BORALEX INC -A (BLX.CA) Stock Fundamental Analysis
TSX:BLX - Toronto Stock Exchange - CA09950M3003 - Common Stock - Currency: CAD
Taking everything into account, BLX scores 4 out of 10 in our fundamental rating. BLX was compared to 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. BLX is quite expensive at the moment. It does show a decent growth rate.
1. Profitability
1.1 Basic Checks
In the past year BLX was profitable.
BLX had a positive operating cash flow in the past year.
In the past 5 years BLX has always been profitable.
BLX had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
BLX has a Return On Assets of 0.47%. This is in the better half of the industry: BLX outperforms 71.79% of its industry peers.
BLX has a Return On Equity of 2.25%. This is in the better half of the industry: BLX outperforms 74.36% of its industry peers.
BLX has a Return On Invested Capital of 2.42%. This is comparable to the rest of the industry: BLX outperforms 56.41% of its industry peers.
The Average Return On Invested Capital over the past 3 years for BLX is in line with the industry average of 4.15%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 0.47% | ||
| ROE | 2.25% | ||
| ROIC | 2.42% |
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
Looking at the Profit Margin, with a value of 4.22%, BLX is in the better half of the industry, outperforming 76.92% of the companies in the same industry.
In the last couple of years the Profit Margin of BLX has grown nicely.
Looking at the Operating Margin, with a value of 26.61%, BLX is in the better half of the industry, outperforming 61.54% of the companies in the same industry.
BLX's Operating Margin has been stable in the last couple of years.
BLX has a Gross Margin of 76.79%. This is in the better half of the industry: BLX outperforms 71.79% of its industry peers.
BLX's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 26.61% | ||
| PM (TTM) | 4.22% | ||
| GM | 76.79% |
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
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.
BLX has more shares outstanding than it did 5 years ago.
The debt/assets ratio for BLX is higher compared to a year ago.
2.2 Solvency
Based on the Altman-Z score of 0.54, we must say that BLX is in the distress zone and has some risk of bankruptcy.
BLX has a Altman-Z score of 0.54. This is in the better half of the industry: BLX outperforms 69.23% of its industry peers.
BLX has a Debt/Equity ratio of 2.46. This is a high value indicating a heavy dependency on external financing.
BLX has a Debt to Equity ratio of 2.46. This is in the better half of the industry: BLX outperforms 71.79% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 2.46 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 0.54 |
ROIC/WACC0.51
WACC4.74%
2.3 Liquidity
A Current Ratio of 0.96 indicates that BLX may have some problems paying its short term obligations.
BLX has a Current ratio of 0.96. This is in the better half of the industry: BLX outperforms 69.23% of its industry peers.
A Quick Ratio of 0.96 indicates that BLX may have some problems paying its short term obligations.
BLX has a Quick ratio of 0.96. This is in the better half of the industry: BLX outperforms 71.79% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.96 | ||
| Quick Ratio | 0.96 |
3. Growth
3.1 Past
BLX shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -26.88%.
BLX shows a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 58.74% yearly.
Looking at the last year, BLX shows a very negative growth in Revenue. The Revenue has decreased by -16.54% in the last year.
BLX shows quite a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 8.24% yearly.
EPS 1Y (TTM)-26.88%
EPS 3Y58.74%
EPS 5YN/A
EPS Q2Q%-50%
Revenue 1Y (TTM)-16.54%
Revenue growth 3Y7.27%
Revenue growth 5Y8.24%
Sales Q2Q%-27.62%
3.2 Future
The Earnings Per Share is expected to grow by 31.78% on average over the next years. This is a very strong growth
Based on estimates for the next years, BLX will show a quite strong growth in Revenue. The Revenue will grow by 15.56% on average per year.
EPS Next Y33.43%
EPS Next 2Y35.85%
EPS Next 3Y29.58%
EPS Next 5Y31.78%
Revenue Next Year13.73%
Revenue Next 2Y11.34%
Revenue Next 3Y13.18%
Revenue Next 5Y15.56%
3.3 Evolution
Although the future EPS growth is still strong, it is not able to hold up the even more excellent growth rate of the past years.
The Revenue growth rate is accelerating: in the next years the growth will be better than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
A Price/Earnings ratio of 46.19 indicates a quite expensive valuation of BLX.
BLX's Price/Earnings ratio is a bit cheaper when compared to the industry. BLX is cheaper than 76.92% of the companies in the same industry.
Compared to an average S&P500 Price/Earnings ratio of 28.79, BLX is valued quite expensively.
BLX is valuated quite expensively with a Price/Forward Earnings ratio of 34.62.
BLX's Price/Forward Earnings ratio is a bit cheaper when compared to the industry. BLX is cheaper than 76.92% of the companies in the same industry.
BLX's Price/Forward Earnings ratio indicates a rather expensive valuation when compared to the S&P500 average which is at 21.38.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 46.19 | ||
| Fwd PE | 34.62 |
4.2 Price Multiples
BLX's Enterprise Value to EBITDA is on the same level as the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 13 |
4.3 Compensation for Growth
BLX's PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
BLX has a very decent profitability rating, which may justify a higher PE ratio.
BLX's earnings are expected to grow with 29.58% in the coming years. This may justify a more expensive valuation.
PEG (NY)1.38
PEG (5Y)N/A
EPS Next 2Y35.85%
EPS Next 3Y29.58%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 2.24%, BLX has a reasonable but not impressive dividend return.
