NORTHLAND POWER INC (NPI.CA) Stock Fundamental Analysis
Canada - Toronto Stock Exchange - TSX:NPI - CA6665111002 - Common Stock
19.13 CAD
+0.05 (+0.26%)
We assign a fundamental rating of 5 out of 10 to NPI. NPI was compared to 33 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 decent growth rate and is not valued too expensively.
1. Profitability
1.1 Basic Checks
- NPI had positive earnings in the past year.
- 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 -2.13% is in line compared to the rest of the industry. NPI outperforms 57.58% of its industry peers.
- NPI has a Return On Equity of -7.29%. This is in the better half of the industry: NPI outperforms 60.61% of its industry peers.
- With an excellent Return On Invested Capital value of 4.02%, NPI belongs to the best of the industry, outperforming 93.94% of the companies in the same industry.
- 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 3.83%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -2.13% | ||
| ROE | -7.29% | ||
| ROIC | 4.02% |
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 has declined in the last couple of years.
- The Operating Margin of NPI (31.83%) is better than 78.79% 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 94.30%, NPI belongs to the top of the industry, outperforming 100.00% 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 | 31.83% | ||
| PM (TTM) | N/A | ||
| GM | 94.3% |
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.
- NPI has more shares outstanding than it did 1 year ago.
- 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
- NPI has an Altman-Z score of 0.48. This is a bad value and indicates that NPI is not financially healthy and even has some risk of bankruptcy.
- Looking at the Altman-Z score, with a value of 0.48, NPI is in the better half of the industry, outperforming 66.67% of the companies in the same industry.
- NPI has a debt to FCF ratio of 4.96. This is a neutral value as NPI would need 4.96 years to pay back of all of its debts.
- Looking at the Debt to FCF ratio, with a value of 4.96, NPI belongs to the top of the industry, outperforming 93.94% of the companies in the same industry.
- NPI has a Debt/Equity ratio of 1.56. This is a high value indicating a heavy dependency on external financing.
- Looking at the Debt to Equity ratio, with a value of 1.56, NPI is in the better half of the industry, outperforming 75.76% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.56 | ||
| Debt/FCF | 4.96 | ||
| Altman-Z | 0.48 |
ROIC/WACC0.71
WACC5.65%
2.3 Liquidity
- A Current Ratio of 1.03 indicates that NPI should not have too much problems paying its short term obligations.
- NPI's Current ratio of 1.03 is fine compared to the rest of the industry. NPI outperforms 78.79% of its industry peers.
- A Quick Ratio of 1.03 indicates that NPI should not have too much problems paying its short term obligations.
- The Quick ratio of NPI (1.03) is better than 81.82% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.03 | ||
| Quick Ratio | 1.03 |
3. Growth
3.1 Past
- The Earnings Per Share has grown by an impressive 255.93% over the past year.
- Measured over the past years, NPI shows a very negative growth in Earnings Per Share. The EPS has been decreasing by -14.00% on average per year.
- Looking at the last year, NPI shows a decrease in Revenue. The Revenue has decreased by -4.55% 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)255.93%
EPS 3Y10.66%
EPS 5Y-14%
EPS Q2Q%161.43%
Revenue 1Y (TTM)-4.55%
Revenue growth 3Y4.03%
Revenue growth 5Y7.27%
Sales Q2Q%13.04%
3.2 Future
- Based on estimates for the next years, NPI will show a very strong growth in Earnings Per Share. The EPS will grow by 25.95% on average per year.
- The Revenue is expected to grow by 2.26% on average over the next years.
EPS Next Y-105.59%
EPS Next 2Y14.38%
EPS Next 3Y10.43%
EPS Next 5Y25.95%
Revenue Next Year-0.17%
Revenue Next 2Y2.74%
Revenue Next 3Y3.3%
Revenue Next 5Y2.26%
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.
- 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 20.79, 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 81.82% of the companies listed in the same industry.
- NPI is valuated rather cheaply when we compare the Price/Earnings ratio to 27.25, which is the current average of the S&P500 Index.
- A Price/Forward Earnings ratio of 14.20 indicates a correct valuation of NPI.
- NPI's Price/Forward Earnings ratio is rather cheap when compared to the industry. NPI is cheaper than 87.88% of the companies in the same industry.
- Compared to an average S&P500 Price/Forward Earnings ratio of 25.98, NPI is valued a bit cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 20.79 | ||
| Fwd PE | 14.2 |
4.2 Price Multiples
- 93.94% of the companies in the same industry are more expensive than NPI, based on the Enterprise Value to EBITDA ratio.
- Based on the Price/Free Cash Flow ratio, NPI is valued cheaper than 100.00% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 3.49 | ||
| EV/EBITDA | 7.89 |
4.3 Compensation for Growth
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y14.38%
EPS Next 3Y10.43%
5. Dividend
5.1 Amount
- With a Yearly Dividend Yield of 3.77%, NPI has a reasonable but not impressive dividend return.
- In the last 3 months the price of NPI has falen by -23.67%. A price decline artificially increases the dividend yield. It may be a sign investors do not expect the dividend to last.
- NPI's Dividend Yield is comparable with the industry average which is at 3.52.
- Compared to an average S&P500 Dividend Yield of 1.82, NPI pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.77% |
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
- The earnings of NPI are negative and hence is the payout ratio. NPI will probably not be able to sustain this dividend level.
DP-91.8%
EPS Next 2Y14.38%
EPS Next 3Y10.43%
NORTHLAND POWER INC / NPI.CA FAQ
What is the fundamental rating for NPI stock?
ChartMill assigns a fundamental rating of 5 / 10 to NPI.CA.
What is the valuation status of NORTHLAND POWER INC (NPI.CA) stock?
ChartMill assigns a valuation rating of 5 / 10 to NORTHLAND POWER INC (NPI.CA). This can be considered as Fairly Valued.
Can you provide the profitability details for NORTHLAND POWER INC?
NORTHLAND POWER INC (NPI.CA) has a profitability rating of 5 / 10.
What is the valuation of NORTHLAND POWER INC based on its PE and PB ratios?
The Price/Earnings (PE) ratio for NORTHLAND POWER INC (NPI.CA) is 20.79 and the Price/Book (PB) ratio is 1.28.
What is the earnings growth outlook for NORTHLAND POWER INC?
The Earnings per Share (EPS) of NORTHLAND POWER INC (NPI.CA) is expected to decline by -105.59% in the next year.