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NORTHLAND POWER INC (NPI.CA) Stock Fundamental Analysis

TSX:NPI - Toronto Stock Exchange - CA6665111002 - Common Stock - Currency: CAD

16.64  -0.12 (-0.72%)

Fundamental Rating

5

Overall NPI gets a fundamental rating of 5 out of 10. We evaluated NPI against 41 industry peers in the Independent Power and Renewable Electricity Producers industry. Both the profitability and the financial health of NPI get a neutral evaluation. Nothing too spectacular is happening here. NPI has a valuation in line with the averages, but on the other hand it scores bad on growth.


Dividend Valuation Growth Profitability Health

4

1. Profitability

1.1 Basic Checks

NPI had negative earnings in the past year.
In the past year NPI had a positive cash flow from operations.
The reported net income has been mixed in the past 5 years: NPI reported negative net income in multiple years.
Of the past 5 years NPI 4 years had a positive operating cash flow.
NPI.CA Yearly Net Income VS EBIT VS OCF VS FCFNPI.CA Yearly Net Income VS EBIT VS OCF VS FCFYearly Net Income VS EBIT VS OCF VS FCF 2015 2016 2017 2018 2019 2020 2021 2022 2023 0 1B -1B

1.2 Ratios

With a Return On Assets value of -1.08%, NPI perfoms like the industry average, outperforming 55.56% of the companies in the same industry.
Looking at the Return On Equity, with a value of -3.61%, NPI is in the better half of the industry, outperforming 70.37% of the companies in the same industry.
NPI has a Return On Invested Capital of 5.14%. This is in the better half of the industry: NPI outperforms 74.07% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for NPI is in line with the industry average of 4.72%.
Industry RankSector Rank
ROA -1.08%
ROE -3.61%
ROIC 5.14%
ROA(3y)1.93%
ROA(5y)2.36%
ROE(3y)6.92%
ROE(5y)14.4%
ROIC(3y)5.32%
ROIC(5y)5.72%
NPI.CA Yearly ROA, ROE, ROICNPI.CA Yearly ROA, ROE, ROICYearly ROA, ROE, ROIC 2015 2016 2017 2018 2019 2020 2021 2022 2023 0 10 20

1.3 Margins

The Operating Margin of NPI (35.39%) is better than 96.30% of its industry peers.
NPI's Operating Margin has declined in the last couple of years.
NPI has a Gross Margin of 91.30%. This is amongst the best in the industry. NPI outperforms 88.89% of its industry peers.
In the last couple of years the Gross Margin of NPI has remained more or less at the same level.
Industry RankSector Rank
OM 35.39%
PM (TTM) N/A
GM 91.3%
OM growth 3Y-7.11%
OM growth 5Y-6.18%
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y0.12%
GM growth 5Y-0.47%
NPI.CA Yearly Profit, Operating, Gross MarginsNPI.CA Yearly Profit, Operating, Gross MarginsYearly Profit, Operating, Gross Margins 2015 2016 2017 2018 2019 2020 2021 2022 2023 0 20 40 60 80

5

2. Health

2.1 Basic Checks

NPI has a Return on Invested Capital (ROIC), which is just above the Cost of Capital (WACC), which means it is creating some value.
There is no outstanding debt for NPI. This means it has a Debt/Equity and Debt/FCF ratio of 0 and it is amongst the best of the sector and industry.
NPI.CA Yearly Shares OutstandingNPI.CA Yearly Shares OutstandingYearly Shares Outstanding 2015 2016 2017 2018 2019 2020 2021 2022 2023 50M 100M 150M 200M 250M
NPI.CA Yearly Total Debt VS Total AssetsNPI.CA Yearly Total Debt VS Total AssetsYearly Total Debt VS Total Assets 2015 2016 2017 2018 2019 2020 2021 2022 2023 5B 10B

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.
The Altman-Z score of NPI (0.54) is comparable to the rest of the industry.
NPI has a debt to FCF ratio of 52.94. This is a negative value and a sign of low solvency as NPI would need 52.94 years to pay back of all of its debts.
With an excellent Debt to FCF ratio value of 52.94, NPI belongs to the best of the industry, outperforming 85.19% of the companies in the same industry.
NPI has a Debt/Equity ratio of 1.62. This is a high value indicating a heavy dependency on external financing.
NPI has a Debt to Equity ratio of 1.62. This is in the better half of the industry: NPI outperforms 70.37% of its industry peers.
Industry RankSector Rank
Debt/Equity 1.62
Debt/FCF 52.94
Altman-Z 0.54
ROIC/WACC1.02
WACC5.05%
NPI.CA Yearly LT Debt VS Equity VS FCFNPI.CA Yearly LT Debt VS Equity VS FCFYearly LT Debt VS Equity VS FCF 2015 2016 2017 2018 2019 2020 2021 2022 2023 0 2B 4B 6B

