CAPITAL POWER CORP - CPXCN 2.621 PERP (CPX-PR-A.CA) Stock Fundamental Analysis
Canada - Toronto Stock Exchange - TSX:CPX-PR-A - CA14042M3003
22.51 CAD
-0.13 (-0.57%)
Overall CPX-PR-A gets a fundamental rating of 5 out of 10. We evaluated CPX-PR-A against 33 industry peers in the Independent Power and Renewable Electricity Producers industry. CPX-PR-A scores excellent on profitability, but there are concerns on its financial health. CPX-PR-A has a bad growth rate and is valued cheaply.
1. Profitability
1.1 Basic Checks
- CPX-PR-A had positive earnings in the past year.
- In the past year CPX-PR-A had a positive cash flow from operations.
- In the past 5 years CPX-PR-A has always been profitable.
- In the past 5 years CPX-PR-A always reported a positive cash flow from operatings.
1.2 Ratios
- CPX-PR-A's Return On Assets of 2.50% is amongst the best of the industry. CPX-PR-A outperforms 90.91% of its industry peers.
- Looking at the Return On Equity, with a value of 7.64%, CPX-PR-A belongs to the top of the industry, outperforming 93.94% of the companies in the same industry.
- Looking at the Return On Invested Capital, with a value of 2.38%, CPX-PR-A is in line with its industry, outperforming 57.58% of the companies in the same industry.
- CPX-PR-A had an Average Return On Invested Capital over the past 3 years of 5.90%. This is above the industry average of 3.83%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.5% | ||
| ROE | 7.64% | ||
| ROIC | 2.38% |
ROA(3y)4.16%
ROA(5y)2.78%
ROE(3y)13.61%
ROE(5y)9.04%
ROIC(3y)5.9%
ROIC(5y)5.1%
1.3 Margins
- CPX-PR-A's Profit Margin of 10.96% is amongst the best of the industry. CPX-PR-A outperforms 96.97% of its industry peers.
- In the last couple of years the Profit Margin of CPX-PR-A has grown nicely.
- CPX-PR-A's Operating Margin of 11.65% is fine compared to the rest of the industry. CPX-PR-A outperforms 63.64% of its industry peers.
- CPX-PR-A's Operating Margin has declined in the last couple of years.
- CPX-PR-A's Gross Margin of 47.75% is in line compared to the rest of the industry. CPX-PR-A outperforms 45.45% of its industry peers.
- In the last couple of years the Gross Margin of CPX-PR-A has declined.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 11.65% | ||
| PM (TTM) | 10.96% | ||
| GM | 47.75% |
OM growth 3Y8.09%
OM growth 5Y-8.02%
PM growth 3Y99.71%
PM growth 5Y35.39%
GM growth 3Y-7.47%
GM growth 5Y-7.72%
2. Health
2.1 Basic Checks
- With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), CPX-PR-A is destroying value.
- Compared to 1 year ago, CPX-PR-A has more shares outstanding
- The number of shares outstanding for CPX-PR-A has been increased compared to 5 years ago.
- The debt/assets ratio for CPX-PR-A has been reduced compared to a year ago.
2.2 Solvency
- CPX-PR-A has an Altman-Z score of 0.46. This is a bad value and indicates that CPX-PR-A is not financially healthy and even has some risk of bankruptcy.
- CPX-PR-A has a Altman-Z score of 0.46. This is in the better half of the industry: CPX-PR-A outperforms 63.64% of its industry peers.
- CPX-PR-A has a debt to FCF ratio of 31.16. This is a negative value and a sign of low solvency as CPX-PR-A would need 31.16 years to pay back of all of its debts.
- Looking at the Debt to FCF ratio, with a value of 31.16, CPX-PR-A is in the better half of the industry, outperforming 60.61% of the companies in the same industry.
- CPX-PR-A has a Debt/Equity ratio of 1.22. This is a high value indicating a heavy dependency on external financing.
- With an excellent Debt to Equity ratio value of 1.22, CPX-PR-A belongs to the best of the industry, outperforming 87.88% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.22 | ||
| Debt/FCF | 31.16 | ||
| Altman-Z | 0.46 |
ROIC/WACC0.39
WACC6.08%
2.3 Liquidity
- CPX-PR-A has a Current Ratio of 0.74. This is a bad value and indicates that CPX-PR-A is not financially healthy enough and could expect problems in meeting its short term obligations.
- CPX-PR-A has a Current ratio (0.74) which is comparable to the rest of the industry.
- A Quick Ratio of 0.63 indicates that CPX-PR-A may have some problems paying its short term obligations.
- Looking at the Quick ratio, with a value of 0.63, CPX-PR-A is in line with its industry, outperforming 51.52% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.74 | ||
| Quick Ratio | 0.63 |
3. Growth
3.1 Past
- The earnings per share for CPX-PR-A have decreased strongly by -32.37% in the last year.
- The Earnings Per Share has been growing by 31.29% on average over the past years. This is a very strong growth
- CPX-PR-A shows a very negative growth in Revenue. In the last year, the Revenue has decreased by -10.55%.
