ROIC % measures how well a company generates cash flow relative to the capital it has invested in its business. It is also called ROC %. Northland Power's annualized return on invested capital (ROIC %) for the quarter that ended in Mar. 2026 was 7.47%.
As of today (2026-06-25), Northland Power's WACC % is 5.67%. Northland Power's ROIC % is 4.93% (calculated using TTM income statement data).
Northland Power earns returns that do not match up to its cost of capital. It will destroy value as it grows.
Northland Power (TSX:NPI) ROIC % Explanation
ROIC % measures how well a company generates cash flow relative to the capital it has invested in its business. It is also called ROC %. The reason book values of debt and equity are used is because the book values are the capital the company received when issuing the debt or receiving the equity investments.
There are four key components to this definition. The first is the use of operating income or EBIT rather than net income in the numerator. The second is the tax adjustment to this operating income or EBIT, computed as a hypothetical tax based on an effective or marginal tax rate. The third is the use of book values for invested capital, rather than market values. The final is the timing difference; the capital invested is from the end of the prior year whereas the operating income or EBIT is the current year's number.
Why is ROIC % important?
Because it costs money to raise capital. A firm that generates higher returns on investment than it costs the company to raise the capital needed for that investment is earning excess returns. A firm that expects to continue generating positive excess returns on new investments in the future will see its value increase as growth increases, whereas a firm that earns returns that do not match up to its cost of capital will destroy value as it grows.
As of today, Northland Power's WACC % is 5.67%. Northland Power's ROIC % is 4.93% (calculated using TTM income statement data).
Northland Power earns returns that do not match up to its cost of capital. It will destroy value as it grows.
Be Aware
Like ROE % and ROA %, ROIC % is calculated with only 12 months of data. Fluctuations in the company's earnings or business cycles can affect the ratio drastically. It is important to look at the ratio from a long term perspective.
Northland Power ROIC % Related Terms
Northland Power ROIC % Historical Data
* Premium members only.
The historical data trend for Northland Power's ROIC % 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 ROIC %, along with its competitors' market caps and ROIC % 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 ROIC % vs Utilities - Independent Power Producers Industry
For the Utilities - Independent Power Producers industry and Utilities sector, Northland Power's ROIC % distribution charts can be found below:
* The bar in red indicates where Northland Power's ROIC % falls into.
Note:
The Operating Income data used here is four times the quarterly (Mar. 2026) data.
The tax rate is limited to between 0% and 100%.
* 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 ROIC % of 7.47% as of Mar. 2026. Return on invested capital is the ratio of current-period net income to average two-period invested capital. View historical data on Northland Power and its competitors.
Is Northland Power's ROIC % too high?
Northland Power's current ROIC % is 7.47%. The Utilities - Independent Power Producers industry median ROIC % is 2.27. Northland Power's value of 7.47% is 229.8% above this industry median. 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 ROIC % compare to competitors?
Northland Power's ROIC % of 7.47% can be compared against companies in the Utilities - Independent Power Producers industry. The industry median ROIC % is 2.27. Northland Power's value of 7.47% is 229.8% above this benchmark. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good ROIC % for an Utilities - Independent Power Producers company?
The median ROIC % among Utilities - Independent Power Producers companies is 2.27, based on 430 companies in the industry. Companies in the top quartile (top 25%) have a ROIC % significantly above this median, while those in the bottom quartile fall well below. However, ROIC % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Northland Power's current ROIC % of 7.47% is 229.8% 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 ROIC % mean?
A high ROIC % can signal that a stock is expensive relative to its fundamentals. Return on invested capital is the ratio of current-period net income to average two-period invested capital. View historical data on Northland Power and its competitors. For the Utilities - Independent Power Producers industry, the median ROIC % is 2.27 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Northland Power's current ROIC % is 7.47%. 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 ROIC % is 7.47% and 229.8% above the Utilities - Independent Power Producers industry median of 2.27. 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 ROIC % calculated?
ROIC % is calculated from a company's financial statements. For Northland Power (TSX:NPI), the current ROIC % is 7.47% 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:
ROIC %: 7.47%
GF Value™: C$24.14 vs. price of C$22.08 (8.5% below fair value)
Industry Position: 229.8% above the Utilities - Independent Power Producers median
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
Get the complete analysis for TSX:NPI
ROIC % is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.
Quick Browse
Personalize
Premium Gurus 
Create New Portfolio
TSX:NPI has been successfully added to your 