2.3 Liquidity

NPI has a Current Ratio of 1.17. This is a normal value and indicates that NPI is financially healthy and should not expect problems in meeting its short term obligations.
The Current ratio of NPI (1.17) is better than 85.19% of its industry peers.
A Quick Ratio of 1.17 indicates that NPI should not have too much problems paying its short term obligations.
With an excellent Quick ratio value of 1.17, NPI belongs to the best of the industry, outperforming 85.19% of the companies in the same industry.
Industry RankSector Rank
Current Ratio 1.17
Quick Ratio 1.17
NPI.CA Yearly Current Assets VS Current LiabilitesNPI.CA Yearly Current Assets VS Current LiabilitesYearly Current Assets VS Current Liabilites 2015 2016 2017 2018 2019 2020 2021 2022 2023 500M 1B 1.5B 2B

3

3. Growth

3.1 Past

NPI shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -138.31%.
The Revenue has been growing slightly by 6.80% in the past year.
NPI shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 7.50% yearly.
EPS 1Y (TTM)-138.31%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%-600%
Revenue 1Y (TTM)6.8%
Revenue growth 3Y2.71%
Revenue growth 5Y7.5%
Sales Q2Q%-4.44%

3.2 Future

The Earnings Per Share is expected to grow by 29.40% on average over the next years. This is a very strong growth
Based on estimates for the next years, NPI will show a small growth in Revenue. The Revenue will grow by 4.46% on average per year.
EPS Next Y241.3%
EPS Next 2Y95.71%
EPS Next 3Y68.59%
EPS Next 5Y29.4%
Revenue Next Year7.47%
Revenue Next 2Y3.52%
Revenue Next 3Y6.68%
Revenue Next 5Y4.46%

3.3 Evolution

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.
NPI.CA Yearly Revenue VS EstimatesNPI.CA Yearly Revenue VS EstimatesYearly Revenue VS Estimates 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 500M 1B 1.5B 2B 2.5B
NPI.CA Yearly EPS VS EstimatesNPI.CA Yearly EPS VS EstimatesYearly EPS VS Estimates 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 0 1 2 3

6

4. Valuation

4.1 Price/Earnings Ratio

NPI reported negative earnings for the last year, which makes the Price/Earnings Ratio negative.
A Price/Forward Earnings ratio of 12.80 indicates a correct valuation of NPI.
88.89% of the companies in the same industry are more expensive than NPI, based on the Price/Forward Earnings ratio.
The average S&P500 Price/Forward Earnings ratio is at 94.77. NPI is valued rather cheaply when compared to this.
Industry RankSector Rank
PE N/A
Fwd PE 12.8
NPI.CA Price Earnings VS Forward Price EarningsNPI.CA Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 0 20 -20 40 60 80

4.2 Price Multiples

Based on the Enterprise Value to EBITDA ratio, NPI is valued a bit cheaper than the industry average as 77.78% of the companies are valued more expensively.
NPI's Price/Free Cash Flow ratio is rather cheap when compared to the industry. NPI is cheaper than 85.19% of the companies in the same industry.
Industry RankSector Rank
P/FCF 30.71
EV/EBITDA 7.3
NPI.CA Per share dataNPI.CA EPS, Sales, OCF, FCF, BookValue per sharePer Share Data Per Share 0 5 10 15

4.3 Compensation for Growth

The low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
NPI's earnings are expected to grow with 68.59% in the coming years. This may justify a more expensive valuation.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y95.71%
EPS Next 3Y68.59%

6

5. Dividend

5.1 Amount

NPI has a Yearly Dividend Yield of 7.16%, which is a nice return.
Compared to an average industry Dividend Yield of 4.56, NPI pays a better dividend. On top of this NPI pays more dividend than 85.19% of the companies listed in the same industry.
Compared to an average S&P500 Dividend Yield of 2.29, NPI pays a better dividend.
Industry RankSector Rank
Dividend Yield 7.16%

5.2 History

The dividend of NPI decreases each year by -3.26%.
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)-3.26%
Div Incr Years0
Div Non Decr Years16
NPI.CA Yearly Dividends per shareNPI.CA Yearly Dividends per shareYearly Dividends per share 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 0.2 0.4 0.6 0.8 1

5.3 Sustainability

The earnings of NPI are negative and hence is the payout ratio. NPI will probably not be able to sustain this dividend level.
DP-141.05%
EPS Next 2Y95.71%
EPS Next 3Y68.59%
NPI.CA Yearly Income VS Free CF VS DividendNPI.CA Yearly Income VS Free CF VS DividendYearly Income VS Free CF VS Dividend 2015 2016 2017 2018 2019 2020 2021 2022 2023 0 500M -500M 1B -1B -1.5B

NORTHLAND POWER INC

TSX:NPI (2/7/2025, 7:00:00 PM)

16.64

-0.12 (-0.72%)

