BORALEX INC -A (BLX.CA) Stock Fundamental Analysis
TSX:BLX - Toronto Stock Exchange - CA09950M3003 - Common Stock - Currency: CAD
Overall BLX gets a fundamental rating of 4 out of 10. We evaluated BLX against 39 industry peers in the Independent Power and Renewable Electricity Producers industry. While BLX is still in line with the averages on profitability rating, there are concerns on its financial health. While showing a medium growth rate, BLX is valued expensive at the moment.
1. Profitability
1.1 Basic Checks
In the past year BLX was profitable.
BLX had a positive operating cash flow in the past year.
Of the past 5 years BLX 4 years were profitable.
Each year in the past 5 years BLX had a positive operating cash flow.
1.2 Ratios
BLX has a better Return On Assets (1.08%) than 73.08% of its industry peers.
BLX has a Return On Equity of 4.43%. This is in the better half of the industry: BLX outperforms 73.08% of its industry peers.
With a Return On Invested Capital value of 2.71%, BLX perfoms like the industry average, outperforming 57.69% of the companies in the same industry.
BLX had an Average Return On Invested Capital over the past 3 years of 2.20%. This is below the industry average of 4.67%.
The last Return On Invested Capital (2.71%) for BLX is above the 3 year average (2.20%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 1.08% | ||
| ROE | 4.43% | ||
| ROIC | 2.71% |
ROA(3y)0.65%
ROA(5y)0.42%
ROE(3y)2.76%
ROE(5y)1.86%
ROIC(3y)2.2%
ROIC(5y)2.16%
1.3 Margins
The Profit Margin of BLX (7.55%) is better than 73.08% of its industry peers.
BLX's Profit Margin has declined in the last couple of years.
With a Operating Margin value of 28.72%, BLX is not doing good in the industry: 61.54% of the companies in the same industry are doing better.
In the last couple of years the Operating Margin of BLX has grown nicely.
BLX's Gross Margin of 73.40% is in line compared to the rest of the industry. BLX outperforms 57.69% of its industry peers.
BLX's Gross Margin has declined in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 28.72% | ||
| PM (TTM) | 7.55% | ||
| GM | 73.4% |
OM growth 3Y-5.23%
OM growth 5Y7.05%
PM growth 3Y-4.23%
PM growth 5YN/A
GM growth 3Y-6.21%
GM growth 5Y-2.75%
2. Health
2.1 Basic Checks
BLX has a Return on Invested Capital (ROIC), which is below the Cost of Capital (WACC), which means it is destroying value.
Compared to 1 year ago, BLX has about the same amount of shares outstanding.
The number of shares outstanding for BLX has been increased compared to 5 years ago.
Compared to 1 year ago, BLX has an improved debt to assets ratio.
2.2 Solvency
BLX has an Altman-Z score of 0.64. This is a bad value and indicates that BLX is not financially healthy and even has some risk of bankruptcy.
The Altman-Z score of BLX (0.64) is better than 69.23% of its industry peers.
A Debt/Equity ratio of 2.11 is on the high side and indicates that BLX has dependencies on debt financing.
BLX has a better Debt to Equity ratio (2.11) than 61.54% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 2.11 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 0.64 |
ROIC/WACC0.6
WACC4.54%
2.3 Liquidity
BLX has a Current Ratio of 0.86. This is a bad value and indicates that BLX is not financially healthy enough and could expect problems in meeting its short term obligations.
BLX has a Current ratio (0.86) which is comparable to the rest of the industry.
BLX has a Quick Ratio of 0.86. This is a bad value and indicates that BLX is not financially healthy enough and could expect problems in meeting its short term obligations.
With a decent Quick ratio value of 0.86, BLX is doing good in the industry, outperforming 73.08% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.86 | ||
| Quick Ratio | 0.86 |
3. Growth
3.1 Past
BLX shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 21.13%, which is quite impressive.
BLX shows quite a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 19.87% yearly.
The Revenue has decreased by -8.38% in the past year.
BLX shows quite a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 16.37% yearly.
