years ago, NPI has more shares outstanding
NPI has about the same debt/assets ratio as last year.
2.2 Solvency
Based on the Altman-Z score of 0.56, we must say that NPI is in the distress zone and has some risk of bankruptcy.
NPI's Altman-Z score of 0.56 is fine compared to the rest of the industry. NPI outperforms 75.00% of its industry peers.
The Debt to FCF ratio of NPI is 9.17, which is on the high side as it means it would take NPI, 9.17 years of fcf income to pay off all of its debts.
NPI has a better Debt to FCF ratio (9.17) than 86.11% of its industry peers.
A Debt/Equity ratio of 1.41 is on the high side and indicates that NPI has dependencies on debt financing.
With a decent Debt to Equity ratio value of 1.41, NPI is doing good in the industry, outperforming 72.22% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.41 | ||
| Debt/FCF | 9.17 | ||
| Altman-Z | 0.56 |
ROIC/WACC0.74
WACC5.17%
2.3 Liquidity
A Current Ratio of 0.95 indicates that NPI may have some problems paying its short term obligations.
The Current ratio of NPI (0.95) is better than 66.67% of its industry peers.
NPI has a Quick Ratio of 0.95. This is a bad value and indicates that NPI is not financially healthy enough and could expect problems in meeting its short term obligations.
NPI's Quick ratio of 0.95 is fine compared to the rest of the industry. NPI outperforms 69.44% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.95 | ||
| Quick Ratio | 0.95 |
3. Growth
3.1 Past
NPI shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 243.48%, which is quite impressive.
Measured over the past years, NPI shows a decrease in Earnings Per Share. The EPS has been decreasing by -7.41% on average per year.
NPI shows a decrease in Revenue. In the last year, the revenue decreased by -5.22%.
NPI shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 7.27% yearly.
EPS 1Y (TTM)243.48%
EPS 3Y25.16%
EPS 5Y-7.41%
EPS Q2Q%-13.79%
Revenue 1Y (TTM)-5.22%
Revenue growth 3Y4.03%
Revenue growth 5Y7.27%
Sales Q2Q%-14.1%
3.2 Future
NPI is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 18.63% yearly.
Based on estimates for the next years, NPI will show a small growth in Revenue. The Revenue will grow by 3.60% on average per year.
EPS Next Y-6.91%
EPS Next 2Y10.64%
EPS Next 3Y1.16%
EPS Next 5Y18.63%
Revenue Next Year0%
Revenue Next 2Y6.12%
Revenue Next 3Y3.86%
Revenue Next 5Y3.6%
3.3 Evolution
When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.
4. Valuation
4.1 Price/Earnings Ratio
NPI is valuated rather expensively with a Price/Earnings ratio of 22.66.
Based on the Price/Earnings ratio, NPI is valued a bit cheaper than 72.22% of the companies in the same industry.
The average S&P500 Price/Earnings ratio is at 27.45. NPI is around the same levels.
NPI is valuated correctly with a Price/Forward Earnings ratio of 12.30.
Compared to the rest of the industry, the Price/Forward Earnings ratio of NPI indicates a rather cheap valuation: NPI is cheaper than 80.56% of the companies listed in the same industry.
When comparing the Price/Forward Earnings ratio of NPI to the average of the S&P500 Index (21.90), we can say NPI is valued slightly cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 22.66 | ||
| Fwd PE | 12.3 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of NPI indicates a somewhat cheap valuation: NPI is cheaper than 77.78% of the companies listed in the same industry.
Based on the Price/Free Cash Flow ratio, NPI is valued cheaply inside the industry as 88.89% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 7.39 | ||
| EV/EBITDA | 8.8 |
4.3 Compensation for Growth
NPI has a very decent profitability rating, which may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y10.64%
EPS Next 3Y1.16%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 5.53%, NPI is a good candidate for dividend investing.
Compared to an average industry Dividend Yield of 5.33, NPI pays a bit more dividend than its industry peers.
NPI's Dividend Yield is rather good when compared to the S&P500 average which is at 2.42.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 5.53% |
5.2 History
The dividend of NPI decreases each year by -8.73%.
NPI has been paying a dividend for at least 10 years, so it has a reliable track record.
NPI has not decreased its dividend for at least 10 years, so it has a reliable track record of non decreasing dividend.
Dividend Growth(5Y)-8.73%
Div Incr Years0
Div Non Decr Years17
5.3 Sustainability
NPI pays out 80.16% of its income as dividend. This is not a sustainable payout ratio.
