Northland Power Operating Margin vs. Net Income

NPI Stock  CAD 18.99  0.03  0.16%   
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 March. Profitability indicators assess Northland Power's ability to earn profits and add value for shareholders.
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 Net Income vs. Operating Margin 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 fourth in operating margin category among its peers. It is regarded fifth in net income category among its peers . 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 Net Income vs. Operating Margin

Operating Margin shows how much operating income a company makes on each dollar of sales. It is one of the profitability indicators which helps analysts to understand whether the firm is successful or not making money from everyday operations.

Northland Power

Operating Margin

 = 

Operating Income

Revenue

X

100

 = 
0.20 %
A good Operating Margin is required for a company to be able to pay for its fixed costs or payout its debt, which implies that the higher the margin, the better. This ratio is most effective in evaluating the earning potential of a company over time when comparing it against a firm's competitors.
Net income is the profit of a company for the reporting period, which is derived after taking revenues and gains and subtracting all expenses and losses. Net income is one of the most-watched numbers by money managers as well as individual investors.

Northland Power

Net Income

 = 

(Rev + Gain)

-

(Exp + Loss)

 = 
(96.13 M)
Because income is reported on the Income Statement of a company and is measured in dollars some investors prefer to use Profit Margin, which measures income as a percentage of sales.

Northland Net Income Comparison

Northland Power is currently under evaluation in net income category among its peers.

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.
Northland Power Inc., an independent power producer, develops, builds, owns, and operates clean and green power projects primarily in Canada and Europe. The company was founded in 1987 and is headquartered in Toronto, Canada. NORTHLAND POWER operates under UtilitiesRenewable classification in Canada and is traded on Toronto Stock Exchange.

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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Utilities - Regulated Electric
Utilities - Regulated Electric Theme
Fama and French investing themes focus on testing asset pricing under different economic assumptions. The Utilities - Regulated Electric theme has 6 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.