EPS 1Y (TTM)21.13%
EPS 3Y19.87%
EPS 5YN/A
EPS Q2Q%-333.33%
Revenue 1Y (TTM)-8.38%
Revenue growth 3Y17.31%
Revenue growth 5Y16.37%
Sales Q2Q%-12.28%
3.2 Future
The Earnings Per Share is expected to grow by 18.60% on average over the next years. This is quite good.
BLX is expected to show quite a strong growth in Revenue. In the coming years, the Revenue will grow by 11.05% yearly.
EPS Next Y7.92%
EPS Next 2Y4.21%
EPS Next 3Y9.48%
EPS Next 5Y18.6%
Revenue Next Year-5.29%
Revenue Next 2Y4.45%
Revenue Next 3Y5.97%
Revenue Next 5Y11.05%
3.3 Evolution
The EPS growth rate is stable: in the next years the growth will be about the same than in the last years.
The estimated forward Revenue growth is still strong, although it is decreasing when compared to the stronger growth in the past years.
4. Valuation
4.1 Price/Earnings Ratio
With a Price/Earnings ratio of 31.58, BLX can be considered very expensive at the moment.
Based on the Price/Earnings ratio, BLX is valued a bit cheaper than the industry average as 73.08% of the companies are valued more expensively.
BLX is valuated at similar levels of the S&P average when we compare the Price/Earnings ratio to 29.63, which is the current average of the S&P500 Index.
The Price/Forward Earnings ratio is 26.89, which means the current valuation is very expensive for BLX.
BLX's Price/Forward Earnings ratio is a bit cheaper when compared to the industry. BLX is cheaper than 69.23% of the companies in the same industry.
BLX's Price/Forward Earnings ratio indicates a similar valuation than the S&P500 average which is at 22.68.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 31.58 | ||
| Fwd PE | 26.89 |
4.2 Price Multiples
61.54% of the companies in the same industry are cheaper than BLX, based on the Enterprise Value to EBITDA ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 10.96 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates BLX does not grow enough to justify the current Price/Earnings ratio.
PEG (NY)3.99
PEG (5Y)N/A
EPS Next 2Y4.21%
EPS Next 3Y9.48%
5. Dividend
5.1 Amount
BLX has a Yearly Dividend Yield of 2.48%.
Compared to an average industry Dividend Yield of 4.45, BLX is paying slightly less dividend.
Compared to an average S&P500 Dividend Yield of 2.27, BLX has a dividend comparable with the average S&P500 company.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.48% |
5.2 History
The dividend of BLX has a limited annual growth rate of 1.83%.
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)1.83%
Div Incr Years0
Div Non Decr Years10
5.3 Sustainability
BLX pays out 95.77% of its income as dividend. This is not a sustainable payout ratio.
The dividend of BLX is growing, but earnings are growing more, so the dividend growth is sustainable.
DP95.77%
EPS Next 2Y4.21%
EPS Next 3Y9.48%
TSX:BLX (2/21/2025, 7:00:00 PM)
27.16
+0.53 (+1.99%)
Chartmill FA Rating
GICS SectorUtilities
GICS IndustryGroupUtilities
GICS IndustryIndependent Power and Renewable Electricity Producers
Earnings (Last)
Earnings (Next)
Inst Owners58.69%
Inst Owner ChangeN/A
Ins Owners0.1%
Ins Owner ChangeN/A