DP80.16%
EPS Next 2Y10.64%
EPS Next 3Y1.16%
TSX:NPI (7/3/2025, 7:00:00 PM)
22.43
+0.49 (+2.23%)
Chartmill FA Rating
GICS SectorUtilities
GICS IndustryGroupUtilities
GICS IndustryIndependent Power and Renewable Electricity Producers
Earnings (Last)
Earnings (Next)
Inst Owners45.17%
Inst Owner ChangeN/A
Ins Owners0.1%
Ins Owner ChangeN/A
Market Cap5.87B
Analysts78.82
Price Target27.97 (24.7%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 5.53% |
Yearly Dividend0.8
Dividend Growth(5Y)-8.73%
DP80.16%
Div Incr Years0
Div Non Decr Years17
Ex-Date
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)-14.54%
Min EPS beat(2)-43.23%
Max EPS beat(2)14.15%
EPS beat(4)2
Avg EPS beat(4)-29.6%
Min EPS beat(4)-555.97%
Max EPS beat(4)466.62%
EPS beat(8)3
Avg EPS beat(8)-77.39%
EPS beat(12)6
Avg EPS beat(12)27.13%
EPS beat(16)8
Avg EPS beat(16)9.42%
Revenue beat(2)0
Avg Revenue beat(2)-1.98%
Min Revenue beat(2)-3.22%
Max Revenue beat(2)-0.75%
Revenue beat(4)1
Avg Revenue beat(4)-0.83%
Min Revenue beat(4)-3.22%
Max Revenue beat(4)0.9%
Revenue beat(8)5
Avg Revenue beat(8)1.28%
Revenue beat(12)8
Avg Revenue beat(12)4.92%
Revenue beat(16)10
Avg Revenue beat(16)4.81%
PT rev (1m)-1.66%
PT rev (3m)-2.19%
EPS NQ rev (1m)0%
EPS NQ rev (3m)0%
EPS NY rev (1m)0%
EPS NY rev (3m)-5.12%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)8.02%
Revenue NY rev (1m)0%
Revenue NY rev (3m)0%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 22.66 | ||
| Fwd PE | 12.3 | ||
| P/S | 2.62 | ||
| P/FCF | 7.39 | ||
| P/OCF | 5.07 | ||
| P/B | 1.34 | ||
| P/tB | 1.77 | ||
| EV/EBITDA | 8.8 |
EPS(TTM)0.99
EY4.41%
EPS(NY)1.82
Fwd EY8.13%
FCF(TTM)3.04
FCFY13.53%
OCF(TTM)4.43
OCFY19.73%
SpS8.58
BVpS16.7
TBVpS12.69
PEG (NY)N/A
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 1.82% | ||
| ROE | 5.89% | ||
| ROCE | 5.81% | ||
| ROIC | 3.83% | ||
| ROICexc | 4.1% | ||
| ROICexgc | 4.51% | ||
| OM | 32.2% | ||
| PM (TTM) | 11.46% | ||
| GM | 96.36% | ||
| FCFM | 35.4% |
ROA(3y)2.12%
ROA(5y)2.16%
ROE(3y)6.87%
ROE(5y)9.86%
ROIC(3y)4.68%
ROIC(5y)4.77%
ROICexc(3y)5.08%
ROICexc(5y)5.11%
ROICexgc(3y)5.64%
ROICexgc(5y)5.73%
ROCE(3y)7.11%
ROCE(5y)7.24%
ROICexcg growth 3Y-0.15%
ROICexcg growth 5Y-3.44%
ROICexc growth 3Y0.94%
ROICexc growth 5Y-3.53%
OM growth 3Y-0.41%
OM growth 5Y-4.87%
PM growth 3Y9.7%
PM growth 5Y-9.55%
GM growth 3Y0.7%
GM growth 5Y-0.28%
F-Score6
Asset Turnover0.16
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.41 | ||
| Debt/FCF | 9.17 | ||
| Debt/EBITDA | 4.4 | ||
| Cap/Depr | 53.69% | ||
| Cap/Sales | 16.22% | ||
| Interest Coverage | 2.16 | ||
| Cash Conversion | 82.71% | ||
| Profit Quality | 308.85% | ||
| Current Ratio | 0.95 | ||
| Quick Ratio | 0.95 | ||
| Altman-Z | 0.56 |
F-Score6
WACC5.17%
ROIC/WACC0.74
Cap/Depr(3y)75.8%
Cap/Depr(5y)68.16%
Cap/Sales(3y)21.02%
Cap/Sales(5y)19.3%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)243.48%
EPS 3Y25.16%
EPS 5Y-7.41%
EPS Q2Q%-13.79%
EPS Next Y-6.91%
EPS Next 2Y10.64%
EPS Next 3Y1.16%
EPS Next 5Y18.63%
Revenue 1Y (TTM)-5.22%
Revenue growth 3Y4.03%
Revenue growth 5Y7.27%
Sales Q2Q%-14.1%
Revenue Next Year0%
Revenue Next 2Y6.12%
Revenue Next 3Y3.86%
Revenue Next 5Y3.6%
EBIT growth 1Y-14.88%
EBIT growth 3Y3.6%
EBIT growth 5Y2.05%
EBIT Next Year58.3%
EBIT Next 3Y26.93%
EBIT Next 5Y17.09%
FCF growth 1Y-36.87%
FCF growth 3Y-25.21%
FCF growth 5Y0.79%
OCF growth 1Y-32.75%
OCF growth 3Y-13.85%
OCF growth 5Y-3.42%