NORTHLAND POWER INC - NPICN 5.547 PERP (NPI-PR-A.CA) Stock Fundamental Analysis
Canada - Toronto Stock Exchange - TSX:NPI-PR-A - CA6665113081
24.22 CAD
+0.02 (+0.08%)
We assign a fundamental rating of 5 out of 10 to NPI-PR-A. NPI-PR-A was compared to 32 industry peers in the Independent Power and Renewable Electricity Producers industry. Both the profitability and the financial health of NPI-PR-A get a neutral evaluation. Nothing too spectacular is happening here. NPI-PR-A is not valued too expensively and it also shows a decent growth rate.
1. Profitability
1.1 Basic Checks
- NPI-PR-A had positive earnings in the past year.
- NPI-PR-A had a positive operating cash flow in the past year.
- NPI-PR-A had positive earnings in 4 of the past 5 years.
- Each year in the past 5 years NPI-PR-A had a positive operating cash flow.
1.2 Ratios
- The Return On Assets of NPI-PR-A (-2.13%) is comparable to the rest of the industry.
- The Return On Equity of NPI-PR-A (-7.29%) is comparable to the rest of the industry.
- NPI-PR-A has a better Return On Invested Capital (4.02%) than 87.50% of its industry peers.
- NPI-PR-A 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-PR-A's Profit Margin has declined in the last couple of years.
- NPI-PR-A has a better Operating Margin (31.83%) than 71.88% of its industry peers.
- NPI-PR-A's Operating Margin has declined in the last couple of years.
- Looking at the Gross Margin, with a value of 94.30%, NPI-PR-A belongs to the top of the industry, outperforming 93.75% of the companies in the same industry.
- NPI-PR-A'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-PR-A is destroying value.
- The number of shares outstanding for NPI-PR-A has been increased compared to 1 year ago.
- The number of shares outstanding for NPI-PR-A has been increased compared to 5 years ago.
- NPI-PR-A has about the same debt/assets ratio as last year.
2.2 Solvency
- Based on the Altman-Z score of 0.56, we must say that NPI-PR-A is in the distress zone and has some risk of bankruptcy.
- Looking at the Altman-Z score, with a value of 0.56, NPI-PR-A belongs to the top of the industry, outperforming 90.63% of the companies in the same industry.
- NPI-PR-A has a debt to FCF ratio of 4.96. This is a neutral value as NPI-PR-A would need 4.96 years to pay back of all of its debts.
- NPI-PR-A has a better Debt to FCF ratio (4.96) than 87.50% of its industry peers.
- NPI-PR-A has a Debt/Equity ratio of 1.56. This is a high value indicating a heavy dependency on external financing.
- NPI-PR-A has a better Debt to Equity ratio (1.56) than 68.75% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.56 | ||
| Debt/FCF | 4.96 | ||
| Altman-Z | 0.56 |
ROIC/WACC0.75
WACC5.37%
2.3 Liquidity
- A Current Ratio of 1.03 indicates that NPI-PR-A should not have too much problems paying its short term obligations.
- NPI-PR-A has a better Current ratio (1.03) than 71.88% of its industry peers.
- A Quick Ratio of 1.03 indicates that NPI-PR-A should not have too much problems paying its short term obligations.
- With a decent Quick ratio value of 1.03, NPI-PR-A is doing good in the industry, outperforming 75.00% of the companies in the same industry.
| 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-PR-A shows a very negative growth in Earnings Per Share. The EPS has been decreasing by -14.00% on average per year.
- The Revenue has decreased by -4.55% in the past year.
- Measured over the past years, NPI-PR-A 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
- NPI-PR-A is expected to show a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 25.95% yearly.
- NPI-PR-A is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 2.26% yearly.
EPS Next Y-105.59%
EPS Next 2Y14.81%
EPS Next 3Y10.7%
EPS Next 5Y25.95%
Revenue Next Year-0.17%
Revenue Next 2Y2.74%
Revenue Next 3Y3.3%
Revenue Next 5Y2.26%
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
- A Price/Earnings ratio of 26.33 indicates a quite expensive valuation of NPI-PR-A.
- Based on the Price/Earnings ratio, NPI-PR-A is valued a bit cheaper than the industry average as 71.88% of the companies are valued more expensively.
- NPI-PR-A's Price/Earnings ratio indicates a similar valuation than the S&P500 average which is at 27.21.
- Based on the Price/Forward Earnings ratio of 17.84, the valuation of NPI-PR-A can be described as rather expensive.
- Compared to the rest of the industry, the Price/Forward Earnings ratio of NPI-PR-A indicates a somewhat cheap valuation: NPI-PR-A is cheaper than 78.13% of the companies listed in the same industry.
- Compared to an average S&P500 Price/Forward Earnings ratio of 24.26, NPI-PR-A is valued a bit cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 26.33 | ||
| Fwd PE | 17.84 |
4.2 Price Multiples
- Based on the Enterprise Value to EBITDA ratio, NPI-PR-A is valued a bit cheaper than the industry average as 75.00% of the companies are valued more expensively.
- NPI-PR-A's Price/Free Cash Flow ratio is rather cheap when compared to the industry. NPI-PR-A is cheaper than 93.75% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 4.42 | ||
| EV/EBITDA | 8.79 |
4.3 Compensation for Growth
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y14.81%
EPS Next 3Y10.7%
5. Dividend
5.1 Amount
- With a Yearly Dividend Yield of 3.78%, NPI-PR-A has a reasonable but not impressive dividend return.
- Compared to an average industry Dividend Yield of 4.91, NPI-PR-A is paying slightly less dividend.
- NPI-PR-A's Dividend Yield is rather good when compared to the S&P500 average which is at 1.82.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.78% |
5.2 History
- The dividend of NPI-PR-A decreases each year by -8.73%.
- NPI-PR-A has paid a dividend for at least 10 years, which is a reliable track record.
- NPI-PR-A has not decreased its dividend in the last 3 years.
Dividend Growth(5Y)-8.73%
Div Incr Years0
Div Non Decr Years3
5.3 Sustainability
- The earnings of NPI-PR-A are negative and hence is the payout ratio. NPI-PR-A will probably not be able to sustain this dividend level.
DP-91.8%
EPS Next 2Y14.81%
EPS Next 3Y10.7%
NORTHLAND POWER INC - NPICN 5.547 PERP / NPI-PR-A.CA FAQ
What is the ChartMill fundamental rating of NORTHLAND POWER INC - NPICN 5.547 PERP (NPI-PR-A.CA) stock?
ChartMill assigns a fundamental rating of 5 / 10 to NPI-PR-A.CA.
What is the valuation status for NPI-PR-A stock?
ChartMill assigns a valuation rating of 4 / 10 to NORTHLAND POWER INC - NPICN 5.547 PERP (NPI-PR-A.CA). This can be considered as Fairly Valued.
What is the profitability of NPI-PR-A stock?
NORTHLAND POWER INC - NPICN 5.547 PERP (NPI-PR-A.CA) has a profitability rating of 5 / 10.
What is the financial health of NORTHLAND POWER INC - NPICN 5.547 PERP (NPI-PR-A.CA) stock?
The financial health rating of NORTHLAND POWER INC - NPICN 5.547 PERP (NPI-PR-A.CA) is 5 / 10.
Is the dividend of NORTHLAND POWER INC - NPICN 5.547 PERP sustainable?
The dividend rating of NORTHLAND POWER INC - NPICN 5.547 PERP (NPI-PR-A.CA) is 3 / 10 and the dividend payout ratio is -91.8%.