Northland Power Return On Asset vs. Current Valuation

NPI Stock  CAD 18.12  0.12  0.66%   
Considering Northland Power's profitability and operating efficiency indicators, Northland Power may not be well positioned to generate adequate gross income at this time. It has a very high probability of underperforming in January. Profitability indicators assess Northland Power's ability to earn profits and add value for shareholders. At this time, Northland Power's Price To Sales Ratio is very stable compared to the past year. As of the 28th of December 2024, Days Sales Outstanding is likely to grow to 85.84, while EV To Sales is likely to drop 5.36. At this time, Northland Power's Accumulated Other Comprehensive Income is very stable compared to the past year. As of the 28th of December 2024, Operating Income is likely to grow to about 778.2 M, though Total Other Income Expense Net is likely to grow to (758.3 M).
Current ValueLast YearChange From Last Year 10 Year Trend
Gross Profit Margin0.540.7221
Way Down
Slightly volatile
Operating Profit Margin0.270.3319
Significantly Down
Slightly volatile
For Northland Power profitability analysis, we use financial ratios and fundamental drivers that measure the ability of Northland Power to generate income relative to revenue, assets, operating costs, and current equity. These fundamental indicators attest to how well Northland Power utilizes its assets to generate profit and value for its shareholders. The profitability module also shows relationships between Northland Power's most relevant fundamental drivers. It provides multiple suggestions of what could affect the performance of Northland Power over time as well as its relative position and ranking within its peers.
  
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Please note, there is a significant difference between Northland Power's value and its price as these two are different measures arrived at by different means. Investors typically determine if Northland Power is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Northland Power's price is the amount at which it trades on the open market and represents the number that a seller and buyer find agreeable to each party.

Northland Power Current Valuation vs. Return On Asset Fundamental Analysis

Comparative valuation techniques use various fundamental indicators to help in determining Northland Power's current stock value. Our valuation model uses many indicators to compare Northland Power value to that of its competitors to determine the firm's financial worth.
Northland Power is regarded second in return on asset category among its peers. It is regarded fourth in current valuation category among its peers reporting about  313,181,431,979  of Current Valuation per Return On Asset. Comparative valuation analysis is a catch-all model that can be used if you cannot value Northland Power by discounting back its dividends or cash flows. This model doesn't attempt to find an intrinsic value for Northland Power's Stock. Still, instead, it compares the stock's price multiples to a benchmark or nearest competition to determine if the stock is relatively undervalued or overvalued.

Northland Current Valuation vs. Return On Asset

Return on Asset or ROA shows how effective is the management of the company in generating income from utilizing all of the assets at their disposal. It is a useful ratio to evaluate the performance of different departments of a company as well as to understand management performance over time.

Northland Power

Return On Asset

 = 

Net Income

Total Assets

 = 
0.0374
Return on Asset measures overall efficiency of a company in generating profits from its total assets. It is expressed as the percentage of profits earned per dollar of Asset. A low ROA typically means that a company is asset-intensive and therefore will needs more money to continue generating revenue in the future.
Enterprise Value is a firm valuation proxy that approximates the current market value of a company. It is typically used to determine the takeover or merger price of a firm. Unlike Market Cap, this measure takes into account the entire liquid asset, outstanding debt, and exotic equity instruments that the company has on its balance sheet. When a takeover occurs, the parent company will have to assume the target company's liabilities but will take possession of all cash and cash equivalents.

Northland Power

Enterprise Value

 = 

Market Cap + Debt

-

Cash

 = 
11.71 B
Enterprise Value can be a useful tool to compare companies with different capital structures. Long term liability and current cash or cash equivalents can have a huge impact on market valuation of a given company.

Northland Current Valuation vs Competition

Northland Power is regarded fourth in current valuation category among its peers. After adjusting for long-term liabilities, total market size of Utilities industry is now estimated at about 99.69 Billion. Northland Power retains roughly 11.71 Billion in current valuation claiming about 12% of Utilities industry.

Northland Power Profitability Projections

The most important aspect of a successful company is its ability to generate a profit. For investors in Northland Power, profitability is also one of the essential criteria for including it into their portfolios because, without profit, Northland Power will eventually generate negative long term returns. The profitability progress is the general direction of Northland Power's change in net profit over the period of time. It can combine multiple indicators of Northland Power, where stable trends show no significant progress. An accelerating trend is seen as positive, while a decreasing one is unfavorable. A rising trend means that profits are rising, and operational efficiency may be rising as well. A decreasing trend is a sign of poor performance and may indicate upcoming losses.
Last ReportedProjected for Next Year
Accumulated Other Comprehensive Income107.7 M113 M
Operating Income741.2 M778.2 M
Total Other Income Expense Net-798.2 M-758.3 M
Net Loss-96.1 M-91.3 M
Income Tax Expense39.1 M33.6 M
Income Before Tax-57 M-54.2 M
Net Loss-96.1 M-91.3 M
Net Income Applicable To Common Shares939 M986 M
Interest Income72.4 M68.8 M
Net Interest Income-303.8 M-319 M
Change To Netincome71.9 M68.3 M
Net Loss(0.69)(0.66)
Income Quality(8.17)(7.76)
Net Income Per E B T 3.07  3.23 

Northland Profitability Driver Comparison

Profitability drivers are factors that can directly affect your investment outlook on Northland Power. Investors often realize that things won't turn out the way they predict. There are maybe way too many unforeseen events and contingencies during the holding period of Northland Power position where the market behavior may be hard to predict, tax policy changes, gold or oil price hikes, calamities change, and many others. The question is, are you prepared for these unexpected events? Although some of these situations are obviously beyond your control, you can still follow the important profit indicators to know where you should focus on when things like this occur. Below are some of the Northland Power's important profitability drivers and their relationship over time.

Learn to be your own money manager

Our tools can tell you how much better you can do entering a position in Northland Power without increasing your portfolio risk or giving up the expected return. As an individual investor, you need to find a reliable way to track all your investment portfolios. However, your requirements will often be based on how much of the process you decide to do yourself. In addition to allowing all investors analytical transparency into all their portfolios, our tools can evaluate risk-adjusted returns of your individual positions relative to your overall portfolio.

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Use Investing Themes to Complement your Northland Power position

In addition to having Northland Power in your portfolios, you can quickly add positions using our predefined set of ideas and optimize them against your very unique investing style. A single investing idea is a collection of funds, stocks, ETFs, or cryptocurrencies that are programmatically selected from a pull of investment themes. After you determine your investment opportunity, you can then find an optimal portfolio that will maximize potential returns on the chosen idea or minimize its exposure to market volatility.

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Airlines
Airlines Theme
Domestic and international airlines and airline services. The Airlines theme has 39 constituents at this time.
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Other Information on Investing in Northland Stock

To fully project Northland Power's future profitability, investors should examine all historical financial statements. These statements provide investors with a comprehensive snapshot of the financial position of Northland Power at a specified time, usually calculated after every quarter, six months, or one year. Three primary documents fall into the category of financial statements. These documents include Northland Power's income statement, its balance sheet, and the statement of cash flows.
Potential Northland Power investors and stakeholders can use historical trends found within financial statements to determine how well the company is positioned for the future. Although Northland Power investors may work on each financial statement separately, they are all related. The changes in Northland Power's assets and liabilities, for example, are also reflected in the revenues and expenses that we see on Northland Power's income statement, which results in the company's gains or losses. Cash flows can provide more information regarding cash listed on a balance sheet but not equivalent to net income shown on the income statement. Please read more on our technical analysis and fundamental analysis pages.