TSX:NPI

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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


Snowflake Analysis

Average dividend payer with questionable track record.


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

-5.1%

NPI

-6.1%

CA Renewable Energy

0.8%

CA Market


1 Year Return

57.4%

NPI

40.7%

CA Renewable Energy

2.0%

CA Market

Return vs Industry: NPI exceeded the Canadian Renewable Energy industry which returned 42.2% over the past year.

Return vs Market: NPI exceeded the Canadian Market which returned 1.8% over the past year.


Shareholder returns

NPIIndustryMarket
7 Day-5.1%-6.1%0.8%
30 Day1.2%3.3%10.5%
90 Day22.2%27.6%9.7%
1 Year63.2%57.4%46.4%40.7%5.7%2.0%
3 Year111.5%84.4%108.9%80.8%13.9%2.9%
5 Year222.6%155.5%227.0%154.5%58.5%34.3%

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

Valuation

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

22.93x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: NPI (CA$43.95) is trading above our estimate of fair value (CA$27.14)

Significantly Below Fair Value: NPI is trading above our estimate of fair value.


Price To Earnings Ratio

PE vs Industry: NPI is poor value based on its PE Ratio (22.9x) compared to the CA Renewable Energy industry average (18.2x).

PE vs Market: NPI is poor value based on its PE Ratio (22.9x) compared to the Canadian market (15.5x).


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 (7x) compared to the CA Renewable Energy industry average (2.1x).


Next Steps

Future Growth

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

-6.1%

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 (-6.1% per year).

Earnings vs Market: NPI's earnings are forecast to decline over the next 3 years (-6.1% per year).

High Growth Earnings: NPI's earnings are forecast to decline over the next 3 years.

Revenue vs Market: NPI's revenue (1.6% per year) is forecast to grow slower than the Canadian market (6.9% per year).

High Growth Revenue: NPI's revenue (1.6% 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?

2.73%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: NPI's dividend (2.73%) is higher than the bottom 25% of dividend payers in the Canadian market (1.6%).

High Dividend: NPI's dividend (2.73%) is low compared to the top 25% of dividend payers in the Canadian market (5.29%).


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 (83.2% 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

2.33yrs

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 ($USD1.67M) is below average for companies of similar size in the Canadian market ($USD4.40M).

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


Leadership Team

NamePositionTenureCompensationOwnership
Mike Crawley
CEO & President2.33yrsCA$2.14m0.037%
CA$ 3.3m
Troy Patton
Chief Operations Officer3.25yrsCA$1.38mno data
Michael Shadbolt
Vice President of Legal & Corporate Affairsno dataCA$520.52k0.0024%
CA$ 210.9k
Morten Melin
Executive VP of Construction & Europe MD3.33yrsCA$798.94kno data
David Povall
Executive Vice President of Development1.17yrsCA$278.61kno data
Pauline Alimchandani
Chief Financial Officer0.67yrno datano data
Wendy Franks
Executive Vice President of Strategy & Investment Management0.50yrno data0.0050%
CA$ 440.5k
Adam Beaumont
Senior Director of Corporate Financeno datano datano data
Wassem Khalil
Senior Director of Investor Relations & Strategyno datano datano data
David Timm
Senior Director of Public Affairsno datano datano data
Susan Sperling
Director of Communicationsno datano datano data
John Hannah
Chief People Officerno datano datano 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

NamePositionTenureCompensationOwnership
Barry Gilmour
Independent Director6.58yrsCA$137.20k0.0078%
CA$ 696.8k
Lisa Colnett
Independent Director0.58yrno data0.00076%
CA$ 67.6k
James Temerty
Non-Independent Director23.92yrsCA$248.10k5.67%
CA$ 504.2m
Linda Bertoldi
Independent Director10.92yrsCA$134.50k0.0064%
CA$ 573.1k
Ian Pearce
Independent Director0.58yrno datano data
John Brace
Chairman of the Board1yrCA$126.00k0.11%
CA$ 10.0m
Keith Halbert
Independent Director1.58yrsCA$80.04k0.0020%
CA$ 176.2k
Russell Goodman
Lead Independent Directorno dataCA$200.99k0.0028%
CA$ 246.5k
Marie Bountrogianni
Independent Director11.92yrsCA$160.50k0.0019%
CA$ 167.3k

4.1yrs

Average Tenure

65yo

Average Age

Experienced Board: NPI's board of directors are considered experienced (4.1 years average tenure).


Ownership

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


Insider Trading Volume

Insider Buying: Insufficient data to determine if 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 11.9%.


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$8.899b
  • 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

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
NPITSX (The Toronto Stock Exchange)YesCommon SharesCACADApr 1998
NPIF.FOTCPK (Pink Sheets LLC)YesCommon SharesUSUSDApr 1998
1NRDB (Deutsche Boerse AG)YesCommon SharesDEEURApr 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

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/12/04 23:01
End of Day Share Price2020/12/04 00:00
Earnings2020/09/30
Annual Earnings2019/12/31


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.