BORALEX INC -A (BLX.CA) Stock Fundamental Analysis
Canada - Toronto Stock Exchange - TSX:BLX - CA09950M3003 - Common Stock
25.82 CAD
+0.11 (+0.43%)
BLX gets a fundamental rating of 5 out of 10. The analysis compared the fundamentals against 33 industry peers in the Independent Power and Renewable Electricity Producers industry. BLX has a medium profitability rating, but doesn't score so well on its financial health evaluation. BLX is quite expensive at the moment. It does show a decent growth rate.
1. Profitability
1.1 Basic Checks
- BLX had positive earnings in the past year.
- BLX had a positive operating cash flow in the past year.
- In the past 5 years BLX has always been profitable.
- Each year in the past 5 years BLX had a positive operating cash flow.
1.2 Ratios
- With a decent Return On Assets value of -0.30%, BLX is doing good in the industry, outperforming 65.63% of the companies in the same industry.
- Looking at the Return On Equity, with a value of -1.51%, BLX is in the better half of the industry, outperforming 78.13% of the companies in the same industry.
- BLX has a Return On Invested Capital of 1.83%. This is in the lower half of the industry: BLX underperforms 68.75% of its industry peers.
- Measured over the past 3 years, the Average Return On Invested Capital for BLX is in line with the industry average of 3.83%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -0.3% | ||
| ROE | -1.51% | ||
| ROIC | 1.83% |
ROA(3y)0.71%
ROA(5y)0.69%
ROE(3y)2.94%
ROE(5y)3.22%
ROIC(3y)2.63%
ROIC(5y)2.59%
1.3 Margins
- In the last couple of years the Profit Margin of BLX has grown nicely.
- BLX has a better Operating Margin (22.10%) than 68.75% of its industry peers.
- In the last couple of years the Operating Margin of BLX has remained more or less at the same level.
- BLX's Gross Margin of 75.60% is fine compared to the rest of the industry. BLX outperforms 65.63% of its industry peers.
- BLX's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 22.1% | ||
| PM (TTM) | N/A | ||
| GM | 75.6% |
OM growth 3Y0.2%
OM growth 5Y1.4%
PM growth 3Y19.71%
PM growth 5YN/A
GM growth 3Y-0.46%
GM growth 5Y-0.28%
2. Health
2.1 Basic Checks
- The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so BLX is destroying value.
- The number of shares outstanding for BLX remains at a similar level compared to 1 year ago.
- The number of shares outstanding for BLX has been increased compared to 5 years ago.
- The debt/assets ratio for BLX is higher compared to a year ago.
2.2 Solvency
- BLX has an Altman-Z score of 0.49. This is a bad value and indicates that BLX is not financially healthy and even has some risk of bankruptcy.
- BLX has a better Altman-Z score (0.49) than 68.75% of its industry peers.
- A Debt/Equity ratio of 2.86 is on the high side and indicates that BLX has dependencies on debt financing.
- Looking at the Debt to Equity ratio, with a value of 2.86, BLX is in line with its industry, outperforming 43.75% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 2.86 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 0.49 |
ROIC/WACC0.39
WACC4.64%
2.3 Liquidity
- BLX has a Current Ratio of 1.26. This is a normal value and indicates that BLX is financially healthy and should not expect problems in meeting its short term obligations.
- BLX has a better Current ratio (1.26) than 81.25% of its industry peers.
- A Quick Ratio of 1.26 indicates that BLX should not have too much problems paying its short term obligations.
- The Quick ratio of BLX (1.26) is better than 84.38% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.26 | ||
| Quick Ratio | 1.26 |
3. Growth
3.1 Past
- BLX shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -87.21%.
- Measured over the past years, BLX shows a very strong growth in Earnings Per Share. The EPS has been growing by 58.74% on average per year.
- The Revenue for BLX has decreased by -11.91% in the past year. This is quite bad
- The Revenue has been growing by 8.24% on average over the past years. This is quite good.
