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.
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.
NPI had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
NPI has a Return On Assets of 1.82%. This is in the better half of the industry: NPI outperforms 76.92% of its industry peers.
NPI has a better Return On Equity (5.89%) than 79.49% of its industry peers.
The Return On Invested Capital of NPI (3.83%) is better than 76.92% 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 4.82%.
| 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 belongs to the top of the industry, outperforming 82.05% of the companies in the same industry.
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.
Looking at the Gross Margin, with a value of 96.36%, NPI belongs to the top 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.
The debt/assets ratio for NPI has remained at the same level compared to a year ago.
2.2 Solvency
NPI has an Altman-Z score of 0.55. This is a bad value and indicates that NPI is not financially healthy and even has some risk of bankruptcy.
The Altman-Z score of NPI (0.55) is better than 79.49% 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 better Debt to FCF ratio (9.17) than 89.74% 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 71.79% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.41 | ||
| Debt/FCF | 9.17 | ||
| Altman-Z | 0.55 |
ROIC/WACC0.75
WACC5.11%
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 better Current ratio (0.95) 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 has a Quick ratio of 0.95. This is in the better half of the industry: NPI outperforms 69.23% 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.
Looking at the last year, NPI shows a decrease in Revenue. The Revenue has decreased by -5.22% in the last 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 18.64% yearly.
NPI is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 3.61% yearly.
EPS Next Y-6.91%
EPS Next 2Y10.64%
EPS Next 3Y1.16%
EPS Next 5Y18.64%
Revenue Next Year0%
Revenue Next 2Y6.12%
Revenue Next 3Y3.86%
Revenue Next 5Y3.61%
3.3 Evolution
The EPS growth rate is accelerating: in the next years the growth will be better than in the last years.
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
Based on the Price/Earnings ratio of 21.98, the valuation of NPI can be described as rather expensive.
Compared to the rest of the industry, the Price/Earnings ratio of NPI indicates a somewhat cheap valuation: NPI is cheaper than 76.92% of the companies listed in the same industry.
Compared to an average S&P500 Price/Earnings ratio of 26.35, NPI is valued at the same level.
The Price/Forward Earnings ratio is 11.93, which indicates a very decent valuation of NPI.
Based on the Price/Forward Earnings ratio, NPI is valued cheaper than 82.05% of the companies in the same industry.
The average S&P500 Price/Forward Earnings ratio is at 22.19. NPI is valued slightly cheaper when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 21.98 | ||
| Fwd PE | 11.93 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of NPI indicates a rather cheap valuation: NPI is cheaper than 82.05% of the companies listed in the same industry.
92.31% of the companies in the same industry are more expensive than NPI, based on the Price/Free Cash Flow ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 7.17 | ||
| EV/EBITDA | 8.67 |
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 5.50%, NPI is a good candidate for dividend investing.
Compared to an average industry Dividend Yield of 4.82, 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 | 5.5% |
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 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 (6/20/2025, 7:00:00 PM)
21.76
-0.07 (-0.32%)
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 Cap5.69B
Analysts78.82
Price Target27.97 (28.54%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 5.5% |
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)-5.72%
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 | 21.98 | ||
| Fwd PE | 11.93 | ||
| P/S | 2.54 | ||
| P/FCF | 7.17 | ||
| P/OCF | 4.92 | ||
| P/B | 1.3 | ||
| P/tB | 1.71 | ||
| EV/EBITDA | 8.67 |
EPS(TTM)0.99
EY4.55%
EPS(NY)1.82
Fwd EY8.38%
FCF(TTM)3.04
FCFY13.95%
OCF(TTM)4.43
OCFY20.34%
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 | 0.55 |
F-Score6
WACC5.11%
ROIC/WACC0.75
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 5Y18.64%
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 5Y3.61%
EBIT growth 1Y-14.88%
EBIT growth 3Y3.6%
EBIT growth 5Y2.05%
EBIT Next Year58.3%
EBIT Next 3Y26.93%
EBIT Next 5Y16.99%
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%