Fact based stock research
Northland (TSX:NPI)
CA6665111002
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For every stock, we judge its performance against its peers and rank it on a scale of 1 to 100. The higher the rank, the better the stock performs than its peers. And, we do this for six investment strategies:
Value - shows how good of a value the stock is. Green is "inexpensive"; red is "expensive".
Growth - shows a company's growth potential. Green is "high growth" expected; red is "tough times ahead".
Safety - relates to the amount of debt a company has. Green is low debt level; red is high debt level.
Combined Financial - this isn't an average of the first three ranks but rather a consolidated view across several financial indicators. Green = good; red = tread carefully.
(NEW) Sentiment - quantifies professional analyst ratings and holdings as well as market pulse. Green = positive sentiment; red = skepticism (Only available to Premium Subscribers).
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Northland stock research in summary
northlandpower.comDefault.aspx
ANALYSIS: With an Obermatt Combined Rank of 33 (worse than 67% compared with investment alternatives), Northland (Renewable Electricity, Canada) shares have somewhat below-average financial characteristics compared with similar stocks. Shares of Northland are a good value (attractively priced) with a consolidated Value Rank of 60 (better than 60% of alternatives), are safely financed (Safety Rank of 53, which means low debt burdens), but show below-average growth (Growth Rank of 13). ...read more
RECOMMENDATION: A Combined Rank of 33, is a hold recommendation based on Northland's financial characteristics. As the company Northland's key financial metrics exhibit good value (Obermatt Value Rank of 60) but low growth (Obermatt Growth Rank of 13) while being safely financed (Obermatt Safety Rank of 53), it may be a safer investment because companies with low debt can better withstand times of crises. Yet the good value, better than 60% of comparable companies, may also indicate that the company's future is challenging. If you believe that low growth is temporary or just due to a specific current event, you may conclude that the good value of the stock provides an attractive investment opportunity and the downside is limited due to below-average financing risks. Obermatt Premium subscribers can further check the stock’s Sentiment Ranks, which also flow into the Obermatt 360° View for investors. ...read more
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360° Viewnew| Country | Canada |
| Industry | Renewable Electricity |
| Index | TSX Composite |
| Size class | Large |
2-May-2024. Stock data may be delayed. Log in or sign up to get the most recent research.
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Review the performance ranks of the individual metrics that form each investment strategy.
Research History: Northland
| RESEARCH HISTORY | 2021 | 2022 | 2023 | 2024 | ||||
|---|---|---|---|---|---|---|---|---|
| VALUE | ||||||||
| VALUE | 11 |
|
25 |
|
33 |
|
60 |
|
| GROWTH | ||||||||
| GROWTH | 1 |
|
61 |
|
29 |
|
13 |
|
| SAFETY | ||||||||
| SAFETY | 34 |
|
9 |
|
67 |
|
53 |
|
| SENTIMENT | ||||||||
| SENTIMENT | n/a |
|
91 |
|
48 |
|
new |
|
| 360° VIEW | ||||||||
| 360° VIEW | n/a |
|
55 |
|
33 |
|
new |
|
Combined financial peformance in Detail
ANALYSIS: With an Obermatt Combined Rank of 33 (worse than 67% compared with investment alternatives), Northland (Renewable Electricity, Canada) shares have somewhat below-average financial characteristics compared with similar stocks. Shares of Northland are a good value (attractively priced) with a consolidated Value Rank of 60 (better than 60% of alternatives), are safely financed (Safety Rank of 53, which means low debt burdens), but show below-average growth (Growth Rank of 13). ...read more
RECOMMENDATION: A Combined Rank of 33, is a hold recommendation based on Northland's financial characteristics. As the company Northland's key financial metrics exhibit good value (Obermatt Value Rank of 60) but low growth (Obermatt Growth Rank of 13) while being safely financed (Obermatt Safety Rank of 53), it may be a safer investment because companies with low debt can better withstand times of crises. Yet the good value, better than 60% of comparable companies, may also indicate that the company's future is challenging. If you believe that low growth is temporary or just due to a specific current event, you may conclude that the good value of the stock provides an attractive investment opportunity and the downside is limited due to below-average financing risks. Obermatt Premium subscribers can further check the stock’s Sentiment Ranks, which also flow into the Obermatt 360° View for investors. ...read more
