NORTHLAND POWER INC (NPI.CA) Stock Fundamental Analysis
TSX:NPI - Toronto Stock Exchange - CA6665111002 - Common Stock - Currency: CAD
Taking everything into account, NPI scores 5 out of 10 in our fundamental rating. NPI was compared to 39 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 is valued correctly, but it does not seem to be growing.
1. Profitability
1.1 Basic Checks
In the past year NPI has reported negative net income.
In the past year NPI had a positive cash flow from operations.
The reported net income has been mixed in the past 5 years: NPI reported negative net income in multiple years.
Of the past 5 years NPI 4 years had a positive operating cash flow.
1.2 Ratios
NPI has a Return On Assets of -1.08%. This is comparable to the rest of the industry: NPI outperforms 50.00% of its industry peers.
NPI has a better Return On Equity (-3.61%) than 65.38% of its industry peers.
NPI has a better Return On Invested Capital (5.14%) than 73.08% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for NPI is in line with the industry average of 4.67%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -1.08% | ||
| ROE | -3.61% | ||
| ROIC | 5.14% |
ROA(3y)1.93%
ROA(5y)2.36%
ROE(3y)6.92%
ROE(5y)14.4%
ROIC(3y)5.32%
ROIC(5y)5.72%
1.3 Margins
The Operating Margin of NPI (35.39%) is better than 96.15% of its industry peers.
NPI's Operating Margin has declined in the last couple of years.
NPI has a better Gross Margin (91.30%) than 88.46% of its industry peers.
NPI's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 35.39% | ||
| PM (TTM) | N/A | ||
| GM | 91.3% |
OM growth 3Y-7.11%
OM growth 5Y-6.18%
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y0.12%
GM growth 5Y-0.47%
2. Health
2.1 Basic Checks
The Return on Invested Capital (ROIC) is just above the Cost of Capital (WACC), so NPI is still creating some value.
There is no outstanding debt for NPI. This means it has a Debt/Equity and Debt/FCF ratio of 0 and it is amongst the best of the sector and industry.
2.2 Solvency
Based on the Altman-Z score of 0.56, we must say that NPI is in the distress zone and has some risk of bankruptcy.
NPI has a Altman-Z score (0.56) which is in line with its industry peers.
NPI has a debt to FCF ratio of 52.94. This is a negative value and a sign of low solvency as NPI would need 52.94 years to pay back of all of its debts.
NPI has a Debt to FCF ratio of 52.94. This is amongst the best in the industry. NPI outperforms 84.62% of its industry peers.
A Debt/Equity ratio of 1.62 is on the high side and indicates that NPI has dependencies on debt financing.
Looking at the Debt to Equity ratio, with a value of 1.62, NPI is in the better half of the industry, outperforming 73.08% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.62 | ||
| Debt/FCF | 52.94 | ||
| Altman-Z | 0.56 |
ROIC/WACC1
WACC5.12%
2.3 Liquidity
NPI has a Current Ratio of 1.17. This is a normal value and indicates that NPI is financially healthy and should not expect problems in meeting its short term obligations.
The Current ratio of NPI (1.17) is better than 84.62% of its industry peers.
NPI has a Quick Ratio of 1.17. This is a normal value and indicates that NPI is financially healthy and should not expect problems in meeting its short term obligations.
NPI has a Quick ratio of 1.17. This is amongst the best in the industry. NPI outperforms 84.62% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.17 | ||
| Quick Ratio | 1.17 |
3. Growth
3.1 Past
NPI shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -138.31%.
The Revenue has been growing slightly by 6.80% in the past year.
NPI shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 7.50% yearly.
EPS 1Y (TTM)-138.31%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%-600%
Revenue 1Y (TTM)6.8%
Revenue growth 3Y2.71%
Revenue growth 5Y7.5%
Sales Q2Q%-4.44%
3.2 Future
NPI is expected to show a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 29.40% yearly.
NPI is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 4.46% yearly.
EPS Next Y239.41%
EPS Next 2Y95.71%
EPS Next 3Y68.55%
EPS Next 5Y29.4%
Revenue Next Year7.47%
Revenue Next 2Y3.52%
Revenue Next 3Y6.68%
Revenue Next 5Y4.46%
3.3 Evolution
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
The Price/Earnings Ratio is negative for NPI. In the last year negative earnings were reported.
A Price/Forward Earnings ratio of 13.74 indicates a correct valuation of NPI.
NPI's Price/Forward Earnings ratio is rather cheap when compared to the industry. NPI is cheaper than 88.46% of the companies in the same industry.
Compared to an average S&P500 Price/Forward Earnings ratio of 22.68, NPI is valued a bit cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | N/A | ||
| Fwd PE | 13.74 |
4.2 Price Multiples
76.92% of the companies in the same industry are more expensive than NPI, based on the Enterprise Value to EBITDA ratio.
84.62% of the companies in the same industry are more expensive than NPI, based on the Price/Free Cash Flow ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 33.01 | ||
| EV/EBITDA | 7.49 |
4.3 Compensation for Growth
The low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
NPI's earnings are expected to grow with 68.55% in the coming years. This may justify a more expensive valuation.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y95.71%
EPS Next 3Y68.55%
5. Dividend
5.1 Amount
NPI has a Yearly Dividend Yield of 6.79%, which is a nice return.
NPI's Dividend Yield is rather good when compared to the industry average which is at 4.45. NPI pays more dividend than 80.77% of the companies in the same industry.
