CA - Northland Power: Under Construction Projects Should Support EBITDA Growth In Future
2024-05-26 13:20:03 ET
Summary
- Northland Power has a strong pipeline of projects that should increase its EBITDA at a 7-10% CAGR into 2027.
- Shares of Northland Power have underperformed along with other utility and renewable energy companies in Canada.
- Despite challenges in the sector, the company's recent results show increased electricity production and strong adjusted free cash flow.
- At 10.3x 2024 EBITDA compared to the industry mean of 11.5x EBITDA, its valuation appears to be in line with the peer group.
- With a safe 5.1% dividend that is well covered by the company's free cash flow generation, Northland Power should be a strong candidate for income-oriented investors looking for yield.
Please note all $ figures in $ CAD, not USD, unless otherwise stated.