NORTHLAND POWER INC (NPI.CA) Stock Fundamental Analysis
TSX:NPI - Toronto Stock Exchange - CA6665111002 - Common Stock - Currency: CAD
NPI gets a fundamental rating of 5 out of 10. The analysis compared the fundamentals against 39 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 decent growth rate and is not valued too expensively. NPI also has an excellent dividend rating.
1. Profitability
1.1 Basic Checks
In the past year NPI was profitable.
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
Looking at the Return On Assets, with a value of 1.82%, NPI is in the better half of the industry, outperforming 79.49% of the companies in the same industry.
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
NPI has a Profit Margin of 11.46%. This is amongst the best in the industry. NPI outperforms 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.
NPI's Operating Margin has declined in the last couple of years.
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
NPI has a Return on Invested Capital (ROIC), which is below the Cost of Capital (WACC), which means it is destroying value.
Compared to 1 year ago, NPI has more shares outstanding
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
Based on the Altman-Z score of 0.54, we must say that NPI is in the distress zone and has some risk of bankruptcy.
NPI has a Altman-Z score of 0.54. This is in the better half of the industry: NPI outperforms 74.36% of its industry peers.
NPI has a debt to FCF ratio of 9.17. This is a negative value and a sign of low solvency as NPI would need 9.17 years to pay back of all of its debts.
NPI has a Debt to FCF ratio of 9.17. This is amongst the best in the industry. NPI outperforms 92.31% of its industry peers.
NPI has a Debt/Equity ratio of 1.41. This is a high value indicating a heavy dependency on external financing.
The Debt to Equity ratio of NPI (1.41) is better than 76.92% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.41 | ||
| Debt/FCF | 9.17 | ||
| Altman-Z | 0.54 |
ROIC/WACC0.76
WACC5.04%
2.3 Liquidity
NPI has a Current 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 Current ratio of 0.95. This is in the better half of the industry: NPI outperforms 69.23% of its industry peers.
A Quick Ratio of 0.95 indicates that NPI may have some problems paying its short term obligations.
Looking at the Quick ratio, with a value of 0.95, NPI is in the better half of the industry, outperforming 71.79% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.95 | ||
| Quick Ratio | 0.95 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an impressive 243.48% over the past year.
The Earnings Per Share has been decreasing by -7.41% on average over the past years.
NPI shows a decrease in Revenue. In the last year, the revenue decreased by -5.22%.
The Revenue has been growing slightly by 7.27% on average over the past years.
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
The Earnings Per Share is expected to grow by 18.02% on average over the next years. This is quite good.
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.
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
A Price/Earnings ratio of 20.67 indicates a rather expensive valuation of NPI.
NPI's Price/Earnings ratio is a bit cheaper when compared to the industry. NPI is cheaper than 79.49% of the companies in the same industry.
When comparing the Price/Earnings ratio of NPI to the average of the S&P500 Index (26.25), we can say NPI is valued slightly cheaper.
A Price/Forward Earnings ratio of 11.22 indicates a reasonable valuation of NPI.
Compared to the rest of the industry, the Price/Forward Earnings ratio of NPI indicates a rather cheap valuation: NPI is cheaper than 82.05% of the companies listed in the same industry.
Compared to an average S&P500 Price/Forward Earnings ratio of 22.15, NPI is valued a bit cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 20.67 | ||
| Fwd PE | 11.22 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, NPI is valued a bit cheaper than the industry average as 79.49% of the companies are valued more expensively.
Based on the Price/Free Cash Flow ratio, NPI is valued cheaply inside the industry as 92.31% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 6.74 | ||
| EV/EBITDA | 8.49 |
4.3 Compensation for Growth
The decent profitability rating of NPI 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 5.77%, NPI is a good candidate for dividend investing.
NPI's Dividend Yield is rather good when compared to the industry average which is at 4.44. NPI pays more dividend than 89.74% of the companies in the same industry.
NPI's Dividend Yield is rather good when compared to the S&P500 average which is at 2.38.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 5.77% |
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 their dividend for at least 10 years, which is a reliable track record.
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 (5/30/2025, 7:00:00 PM)
20.46
-0.34 (-1.63%)
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 Cap5.35B
Analysts77.65
Price Target28.44 (39%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 5.77% |
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 | 20.67 | ||
| Fwd PE | 11.22 | ||
| P/S | 2.39 | ||
| P/FCF | 6.74 | ||
| P/OCF | 4.62 | ||
| P/B | 1.23 | ||
| P/tB | 1.61 | ||
| EV/EBITDA | 8.49 |
EPS(TTM)0.99
EY4.84%
EPS(NY)1.82
Fwd EY8.92%
FCF(TTM)3.04
FCFY14.84%
OCF(TTM)4.43
OCFY21.63%
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 | 0.54 |
F-Score6
WACC5.04%
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%