| RESEARCH HISTORY | 2021 | 2022 | 2023 | 2024 | ||||
|---|---|---|---|---|---|---|---|---|
| VALUE | ||||||||
| VALUE | 11 |
|
25 |
|
33 |
|
60 |
|
| GROWTH | ||||||||
| GROWTH | 1 |
|
61 |
|
29 |
|
13 |
|
| SAFETY | ||||||||
| SAFETY | 34 |
|
9 |
|
67 |
|
53 |
|
| COMBINED | ||||||||
| COMBINED | 6 |
|
23 |
|
33 |
|
33 |
|
Value Metrics in Detail
ANALYSIS: With an Obermatt Value Rank of 60 (better than 60% compared with alternatives), Northland shares are more attractively priced than the majority of comparable stocks. The Value Rank is based on consolidating four value indicators, with half of the indicators below and half above average for Northland. Price-to-Profit (also referred to as price-earnings, P/E) is 73 which means that the stock price compared with what market professionals expect for future profits is lower than for 73% of comparable companies, indicating a good value concerning Northland's profit levels. The same is valid for Price-to-Book Capital (also referred to as market-to-book ratio) with a Price-to-Book Rank of 28, which means that the stock price is lower as regards to invested capital than for 28% of comparable investments. On the other hand, Price-to-Sales is less favorable than 53% of alternatives (only 47% of peers have an even less favorable ratio). The same is valid for dividend yield, which is lower than 18% of comparable companies, making the stock more expensive as regards to the company's expected dividend payouts. ...read more
RECOMMENDATION: The overall picture with a consolidated Value Rank of 60, is a buy recommendation based on Northland's stock price compared with the company's operational size and dividend yields. This is a puzzling picture, because it means that profits are high while dividends are low. Since the stock price is low compared with invested capital but high in respect to expected revenues, it means that the company has more invested capital than peers for generating the same amount of revenue. Since profits are higher, it could be a "cash cow" situation (using the classic Boston Consulting BCG matrix naming convention) where the company is on a downward trend, still living from the profits of past products. As the company pays low dividends, it may harbor the opinion that a turnaround is possible, and it rather invests the cash than pay it out to shareholders, thus sealing the company's fate early. Any investment optimism should only be a buy trigger once thorough research is completed. We recommend further analyzing the stock with Obermatt’s Value, Safety, and Sentiment Ranks, including the 360° View, before making an investment decision, which is especially important in this case, as the financial indicators are inconclusive. ...read more
| VALUE METRICS | 2021 | 2022 | 2023 | 2024 | ||||
|---|---|---|---|---|---|---|---|---|
| PRICE VS. REVENUES (P/S) | ||||||||
| PRICE VS. REVENUES (P/S) | 14 |
|
36 |
|
30 |
|
47 |
|
| PRICE VS. PROFITS (P/E) | ||||||||
| PRICE VS. PROFITS (P/E) | 21 |
|
35 |
|
41 |
|
73 |
|
| PRICE VS. CAPITAL (Market-to-Book) | ||||||||
| PRICE VS. CAPITAL (Market-to-Book) | 11 |
|
1 |
|
26 |
|
28 |
|
| DIVIDEND YIELD | ||||||||
| DIVIDEND YIELD | 40 |
|
41 |
|
73 |
|
82 |
|
| CONSOLIDATED RANK: VALUE | ||||||||
| CONSOLIDATED RANK: VALUE | 11 |
|
25 |
|
33 |
|
60 |
|
Growth Metrics in Detail
ANALYSIS: With an Obermatt Growth Rank of 13 (better than 13% compared with alternatives), Northland shows one of the most restricted growth dynamics in its industry. There is little momentum in this company. The Growth Rank is based on consolidating four value indicators, with three out of four metrics below average for Northland. While Profit Growth has a good rank of 98, as professionals currently expect the company to grow its profits more than 98% of its competitors, all other growth indicators are below market averages. Sales Growth has a rank of 12, which means that currently professionals expect the company to grow less than 88% of its competitors, while Capital Growth has a rank of 22 and Stock Returns have been below market median, with a rank of 8 (92% of alternative investments were better). ...read more
