Executive Summary
Northland Power Inc., an independent power producer, develops, builds, owns, and operates clean and green power projects primarily in Canada and Europe. More Details
Rewards
Risk Analysis
Earnings are forecast to decline by an average of 6.3% per year for the next 3 years
+ 1 more risk
Snowflake Analysis
Average dividend payer and slightly overvalued.
Similar Companies
Share Price & News
How has Northland Power's share price performed over time and what events caused price changes?
Latest Share Price and Events
Stable Share Price: NPI is less volatile than 75% of Canadian stocks over the past 3 months, typically moving +/- 4% a week.
Volatility Over Time: NPI's weekly volatility (4%) has been stable over the past year.
Market Performance
7 Day Return
6.9%
NPI
4.9%
CA Renewable Energy
-0.2%
CA Market
1 Year Return
68.7%
NPI
65.2%
CA Renewable Energy
1.4%
CA Market
Return vs Industry: NPI exceeded the Canadian Renewable Energy industry which returned 65.2% over the past year.
Return vs Market: NPI exceeded the Canadian Market which returned 1.4% over the past year.
Shareholder returns
| NPI | Industry | Market | |
|---|---|---|---|
| 7 Day | 6.9% | 4.9% | -0.2% |
| 30 Day | 11.0% | 11.7% | 2.8% |
| 90 Day | 16.0% | 29.7% | 12.4% |
| 1 Year | 74.7%68.7% | 71.7%65.2% | 5.0%1.4% |
| 3 Year | 143.0%112.3% | 157.0%122.6% | 13.4%2.7% |
| 5 Year | 220.7%155.9% | 247.3%171.9% | 59.7%35.2% |
Long-Term Price Volatility Vs. Market
How volatile is Northland Power's share price compared to the market and industry in the last 5 years?
Simply Wall St News
1 week ago | Simply Wall St
Is There More To The Story Than Northland Power's (TSE:NPI) Earnings Growth?3 weeks ago | Simply Wall St
Is Northland Power Inc. (TSE:NPI) A High Quality Stock To Own?1 month ago | Simply Wall St
Will The ROCE Trend At Northland Power (TSE:NPI) Continue?Valuation
Is Northland Power undervalued compared to its fair value and its price relative to the market?
24.7%
Undervalued compared to fair value
Share Price vs. Fair Value
Below Fair Value: NPI (CA$49.74) is trading below our estimate of fair value (CA$66.04)
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 (25.9x) compared to the CA Renewable Energy industry average (20.4x).
PE vs Market: NPI is poor value based on its PE Ratio (25.9x) compared to the Canadian market (16.8x).
Price to Earnings Growth Ratio
PEG Ratio: NPI's earnings are forecast to decline next year, so we can't calculate its PEG ratio.
Price to Book Ratio
PB vs Industry: NPI is overvalued based on its PB Ratio (7.9x) compared to the CA Renewable Energy industry average (2.7x).
Next Steps
Future Growth
How is Northland Power forecast to perform in the next 1 to 3 years based on estimates from 10 analysts?
-6.3%
Forecasted annual earnings growth
Earnings and Revenue Growth Forecasts
Analyst Future Growth Forecasts
Earnings vs Savings Rate: NPI's earnings are forecast to decline over the next 3 years (-6.3% per year).
Earnings vs Market: NPI's earnings are forecast to decline over the next 3 years (-6.3% per year).
High Growth Earnings: NPI's earnings are forecast to decline over the next 3 years.
Revenue vs Market: NPI's revenue (2.5% per year) is forecast to grow slower than the Canadian market (8% per year).
High Growth Revenue: NPI's revenue (2.5% per year) is forecast to grow slower than 20% per year.
Earnings per Share Growth Forecasts
Future Return on Equity
Future ROE: NPI's Return on Equity is forecast to be low in 3 years time (6%).
Next Steps
Past Performance
How has Northland Power performed over the past 5 years?
42.5%
Historical annual earnings growth
Earnings and Revenue History
Quality Earnings: NPI has high quality earnings.
Growing Profit Margin: NPI's current net profit margins (18.5%) are lower than last year (19.2%).
Past Earnings Growth Analysis
Earnings Trend: NPI has become profitable over the past 5 years, growing earnings by 42.5% per year.
Accelerating Growth: NPI's earnings growth over the past year (20.7%) is below its 5-year average (42.5% per year).
Earnings vs Industry: NPI earnings growth over the past year (20.7%) underperformed the Renewable Energy industry 20.7%.
Return on Equity
High ROE: Whilst NPI's Return on Equity (26.56%) is high, this metric is skewed due to their high level of debt.
Next Steps
Financial Health
How is Northland Power's financial position?
Financial Position Analysis
Short Term Liabilities: NPI's short term assets (CA$1.2B) do not cover its short term liabilities (CA$1.2B).
Long Term Liabilities: NPI's short term assets (CA$1.2B) do not cover its long term liabilities (CA$8.4B).
Debt to Equity History and Analysis
Debt Level: NPI's debt to equity ratio (421.5%) is considered high.
Reducing Debt: NPI's debt to equity ratio has increased from 358% to 421.5% over the past 5 years.
Debt Coverage: NPI's debt is not well covered by operating cash flow (16.3%).
