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NORTHLAND POWER INC - NPICN 3.2 PERP (NPI-PR-A.CA) Stock Fundamental Analysis

TSX:NPI-PR-A - Toronto Stock Exchange - CA6665113081 - Currency: CAD

22.5  +0.2 (+0.9%)

Fundamental Rating

5

We assign a fundamental rating of 5 out of 10 to NPI-PR-A. NPI-PR-A was compared to 36 industry peers in the Independent Power and Renewable Electricity Producers industry. While NPI-PR-A has a great profitability rating, there are quite some concerns on its financial health. NPI-PR-A has a decent growth rate and is not valued too expensively.


Dividend Valuation Growth Profitability Health

7

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.
Of the past 5 years NPI-PR-A 4 years were profitable.
NPI-PR-A had a positive operating cash flow in each of the past 5 years.
NPI-PR-A.CA Yearly Net Income VS EBIT VS OCF VS FCFNPI-PR-A.CA Yearly Net Income VS EBIT VS OCF VS FCFYearly Net Income VS EBIT VS OCF VS FCF 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 0 1B -1B

1.2 Ratios

NPI-PR-A's Return On Assets of 1.82% is fine compared to the rest of the industry. NPI-PR-A outperforms 77.78% of its industry peers.
Looking at the Return On Equity, with a value of 5.89%, NPI-PR-A belongs to the top of the industry, outperforming 80.56% of the companies in the same industry.
NPI-PR-A's Return On Invested Capital of 3.83% is amongst the best of the industry. NPI-PR-A outperforms 80.56% 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 5.07%.
Industry RankSector 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%
NPI-PR-A.CA Yearly ROA, ROE, ROICNPI-PR-A.CA Yearly ROA, ROE, ROICYearly ROA, ROE, ROIC 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 0 10 20

1.3 Margins

The Profit Margin of NPI-PR-A (11.46%) is better than 83.33% of its industry peers.
NPI-PR-A's Profit Margin has declined in the last couple of years.
The Operating Margin of NPI-PR-A (32.20%) is better than 80.56% of its industry peers.
NPI-PR-A's Operating Margin has declined in the last couple of years.
NPI-PR-A has a better Gross Margin (96.36%) than 100.00% of its industry peers.
In the last couple of years the Gross Margin of NPI-PR-A has remained more or less at the same level.
Industry RankSector 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%
NPI-PR-A.CA Yearly Profit, Operating, Gross MarginsNPI-PR-A.CA Yearly Profit, Operating, Gross MarginsYearly Profit, Operating, Gross Margins 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 0 20 40 60 80

3

2. Health

2.1 Basic Checks

NPI-PR-A has a Return on Invested Capital (ROIC), which is below the Cost of Capital (WACC), which means it is destroying value.
The number of shares outstanding for NPI-PR-A has been increased compared to 1 year ago.
NPI-PR-A has more shares outstanding than it did 5 years ago.
The debt/assets ratio for NPI-PR-A has remained at the same level compared to a year ago.
NPI-PR-A.CA Yearly Shares OutstandingNPI-PR-A.CA Yearly Shares OutstandingYearly Shares Outstanding 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 50M 100M 150M 200M 250M
NPI-PR-A.CA Yearly Total Debt VS Total AssetsNPI-PR-A.CA Yearly Total Debt VS Total AssetsYearly Total Debt VS Total Assets 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 5B 10B

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 is in the better half of the industry, outperforming 72.22% of the companies in the same industry.
The Debt to FCF ratio of NPI-PR-A is 9.17, which is on the high side as it means it would take NPI-PR-A, 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-PR-A belongs to the best of the industry, outperforming 91.67% of the companies in the same industry.
NPI-PR-A has a Debt/Equity ratio of 1.41. This is a high value indicating a heavy dependency on external financing.
The Debt to Equity ratio of NPI-PR-A (1.41) is better than 77.78% of its industry peers.
Industry RankSector Rank
Debt/Equity 1.41
Debt/FCF 9.17
Altman-Z 0.56
ROIC/WACC0.74
WACC5.2%
NPI-PR-A.CA Yearly LT Debt VS Equity VS FCFNPI-PR-A.CA Yearly LT Debt VS Equity VS FCFYearly LT Debt VS Equity VS FCF 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 0 2B 4B 6B

2.3 Liquidity

A Current Ratio of 0.95 indicates that NPI-PR-A may have some problems paying its short term obligations.
NPI-PR-A has a better Current ratio (0.95) than 72.22% of its industry peers.
A Quick Ratio of 0.95 indicates that NPI-PR-A may have some problems paying its short term obligations.
NPI-PR-A has a Quick ratio of 0.95. This is in the better half of the industry: NPI-PR-A outperforms 75.00% of its industry peers.
Industry RankSector Rank
Current Ratio 0.95
Quick Ratio 0.95
NPI-PR-A.CA Yearly Current Assets VS Current LiabilitesNPI-PR-A.CA Yearly Current Assets VS Current LiabilitesYearly Current Assets VS Current Liabilites 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 500M 1B 1.5B 2B

4

3. Growth

3.1 Past

NPI-PR-A 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-PR-A shows a decrease in Revenue. In the last year, the revenue decreased by -5.22%.
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)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