BLX's Dividend Yield is slightly below the industry average, which is at 4.78.
Compared to an average S&P500 Dividend Yield of 2.51, BLX has a dividend comparable with the average S&P500 company.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.24% |
5.2 History
The dividend of BLX has a limited annual growth rate of 0.48%.
BLX has been paying a dividend for at least 10 years, so it has 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 pays out 188.89% 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.
DP188.89%
EPS Next 2Y35.85%
EPS Next 3Y29.58%
TSX:BLX (4/25/2025, 7:00:00 PM)
31.41
+0.98 (+3.22%)
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 Cap3.23B
Analysts78.57
Price Target39.58 (26.01%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.24% |
Yearly Dividend0.66
Dividend Growth(5Y)0.48%
DP188.89%
Div Incr Years0
Div Non Decr Years10
Ex-Date
Surprises & Revisions
EPS beat(2)0
Avg EPS beat(2)-37.72%
Min EPS beat(2)-56.27%
Max EPS beat(2)-19.18%
EPS beat(4)2
Avg EPS beat(4)-1.37%
Min EPS beat(4)-56.27%
Max EPS beat(4)50.02%
EPS beat(8)4
Avg EPS beat(8)11.05%
EPS beat(12)6
Avg EPS beat(12)-5.49%
EPS beat(16)7
Avg EPS beat(16)-41.84%
Revenue beat(2)0
Avg Revenue beat(2)-9.78%
Min Revenue beat(2)-14.25%
Max Revenue beat(2)-5.31%
Revenue beat(4)1
Avg Revenue beat(4)-5.67%
Min Revenue beat(4)-14.25%
Max Revenue beat(4)3.84%
Revenue beat(8)4
Avg Revenue beat(8)1.33%
Revenue beat(12)6
Avg Revenue beat(12)1.96%
Revenue beat(16)6
Avg Revenue beat(16)-0.58%
PT rev (1m)-3.24%
PT rev (3m)-7.62%
EPS NQ rev (1m)-1.71%
EPS NQ rev (3m)-12.24%
EPS NY rev (1m)-10.17%
EPS NY rev (3m)-14.04%
Revenue NQ rev (1m)-1.37%
Revenue NQ rev (3m)-10.27%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-1.27%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 46.19 | ||
| Fwd PE | 34.62 | ||
| P/S | 3.78 | ||
| P/FCF | N/A | ||
| P/OCF | 15.02 | ||
| P/B | 2.02 | ||
| P/tB | 8.05 | ||
| EV/EBITDA | 13 |
EPS(TTM)0.68
EY2.16%
EPS(NY)0.91
Fwd EY2.89%
FCF(TTM)-2.31
FCFYN/A
OCF(TTM)2.09
OCFY6.66%
SpS8.3
BVpS15.58
TBVpS3.9
PEG (NY)1.38
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 0.47% | ||
| ROE | 2.25% | ||
| ROCE | 3.42% | ||
| ROIC | 2.42% | ||
| ROICexc | 2.67% | ||
| ROICexgc | 3.33% | ||
| OM | 26.61% | ||
| PM (TTM) | 4.22% | ||
| GM | 76.79% | ||
| FCFM | N/A |
ROA(3y)0.71%
ROA(5y)0.69%
ROE(3y)2.94%
ROE(5y)3.22%
ROIC(3y)2.63%
ROIC(5y)2.59%
ROICexc(3y)2.85%
ROICexc(5y)2.78%
ROICexgc(3y)3.67%
ROICexgc(5y)3.66%
ROCE(3y)3.71%
ROCE(5y)3.65%
ROICexcg growth 3Y-1.44%
ROICexcg growth 5Y1.01%
ROICexc growth 3Y1.57%
ROICexc growth 5Y1.49%
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%
F-Score4
Asset Turnover0.11
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 2.46 | ||
| Debt/FCF | N/A | ||
| Debt/EBITDA | 7.52 | ||
| Cap/Depr | 152.19% | ||
| Cap/Sales | 52.99% | ||
| Interest Coverage | 1.72 | ||
| Cash Conversion | 41.03% | ||
| Profit Quality | N/A | ||
| Current Ratio | 0.96 | ||
| Quick Ratio | 0.96 | ||
| Altman-Z | 0.54 |
F-Score4
WACC4.74%
ROIC/WACC0.51
Cap/Depr(3y)110.38%
Cap/Depr(5y)89.71%
Cap/Sales(3y)36.6%
Cap/Sales(5y)31.38%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)-26.88%
EPS 3Y58.74%
EPS 5YN/A
EPS Q2Q%-50%
EPS Next Y33.43%
EPS Next 2Y35.85%
EPS Next 3Y29.58%
EPS Next 5Y31.78%
Revenue 1Y (TTM)-16.54%
Revenue growth 3Y7.27%
Revenue growth 5Y8.24%
Sales Q2Q%-27.62%
Revenue Next Year13.73%
Revenue Next 2Y11.34%
Revenue Next 3Y13.18%
Revenue Next 5Y15.56%
EBIT growth 1Y-7.72%
EBIT growth 3Y7.49%
EBIT growth 5Y9.76%
EBIT Next Year137.97%
EBIT Next 3Y34.52%
EBIT Next 5Y36.78%
FCF growth 1Y-209.72%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y-56.65%
OCF growth 3Y-14.58%
OCF growth 5Y-6.07%