TSE:NPI
Northland Power Inc (NPI.TO)
Financials 
Technical Analysis 
Sep 7, 2026, 12:00 amThis summary was created by AI, based on 23 opinions in the last 12 months.
Northland Power Inc. has faced significant challenges recently, particularly due to a dividend cut that disappointed many investors. However, the stock has shown resilience with a strong quarter and substantial upcoming growth opportunities tied to offshore wind projects in Taiwan and Poland. While several analysts see potential for recovery and cash flow generation, some express caution regarding the company's past management decisions and current operational risks. The stock is noted to be hovering in a specific range, leading experts to advise patience and monitoring for potential breakout points. With the ongoing volatility in the renewables space and increasing global energy demand, Northland Power's future remains uncertain yet potentially promising.
He scaled back on a lot of renewables. A great long-term investment theme, but interest sensitive and also cost sensitive. Laying out huge amounts of capital for development projects. With labour and material costs going up, hard to maintain level of investment returns they're used to. It's about rising rates and capturing that investment return. He owned it until recently.
NPI faces challenges in the short-term, but I’m confident that given management’s track record that NPI will stickhandle them and come out stronger down the road. Inflation and rising rates have been a double-headed problem for all utilities, but are showing signs of easing. The share sell-off on that recent earnings miss was deserved, but overdone as shares hit a 52-week low of $27.20. Right before Victoria Day, shares recovered to nearly $30. Read 3 All Canadian for our full analysis.
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Premium contentOur PAST TOP PICK with NPI has triggered its stop at $30. To remain disciplined, we recommend covering the position at this time. This will result in a net investment loss of 15%, when combined with the previous buy recommendation.
Premium contentNPI is an independent Canadian based producer of renewable and natural gas produced power with a diversified geographic portfolio which expands beyond North America into Europe, Asia and Latin America. It trades at 10x earnings and 2x book value, while supporting a 24% ROE. Cash reserves are growing thanks to more shares being issued, but it has also aggressively been retiring debt. We recommend setting a stop-loss at $30, looking to achieve $45 -- upside potential of 30%. Yield 3.5%
(Analysts’ price target is $45.13)Rising interest rates have not been friendly to any renewable energy stocks like NPI , but this company’s fundamentals remain sound. NPI trades at only 9.65x PE, a beta of 0.39, pays a 3.59% dividend at only a 34.68% payout ratio, and boasts a quarterly earnings growth of 168.4% year-over-year. NPI has handily beaten its last four quarters. It boasts wind, solar and hydro projects across the world, with a strong presence in Europe especially, where the company is adding 2GW of capacity in the next two years, and Asia. In late-February, NPI announced strong full-year results of revenue up 17% from full-year 2021, net income soaring 357%, and their profit margin climbing 8.5%. EPS beat the street by 28%. Read Budget winners for our full analysis.
Three big projects on the go, and the question was how were they going to be financed. Yesterday, they issued about $450M in two tranches of debt. With buildouts over the next 2 years, may see free cashflow go down a bit. Longer term, one of the better companies in wind energy, etc. Reasonable place to be. Not a tremendous yield of 3.5%. You're buying it for future increases in FCF.
Premium contentCanadians buy utilities for their fat, reliable dividends, however rising interest rates have stolen some of that thunder and even reliable names like Northland have taken a hit in recent months. Since August 30 last year, NPI has slid from $45.45 to $33. That doesn't reflect the strong performance by this name, which has easily beaten all four of its last quarters, trades at only a 9.58x PE and a super-low 0.38 beta and pays a 3.63% dividend based on 34.68% payout ratio. Cash reserves are up, so are revenues by 17% and net income by 300%.
Premium contentWe again reiterate NPI, and independent power producer with assets worldwide, as a TOP PICK. Recently reported earnings beat expectations as revenue grew 17% and net income tripled. Cash reserves grew substantially and were added by additional shares being released. Combined, this allowed debt to be aggressively retired. We continue to recommend a tight stop at $31, looking to achieve $47 — upside potential of 41%. Yield 3.6%
(Analysts’ price target is $47.00)
Owns shares in the company.
Strong renewable business (wind power).
Operations globally helps to diverse income.
Good long term investment.
Christine Poole
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All renewables got ahead of themselves. Some exposure to price caps in UK. Longer term, you want exposure to renewables and NPI should participate. Good long-term hold in the offshore wind space.