NORTHLAND POWER INC (NPI.CA) Stock Fundamental Analysis
TSX:NPI - Toronto Stock Exchange - CA6665111002 - Common Stock - Currency: CAD
Taking everything into account, NPI scores 5 out of 10 in our fundamental rating. NPI was compared to 41 industry peers in the Independent Power and Renewable Electricity Producers industry. NPI scores excellent on profitability, but there are some minor concerns on its financial health. NPI has a correct valuation and a medium growth rate. Finally 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.
NPI had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
NPI has a better Return On Assets (1.95%) than 85.37% of its industry peers.
NPI has a better Return On Equity (6.35%) than 82.93% of its industry peers.
NPI has a Return On Invested Capital of 4.54%. This is amongst the best in the industry. NPI outperforms 82.93% 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 4.15%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 1.95% | ||
| ROE | 6.35% | ||
| ROIC | 4.54% |
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's Profit Margin of 11.32% is amongst the best of the industry. NPI outperforms 87.80% of its industry peers.
In the last couple of years the Profit Margin of NPI has declined.
NPI has a better Operating Margin (36.07%) than 97.56% of its industry peers.
In the last couple of years the Operating Margin of NPI has declined.
With an excellent Gross Margin value of 91.66%, NPI belongs to the best of the industry, outperforming 95.12% of the companies in the same industry.
NPI's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 36.07% | ||
| PM (TTM) | 11.32% | ||
| GM | 91.66% |
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.
NPI has more shares outstanding than it did 1 year ago.
Compared to 5 years ago, NPI has more shares outstanding
NPI has about the same debt/assets ratio as last year.
2.2 Solvency
NPI has an Altman-Z score of 0.56. This is a bad value and indicates that NPI is not financially healthy and even has some risk of bankruptcy.
NPI has a Altman-Z score of 0.56. This is in the better half of the industry: NPI outperforms 73.17% of its industry peers.
NPI has a debt to FCF ratio of 15.48. This is a negative value and a sign of low solvency as NPI would need 15.48 years to pay back of all of its debts.
NPI has a Debt to FCF ratio of 15.48. This is amongst the best in the industry. NPI outperforms 95.12% of its industry peers.
NPI has a Debt/Equity ratio of 1.55. This is a high value indicating a heavy dependency on external financing.
NPI's Debt to Equity ratio of 1.55 is fine compared to the rest of the industry. NPI outperforms 78.05% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.55 | ||
| Debt/FCF | 15.48 | ||
| Altman-Z | 0.56 |
ROIC/WACC0.93
WACC4.88%
2.3 Liquidity
A Current Ratio of 1.05 indicates that NPI should not have too much problems paying its short term obligations.
NPI has a Current ratio of 1.05. This is in the better half of the industry: NPI outperforms 75.61% of its industry peers.
NPI has a Quick Ratio of 1.05. This is a normal value and indicates that NPI is financially healthy and should not expect problems in meeting its short term obligations.
Looking at the Quick ratio, with a value of 1.05, NPI is in the better half of the industry, outperforming 78.05% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.05 | ||
| Quick Ratio | 1.05 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an impressive 245.07% over the past year.
NPI shows a decrease in Earnings Per Share. Measured over the last years, the EPS has been decreasing by -7.41% yearly.
Looking at the last year, NPI shows a small growth in Revenue. The Revenue has grown by 5.08% in the last year.
NPI shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 7.27% yearly.
EPS 1Y (TTM)245.07%
EPS 3Y25.16%
EPS 5Y-7.41%
EPS Q2Q%143.36%
Revenue 1Y (TTM)5.08%
Revenue growth 3Y4.03%
Revenue growth 5Y7.27%
Sales Q2Q%-8.68%
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 2Y6.49%
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
With a Price/Earnings ratio of 17.75, NPI is valued on the expensive side.
Compared to the rest of the industry, the Price/Earnings ratio of NPI indicates a rather cheap valuation: NPI is cheaper than 85.37% of the companies listed in the same industry.
When comparing the Price/Earnings ratio of NPI to the average of the S&P500 Index (28.18), we can say NPI is valued slightly cheaper.
The Price/Forward Earnings ratio is 13.18, which indicates a correct valuation of NPI.
90.24% of the companies in the same industry are more expensive than NPI, based on the Price/Forward Earnings ratio.
NPI's Price/Forward Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 20.81.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 17.75 | ||
| Fwd PE | 13.18 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, NPI is valued cheaply inside the industry as 85.37% of the companies are valued more expensively.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of NPI indicates a rather cheap valuation: NPI is cheaper than 92.68% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 10.03 | ||
| EV/EBITDA | 7.58 |
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 6.50%, which is a nice return.
