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. While NPI is still in line with the averages on profitability rating, there are concerns on its financial health. NPI has a correct valuation and a medium growth rate. 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.
Of the past 5 years NPI 4 years were profitable.
Each year in the past 5 years NPI had a positive operating cash flow.
1.2 Ratios
The Return On Assets of NPI (1.82%) is better than 79.49% of its industry peers.
The Return On Equity of NPI (5.89%) is better than 82.05% 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 79.49% of its industry peers.
The Average Return On Invested Capital over the past 3 years 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.
The Operating Margin of NPI (32.20%) is better than 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
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.
NPI has more shares outstanding than it did 5 years ago.
Compared to 1 year ago, NPI has about the same debt to assets ratio.
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.
NPI has a better Altman-Z score (0.53) than 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.
Looking at the Debt to FCF ratio, with a value of 9.17, NPI belongs to the top of the industry, outperforming 92.31% of the companies in the same industry.
NPI has a Debt/Equity ratio of 1.41. This is a high value indicating a heavy dependency on external financing.
NPI's Debt to Equity ratio of 1.41 is fine compared to the rest of the industry. NPI outperforms 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.
The Current ratio of NPI (0.95) is better than 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.
The Quick ratio of NPI (0.95) is better 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.
The Earnings Per Share has been decreasing by -7.41% on average over the past years.
The Revenue has decreased by -5.22% in the past year.
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.
The Revenue is expected to grow by 3.41% on average over the next years.
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
The EPS growth rate is accelerating: in the next years the growth will be better than in the last years.
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 20.79 indicates a rather expensive valuation of NPI.
Based on the Price/Earnings ratio, NPI is valued a bit cheaper than 79.49% of the companies in the same industry.
NPI is valuated rather cheaply when we compare the Price/Earnings ratio to 26.35, which is the current average of the S&P500 Index.
NPI is valuated reasonably with a Price/Forward Earnings ratio of 11.28.
NPI's Price/Forward Earnings ratio is rather cheap when compared to the industry. NPI is cheaper than 82.05% of the companies in the same industry.
NPI's Price/Forward Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 22.20.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 20.79 | ||
| Fwd PE | 11.28 |
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 cheaply inside the industry as 92.31% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 6.78 | ||
| 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
With a Yearly Dividend Yield of 5.84%, NPI is a good candidate for dividend investing.
NPI's Dividend Yield is rather good when compared to the industry average which is at 4.48. NPI pays more dividend than 89.74% of the companies in the same industry.
Compared to an average S&P500 Dividend Yield of 2.40, NPI pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 5.84% |
5.2 History
The dividend of NPI decreases each year by -8.73%.
NPI has paid a dividend for at least 10 years, which is 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
80.16% of the earnings are spent on dividend by NPI. This is not a sustainable payout ratio.
DP80.16%
EPS Next 2Y10.64%
EPS Next 3Y1.16%
TSX:NPI (5/27/2025, 7:00:00 PM)
20.58
+0.08 (+0.39%)
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 Cap5.38B
Analysts77.65
Price Target28.44 (38.19%)
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 | 20.79 | ||
| Fwd PE | 11.28 | ||
| P/S | 2.4 | ||
| P/FCF | 6.78 | ||
| P/OCF | 4.65 | ||
| P/B | 1.23 | ||
| P/tB | 1.62 | ||
| EV/EBITDA | 8.45 |
EPS(TTM)0.99
EY4.81%
EPS(NY)1.82
Fwd EY8.86%
FCF(TTM)3.04
FCFY14.75%
OCF(TTM)4.43
OCFY21.51%
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%