EPS 1Y (TTM)-87.21%
EPS 3Y58.74%
EPS 5YN/A
EPS Q2Q%-100%
Revenue 1Y (TTM)-11.91%
Revenue growth 3Y7.27%
Revenue growth 5Y8.24%
Sales Q2Q%4.67%
3.2 Future
- BLX is expected to show a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 23.29% yearly.
- The Revenue is expected to grow by 15.56% on average over the next years. This is quite good.
EPS Next Y-14.97%
EPS Next 2Y34.2%
EPS Next 3Y25.53%
EPS Next 5Y23.29%
Revenue Next Year3.76%
Revenue Next 2Y9.5%
Revenue Next 3Y6.57%
Revenue Next 5Y15.56%
3.3 Evolution
- The estimated forward EPS growth is still strong, although it is decreasing when compared to the stronger growth in the past years.
- When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.
4. Valuation
4.1 Price/Earnings Ratio
- BLX is valuated quite expensively with a Price/Earnings ratio of 234.73.
- 65.63% of the companies in the same industry are more expensive than BLX, based on the Price/Earnings ratio.
- Compared to an average S&P500 Price/Earnings ratio of 27.21, BLX is valued quite expensively.
- A Price/Forward Earnings ratio of 21.08 indicates a rather expensive valuation of BLX.
- 71.88% of the companies in the same industry are more expensive than BLX, based on the Price/Forward Earnings ratio.
- When comparing the Price/Forward Earnings ratio of BLX to the average of the S&P500 Index (25.98), we can say BLX is valued inline with the index average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 234.73 | ||
| Fwd PE | 21.08 |
4.2 Price Multiples
- BLX's Enterprise Value to EBITDA ratio is a bit more expensive when compared to the industry. BLX is more expensive than 62.50% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 14.84 |
4.3 Compensation for Growth
- BLX has a very decent profitability rating, which may justify a higher PE ratio.
- A more expensive valuation may be justified as BLX's earnings are expected to grow with 25.53% in the coming years.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y34.2%
EPS Next 3Y25.53%
5. Dividend
5.1 Amount
- BLX has a Yearly Dividend Yield of 2.57%. Purely for dividend investing, there may be better candidates out there.
- Compared to an average industry Dividend Yield of 3.52, BLX is paying slightly less dividend.
- Compared to an average S&P500 Dividend Yield of 1.81, BLX pays a bit more dividend than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.57% |
5.2 History
- The dividend of BLX has a limited annual growth rate of 0.48%.
- BLX has paid a dividend for at least 10 years, which is a reliable track record.
- BLX has not decreased their dividend for at least 10 years, which is a reliable track record.
Dividend Growth(5Y)0.48%
Div Incr Years0
Div Non Decr Years10
5.3 Sustainability
- BLX has negative earnings and hence a negative payout ratio. The dividend may be in danger.
- BLX's earnings are growing more than its dividend. This makes the dividend growth sustainable.
DP-295.65%
EPS Next 2Y34.2%
EPS Next 3Y25.53%
BORALEX INC -A / BLX.CA FAQ
What is the ChartMill fundamental rating of BORALEX INC -A (BLX.CA) stock?
ChartMill assigns a fundamental rating of 5 / 10 to BLX.CA.
What is the valuation status of BORALEX INC -A (BLX.CA) stock?
ChartMill assigns a valuation rating of 2 / 10 to BORALEX INC -A (BLX.CA). This can be considered as Overvalued.
Can you provide the profitability details for BORALEX INC -A?
BORALEX INC -A (BLX.CA) has a profitability rating of 6 / 10.
Can you provide the expected EPS growth for BLX stock?
The Earnings per Share (EPS) of BORALEX INC -A (BLX.CA) is expected to decline by -14.97% in the next year.
How sustainable is the dividend of BORALEX INC -A (BLX.CA) stock?
The dividend rating of BORALEX INC -A (BLX.CA) is 5 / 10 and the dividend payout ratio is -295.65%.