NPI

Northland PowerTSX:NPI Stock Report

Market Cap

CA$9.5b

7D

1.9%

1Y

10.0%

Updated

18 Sep, 2021

Data

Company Financials +
NPI fundamental analysis
Snowflake Score
Valuation3/6
Future Growth3/6
Past Performance2/6
Financial Health2/6
Dividends3/6

NPI Overview

Northland Power Inc., an independent power producer, develops, builds, owns, and operates clean and green power projects in North America, Europe, Latin America, and Asia.

Northland Power Competitors

Price History & Performance

Summary of all time highs, changes and price drops for Northland Power
Historical stock prices
Current Share PriceCA$42.27
52 Week HighCA$37.25
52 Week LowCA$51.45
Beta0.41
1 Month Change2.92%
3 Month Change1.12%
1 Year Change9.99%
3 Year Change89.89%
5 Year Change77.75%
Change since IPO302.57%

Recent News & Updates

Sep 06
Returns At Northland Power (TSE:NPI) Are On The Way Up

Returns At Northland Power (TSE:NPI) Are On The Way Up

What are the early trends we should look for to identify a stock that could multiply in value over the long term...

Aug 19
Northland Power (TSE:NPI) Has A Somewhat Strained Balance Sheet

Northland Power (TSE:NPI) Has A Somewhat Strained Balance Sheet

Warren Buffett famously said, 'Volatility is far from synonymous with risk.' It's only natural to consider a company's...

Shareholder Returns

NPICA Renewable EnergyCA Market
7D1.9%-0.8%-0.6%
1Y10.0%19.2%28.9%

Return vs Industry: NPI underperformed the Canadian Renewable Energy industry which returned 19.2% over the past year.

Return vs Market: NPI underperformed the Canadian Market which returned 29% over the past year.

Price Volatility

Is NPI's price volatile compared to industry and market?
NPI volatility
NPI Beta0.41
Industry Beta0.62
Market Beta1

Stable Share Price: NPI is less volatile than 75% of Canadian stocks over the past 3 months, typically moving +/- 2% a week.

Volatility Over Time: NPI's weekly volatility (2%) has been stable over the past year.

About the Company

FoundedEmployeesCEOWebsite
19871,150Mike Crawleyhttps://www.northlandpower.com

Northland Power Inc., an independent power producer, develops, builds, owns, and operates clean and green power projects in North America, Europe, Latin America, and Asia. The company produces electricity from renewable resources, such as wind, solar, or hydro power, as well as clean burning natural gas and biomass for sale under power purchase agreements and other revenue arrangements. As of December 31, 2020, it owned or had economic interest in 2,681 megawatts (MW) of operating generating capacity and 130 MW of generating capacity under construction.

Northland Power Fundamentals Summary

How do Northland Power's earnings and revenue compare to its market cap?
NPI fundamental statistics
Market CapCA$9.55b
Earnings (TTM)CA$173.75m
Revenue (TTM)CA$1.98b

54.9x

P/E Ratio

4.8x

P/S Ratio

Earnings & Revenue

Key profitability statistics from the latest earnings report
NPI income statement (TTM)
RevenueCA$1.98b
Cost of RevenueCA$525.71m
Gross ProfitCA$1.46b
ExpensesCA$1.29b
EarningsCA$173.75m

Last Reported Earnings

Jun 30, 2021

Next Earnings Date

n/a

Earnings per share (EPS)0.84
Gross Margin73.51%
Net Profit Margin8.75%
Debt/Equity Ratio238.6%

How did NPI perform over the long term?

See historical performance and comparison

Dividends

2.8%

Current Dividend Yield

143%

Payout Ratio

Does NPI pay a reliable dividends?

See NPI dividend history and benchmarks
When do you need to buy NPI by to receive an upcoming dividend?
Northland Power dividend dates
Ex Dividend DateSep 28 2021
Dividend Pay DateOct 15 2021
Days until Ex dividend9 days
Days until Dividend pay date26 days

Does NPI pay a reliable dividends?

See NPI dividend history and benchmarks

Valuation

Is Northland Power undervalued compared to its fair value and its price relative to the market?

44.9%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: NPI (CA$42.27) is trading below our estimate of fair value (CA$76.75)

Significantly Below Fair Value: NPI is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: NPI is poor value based on its PE Ratio (54.9x) compared to the Canadian Renewable Energy industry average (10.7x).

PE vs Market: NPI is poor value based on its PE Ratio (54.9x) compared to the Canadian market (12.9x).


Price to Earnings Growth Ratio

PEG Ratio: NPI is good value based on its PEG Ratio (1x)


Price to Book Ratio

PB vs Industry: NPI is overvalued based on its PB Ratio (4.3x) compared to the CA Renewable Energy industry average (2.4x).