Compared to an average S&P500 Dividend Yield of 2.27, NPI pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 6.79% |
5.2 History
The dividend of NPI decreases each year by -3.26%.
NPI has been paying a dividend for at least 10 years, so it has 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)-3.26%
Div Incr Years0
Div Non Decr Years16
5.3 Sustainability
NPI has negative earnings and hence a negative payout ratio. The dividend may be in danger.
DP-141.05%
EPS Next 2Y95.71%
EPS Next 3Y68.55%
TSX:NPI (2/21/2025, 7:00:00 PM)
17.85
+0.18 (+1.02%)
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 Cap4.64B
Analysts77.5
Price Target28.8 (61.34%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 6.79% |
Yearly Dividend0.84
Dividend Growth(5Y)-3.26%
DP-141.05%
Div Incr Years0
Div Non Decr Years16
Ex-Date
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)-93.92%
Min EPS beat(2)-654.46%
Max EPS beat(2)466.62%
EPS beat(4)1
Avg EPS beat(4)-151.13%
Min EPS beat(4)-654.46%
Max EPS beat(4)466.62%
EPS beat(8)3
Avg EPS beat(8)-72.8%
EPS beat(12)7
Avg EPS beat(12)31.26%
EPS beat(16)7
Avg EPS beat(16)-0.47%
Revenue beat(2)0
Avg Revenue beat(2)-2.76%
Min Revenue beat(2)-5.26%
Max Revenue beat(2)-0.25%
Revenue beat(4)2
Avg Revenue beat(4)0.39%
Min Revenue beat(4)-5.26%
Max Revenue beat(4)6.11%
Revenue beat(8)5
Avg Revenue beat(8)1.09%
Revenue beat(12)9
Avg Revenue beat(12)7.02%
Revenue beat(16)10
Avg Revenue beat(16)4.76%
PT rev (1m)-3.67%
PT rev (3m)-4.43%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-7.28%
EPS NY rev (1m)-40.41%
EPS NY rev (3m)-40.41%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)1.53%
Revenue NY rev (1m)0%
Revenue NY rev (3m)0%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | N/A | ||
| Fwd PE | 13.74 | ||
| P/S | 1.93 | ||
| P/FCF | 33.01 | ||
| P/OCF | 5.76 | ||
| P/B | 1.13 | ||
| P/tB | 1.51 | ||
| EV/EBITDA | 7.49 |
EPS(TTM)-0.59
EYN/A
EPS(NY)1.3
Fwd EY7.28%
FCF(TTM)0.54
FCFY3.03%
OCF(TTM)3.1
OCFY17.35%
SpS9.23
BVpS15.79
TBVpS11.85
PEG (NY)N/A
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -1.08% | ||
| ROE | -3.61% | ||
| ROCE | 6.79% | ||
| ROIC | 5.14% | ||
| ROICexc | 5.4% | ||
| ROICexgc | 5.91% | ||
| OM | 35.39% | ||
| PM (TTM) | N/A | ||
| GM | 91.3% | ||
| FCFM | 5.86% |
ROA(3y)1.93%
ROA(5y)2.36%
ROE(3y)6.92%
ROE(5y)14.4%
ROIC(3y)5.32%
ROIC(5y)5.72%
ROICexc(3y)5.8%
ROICexc(5y)6.1%
ROICexgc(3y)6.5%
ROICexgc(5y)6.83%
ROCE(3y)7.02%
ROCE(5y)7.55%
ROICexcg growth 3Y-10.91%
ROICexcg growth 5Y-3.6%
ROICexc growth 3Y-9.81%
ROICexc growth 5Y-3.77%
OM growth 3Y-7.11%
OM growth 5Y-6.18%
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y0.12%
GM growth 5Y-0.47%
F-Score5
Asset Turnover0.17
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.62 | ||
| Debt/FCF | 52.94 | ||
| Debt/EBITDA | 4.34 | ||
| Cap/Depr | 97.55% | ||
| Cap/Sales | 27.69% | ||
| Interest Coverage | 2.36 | ||
| Cash Conversion | 52.59% | ||
| Profit Quality | N/A | ||
| Current Ratio | 1.17 | ||
| Quick Ratio | 1.17 | ||
| Altman-Z | 0.56 |
F-Score5
WACC5.12%
ROIC/WACC1
Cap/Depr(3y)73.1%
Cap/Depr(5y)84.82%
Cap/Sales(3y)20.69%
Cap/Sales(5y)23.85%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)-138.31%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%-600%
EPS Next Y239.41%
EPS Next 2Y95.71%
EPS Next 3Y68.55%
EPS Next 5Y29.4%
Revenue 1Y (TTM)6.8%
Revenue growth 3Y2.71%
Revenue growth 5Y7.5%
Sales Q2Q%-4.44%
Revenue Next Year7.47%
Revenue Next 2Y3.52%
Revenue Next 3Y6.68%
Revenue Next 5Y4.46%
EBIT growth 1Y8.87%
EBIT growth 3Y-4.6%
EBIT growth 5Y0.85%
EBIT Next Year61.87%
EBIT Next 3Y18.86%
EBIT Next 5Y16.58%
FCF growth 1Y-89.41%
FCF growth 3Y-32.08%
FCF growth 5Y-14.18%
OCF growth 1Y-56.28%
OCF growth 3Y-15.93%
OCF growth 5Y-7.09%