CAPITAL POWER CORP - CPXCN 6.86 PERP (CPX-PR-C.CA) Stock Fundamental Analysis
Canada - Toronto Stock Exchange - TSX:CPX-PR-C - CA14042M5081
26.25 CAD
+0.05 (+0.19%)
Taking everything into account, CPX-PR-C scores 5 out of 10 in our fundamental rating. CPX-PR-C was compared to 33 industry peers in the Independent Power and Renewable Electricity Producers industry. CPX-PR-C has a medium profitability rating, but doesn't score so well on its financial health evaluation. CPX-PR-C is valued correctly, but it does not seem to be growing.
1. Profitability
1.1 Basic Checks
- In the past year CPX-PR-C was profitable.
- In the past year CPX-PR-C had a positive cash flow from operations.
- Each year in the past 5 years CPX-PR-C has been profitable.
- CPX-PR-C had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
- CPX-PR-C has a better Return On Assets (2.50%) than 84.85% of its industry peers.
- CPX-PR-C has a better Return On Equity (7.64%) than 87.88% of its industry peers.
- CPX-PR-C has a Return On Invested Capital (2.38%) which is in line with its industry peers.
- CPX-PR-C 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
- With an excellent Profit Margin value of 10.96%, CPX-PR-C belongs to the best of the industry, outperforming 90.91% of the companies in the same industry.
- CPX-PR-C's Profit Margin has improved in the last couple of years.
- Looking at the Operating Margin, with a value of 11.65%, CPX-PR-C is in line with its industry, outperforming 57.58% of the companies in the same industry.
- In the last couple of years the Operating Margin of CPX-PR-C has declined.
- CPX-PR-C has a Gross Margin of 47.75%. This is in the lower half of the industry: CPX-PR-C underperforms 60.61% of its industry peers.
- In the last couple of years the Gross Margin of CPX-PR-C 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
- CPX-PR-C 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, CPX-PR-C has more shares outstanding
- CPX-PR-C has more shares outstanding than it did 5 years ago.
- Compared to 1 year ago, CPX-PR-C has an improved debt to assets ratio.
2.2 Solvency
- CPX-PR-C has an Altman-Z score of 0.49. This is a bad value and indicates that CPX-PR-C is not financially healthy and even has some risk of bankruptcy.
- The Altman-Z score of CPX-PR-C (0.49) is better than 78.79% of its industry peers.
- CPX-PR-C has a debt to FCF ratio of 31.16. This is a negative value and a sign of low solvency as CPX-PR-C would need 31.16 years to pay back of all of its debts.
- CPX-PR-C has a Debt to FCF ratio (31.16) which is in line with its industry peers.
- CPX-PR-C has a Debt/Equity ratio of 1.22. This is a high value indicating a heavy dependency on external financing.
- CPX-PR-C's Debt to Equity ratio of 1.22 is amongst the best of the industry. CPX-PR-C outperforms 81.82% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.22 | ||
| Debt/FCF | 31.16 | ||
| Altman-Z | 0.49 |
ROIC/WACC0.39
WACC6.1%
2.3 Liquidity
- A Current Ratio of 0.74 indicates that CPX-PR-C may have some problems paying its short term obligations.
- With a Current ratio value of 0.74, CPX-PR-C perfoms like the industry average, outperforming 45.45% of the companies in the same industry.
- CPX-PR-C has a Quick Ratio of 0.74. This is a bad value and indicates that CPX-PR-C is not financially healthy enough and could expect problems in meeting its short term obligations.
- The Quick ratio of CPX-PR-C (0.63) is comparable to the rest of the 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-C 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-C 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-C is expected to show a decrease in Earnings Per Share. In the coming years, the EPS will decrease by -3.65% yearly.
- CPX-PR-C is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 2.59% yearly.
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.
- The Revenue growth rate is decreasing: in the next years the growth will be less than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
- The Price/Earnings ratio is 9.38, which indicates a very decent valuation of CPX-PR-C.
- Compared to the rest of the industry, the Price/Earnings ratio of CPX-PR-C indicates a rather cheap valuation: CPX-PR-C is cheaper than 87.88% of the companies listed in the same industry.
- The average S&P500 Price/Earnings ratio is at 27.25. CPX-PR-C is valued rather cheaply when compared to this.
- With a Price/Forward Earnings ratio of 9.36, the valuation of CPX-PR-C can be described as very reasonable.
- Based on the Price/Forward Earnings ratio, CPX-PR-C is valued cheaply inside the industry as 90.91% of the companies are valued more expensively.
- Compared to an average S&P500 Price/Forward Earnings ratio of 25.98, CPX-PR-C is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 9.38 | ||
| Fwd PE | 9.36 |
4.2 Price Multiples
- Based on the Enterprise Value to EBITDA ratio, CPX-PR-C is valued a bit cheaper than 63.64% of the companies in the same industry.
- Based on the Price/Free Cash Flow ratio, CPX-PR-C is valued a bit cheaper than the industry average as 69.70% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 18.69 | ||
| EV/EBITDA | 11.1 |
4.3 Compensation for Growth
- CPX-PR-C has a very decent profitability rating, which may justify a higher PE ratio.
- CPX-PR-C'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)0.3
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-C is a good candidate for dividend investing.
- Compared to an average industry Dividend Yield of 3.52, CPX-PR-C pays a bit more dividend than its industry peers.
- CPX-PR-C's Dividend Yield is rather good when compared to the S&P500 average which is at 1.82.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.75% |
5.2 History
- The dividend of CPX-PR-C decreases each year by -1.04%.
- CPX-PR-C has paid a dividend for at least 10 years, which is a reliable track record.
- CPX-PR-C has not decreased its dividend for at least 10 years, so it has a reliable track record of non decreasing dividend.
Dividend Growth(5Y)-1.04%
Div Incr Years1
Div Non Decr Years10
5.3 Sustainability
- 84.33% of the earnings are spent on dividend by CPX-PR-C. This is not a sustainable payout ratio.
- The Dividend Rate of CPX-PR-C 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 6.86 PERP / CPX-PR-C.CA FAQ
What is the ChartMill fundamental rating of CAPITAL POWER CORP - CPXCN 6.86 PERP (CPX-PR-C.CA) stock?
ChartMill assigns a fundamental rating of 5 / 10 to CPX-PR-C.CA.
What is the valuation status for CPX-PR-C stock?
ChartMill assigns a valuation rating of 6 / 10 to CAPITAL POWER CORP - CPXCN 6.86 PERP (CPX-PR-C.CA). This can be considered as Fairly Valued.
How profitable is CAPITAL POWER CORP - CPXCN 6.86 PERP (CPX-PR-C.CA) stock?
CAPITAL POWER CORP - CPXCN 6.86 PERP (CPX-PR-C.CA) has a profitability rating of 6 / 10.
Can you provide the financial health for CPX-PR-C stock?
The financial health rating of CAPITAL POWER CORP - CPXCN 6.86 PERP (CPX-PR-C.CA) is 3 / 10.
Is the dividend of CAPITAL POWER CORP - CPXCN 6.86 PERP sustainable?
The dividend rating of CAPITAL POWER CORP - CPXCN 6.86 PERP (CPX-PR-C.CA) is 6 / 10 and the dividend payout ratio is 84.33%.