Interest Coverage: NPI's interest payments on its debt are well covered by EBIT (3.1x coverage).
Balance Sheet
Next Steps
Dividend
What is Northland Power current dividend yield, its reliability and sustainability?
2.41%
Current Dividend Yield
Upcoming Dividend Payment
Dividend Yield vs Market
Notable Dividend: NPI's dividend (2.41%) is higher than the bottom 25% of dividend payers in the Canadian market (1.55%).
High Dividend: NPI's dividend (2.41%) is low compared to the top 25% of dividend payers in the Canadian market (4.91%).
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 reasonable payout ratio (62.6%), NPI's dividend payments are covered by earnings.
Future Payout to Shareholders
Future Dividend Coverage: NPI's dividends in 3 years are forecast to be covered by earnings (58.6% payout ratio).
Next Steps
Management
How experienced are the management team and are they aligned to shareholders interests?
1.8yrs
Average management tenure
CEO
Mike Crawley
2.42yrs
Tenure
CA$2,143,833
Compensation
Mr. Mike Crawley is a Chairman at Ontario Energy Association since October 2019. Mr. Crawley serves as Chief Executive Officer at Northland Power Incorporated since August 04, 2018 and has been its Preside...
CEO Compensation Analysis
Compensation vs Market: Mike's total compensation ($USD1.68M) is below average for companies of similar size in the Canadian market ($USD3.61M).
Compensation vs Earnings: Mike's compensation has been consistent with company performance over the past year.
Leadership Team
| Name | Position | Tenure | Compensation | Ownership |
|---|---|---|---|---|
| CEO & President | 2.42yrs | CA$2.14m | 0.037% CA$ 3.7m | |
| Chief Operations Officer | 3.33yrs | CA$1.38m | no data | |
| VP & General Counsel | no data | CA$520.52k | 0.0024% CA$ 238.0k | |
| Executive VP of Construction & Europe MD | 3.42yrs | CA$798.94k | no data | |
| Executive Vice President of Development | 1.25yrs | CA$278.61k | no data | |
| Chief Financial Officer | 0.75yr | no data | no data | |
| Executive Vice President of Strategy & Investment Management | 0.58yr | no data | 0.0050% CA$ 497.1k | |
| Senior Director of Corporate Finance | no data | no data | no data | |
| Senior Director of Investor Relations & Strategy | no data | no data | no data | |
| Senior Director of Public Affairs | no data | no data | no data | |
| Director of Communications | no data | no data | no data | |
| Chief People Officer | no data | no data | no data |
1.8yrs
Average Tenure
48yo
Average Age
Experienced Management: NPI's management team is not considered experienced ( 1.8 years average tenure), which suggests a new team.
Board Members
| Name | Position | Tenure | Compensation | Ownership |
|---|---|---|---|---|
| Independent Director | 6.67yrs | CA$137.20k | 0.0081% CA$ 815.4k | |
| Independent Director | 0.67yr | no data | 0.00076% CA$ 76.3k | |
| Non-Independent Director | 24yrs | CA$248.10k | 0.061% CA$ 6.1m | |
| Independent Director | 11yrs | CA$134.50k | 0.0064% CA$ 646.7k | |
| Independent Director | 0.67yr | no data | no data | |
| Chairman of the Board | 1.08yrs | CA$126.00k | 0.11% CA$ 11.2m | |
| Independent Director | 1.67yrs | CA$80.04k | 0.0020% CA$ 198.8k | |
| Lead Independent Director | no data | CA$200.99k | 0.0028% CA$ 278.2k | |
| Independent Director | 12yrs | CA$160.50k | 0.0019% CA$ 188.8k |
4.2yrs
Average Tenure
65yo
Average Age
Experienced Board: NPI's board of directors are considered experienced (4.2 years average tenure).
Ownership
Who are the major shareholders and have insiders been buying or selling?
Insider Trading Volume
Insider Buying: NPI insiders have only sold shares 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 4.2%.
Top Shareholders
Company Information
Northland Power Inc.'s company bio, employee growth, exchange listings and data sources
Key Information
- Name: Northland Power Inc.
- Ticker: NPI
- Exchange: TSX
- Founded: 1987
- Industry: Independent Power Producers and Energy Traders
- Sector: Utilities
- Market Cap: CA$10.042b
- Shares outstanding: 201.89m
- 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
| Ticker | Exchange | Primary Security | Security Type | Country | Currency | Listed on |
|---|---|---|---|---|---|---|
| NPI | TSX (The Toronto Stock Exchange) | Yes | Common Shares | CA | CAD | Apr 1998 |
| NPIF.F | OTCPK (Pink Sheets LLC) | Yes | Common Shares | US | USD | Apr 1998 |
| 1NR | DB (Deutsche Boerse AG) | Yes | Common Shares | DE | EUR | Apr 1998 |
Biography
Northland Power Inc., an independent power producer, develops, builds, owns, and operates clean and green power projects primarily in Canada and Europe. The company produces electricity from renewable reso...
Company Analysis and Financial Data Status
| Data | Last Updated (UTC time) |
|---|---|
| Company Analysis | 2021/01/24 00:36 |
| End of Day Share Price | 2021/01/22 00:00 |
| Earnings | 2020/09/30 |
| Annual Earnings | 2019/12/31 |
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.