TSXV:NKW

Stock Analysis Report

Naikun Wind Energy Group

Executive Summary

NaiKun Wind Energy Group Inc. engages in the development of renewable energy projects in Canada.

Snowflake

Fundamentals

Weak fundamentals or lack of information.

Share Price & News

How has Naikun Wind Energy Group's share price performed over time and what events caused price changes?


Latest Share Price and Events


Market Performance


7 Day Return

-27.0%

NKW

-1.4%

CA Renewable Energy

0.1%

CA Market


1 Year Return

3.8%

NKW

18.9%

CA Renewable Energy

1.6%

CA Market

Return vs Industry: NKW exceeded the Canadian Renewable Energy industry which returned 18.9% over the past year.

Return vs Market: NKW exceeded the Canadian Market which returned 1.6% over the past year.


Shareholder returns

NKWIndustryMarket
7 Day-27.0%-1.4%0.1%
30 Day-35.7%1.5%-2.9%
90 Day170.0%0.7%-1.4%
1 Year3.8%3.8%24.9%18.9%5.2%1.6%
3 Year42.1%42.1%27.9%10.4%13.8%3.7%
5 Year28.6%28.6%53.8%18.8%25.3%7.2%

Price Volatility Vs. Market

How volatile is Naikun Wind Energy Group's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is Naikun Wind Energy Group undervalued compared to its fair value and its price relative to the market?


In this section, we usually try to help investors determine whether Naikun Wind Energy Group is trading at an attractive price based on the cash flow it is expected to produce in the future. But as Naikun Wind Energy Group has not provided consistent financial data, and the stock also has no analyst forecast or coverage, its intrinsic value cannot be reliably calculated by extrapolating past data or using analyst consensus cash flow predictions.

This is quite a rare situation as 89% of companies covered by Simply Wall St do have a valuation analysis.


Next Steps

  • Take a look at our analysis of NKW’s management and see if the CEO’s compensation is within a reasonable range, who is on the board and if insiders have been trading lately.
  • When valuing a company like this, investors focus more on how they perceive the size of the opportunity, the company's ability to deliver and scale, and the strength of the team. While we are not analysing this type of data at the moment, if you don’t know where to start, we recommend reading through Naikun Wind Energy Group regulatory filings.
  • Explore potentially undervalued companies in the Utilities industry.

Future Growth

How is Naikun Wind Energy Group forecast to perform in the next 1 to 3 years based on estimates from 0 analysts?

23.9%

Forecasted Utilities industry annual growth in earnings


In this section we usually present revenue and earnings growth projections based on the consensus estimates of professional analysts to help investors understand the company’s ability to generate profit. But as Naikun Wind Energy Group has not provided enough past data and has no analyst forecast, its future earnings cannot be reliably calculated by extrapolating past data or using analyst predictions.

This is quite a rare situation as 97% of companies covered by SimplyWall St do have past financial data.


Next Steps

Past Performance

How has Naikun Wind Energy Group performed over the past 5 years?

16.9%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Earnings Trend: NKW is unprofitable, but has reduced losses over the past 5 years at a rate of 16.9% per year.

Accelerating Growth: Unable to compare NKW's earnings growth over the past year to its 5-year average as it is currently unprofitable

Earnings vs Industry: NKW is unprofitable, making it difficult to compare its past year earnings growth to the Renewable Energy industry (33.9%).


Return on Equity

High ROE: NKW's liabilities exceed its assets, so it is difficult to calculate its Return on Equity.


Return on Assets

ROA vs Industry: NKW is currently unprofitable, so its Return on Assets is negative.


Return on Capital Employed

ROCE Improving: NKW is currently unprofitable, so its Return on Capital Employed is negative.


Next Steps

Financial Health

How is Naikun Wind Energy Group's financial position?


Financial Position Analysis

Short Term Liabilities: NKW has negative shareholder equity, which is a more serious situation than short term assets not covering short term liabilities.

Long Term Liabilities: NKW has negative shareholder equity, which is a more serious situation than short term assets not covering long term liabilities.


Debt to Equity History and Analysis

Debt Level: NKW has negative shareholder equity, which is a more serious situation than a high debt level.

Reducing Debt: NKW's has negative shareholder equity, so we do not need to check if its debt has reduced over time.


Balance Sheet

Inventory Level: NKW has a low level of unsold assets or inventory.

Debt Coverage by Assets: NKW has negative shareholder equity (liabilities exceed assets) therefore debt is not covered by short term assets.


Cash Runway Analysis

For companies that have on average been loss making in the past we assess whether they have at least 1 year of cash runway.