- The Revenue has been growing by 13.98% on average over the past years. This is quite good.
EPS 1Y (TTM)-32.37%
EPS 3Y37.52%
EPS 5Y31.29%
EPS Q2Q%-28.79%
Revenue 1Y (TTM)-10.55%
Revenue growth 3Y23.8%
Revenue growth 5Y13.98%
Sales Q2Q%17.77%
3.2 Future
- CPX-PR-A is expected to show a decrease in Earnings Per Share. In the coming years, the EPS will decrease by -3.65% yearly.
- Based on estimates for the next years, CPX-PR-A will show a small growth in Revenue. The Revenue will grow by 2.59% on average per year.
EPS Next Y-66.21%
EPS Next 2Y-26.22%
EPS Next 3Y-13.45%
EPS Next 5Y-3.65%
Revenue Next Year-2.48%
Revenue Next 2Y2.76%
Revenue Next 3Y3.58%
Revenue Next 5Y2.59%
3.3 Evolution
- When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.
- When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.
4. Valuation
4.1 Price/Earnings Ratio
- The Price/Earnings ratio is 8.04, which indicates a very decent valuation of CPX-PR-A.
- CPX-PR-A's Price/Earnings ratio is rather cheap when compared to the industry. CPX-PR-A is cheaper than 93.94% of the companies in the same industry.
- Compared to an average S&P500 Price/Earnings ratio of 27.21, CPX-PR-A is valued rather cheaply.
- Based on the Price/Forward Earnings ratio of 8.03, the valuation of CPX-PR-A can be described as reasonable.
- Based on the Price/Forward Earnings ratio, CPX-PR-A is valued cheaper than 96.97% of the companies in the same industry.
- When comparing the Price/Forward Earnings ratio of CPX-PR-A to the average of the S&P500 Index (25.98), we can say CPX-PR-A is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 8.04 | ||
| Fwd PE | 8.03 |
4.2 Price Multiples
- Based on the Enterprise Value to EBITDA ratio, CPX-PR-A is valued a bit cheaper than the industry average as 69.70% of the companies are valued more expensively.
- Based on the Price/Free Cash Flow ratio, CPX-PR-A is valued cheaply inside the industry as 81.82% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 16.03 | ||
| EV/EBITDA | 10.5 |
4.3 Compensation for Growth
- The decent profitability rating of CPX-PR-A may justify a higher PE ratio.
- CPX-PR-A's earnings are expected to decrease with -13.45% in the coming years. This may justify a cheaper valuation.
PEG (NY)N/A
PEG (5Y)0.26
EPS Next 2Y-26.22%
EPS Next 3Y-13.45%
5. Dividend
5.1 Amount
- With a Yearly Dividend Yield of 4.75%, CPX-PR-A is a good candidate for dividend investing.
- CPX-PR-A's Dividend Yield is a higher than the industry average which is at 3.52.
- Compared to an average S&P500 Dividend Yield of 1.81, CPX-PR-A pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.75% |
5.2 History
- The dividend of CPX-PR-A decreases each year by -1.04%.
- CPX-PR-A has paid a dividend for at least 10 years, which is a reliable track record.
- CPX-PR-A has not decreased its dividend in the last 3 years.
Dividend Growth(5Y)-1.04%
Div Incr Years0
Div Non Decr Years3
5.3 Sustainability
- CPX-PR-A pays out 84.33% of its income as dividend. This is not a sustainable payout ratio.
- The Dividend Rate of CPX-PR-A has been decling, while earnings will also be declining. This means the current dividend is most likely not sustainable.
DP84.33%
EPS Next 2Y-26.22%
EPS Next 3Y-13.45%
CAPITAL POWER CORP - CPXCN 2.621 PERP / CPX-PR-A.CA FAQ
Can you provide the ChartMill fundamental rating for CAPITAL POWER CORP - CPXCN 2.621 PERP?
ChartMill assigns a fundamental rating of 5 / 10 to CPX-PR-A.CA.
What is the valuation status of CAPITAL POWER CORP - CPXCN 2.621 PERP (CPX-PR-A.CA) stock?
ChartMill assigns a valuation rating of 7 / 10 to CAPITAL POWER CORP - CPXCN 2.621 PERP (CPX-PR-A.CA). This can be considered as Undervalued.
How profitable is CAPITAL POWER CORP - CPXCN 2.621 PERP (CPX-PR-A.CA) stock?
CAPITAL POWER CORP - CPXCN 2.621 PERP (CPX-PR-A.CA) has a profitability rating of 7 / 10.
What is the financial health of CAPITAL POWER CORP - CPXCN 2.621 PERP (CPX-PR-A.CA) stock?
The financial health rating of CAPITAL POWER CORP - CPXCN 2.621 PERP (CPX-PR-A.CA) is 3 / 10.
What is the expected EPS growth for CAPITAL POWER CORP - CPXCN 2.621 PERP (CPX-PR-A.CA) stock?
The Earnings per Share (EPS) of CAPITAL POWER CORP - CPXCN 2.621 PERP (CPX-PR-A.CA) is expected to decline by -66.21% in the next year.