Northland PowerTSX:NPI -0.85%68 Interest Coverage is 4.74 as of Mar. 2026, which is 96% above its 10-year median of 2.42. 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 320 Utilities - Independent Power Producers companies, Northland Power ranks worse than 50.94% on this metric.
Interest Coverage is a ratio that determines how easily a company can pay interest expenses on outstanding debt. It is calculated by dividing a company's
Operating Income
by its Interest Expense. Northland Power's
Operating Income
for the
three
months ended in Mar. 2026 was C$353 Mil. Northland Power's Interest Expense for the
three
months ended in Mar. 2026 was C$-74 Mil.
Northland Power's interest coverage for the quarter that ended in Mar. 2026 was 4.74.
The higher the ratio, the stronger the company's financial strength is.
Warning Sign:
Ben Graham prefers companies' interest coverage to be at least 5. Northland Power Inc interest coverage is 2.77, which is low.
The historical rank and industry rank for Northland Power's Interest Coverage or its related term are showing as below:
TSX:NPI'
s Interest Coverage Range Over the Past 10 Years
Min: 1.9 Med: 2.42 Max: 3.36
Current: 2.77
Northland Power (TSX:NPI) Interest Coverage Explanation
Ben Graham requires that a company has a minimum interest coverage of 5 with the companies he invested. If the interest coverage is less than 2, the company is burdened by debt. Any business slow or recession may drag the company into a situation where it cannot pay the interest on its debt.
Interest Coverage is an important factor when GuruFocus ranks a company's overage Financial Strength .
Northland Power Interest Coverage Related Terms
Northland Power Interest Coverage Historical Data
* Premium members only.
The historical data trend for Northland Power's Interest Coverage 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.
Note: For Interest Coverage, "No debt" indicates no long-term debt. An indication of "No Debt" does not necessarily mean that the company has no long-term debt obligations; it could be due to missing data in the quarterly or annual report. Use caution when interpreting this information.
Northland Power Interest Coverage Competitor Comparison
For the Utilities - Renewable subindustry, Northland Power's Interest Coverage, along with its competitors' market caps and Interest Coverage 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 Interest Coverage vs Utilities - Independent Power Producers Industry
For the Utilities - Independent Power Producers industry and Utilities sector, Northland Power's Interest Coverage distribution charts can be found below:
* The bar in red indicates where Northland Power's Interest Coverage falls into.
Interest Coverage is a ratio that determines how easily a company can pay interest expenses on outstanding debt. It is calculated by dividing a company's Operating Income (EBIT) by its Interest Expense:
* 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 (TSX:NPI) has a Interest Coverage of 4.74 as of Mar. 2026. Interest Coverage measures a company's capability to pay interest expenses on its debt. View historical data on Northland Power and its competitors. This is 96% above median its historical median of 2.42. Over the past decade, Northland Power's Interest Coverage has ranged from 1.90 to 3.36. According to the industry distribution chart, Northland Power ranks #163 out of 320 companies in the Utilities - Independent Power Producers industry, placing it in the top 50.9%.
Is Northland Power's Interest Coverage too high?
Northland Power's current Interest Coverage of 4.74 is 96% above median its 10-year median of 2.42. Over the past 10 years, this metric has ranged from a low of 1.90 to a high of 3.36. The Utilities - Independent Power Producers industry median Interest Coverage is 2.95. Northland Power's value of 4.74 is 60.7% above this industry median. Based on the distribution chart, Northland Power ranks #163 out of 320 companies in the Utilities - Independent Power Producers industry, which is below the industry midpoint. 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 Interest Coverage compare to competitors?
According to the Utilities - Independent Power Producers industry distribution chart, Northland Power ranks #163 out of 320 companies for Interest Coverage. This places Northland Power in the lower half of its industry. The industry median Interest Coverage is 2.95. Northland Power's value of 4.74 is 60.7% above this benchmark. Historically, Northland Power's own Interest Coverage has ranged from 1.90 to 3.36 over the past decade. While the company's 10-year median is 2.42 vs. the industry median of 2.95, 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 Interest Coverage for an Utilities - Independent Power Producers company?
The median Interest Coverage among Utilities - Independent Power Producers companies is 2.95, based on 320 companies in the industry. Companies in the top quartile (top 25%) have a Interest Coverage significantly above this median, while those in the bottom quartile fall well below. However, Interest Coverage should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Northland Power's current Interest Coverage of 4.74 is 60.7% 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 Interest Coverage mean?
A high Interest Coverage can signal that a stock is expensive relative to its fundamentals. Interest Coverage measures a company's capability to pay interest expenses on its debt. View historical data on Northland Power and its competitors. For the Utilities - Independent Power Producers industry, the median Interest Coverage is 2.95 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Northland Power's current Interest Coverage is 4.74, which is 96% above median its own 10-year median of 2.42. 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 Interest Coverage is 4.74, which is 96% above median its 10-year median of 2.42 and 60.7% above the Utilities - Independent Power Producers industry median of 2.95. 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 Interest Coverage calculated?
Interest Coverage is calculated from a company's financial statements. For Northland Power (TSX:NPI), the current Interest Coverage is 4.74 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:
Interest Coverage: 4.74 (96% above median its 10-year median of 2.42)
GF Value™: C$24.14 vs. price of C$22.08 (8.5% below fair value)
Industry Position: 60.7% above the Utilities - Independent Power Producers median (#163 of 320)
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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