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 is not valued too expensively and it also shows a decent growth rate. Finally NPI also has an excellent dividend rating.
1. Profitability
1.1 Basic Checks
In the past year NPI was profitable.
NPI had a positive operating cash flow in the past year.
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's Return On Assets of 1.82% is fine compared to the rest of the industry. NPI outperforms 79.49% of its industry peers.
NPI's Return On Equity of 5.89% is amongst the best of the industry. NPI outperforms 82.05% of its industry peers.
With a decent Return On Invested Capital value of 3.83%, NPI is doing good in the industry, outperforming 79.49% of the companies in the same industry.
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
The Profit Margin of NPI (11.46%) is better than 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.
In the last couple of years the Operating Margin of NPI has declined.
The Gross Margin of NPI (96.36%) is better than 94.87% 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
The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so NPI is destroying value.
Compared to 1 year ago, NPI has more shares outstanding
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
Based on the Altman-Z score of 0.53, we must say that NPI is in the distress zone and has some risk of bankruptcy.
The Altman-Z score of NPI (0.53) is better 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.
With a decent Debt to Equity ratio value of 1.41, NPI is doing good in the industry, outperforming 76.92% of the companies in the same industry.
| 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.
With a decent Current ratio value of 0.95, NPI is doing good in the industry, outperforming 69.23% of the companies in the same industry.
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
The Earnings Per Share has grown by an impressive 243.48% over the past year.
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
The Earnings Per Share is expected to grow by 18.02% on average over the next years. This is quite good.
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 2Y6.12%
Revenue Next 3Y3.86%
Revenue Next 5Y3.41%
3.3 Evolution
When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.
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
With a Price/Earnings ratio of 20.79, NPI is valued on the expensive side.
NPI's Price/Earnings ratio is a bit cheaper when compared to the industry. NPI is cheaper than 79.49% of the companies in the same industry.
The average S&P500 Price/Earnings ratio is at 26.35. NPI is valued slightly cheaper when compared to this.
A Price/Forward Earnings ratio of 11.28 indicates a reasonable valuation of NPI.
82.05% 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 22.20.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 20.79 | ||
| Fwd PE | 11.28 |
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.
NPI's Price/Free Cash Flow ratio is rather cheap when compared to the industry. NPI is cheaper than 92.31% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 6.78 | ||
| EV/EBITDA | 8.44 |
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 5.84%, which is a nice return.
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 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 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
+0.34 (+1.68%)
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 | 8.44 |
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%