Market Cap2.79B
Analysts80
Price Target40.7 (49.85%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.48% |
Yearly Dividend0.66
Dividend Growth(5Y)1.83%
DP95.77%
Div Incr Years0
Div Non Decr Years10
Ex-Date
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)15.42%
Min EPS beat(2)-19.18%
Max EPS beat(2)50.02%
EPS beat(4)2
Avg EPS beat(4)6.26%
Min EPS beat(4)-25.74%
Max EPS beat(4)50.02%
EPS beat(8)4
Avg EPS beat(8)10.86%
EPS beat(12)6
Avg EPS beat(12)-4.57%
EPS beat(16)7
Avg EPS beat(16)-40.92%
Revenue beat(2)0
Avg Revenue beat(2)-6.14%
Min Revenue beat(2)-6.97%
Max Revenue beat(2)-5.31%
Revenue beat(4)2
Avg Revenue beat(4)3.02%
Min Revenue beat(4)-6.97%
Max Revenue beat(4)20.51%
Revenue beat(8)5
Avg Revenue beat(8)8.58%
Revenue beat(12)6
Avg Revenue beat(12)2.53%
Revenue beat(16)7
Avg Revenue beat(16)0.43%
PT rev (1m)-5%
PT rev (3m)-5%
EPS NQ rev (1m)-22.38%
EPS NQ rev (3m)-22.38%
EPS NY rev (1m)-5.47%
EPS NY rev (3m)-8.83%
Revenue NQ rev (1m)-0.12%
Revenue NQ rev (3m)-0.12%
Revenue NY rev (1m)-1.89%
Revenue NY rev (3m)-2%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 31.58 | ||
| Fwd PE | 26.89 | ||
| P/S | 2.97 | ||
| P/FCF | N/A | ||
| P/OCF | 9.59 | ||
| P/B | 1.74 | ||
| P/tB | 6.43 | ||
| EV/EBITDA | 10.96 |
EPS(TTM)0.86
EY3.17%
EPS(NY)1.01
Fwd EY3.72%
FCF(TTM)-0.38
FCFYN/A
OCF(TTM)2.83
OCFY10.43%
SpS9.15
BVpS15.61
TBVpS4.22
PEG (NY)3.99
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 1.08% | ||
| ROE | 4.43% | ||
| ROCE | 4.55% | ||
| ROIC | 2.71% | ||
| ROICexc | 2.85% | ||
| ROICexgc | 3.6% | ||
| OM | 28.72% | ||
| PM (TTM) | 7.55% | ||
| GM | 73.4% | ||
| FCFM | N/A |
ROA(3y)0.65%
ROA(5y)0.42%
ROE(3y)2.76%
ROE(5y)1.86%
ROIC(3y)2.2%
ROIC(5y)2.16%
ROICexc(3y)2.36%
ROICexc(5y)2.3%
ROICexgc(3y)3.12%
ROICexgc(5y)3.04%
ROCE(3y)3.71%
ROCE(5y)3.63%
ROICexcg growth 3Y3.76%
ROICexcg growth 5Y17.04%
ROICexc growth 3Y5.75%
ROICexc growth 5Y17.62%
OM growth 3Y-5.23%
OM growth 5Y7.05%
PM growth 3Y-4.23%
PM growth 5YN/A
GM growth 3Y-6.21%
GM growth 5Y-2.75%
F-Score4
Asset Turnover0.14
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 2.11 | ||
| Debt/FCF | N/A | ||
| Debt/EBITDA | 5.95 | ||
| Cap/Depr | 110.37% | ||
| Cap/Sales | 35.11% | ||
| Interest Coverage | 1.96 | ||
| Cash Conversion | 51.14% | ||
| Profit Quality | N/A | ||
| Current Ratio | 0.86 | ||
| Quick Ratio | 0.86 | ||
| Altman-Z | 0.64 |
F-Score4
WACC4.54%
ROIC/WACC0.6
Cap/Depr(3y)78.39%
Cap/Depr(5y)72.31%
Cap/Sales(3y)27%
Cap/Sales(5y)26.32%
Profit Quality(3y)737.99%
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)21.13%
EPS 3Y19.87%
EPS 5YN/A
EPS Q2Q%-333.33%
EPS Next Y7.92%
EPS Next 2Y4.21%
EPS Next 3Y9.48%
EPS Next 5Y18.6%
Revenue 1Y (TTM)-8.38%
Revenue growth 3Y17.31%
Revenue growth 5Y16.37%
Sales Q2Q%-12.28%
Revenue Next Year-5.29%
Revenue Next 2Y4.45%
Revenue Next 3Y5.97%
Revenue Next 5Y11.05%
EBIT growth 1Y24.42%
EBIT growth 3Y11.18%
EBIT growth 5Y24.57%
EBIT Next Year142.02%
EBIT Next 3Y39.2%
EBIT Next 5Y30.69%
FCF growth 1Y-127.66%
FCF growth 3Y-0.15%
FCF growth 5YN/A
OCF growth 1Y-28.15%
OCF growth 3Y11.07%
OCF growth 5Y19.68%