NORTHLAND POWER INC (NPI.CA) Stock Fundamental Analysis
TSX:NPI - Toronto Stock Exchange - CA6665111002 - Common Stock - Currency: CAD
We assign a fundamental rating of 5 out of 10 to NPI. NPI was compared to 39 industry peers in the Independent Power and Renewable Electricity Producers industry. While NPI is still in line with the averages on profitability rating, there are concerns on its financial health. NPI has a decent growth rate and is not valued too expensively. NPI also has an excellent dividend rating.
1. Profitability
1.1 Basic Checks
NPI had positive earnings in the past year.
In the past year NPI had a positive cash flow from operations.
NPI had positive earnings in 4 of the past 5 years.
Each year in the past 5 years NPI had a positive operating cash flow.
1.2 Ratios
NPI has a Return On Assets of 1.82%. This is in the better half of the industry: NPI outperforms 79.49% of its industry peers.
Looking at the Return On Equity, with a value of 5.89%, NPI belongs to the top of the industry, outperforming 82.05% of the companies in the same industry.
With a decent Return On Invested Capital value of 3.83%, NPI is doing good in the industry, outperforming 79.49% of the companies in the same industry.
Measured over the past 3 years, the Average Return On Invested Capital for NPI is in line with the industry average of 3.83%.
| 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
The Profit Margin of NPI (11.46%) is better than 82.05% of its industry peers.
NPI's Profit Margin has declined in the last couple of years.
NPI's Operating Margin of 32.20% is fine compared to the rest of the industry. NPI outperforms 79.49% of its industry peers.
In the last couple of years the Operating Margin of NPI has declined.
With an excellent Gross Margin value of 96.36%, NPI belongs to the best of the industry, outperforming 94.87% 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
With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), NPI is destroying value.
The number of shares outstanding for NPI has been increased compared to 1 year ago.
The number of shares outstanding for NPI has been increased compared to 5 years ago.
NPI has about the same debt/assets ratio as last year.
2.2 Solvency
NPI has an Altman-Z score of 0.53. This is a bad value and indicates that NPI is not financially healthy and even has some risk of bankruptcy.
With a decent Altman-Z score value of 0.53, NPI is doing good in the industry, outperforming 74.36% of the companies in the same industry.
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.
The Debt to FCF ratio of NPI (9.17) is better than 92.31% 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.
NPI has a better Debt to Equity ratio (1.41) than 76.92% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.41 | ||
| Debt/FCF | 9.17 | ||
| Altman-Z | 0.53 |
ROIC/WACC0.76
WACC5.05%
2.3 Liquidity
A Current Ratio of 0.95 indicates that NPI may have some problems paying its short term obligations.
NPI's Current ratio of 0.95 is fine compared to the rest of the industry. NPI outperforms 69.23% 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 has a better Quick ratio (0.95) than 71.79% 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.
NPI shows a decrease in Earnings Per Share. Measured over the last years, the EPS has been decreasing by -7.41% yearly.
The Revenue has decreased by -5.22% in the past year.
Measured over the past years, NPI shows a small growth in Revenue. The Revenue has been growing by 7.27% on average per year.
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 18.02% yearly.
NPI is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 3.41% yearly.
EPS Next Y-6.91%
EPS Next 2Y10.64%
EPS Next 3Y1.16%
EPS Next 5Y18.02%
Revenue Next Year0%
Revenue Next 2Y6.12%
Revenue Next 3Y3.86%
Revenue Next 5Y3.41%
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.
The Revenue growth rate is decreasing: in the next years the growth will be less than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
A Price/Earnings ratio of 20.74 indicates a rather expensive valuation of NPI.
Based on the Price/Earnings ratio, NPI is valued a bit cheaper than the industry average as 79.49% of the companies are valued more expensively.
The average S&P500 Price/Earnings ratio is at 26.17. NPI is valued slightly cheaper when compared to this.
NPI is valuated reasonably with a Price/Forward Earnings ratio of 11.26.
Based on the Price/Forward Earnings ratio, NPI is valued cheaply inside the industry as 82.05% of the companies are valued more expensively.
NPI's Price/Forward Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 22.10.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 20.74 | ||
| Fwd PE | 11.26 |
4.2 Price Multiples
NPI's Enterprise Value to EBITDA ratio is rather cheap when compared to the industry. NPI is cheaper than 82.05% of the companies in the same industry.
Based on the Price/Free Cash Flow ratio, NPI is valued cheaper than 92.31% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 6.76 | ||
| EV/EBITDA | 8.45 |
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
NPI has a Yearly Dividend Yield of 5.84%, which is a nice return.
Compared to an average industry Dividend Yield of 4.48, NPI pays a better dividend. On top of this NPI pays more dividend than 89.74% of the companies listed in the same industry.
NPI's Dividend Yield is rather good when compared to the S&P500 average which is at 2.40.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 5.84% |
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 Years16
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 (5/28/2025, 7:00:00 PM)
20.53
-0.05 (-0.24%)
Chartmill FA Rating
GICS SectorUtilities
GICS IndustryGroupUtilities
GICS IndustryIndependent Power and Renewable Electricity Producers
Earnings (Last)
Earnings (Next)
Inst Owners45.22%
Inst Owner ChangeN/A
Ins Owners0.1%
Ins Owner ChangeN/A
Market Cap5.37B
Analysts77.65
Price Target28.44 (38.53%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 5.84% |
Yearly Dividend0.8
Dividend Growth(5Y)-8.73%
DP80.16%
Div Incr Years0
Div Non Decr Years16
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)-0.55%
PT rev (3m)-1.23%
EPS NQ rev (1m)0%
EPS NQ rev (3m)0%
EPS NY rev (1m)0%
EPS NY rev (3m)6.74%
Revenue NQ rev (1m)8.02%
Revenue NQ rev (3m)22.56%
Revenue NY rev (1m)0%
Revenue NY rev (3m)0%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 20.74 | ||
| Fwd PE | 11.26 | ||
| P/S | 2.39 | ||
| P/FCF | 6.76 | ||
| P/OCF | 4.64 | ||
| P/B | 1.23 | ||
| P/tB | 1.62 | ||
| EV/EBITDA | 8.45 |
EPS(TTM)0.99
EY4.82%
EPS(NY)1.82
Fwd EY8.88%
FCF(TTM)3.04
FCFY14.79%
OCF(TTM)4.43
OCFY21.56%
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 | 0.53 |
F-Score6
WACC5.05%
ROIC/WACC0.76
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 5Y18.02%
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 5Y3.41%
EBIT growth 1Y-14.88%
EBIT growth 3Y3.6%
EBIT growth 5Y2.05%
EBIT Next Year58.3%
EBIT Next 3Y26.93%
EBIT Next 5Y16.83%
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%