CAPITAL POWER CORP - CPXCN 2.621 PERP (CPX-PR-A.CA) Stock Fundamental Analysis
Canada - Toronto Stock Exchange - TSX:CPX-PR-A - CA14042M3003
22.55 CAD
-0.03 (-0.13%)
CPX-PR-A 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. CPX-PR-A scores excellent on profitability, but there are concerns on its financial health. CPX-PR-A is cheap, but on the other hand it scores bad on growth.
1. Profitability
1.1 Basic Checks
- In the past year CPX-PR-A was profitable.
- In the past year CPX-PR-A had a positive cash flow from operations.
- CPX-PR-A had positive earnings in each of the past 5 years.
- CPX-PR-A had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
- CPX-PR-A has a Return On Assets of 2.50%. This is amongst the best in the industry. CPX-PR-A outperforms 90.91% of its industry peers.
- CPX-PR-A has a better Return On Equity (7.64%) than 93.94% of its industry peers.
- The Return On Invested Capital of CPX-PR-A (2.38%) is comparable to the rest of the 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
- The Profit Margin of CPX-PR-A (10.96%) is better than 96.97% of its industry peers.
- In the last couple of years the Profit Margin of CPX-PR-A has grown nicely.
- Looking at the Operating Margin, with a value of 11.65%, CPX-PR-A is in the better half of the industry, outperforming 63.64% of the companies in the same industry.
- 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
- The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so CPX-PR-A is destroying value.
- Compared to 1 year ago, CPX-PR-A has more shares outstanding
- CPX-PR-A has more shares outstanding than it did 5 years ago.
- The debt/assets ratio for CPX-PR-A has been reduced compared to a year ago.
2.2 Solvency
- Based on the Altman-Z score of 0.46, we must say that CPX-PR-A is in the distress zone and has some risk of bankruptcy.
- CPX-PR-A's Altman-Z score of 0.46 is fine compared to the rest of the industry. CPX-PR-A outperforms 63.64% of its industry peers.
- The Debt to FCF ratio of CPX-PR-A is 31.16, which is on the high side as it means it would take CPX-PR-A, 31.16 years of fcf income to pay off 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.
- A Debt/Equity ratio of 1.22 is on the high side and indicates that CPX-PR-A has dependencies on debt financing.
- CPX-PR-A has a better Debt to Equity ratio (1.22) than 87.88% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.22 | ||
| Debt/FCF | 31.16 | ||
| Altman-Z | 0.46 |
ROIC/WACC0.39
WACC6.06%
2.3 Liquidity
- A Current Ratio of 0.74 indicates that CPX-PR-A may have some problems paying its short term obligations.
- CPX-PR-A has a Current ratio of 0.74. This is comparable to the rest of the industry: CPX-PR-A outperforms 51.52% of its industry peers.
- 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
- CPX-PR-A shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -32.37%.
- Measured over the past years, CPX-PR-A shows a very strong growth in Earnings Per Share. The EPS has been growing by 31.29% on average per year.
- CPX-PR-A shows a very negative growth in Revenue. In the last year, the Revenue has decreased by -10.55%.
- CPX-PR-A shows quite a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 13.98% yearly.
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
- The Earnings Per Share is expected to decrease by -3.65% on average over the next years.
- 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
- Based on the Price/Earnings ratio of 8.05, the valuation of CPX-PR-A can be described as reasonable.
- Compared to the rest of the industry, the Price/Earnings ratio of CPX-PR-A indicates a rather cheap valuation: CPX-PR-A is cheaper than 93.94% of the companies listed in the same industry.
- CPX-PR-A is valuated cheaply when we compare the Price/Earnings ratio to 28.82, which is the current average of the S&P500 Index.
- Based on the Price/Forward Earnings ratio of 8.04, 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.
- Compared to an average S&P500 Price/Forward Earnings ratio of 25.95, CPX-PR-A is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 8.05 | ||
| Fwd PE | 8.04 |
4.2 Price Multiples
- Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of CPX-PR-A indicates a somewhat cheap valuation: CPX-PR-A is cheaper than 69.70% of the companies listed in the same industry.
- 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 | 16.05 | ||
| 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 1.82, 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.