Northland Power Earnings: Strong Offshore Wind Generation to Begin the Year
We maintain our CAD 29 fair value estimate for no-moat Northland Power following its first-quarter earnings. We view shares as undervalued.
We maintain our CAD 29 fair value estimate for no-moat Northland Power following its first-quarter earnings. We view shares as undervalued.
Northland is a first mover in offshore wind, which is still in its early days of adoption globally.
Northland’s existing offshore wind portfolio is relatively concentrated with shorter-term remaining contracts.
Metric
|
NPI
|
RWE
|
ORSTED
|
---|---|---|---|
Price/Earnings (Normalized) | 20.30 | 48.92 | 8.23 |
Price/Book Value | 1.46 | 0.81 | 2.85 |
Price/Sales | 2.50 | 1.03 | 3.15 |
Price/Cash Flow | 5.84 | 12.57 | 14.35 |
Metric
|
NPI
|
RWE
|
ORSTED
|
---|---|---|---|
Quick Ratio | 0.81 | 0.56 | 1.02 |
Current Ratio | 1.13 | 1.56 | 1.37 |
Interest Coverage | 0.62 | 3.75 | −3.35 |
Metric
|
NPI
|
RWE
|
ORSTED
|
---|---|---|---|
Return on Assets (Normalized) | 2.17% | 1.36% | −2.42% |
Return on Equity (Normalized) | 7.26% | 4.64% | −10.60% |
Return on Invested Capital (Normalized) | 3.92% | 2.60% | −2.73% |
Ticker
|
Name
|
Morningstar Rating for Stocks
|
Capital Allocation
|
Economic Moat
|
Market Cap
|
---|---|---|---|---|---|
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OEZVY
| Verbund AG ADR | — | Hwy | $27.8 Bil | |
DNNGY
| Orsted A/S ADR | — | Rmk | $25.6 Bil | |
DOGEF
| Orsted A/S | — | Gbzl | $25.6 Bil | |
CZAVF
| CEZ a.s | — | Hpvjt | $22.3 Bil | |
EDRVF
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BEP
| Brookfield Renewable Partners LP | Vxmplsbhcl | Xsszk | $8.0 Bil | |
BEPC
| Brookfield Renewable Corp Ordinary Shares - Class A (Sub Voting) | Kzplcjsc | Kqctz | $5.6 Bil |