NPI's Dividend Yield is rather good when compared to the industry average which is at 4.52. NPI pays more dividend than 85.37% of the companies in the same industry.
Compared to an average S&P500 Dividend Yield of 2.45, NPI pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 6.5% |
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 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 77.79% of its income as dividend. This is not a sustainable payout ratio.
DP77.79%
EPS Next 2Y10.64%
EPS Next 3Y1.16%
TSX:NPI (5/2/2025, 7:00:00 PM)
18.28
-0.19 (-1.03%)
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 Cap4.78B
Analysts77.65
Price Target28.44 (55.58%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 6.5% |
Yearly Dividend0.8
Dividend Growth(5Y)-8.73%
DP77.79%
Div Incr Years0
Div Non Decr Years16
Ex-Date
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)-270.91%
Min EPS beat(2)-555.97%
Max EPS beat(2)14.15%
EPS beat(4)2
Avg EPS beat(4)-30.84%
Min EPS beat(4)-555.97%
Max EPS beat(4)466.62%
EPS beat(8)3
Avg EPS beat(8)-77.86%
EPS beat(12)7
Avg EPS beat(12)39.32%
EPS beat(16)8
Avg EPS beat(16)10.78%
Revenue beat(2)1
Avg Revenue beat(2)0.07%
Min Revenue beat(2)-0.75%
Max Revenue beat(2)0.9%
Revenue beat(4)2
Avg Revenue beat(4)1.5%
Min Revenue beat(4)-0.75%
Max Revenue beat(4)6.11%
Revenue beat(8)5
Avg Revenue beat(8)1.01%
Revenue beat(12)9
Avg Revenue beat(12)6.53%
Revenue beat(16)11
Avg Revenue beat(16)5.21%
PT rev (1m)-0.55%
PT rev (3m)-3.33%
EPS NQ rev (1m)-15.23%
EPS NQ rev (3m)-15.23%
EPS NY rev (1m)-5.12%
EPS NY rev (3m)6.74%
Revenue NQ rev (1m)-1.58%
Revenue NQ rev (3m)15.31%
Revenue NY rev (1m)0%
Revenue NY rev (3m)0%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 17.75 | ||
| Fwd PE | 13.18 | ||
| P/S | 2.04 | ||
| P/FCF | 10.03 | ||
| P/OCF | 4.65 | ||
| P/B | 1.14 | ||
| P/tB | 1.51 | ||
| EV/EBITDA | 7.58 |
EPS(TTM)1.03
EY5.63%
EPS(NY)1.39
Fwd EY7.59%
FCF(TTM)1.82
FCFY9.97%
OCF(TTM)3.93
OCFY21.53%
SpS8.97
BVpS16.01
TBVpS12.14
PEG (NY)N/A
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 1.95% | ||
| ROE | 6.35% | ||
| ROCE | 6.9% | ||
| ROIC | 4.54% | ||
| ROICexc | 4.78% | ||
| ROICexgc | 5.23% | ||
| OM | 36.07% | ||
| PM (TTM) | 11.32% | ||
| GM | 91.66% | ||
| FCFM | 20.32% |
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-Score7
Asset Turnover0.17
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.55 | ||
| Debt/FCF | 15.48 | ||
| Debt/EBITDA | 4.27 | ||
| Cap/Depr | 81.96% | ||
| Cap/Sales | 23.54% | ||
| Interest Coverage | 2.45 | ||
| Cash Conversion | 67.69% | ||
| Profit Quality | 179.46% | ||
| Current Ratio | 1.05 | ||
| Quick Ratio | 1.05 | ||
| Altman-Z | 0.56 |
F-Score7
WACC4.88%
ROIC/WACC0.93
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)245.07%
EPS 3Y25.16%
EPS 5Y-7.41%
EPS Q2Q%143.36%
EPS Next Y-6.91%
EPS Next 2Y10.64%
EPS Next 3Y1.16%
EPS Next 5Y18.02%
Revenue 1Y (TTM)5.08%
Revenue growth 3Y4.03%
Revenue growth 5Y7.27%
Sales Q2Q%-8.68%
Revenue Next Year0%
Revenue Next 2Y6.49%
Revenue Next 3Y3.86%
Revenue Next 5Y3.41%
EBIT growth 1Y15.84%
EBIT growth 3Y3.6%
EBIT growth 5Y2.05%
EBIT Next Year58.3%
EBIT Next 3Y26.93%
EBIT Next 5Y16.83%
FCF growth 1Y38.97%
FCF growth 3Y-25.21%
FCF growth 5Y0.79%
OCF growth 1Y31.04%
OCF growth 3Y-13.85%
OCF growth 5Y-3.42%