RECOMMENDATION: The overall picture with a consolidated Growth Rank of 13, is a sell recommendation for growth and momentum investors. While revenue growth and capital growth are good growth momentum indicators, profit is less reliable, because profits may increase due to cost-cutting measures which typically indicate negative growth momentum. "You can save a dollar only once" is the saying about such situations. Growth Investors should look at company priorities closely if they are interested in growth, because the increase in profits is not usually an indicator of growth, and stock prices have been below market, too. While momentum is a popular investment factor, the value aspect might be the more important one, in the longer term. We recommend analyzing the stock with Obermatt’s Value, Safety, and Sentiment Ranks to arrive at a 360° View of the stock purchase case, especially since the growth performance is limited here. ...read more
| GROWTH METRICS | 2021 | 2022 | 2023 | 2024 | ||||
|---|---|---|---|---|---|---|---|---|
| REVENUE GROWTH | ||||||||
| REVENUE GROWTH | 17 |
|
84 |
|
63 |
|
12 |
|
| PROFIT GROWTH | ||||||||
| PROFIT GROWTH | 68 |
|
6 |
|
6 |
|
98 |
|
| CAPITAL GROWTH | ||||||||
| CAPITAL GROWTH | n/a |
|
98 |
|
96 |
|
22 |
|
| STOCK RETURNS | ||||||||
| STOCK RETURNS | 30 |
|
11 |
|
5 |
|
8 |
|
| CONSOLIDATED RANK: GROWTH | ||||||||
| CONSOLIDATED RANK: GROWTH | 1 |
|
61 |
|
29 |
|
13 |
|
Safety Metrics in Detail
ANALYSIS: With an Obermatt Safety Rank of 53 (better than 53% compared with alternatives), the company Northland has financing practices on the safer side, which mean that their overall debt burden is lower than average. This doesn't mean that the business of Northland is safe, it only means that the company is on the safer side regarding possible bankruptcy, assuming that public reporting is correct. The Safety Rank is based on consolidating three financing indicators, with just one indicator above average for Northland and the other two below average. Refinancing is at 85, meaning the portion of the debt about to be refinanced is below average. It has less debt in the refinancing stage than 85% of its competitors. But Leverage is high with a rank of 30, meaning the company has an above-average debt-to-equity ratio. It has more debt than 70% of its competitors. Liquidity is also on the riskier side with a rank of 28, meaning the company generates less profit to service its debt than 72% of its competitors. ...read more
RECOMMENDATION: With a consolidated Safety Rank of 53 (better than 53% compared with alternatives), Northland has a financing structure that is safer than that of its competitors. A good Refinancing Rank means that the problems of the company may not be around the corner. But high Leverage is only good if things go well, and low Liquidity is a signal for caution. The financing signals for Northland are on the riskier side, requiring the company's future to be on the safer side. Investors may want to look at Growth and Sentiment ranks before making an investment decision. In the long-term, investors may have a debt challenge with Northland and should also compare Obermatt’s Value, Growth, and Sentiment Ranks before making a decision. ...read more
| SAFETY METRICS | 2021 | 2022 | 2023 | 2024 | ||||
|---|---|---|---|---|---|---|---|---|
| LEVERAGE | ||||||||
| LEVERAGE | 33 |
|
4 |
|
44 |
|
30 |
|
| REFINANCING | ||||||||
| REFINANCING | 61 |
|
33 |
|
59 |
|
85 |
|
| LIQUIDITY | ||||||||
| LIQUIDITY | 24 |
|
33 |
|
64 |
|
28 |
|
| CONSOLIDATED RANK: SAFETY | ||||||||
| CONSOLIDATED RANK: SAFETY | 34 |
|
9 |
|
67 |
|
53 |
|
Sentiment Metrics in Detail
| SENTIMENT | 2021 | 2022 | 2023 | 2024 | ||||
|---|---|---|---|---|---|---|---|---|
| ANALYST OPINIONS | ||||||||
| ANALYST OPINIONS | n/a |
|
86 |
|
97 |
|
new |
|
| OPINIONS CHANGE | ||||||||
| OPINIONS CHANGE | n/a |
|
50 |
|
50 |
|
new |
|
| PRO HOLDINGS | ||||||||
| PRO HOLDINGS | n/a |
|
99 |
|
23 |
|
new |
|
| MARKET PULSE | ||||||||
| MARKET PULSE | n/a |
|
28 |
|
24 |
|
new |
|
| CONSOLIDATED RANK: SENTIMENT | ||||||||
| CONSOLIDATED RANK: SENTIMENT | n/a |
|
91 |
|
48 |
|
new |
|
Free stock analysis by the purely fact based Obermatt Method for Northland from May 2, 2024.
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