Northland Power Inc (TSE:NPI): The Best Of Both Worlds

Northland Power Inc (TSE:NPI) is a company with exceptional fundamental characteristics. Upon building up an investment case for a stock, we should look at various aspects. In the case of NPI, it is a company with a a strong track record of performance, trading at a great value. In the following section, I expand a bit more on these key aspects. For those interested in digger a bit deeper into my commentary, read the full report on Northland Power here.

Good value with proven track record

NPI has a strong track record of performance. In the previous year, NPI delivered an impressive double-digit return of 24% Not surprisingly, NPI outperformed its industry which returned 3.6%, giving us more conviction of the company’s capacity to drive bottom-line growth going forward. NPI’s share price is trading at below its true value, meaning that the market sentiment for the stock is currently bearish. This mispricing gives investors the opportunity to buy into the stock at a cheap price compared to the value they will be receiving, should analysts’ consensus forecast growth be correct. Also, relative to the rest of its peers with similar levels of earnings, NPI’s share price is trading below the group’s average. This bolsters the proposition that NPI’s price is currently discounted.

TSX:NPI Income Statement Export November 7th 18
TSX:NPI Income Statement Export November 7th 18

Next Steps:

For Northland Power, I’ve compiled three relevant aspects you should further examine:

  1. Future Outlook: What are well-informed industry analysts predicting for NPI’s future growth? Take a look at our free research report of analyst consensus for NPI’s outlook.
  2. Financial Health: Are NPI’s operations financially sustainable? Balance sheets can be hard to analyze, which is why we’ve done it for you. Check out our financial health checks here.
  3. Other Attractive Alternatives : Are there other well-rounded stocks you could be holding instead of NPI? Explore our interactive list of stocks with large potential to get an idea of what else is out there you may be missing!

To help readers see past the short term volatility of the financial market, we aim to bring you a long-term focused research analysis purely driven by fundamental data. Note that our analysis does not factor in the latest price-sensitive company announcements.

The author is an independent contributor and at the time of publication had no position in the stocks mentioned. For errors that warrant correction please contact the editor at editorial-team@simplywallst.com.