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 37 industry peers in the Independent Power and Renewable Electricity Producers industry. While NPI has a great profitability rating, there are quite some concerns on its financial health. NPI is not valued too expensively and it also shows a decent growth rate. 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
The Return On Assets of NPI (1.82%) is better than 78.38% of its industry peers.
With an excellent Return On Equity value of 5.89%, NPI belongs to the best of the industry, outperforming 81.08% of the companies in the same industry.
NPI has a Return On Invested Capital of 3.83%. This is amongst the best in the industry. NPI outperforms 81.08% of its industry peers.
NPI had an Average Return On Invested Capital over the past 3 years of 4.68%. This is in line with the industry average of 5.07%.
| 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 83.78% of the companies in the same industry.
In the last couple of years the Profit Margin of NPI has declined.
With an excellent Operating Margin value of 32.20%, NPI belongs to the best of the industry, outperforming 81.08% of the companies in the same industry.
In the last couple of years the Operating Margin of NPI has declined.
NPI has a better Gross Margin (96.36%) than 100.00% of its industry peers.
NPI's Gross Margin has been stable in the last couple of years.
| 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.
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.
The debt/assets ratio for NPI has remained at the same level compared to a year ago.
2.2 Solvency
Based on the Altman-Z score of 0.57, we must say that NPI is in the distress zone and has some risk of bankruptcy.
NPI's Altman-Z score of 0.57 is fine compared to the rest of the industry. NPI outperforms 72.97% of its industry peers.
The Debt to FCF ratio of NPI is 9.17, which is on the high side as it means it would take NPI, 9.17 years of fcf income to pay off all of its debts.
With an excellent Debt to FCF ratio value of 9.17, NPI belongs to the best of the industry, outperforming 91.89% 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.
With a decent Debt to Equity ratio value of 1.41, NPI is doing good in the industry, outperforming 75.68% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.41 | ||
| Debt/FCF | 9.17 | ||
| Altman-Z | 0.57 |
ROIC/WACC0.73
WACC5.26%
2.3 Liquidity
A Current Ratio of 0.95 indicates that NPI may have some problems paying its short term obligations.
NPI has a Current ratio of 0.95. This is in the better half of the industry: NPI outperforms 70.27% 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.
With a decent Quick ratio value of 0.95, NPI is doing good in the industry, outperforming 72.97% of the companies in the same industry.
| 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.
NPI shows a decrease in Revenue. In the last year, the revenue decreased by -5.22%.
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 18.63% yearly.
Based on estimates for the next years, NPI will show a small growth in Revenue. The Revenue will grow by 3.60% on average per year.
EPS Next Y-6.91%
EPS Next 2Y10.64%
EPS Next 3Y1.16%
EPS Next 5Y18.63%
Revenue Next Year0%
Revenue Next 2Y6.12%
Revenue Next 3Y3.86%
Revenue Next 5Y3.6%
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
A Price/Earnings ratio of 23.07 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 78.38% of the companies in the same industry.
When comparing the Price/Earnings ratio of NPI to the average of the S&P500 Index (27.93), we can say NPI is valued inline with the index average.
A Price/Forward Earnings ratio of 12.52 indicates a correct valuation of NPI.
86.49% 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 rather cheap valuation when compared to the S&P500 average which is at 37.78.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 23.07 | ||
| Fwd PE | 12.52 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, NPI is valued cheaply inside the industry as 83.78% 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 94.59% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 7.52 | ||
| EV/EBITDA | 8.88 |
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 5.12%, which is a nice return.
Compared to an average industry Dividend Yield of 3.86, NPI pays a better dividend. On top of this NPI pays more dividend than 86.49% of the companies listed in the same industry.
Compared to an average S&P500 Dividend Yield of 2.32, NPI pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 5.12% |
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 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 (7/28/2025, 7:00:00 PM)
22.84
-0.04 (-0.17%)
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 Cap5.97B
Analysts78.82
Price Target27.97 (22.46%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 5.12% |
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)-15.49%
Min EPS beat(2)-54.58%
Max EPS beat(2)23.6%
EPS beat(4)2
Avg EPS beat(4)-30.08%
Min EPS beat(4)-555.97%
Max EPS beat(4)466.62%
EPS beat(8)3
Avg EPS beat(8)-77.63%
EPS beat(12)6
Avg EPS beat(12)26.97%
EPS beat(16)8
Avg EPS beat(16)9.3%
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%
PT rev (3m)-1.66%
EPS NQ rev (1m)0%
EPS NQ rev (3m)0%
EPS NY rev (1m)0%
EPS NY rev (3m)0%
Revenue NQ rev (1m)-2.97%
Revenue NQ rev (3m)4.82%
Revenue NY rev (1m)0%
Revenue NY rev (3m)0%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 23.07 | ||
| Fwd PE | 12.52 | ||
| P/S | 2.66 | ||
| P/FCF | 7.52 | ||
| P/OCF | 5.16 | ||
| P/B | 1.37 | ||
| P/tB | 1.8 | ||
| EV/EBITDA | 8.88 |
EPS(TTM)0.99
EY4.33%
EPS(NY)1.82
Fwd EY7.99%
FCF(TTM)3.04
FCFY13.29%
OCF(TTM)4.43
OCFY19.38%
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 | 0.57 |
F-Score6
WACC5.26%
ROIC/WACC0.73
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 5Y18.63%
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 5Y3.6%
EBIT growth 1Y-14.88%
EBIT growth 3Y3.6%
EBIT growth 5Y2.05%
EBIT Next Year58.3%
EBIT Next 3Y26.93%
EBIT Next 5Y17.09%
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%