Northland PowerTSX:NPI -0.85%68 Gross Margin % is 74.54% as of Mar. 2026, which is 17% below its 10-year median of 90.02. GuruFocus rates TSX:NPI with a GF Score™ of 68/100 and a GF Value™ of C$24.14 (Fairly Valued). The stock has 7 warning signs investors should review. Among 403 Utilities - Independent Power Producers companies, Northland Power ranks better than 94.54% on this metric.
Northland Power had a gross margin of 74.54% for the quarter that ended in Mar. 2026 => Durable competitive advantage
The 5-Year average Growth Rate of Gross Margin for Northland Power was 0.00% per year.
Northland Power (TSX:NPI) Gross Margin % Explanation
Warren Buffett believes that firms with excellent long term economics tend to have consistently higher margins.
Durable competitive advantage creates a high Gross Margin % because of the freedom to price in excess of cost. Companies can be categorized by their Gross Margin %
1. Greater than 40% = Durable competitive advantage
2. Less than 40% = Competition eroding margins
3. Less than 20% = no sustainable competitive advantage
Consistency of Gross Margin is key
Northland Power had a gross margin of 74.54% for the quarter that ended in Mar. 2026 => Durable competitive advantage
Be Aware
If a company loses its competitive advantages, usually its gross margin declines well before its sales declines. Watching Gross Margin % and Operating Margin % closely helps avoid value trap situations.
Northland Power Gross Margin % Related Terms
Northland Power Gross Margin % Historical Data
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The historical data trend for Northland Power's Gross Margin % can be seen below:
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
Northland Power Gross Margin % Competitor Comparison
For the Utilities - Renewable subindustry, Northland Power's Gross Margin %, along with its competitors' market caps and Gross Margin % data, can be viewed below:
* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.
Northland Power Gross Margin % vs Utilities - Independent Power Producers Industry
For the Utilities - Independent Power Producers industry and Utilities sector, Northland Power's Gross Margin % distribution charts can be found below:
* The bar in red indicates where Northland Power's Gross Margin % falls into.
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
A positive Gross Profit is only the first step for a company to make a net profit. The gross profit needs to be big enough to also cover related labor, equipment, rental, marketing/advertising, research and development and a lot of other costs in selling the products.
Northland Power (TSX:NPI) has a Gross Margin % of 74.54% as of Mar. 2026. Gross margin is the ratio of total gross profit to net sales. View historical data on Northland Power and its competitors. This is 17% below median its historical median of 90.02. Over the past decade, Northland Power's Gross Margin % has ranged from 82.42 to 92.99. According to the industry distribution chart, Northland Power ranks #22 out of 403 companies in the Utilities - Independent Power Producers industry, placing it in the top 5.5%.
Is Northland Power's Gross Margin % too high?
Northland Power's current Gross Margin % of 74.54% is 17% below median its 10-year median of 90.02. Over the past 10 years, this metric has ranged from a low of 82.42 to a high of 92.99. The Utilities - Independent Power Producers industry median Gross Margin % is 31.35. Northland Power's value of 74.54% is 137.8% above this industry median. Based on the distribution chart, Northland Power ranks #22 out of 403 companies in the Utilities - Independent Power Producers industry, which is in the top quartile — a strong position relative to peers. Overall, Northland Power has a GF Score™ of 68/100 and is considered Fairly Valued, reflecting its overall financial health beyond just this single metric.
How does Northland Power's Gross Margin % compare to competitors?
According to the Utilities - Independent Power Producers industry distribution chart, Northland Power ranks #22 out of 403 companies for Gross Margin %. This places Northland Power in the top 6% of its industry — outperforming the majority of peers. The industry median Gross Margin % is 31.35. Northland Power's value of 74.54% is 137.8% above this benchmark. Historically, Northland Power's own Gross Margin % has ranged from 82.42 to 92.99 over the past decade. While the company's 10-year median is 90.02 vs. the industry median of 31.35, Northland Power has consistently been above the industry average. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Gross Margin % for an Utilities - Independent Power Producers company?
The median Gross Margin % among Utilities - Independent Power Producers companies is 31.35, based on 403 companies in the industry. Companies in the top quartile (top 25%) have a Gross Margin % significantly above this median, while those in the bottom quartile fall well below. However, Gross Margin % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Northland Power's current Gross Margin % of 74.54% is 137.8% above the industry median. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Gross Margin % mean?
A high Gross Margin % can signal that a stock is expensive relative to its fundamentals. Gross margin is the ratio of total gross profit to net sales. View historical data on Northland Power and its competitors. For the Utilities - Independent Power Producers industry, the median Gross Margin % is 31.35 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Northland Power's current Gross Margin % is 74.54%, which is 17% below median its own 10-year median of 90.02. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Northland Power stock overvalued right now?
Based on GuruFocus' analysis, Northland Power (TSX:NPI) is currently considered Fairly Valued. The stock's GF Value™ is C$24.14, compared to a current price of C$22.08 — trading 8.5% below its estimated fair value. The current Gross Margin % is 74.54%, which is 17% below median its 10-year median of 90.02 and 137.8% above the Utilities - Independent Power Producers industry median of 31.35. Northland Power's overall GF Score™ is 68/100 with 7 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Gross Margin % calculated?
Gross Margin % is calculated from a company's financial statements. For Northland Power (TSX:NPI), the current Gross Margin % is 74.54% as of Mar. 2026. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.
Is Northland Power (TSX:NPI) Overvalued in 2026?
Based on GuruFocus' analysis, Northland Power stock appears to be undervalued.
The current stock price of C$22.08 is trading 8.5% below its estimated GF Value™ of C$24.14.
GuruFocus considers Northland Power to be Fairly Valued.
Key valuation signals for TSX:NPI:
Gross Margin %: 74.54% (17% below median its 10-year median of 90.02)
GF Value™: C$24.14 vs. price of C$22.08 (8.5% below fair value)
Industry Position: 137.8% above the Utilities - Independent Power Producers median (#22 of 403)
No single metric tells the full story. See the TSX:NPI stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Northland Power develops, constructs, and operates sustainable infrastructure assets across a range of clean and green technologies, such as wind (offshore and onshore), solar, and supplying energy through a regulated utility. Offshore wind is expected to remain the company's largest segment over the long term. Northland's growth opportunities are global and span North America, Europe, Latin America, and Asia.
68GF Score
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