NORTHLAND POWER INC - NPICN 3.2 PERP (NPI-PR-A.CA) Stock Fundamental Analysis
TSX:NPI-PR-A - Toronto Stock Exchange - CA6665113081 - Currency: CAD
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.
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.
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 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-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 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
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.
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 Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.41 | ||
| Debt/FCF | 9.17 | ||
| Altman-Z | 0.56 |
ROIC/WACC0.74
WACC5.2%
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 Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.95 | ||
| Quick Ratio | 0.95 |
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.
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 Rank | Sector Rank | ||
|---|---|---|---|
| PE | 22.73 | ||
| Fwd PE | 12.34 |
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 Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 7.41 | ||
| EV/EBITDA | 8.81 |
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. 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 Rank | Sector 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
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%
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)
Earnings (Next)
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 Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 5.35% |
Yearly Dividend0.8
Dividend Growth(5Y)-8.73%
DP80.16%
Div Incr Years0
Div Non Decr Years3
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)-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 Rank | Sector 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 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 | 0.56 |
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%