Northland PowerTSX:NPI -0.85%68 ROE % is 8.65% as of Mar. 2026, which is 42% below its 10-year median of 14.87. 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 433 Utilities - Independent Power Producers companies, Northland Power ranks worse than 73.67% on this metric.
ROE % measures the rate of return on the ownership interest (shareholder's equity) of the common stock owners. It measures a firm's efficiency at generating profits from every unit of shareholders' equity (also known as net assets or assets minus liabilities). ROE % shows how well a company uses investment funds to generate earnings growth. ROE %s between 15% and 20% are considered desirable.
The factors that affect a company's ROE % can be illustrated with the three-step DuPont Analysis:
Note:
The net income data used here is four times the quarterly (Mar. 2026) net income data. The Revenue data used here is four times the quarterly (Mar. 2026) revenue data. The same rule applies to Pre-Tax Income and Operating Income.
* In the five-step DuPont Analysis, Operating Income is only available for non-financial companies. Thus, for Insurance companies, we use EBIT as a substitution of Operating Income. For Banks, both Operating Income and EBIT is unavailable. Thus we combined Interest Burden and Operating Margin % into Pretax Margin %, and the DuPont Analysis is divided into four components instead.
* 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.
Be Aware
Net Income is used.
Because a company can increase its ROE % by having more financial leverage, it is important to watch the equity multiplier when investing in high ROE % companies. Like ROA %, ROE % is calculated with only 12 months data. Fluctuations in company's earnings or business cycles can affect the ratio drastically. It is important to look at the ratio from a long term perspective.
Asset light businesses require very few assets to generate very high earnings. Their ROE %s can be extremely high.
Northland Power ROE % Related Terms
Northland Power ROE % Historical Data
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The historical data trend for Northland Power's ROE % 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.
For the Utilities - Renewable subindustry, Northland Power's ROE %, along with its competitors' market caps and ROE % 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 ROE % vs Utilities - Independent Power Producers Industry
For the Utilities - Independent Power Producers industry and Utilities sector, Northland Power's ROE % distribution charts can be found below:
* The bar in red indicates where Northland Power's ROE % 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.
In the calculation of annual ROE %, the net income of the last fiscal year and the average total shareholder equity over the fiscal year are used. In calculating the quarterly data,
the net income data used here is four times the quarterly (Mar. 2026) net income data.
ROE % is displayed in the 30-year financial page.
Northland Power (TSX:NPI) has a ROE % of 8.65% as of Mar. 2026. Return on equity is the ratio of current-period net income to average two-period total equity. View historical data on Northland Power and its competitors. This is 42% below median its historical median of 14.87. According to the industry distribution chart, Northland Power ranks #319 out of 433 companies in the Utilities - Independent Power Producers industry, placing it in the top 73.7%.
Is Northland Power's ROE % too high?
Northland Power's current ROE % of 8.65% is 42% below median its 10-year median of 14.87. The Utilities - Independent Power Producers industry median ROE % is 3.80. Northland Power's value of 8.65% is 127.6% above this industry median. Based on the distribution chart, Northland Power ranks #319 out of 433 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 ROE % compare to competitors?
According to the Utilities - Independent Power Producers industry distribution chart, Northland Power ranks #319 out of 433 companies for ROE %. This places Northland Power in the lower half of its industry. The industry median ROE % is 3.80. Northland Power's value of 8.65% is 127.6% above this benchmark. While the company's 10-year median is 14.87 vs. the industry median of 3.80, 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 ROE % for an Utilities - Independent Power Producers company?
The median ROE % among Utilities - Independent Power Producers companies is 3.80, based on 433 companies in the industry. Companies in the top quartile (top 25%) have a ROE % significantly above this median, while those in the bottom quartile fall well below. However, ROE % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Northland Power's current ROE % of 8.65% is 127.6% 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 ROE % mean?
A high ROE % can signal that a stock is expensive relative to its fundamentals. Return on equity is the ratio of current-period net income to average two-period total equity. View historical data on Northland Power and its competitors. For the Utilities - Independent Power Producers industry, the median ROE % is 3.80 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Northland Power's current ROE % is 8.65%, which is 42% below median its own 10-year median of 14.87. 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 ROE % is 8.65%, which is 42% below median its 10-year median of 14.87 and 127.6% above the Utilities - Independent Power Producers industry median of 3.80. 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 ROE % calculated?
ROE % is calculated from a company's financial statements. For Northland Power (TSX:NPI), the current ROE % is 8.65% 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:
ROE %: 8.65% (42% below median its 10-year median of 14.87)
GF Value™: C$24.14 vs. price of C$22.08 (8.5% below fair value)
Industry Position: 127.6% above the Utilities - Independent Power Producers median (#319 of 433)
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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