Based on estimates for the next years, NPI-PR-A will show a quite strong growth in Earnings Per Share. The EPS will grow by 18.63% on average per year.
Based on estimates for the next years, NPI-PR-A 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.
The Revenue growth rate is decreasing: in the next years the growth will be less than in the last years.
NPI-PR-A.CA Yearly Revenue VS EstimatesNPI-PR-A.CA Yearly Revenue VS EstimatesYearly Revenue VS Estimates 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 500M 1B 1.5B 2B 2.5B
NPI-PR-A.CA Yearly EPS VS EstimatesNPI-PR-A.CA Yearly EPS VS EstimatesYearly EPS VS Estimates 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 0 1 2 3

5

4. Valuation

4.1 Price/Earnings Ratio

Based on the Price/Earnings ratio of 22.73, the valuation of NPI-PR-A can be described as rather expensive.
Based on the Price/Earnings ratio, NPI-PR-A is valued a bit cheaper than 77.78% of the companies in the same industry.
NPI-PR-A's Price/Earnings ratio indicates a similar valuation than the S&P500 average which is at 27.29.
Based on the Price/Forward Earnings ratio of 12.34, the valuation of NPI-PR-A can be described as correct.
Compared to the rest of the industry, the Price/Forward Earnings ratio of NPI-PR-A indicates a rather cheap valuation: NPI-PR-A is cheaper than 86.11% of the companies listed in the same industry.
The average S&P500 Price/Forward Earnings ratio is at 21.74. NPI-PR-A is valued slightly cheaper when compared to this.
Industry RankSector Rank
PE 22.73
Fwd PE 12.34
NPI-PR-A.CA Price Earnings VS Forward Price EarningsNPI-PR-A.CA Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 10 20 30 40

4.2 Price Multiples

Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of NPI-PR-A indicates a rather cheap valuation: NPI-PR-A is cheaper than 83.33% of the companies listed in the same industry.
Based on the Price/Free Cash Flow ratio, NPI-PR-A is valued cheaper than 94.44% of the companies in the same industry.
Industry RankSector Rank
P/FCF 7.41
EV/EBITDA 8.81
NPI-PR-A.CA Per share dataNPI-PR-A.CA EPS, Sales, OCF, FCF, BookValue per sharePer Share Data Per Share 5 10 15

4.3 Compensation for Growth

NPI-PR-A 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

5. Dividend

5.1 Amount

With a Yearly Dividend Yield of 5.35%, NPI-PR-A is a good candidate for dividend investing.
Compared to an average industry Dividend Yield of 5.37, NPI-PR-A pays a bit more dividend than its industry peers.
NPI-PR-A's Dividend Yield is rather good when compared to the S&P500 average which is at 2.37.
Industry RankSector Rank
Dividend Yield 5.35%

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
NPI-PR-A.CA Yearly Dividends per shareNPI-PR-A.CA Yearly Dividends per shareYearly Dividends per share 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 0.2 0.4 0.6 0.8 1

5.3 Sustainability

80.16% of the earnings are spent on dividend by NPI-PR-A. This is not a sustainable payout ratio.
DP80.16%
EPS Next 2Y10.64%
EPS Next 3Y1.16%
NPI-PR-A.CA Yearly Income VS Free CF VS DividendNPI-PR-A.CA Yearly Income VS Free CF VS DividendYearly Income VS Free CF VS Dividend 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 0 500M -500M 1B -1B -1.5B
NPI-PR-A.CA Dividend Payout.NPI-PR-A.CA Dividend Payout, showing the Payout Ratio.NPI-PR-A.CA Dividend Payout.PayoutRetained Earnings

NORTHLAND POWER INC - NPICN 3.2 PERP

TSX:NPI-PR-A (7/7/2025, 7:00:00 PM)

22.5

+0.2 (+0.9%)

Chartmill FA Rating
GICS SectorUtilities
GICS IndustryGroupUtilities
GICS IndustryIndependent Power and Renewable Electricity Producers
Earnings (Last)05-13 2025-05-13/amc
Earnings (Next)N/A N/A
Inst Owners45.17%
Inst Owner ChangeN/A
Ins Owners0.1%
Ins Owner ChangeN/A
Market Cap5.88B
Analysts78.82
Price Target27.43 (21.91%)
Short Float %N/A
Short RatioN/A
Dividend
Industry RankSector Rank
Dividend Yield 5.35%
Yearly Dividend0.8
Dividend Growth(5Y)-8.73%
DP80.16%
Div Incr Years0
Div Non Decr Years3
Ex-Date06-20 2025-06-20 (0.2001)
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)-8.06%
PT rev (3m)-1.73%
EPS NQ rev (1m)0%
EPS NQ rev (3m)0%
EPS NY rev (1m)0%
EPS NY rev (3m)-5.12%
Revenue NQ rev (1m)-1.44%
Revenue NQ rev (3m)6.47%
Revenue NY rev (1m)0%
Revenue NY rev (3m)0%
Valuation
Industry RankSector Rank
PE 22.73
Fwd PE 12.34
P/S 2.62
P/FCF 7.41
P/OCF 5.08
P/B 1.35
P/tB 1.77
EV/EBITDA 8.81
EPS(TTM)0.99
EY4.4%
EPS(NY)1.82
Fwd EY8.11%
FCF(TTM)3.04
FCFY13.49%
OCF(TTM)4.43
OCFY19.67%
SpS8.58
BVpS16.7
TBVpS12.69
PEG (NY)N/A
PEG (5Y)N/A
Profitability
Industry RankSector 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 RankSector 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 0.56
F-Score6
WACC5.2%
ROIC/WACC0.74
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%