Chartmill FA Rating
GICS SectorUtilities
GICS IndustryGroupUtilities
GICS IndustryIndependent Power and Renewable Electricity Producers
Earnings (Last)11-13 2024-11-13/amc
Earnings (Next)02-26 2025-02-26/amc
Inst Owners49.03%
Inst Owner ChangeN/A
Ins Owners0.09%
Ins Owner ChangeN/A
Market Cap4.32B
Analysts77.5
Price Target29.42 (76.8%)
Short Float %N/A
Short RatioN/A
Dividend
Industry RankSector Rank
Dividend Yield 7.16%
Yearly Dividend0.84
Dividend Growth(5Y)-3.26%
DP-141.05%
Div Incr Years0
Div Non Decr Years16
Ex-Date01-31 2025-01-31 (0.1)
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)-93.92%
Min EPS beat(2)-654.46%
Max EPS beat(2)466.62%
EPS beat(4)1
Avg EPS beat(4)-151.13%
Min EPS beat(4)-654.46%
Max EPS beat(4)466.62%
EPS beat(8)3
Avg EPS beat(8)-72.8%
EPS beat(12)7
Avg EPS beat(12)31.26%
EPS beat(16)7
Avg EPS beat(16)-0.47%
Revenue beat(2)0
Avg Revenue beat(2)-2.76%
Min Revenue beat(2)-5.26%
Max Revenue beat(2)-0.25%
Revenue beat(4)2
Avg Revenue beat(4)0.39%
Min Revenue beat(4)-5.26%
Max Revenue beat(4)6.11%
Revenue beat(8)5
Avg Revenue beat(8)1.09%
Revenue beat(12)9
Avg Revenue beat(12)7.02%
Revenue beat(16)10
Avg Revenue beat(16)4.76%
PT rev (1m)-1.57%
PT rev (3m)-1.57%
EPS NQ rev (1m)0%
EPS NQ rev (3m)0%
EPS NY rev (1m)-39.59%
EPS NY rev (3m)-39.59%
Revenue NQ rev (1m)-1.48%
Revenue NQ rev (3m)0%
Revenue NY rev (1m)0%
Revenue NY rev (3m)0%
Valuation
Industry RankSector Rank
PE N/A
Fwd PE 12.8
P/S 1.8
P/FCF 30.71
P/OCF 5.36
P/B 1.05
P/tB 1.4
EV/EBITDA 7.3
EPS(TTM)-0.59
EYN/A
EPS(NY)1.3
Fwd EY7.81%
FCF(TTM)0.54
FCFY3.26%
OCF(TTM)3.1
OCFY18.65%
SpS9.25
BVpS15.82
TBVpS11.87
PEG (NY)N/A
PEG (5Y)N/A
Profitability
Industry RankSector Rank
ROA -1.08%
ROE -3.61%
ROCE 6.79%
ROIC 5.14%
ROICexc 5.4%
ROICexgc 5.91%
OM 35.39%
PM (TTM) N/A
GM 91.3%
FCFM 5.86%
ROA(3y)1.93%
ROA(5y)2.36%
ROE(3y)6.92%
ROE(5y)14.4%
ROIC(3y)5.32%
ROIC(5y)5.72%
ROICexc(3y)5.8%
ROICexc(5y)6.1%
ROICexgc(3y)6.5%
ROICexgc(5y)6.83%
ROCE(3y)7.02%
ROCE(5y)7.55%
ROICexcg growth 3Y-10.91%
ROICexcg growth 5Y-3.6%
ROICexc growth 3Y-9.81%
ROICexc growth 5Y-3.77%
OM growth 3Y-7.11%
OM growth 5Y-6.18%
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y0.12%
GM growth 5Y-0.47%
F-Score5
Asset Turnover0.17
Health
Industry RankSector Rank
Debt/Equity 1.62
Debt/FCF 52.94
Debt/EBITDA 4.34
Cap/Depr 97.55%
Cap/Sales 27.69%
Interest Coverage 2.36
Cash Conversion 52.59%
Profit Quality N/A
Current Ratio 1.17
Quick Ratio 1.17
Altman-Z 0.54
F-Score5
WACC5.05%
ROIC/WACC1.02
Cap/Depr(3y)73.1%
Cap/Depr(5y)84.82%
Cap/Sales(3y)20.69%
Cap/Sales(5y)23.85%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)-138.31%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%-600%
EPS Next Y241.3%
EPS Next 2Y95.71%
EPS Next 3Y68.59%
EPS Next 5Y29.4%
Revenue 1Y (TTM)6.8%
Revenue growth 3Y2.71%
Revenue growth 5Y7.5%
Sales Q2Q%-4.44%
Revenue Next Year7.47%
Revenue Next 2Y3.52%
Revenue Next 3Y6.68%
Revenue Next 5Y4.46%
EBIT growth 1Y8.87%
EBIT growth 3Y-4.6%
EBIT growth 5Y0.85%
EBIT Next Year61.87%
EBIT Next 3Y18.86%
EBIT Next 5Y16.58%
FCF growth 1Y-89.41%
FCF growth 3Y-32.08%
FCF growth 5Y-14.18%
OCF growth 1Y-56.28%
OCF growth 3Y-15.93%
OCF growth 5Y-7.09%