Future Growth

How is Northland Power forecast to perform in the next 1 to 3 years based on estimates from 10 analysts?

55.3%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: NPI's forecast earnings growth (55.3% per year) is above the savings rate (1.5%).

Earnings vs Market: NPI's earnings (55.3% per year) are forecast to grow faster than the Canadian market (12.2% per year).

High Growth Earnings: earnings are expected to grow significantly over the next 3 years.

Revenue vs Market: NPI's revenue (5.6% per year) is forecast to grow slower than the Canadian market (6.1% per year).

High Growth Revenue: NPI's revenue (5.6% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: Insufficient data to determine if NPI's Return on Equity is forecast to be high in 3 years time


Past Performance

How has Northland Power performed over the past 5 years?

23.0%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: NPI has high quality earnings.

Growing Profit Margin: NPI's current net profit margins (8.8%) are lower than last year (19.1%).


Past Earnings Growth Analysis

Earnings Trend: NPI has become profitable over the past 5 years, growing earnings by 23% per year.

Accelerating Growth: NPI's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: NPI had negative earnings growth (-52.5%) over the past year, making it difficult to compare to the Renewable Energy industry average (-25.1%).


Return on Equity

High ROE: NPI's Return on Equity (9.5%) is considered low.


Financial Health

How is Northland Power's financial position?


Financial Position Analysis

Short Term Liabilities: NPI's short term assets (CA$1.4B) exceed its short term liabilities (CA$1.4B).

Long Term Liabilities: NPI's short term assets (CA$1.4B) do not cover its long term liabilities (CA$6.9B).


Debt to Equity History and Analysis

Debt Level: NPI's debt to equity ratio (238.6%) is considered high.

Reducing Debt: NPI's debt to equity ratio has reduced from 521.5% to 238.6% over the past 5 years.

Debt Coverage: NPI's debt is not well covered by operating cash flow (19.3%).

Interest Coverage: NPI's interest payments on its debt are not well covered by EBIT (2.7x coverage).


Balance Sheet


Dividend

What is Northland Power current dividend yield, its reliability and sustainability?

2.84%

Current Dividend Yield


Upcoming Dividend Payment

TodaySep 19 2021Ex Dividend DateSep 28 2021Dividend Pay DateOct 15 202117 days from Ex DividendBuy in the next 9 days to receive the upcoming dividend

Dividend Yield vs Market

Notable Dividend: NPI's dividend (2.84%) is higher than the bottom 25% of dividend payers in the Canadian market (1.64%).

High Dividend: NPI's dividend (2.84%) is low compared to the top 25% of dividend payers in the Canadian market (4.51%).


Stability and Growth of Payments

Stable Dividend: NPI's dividend payments have been volatile in the past 10 years.

Growing Dividend: NPI's dividend payments have increased over the past 10 years.


Current Payout to Shareholders

Dividend Coverage: With its high payout ratio (142.7%), NPI's dividend payments are not well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: NPI's dividends in 3 years are forecast to be covered by earnings (82.8% payout ratio).


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

1.7yrs

Average management tenure


CEO

Mike Crawley

3.08yrs

Tenure

CA$2,485,453

Compensation

Mr. Mike Crawley is the Chairman at Ontario Energy Association since October 2019. Mr. Crawley serves as Chief Executive Officer at Northland Power Inc. since August 04, 2018 and has been its President sin...


CEO Compensation Analysis

Compensation vs Market: Mike's total compensation ($USD1.95M) is below average for companies of similar size in the Canadian market ($USD3.56M).

Compensation vs Earnings: Mike's compensation has been consistent with company performance over the past year.


Leadership Team

Experienced Management: NPI's management team is not considered experienced ( 1.7 years average tenure), which suggests a new team.


Board Members

Experienced Board: NPI's board of directors are not considered experienced ( 1.5 years average tenure), which suggests a new board.


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: NPI insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: Shareholders have been diluted in the past year, with total shares outstanding growing by 12%.


Top Shareholders

Company Information

Northland Power Inc.'s employee growth, exchange listings and data sources


Key Information

  • Name: Northland Power Inc.
  • Ticker: NPI
  • Exchange: TSX
  • Founded: 1987
  • Industry: Renewable Electricity
  • Sector: Utilities
  • Market Cap: CA$9.547b
  • Shares outstanding: 225.86m
  • Website: https://www.northlandpower.com

Number of Employees


Location

  • Northland Power Inc.
  • 30 St. Clair Avenue West
  • 12th Floor
  • Toronto
  • Ontario
  • M4V 3A1
  • Canada

Listings


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2021/09/18 22:07
End of Day Share Price2021/09/17 00:00
Earnings2021/06/30
Annual Earnings2020/12/31


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.