Stable Cash Runway: NKW has less than a year of cash runway based on its current free cash flow.

Forecast Cash Runway: NKW has less than a year of cash runway if free cash flow continues to grow at historical rates of 25.7% each year.


Next Steps

Dividend

What is Naikun Wind Energy Group's current dividend yield, its reliability and sustainability?


Dividend Yield vs Market

companyn/amarketbottom25%2.0%markettop25%6.0%industryaverage4.9%forecastin3Yearsn/a

Current dividend yield vs market & industry


Stability and Growth of Payments

Notable Dividend: Unable to evaluate NKW's dividend yield against the bottom 25% of dividend payers, as the company has not reported any payouts.

High Dividend: Unable to evaluate NKW's dividend yield against the top 25% of dividend payers, as the company has not reported any payouts.

Stable Dividend: Insufficient data to determine if NKW's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if NKW's dividend payments have been increasing.


Current Payout to Shareholders

Dividend Coverage: Insufficient data to calculate payout ratio to determine if its dividend payments are covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: No need to calculate the sustainability of NKW's dividend in 3 years as they are not forecast to pay a notable one for the Canadian market.


Next Steps

Management

What is the CEO of Naikun Wind Energy Group's salary, the management and board of directors tenure and is there insider trading?

9.3yrs

Average management tenure


CEO

Michael O'Connor 0

9.3yrs

Tenure

CA$414,227

Compensation

Mr. Michael J. O’Connor, P.Eng has been the Chief Executive Officer and President of Naikun Wind Energy Group Inc. since June 15, 2010. Mr. O’Connor has been President and Chief Executive Officer of NaiKun ...


CEO Compensation Analysis

Compensation vs. Market: Insufficient data to establish whether Michael's total compensation is reasonable compared to companies of similar size in the Canadian market.

Compensation vs Earnings: Michael's compensation has increased whilst the company is unprofitable.


Management Age and Tenure

9.3yrs

Average Tenure

Experienced Management: NKW's management team is seasoned and experienced (9.3 years average tenure).


Board Age and Tenure

10.0yrs

Average Tenure

Experienced Board: NKW's board of directors are seasoned and experienced ( 10 years average tenure).


Insider Trading

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Ownership Breakdown


Management Team

  • Wendy Kingsley

    Assistant Secretary

    • Tenure: 0yrs
    • Compensation: CA$4.50k
  • Janos Mate

    Consultant

    • Tenure: 14.8yrs
  • Michael O'Connor

    President

    • Tenure: 9.3yrs
    • Compensation: CA$414.23k
  • Wilbur Lang

    CFO and VP of Finance & Accounting

    • Tenure: 9.2yrs
    • Compensation: CA$59.33k

Board Members

  • Art Willms (79yo)

    Independent Director

    • Tenure: 4.7yrs
    • Compensation: CA$25.91k
  • Joe Houssian (71yo)

    Independent Director

    • Tenure: 11.8yrs
    • Compensation: CA$24.66k
  • Philip Hughes

    Independent Chairman

    • Tenure: 10yrs
    • Compensation: CA$37.78k
  • Dave Rehn

    Independent Director

    • Tenure: 11.2yrs
    • Compensation: CA$25.91k
  • Michael O'Connor

    President

    • Tenure: 9.3yrs
    • Compensation: CA$414.23k

Company Information

Naikun Wind Energy Group Inc.'s company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Naikun Wind Energy Group Inc.
  • Ticker: NKW
  • Exchange: TSXV
  • Founded:
  • Industry: Renewable Electricity
  • Sector: Utilities
  • Market Cap: CA$9.349m
  • Shares outstanding: 69.25m
  • Website: https://www.naikun.ca

Location

  • Naikun Wind Energy Group Inc.
  • 355 Burrard Street
  • Suite 570
  • Vancouver
  • British Columbia
  • V6C 2G8
  • Canada

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
NKWTSXV (TSX Venture Exchange)YesCommon SharesCACADAug 1989
NW9DB (Deutsche Boerse AG)YesCommon SharesDEEURAug 1989
NKWF.FOTCPK (Pink Sheets LLC)YesCommon SharesUSUSDAug 1989

Biography

NaiKun Wind Energy Group Inc. engages in the development of renewable energy projects in Canada. It is developing NaiKun wind project, an offshore wind energy project located in the Hecate Strait off the n ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/10/18 23:57
End of Day Share Price2019/10/18 00:00
Earnings2019/06/30
Annual Earnings2018/09/30


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.