CAPITAL POWER CORP - CPXCN 6.631 PERP (CPX-PR-E.CA) Stock Fundamental Analysis
Canada - Toronto Stock Exchange - TSX:CPX-PR-E - CA14042M7061
25.86 CAD
0 (0%)
We assign a fundamental rating of 5 out of 10 to CPX-PR-E. CPX-PR-E was compared to 33 industry peers in the Independent Power and Renewable Electricity Producers industry. CPX-PR-E scores excellent on profitability, but there are concerns on its financial health. CPX-PR-E has a valuation in line with the averages, but it does not seem to be growing.
1. Profitability
1.1 Basic Checks
- CPX-PR-E had positive earnings in the past year.
- CPX-PR-E had a positive operating cash flow in the past year.
- Each year in the past 5 years CPX-PR-E has been profitable.
- CPX-PR-E had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
- With an excellent Return On Assets value of 2.50%, CPX-PR-E belongs to the best of the industry, outperforming 87.88% of the companies in the same industry.
- With an excellent Return On Equity value of 7.64%, CPX-PR-E belongs to the best of the industry, outperforming 90.91% of the companies in the same industry.
- CPX-PR-E has a Return On Invested Capital (2.38%) which is in line with its industry peers.
- CPX-PR-E 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-E belongs to the best of the industry, outperforming 93.94% of the companies in the same industry.
- In the last couple of years the Profit Margin of CPX-PR-E has grown nicely.
- CPX-PR-E has a Operating Margin of 11.65%. This is in the better half of the industry: CPX-PR-E outperforms 60.61% of its industry peers.
- In the last couple of years the Operating Margin of CPX-PR-E has declined.
- CPX-PR-E has a Gross Margin (47.75%) which is in line with its industry peers.
- CPX-PR-E's Gross Margin has declined in the last couple of years.
| 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-E is destroying value.
- The number of shares outstanding for CPX-PR-E has been increased compared to 1 year ago.
- The number of shares outstanding for CPX-PR-E has been increased compared to 5 years ago.
- Compared to 1 year ago, CPX-PR-E has an improved debt to assets ratio.
2.2 Solvency
- Based on the Altman-Z score of 0.49, we must say that CPX-PR-E is in the distress zone and has some risk of bankruptcy.
- CPX-PR-E's Altman-Z score of 0.49 is fine compared to the rest of the industry. CPX-PR-E outperforms 72.73% of its industry peers.
- The Debt to FCF ratio of CPX-PR-E is 31.16, which is on the high side as it means it would take CPX-PR-E, 31.16 years of fcf income to pay off all of its debts.
- The Debt to FCF ratio of CPX-PR-E (31.16) is comparable to the rest of the industry.
- A Debt/Equity ratio of 1.22 is on the high side and indicates that CPX-PR-E has dependencies on debt financing.
- Looking at the Debt to Equity ratio, with a value of 1.22, CPX-PR-E belongs to the top of the industry, outperforming 84.85% of the companies in the same industry.
| 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-E may have some problems paying its short term obligations.
- CPX-PR-E has a Current ratio of 0.74. This is comparable to the rest of the industry: CPX-PR-E outperforms 48.48% of its industry peers.
- A Quick Ratio of 0.63 indicates that CPX-PR-E may have some problems paying its short term obligations.
- Looking at the Quick ratio, with a value of 0.63, CPX-PR-E is in line with its industry, outperforming 48.48% 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-E shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -32.37%.
- The Earnings Per Share has been growing by 31.29% on average over the past years. This is a very strong growth
- Looking at the last year, CPX-PR-E shows a very negative growth in Revenue. The Revenue has decreased by -10.55% in the last year.
- CPX-PR-E 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
- CPX-PR-E is expected to show a decrease in Earnings Per Share. In the coming years, the EPS will decrease by -3.65% yearly.
- CPX-PR-E 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 9.24, which indicates a very decent valuation of CPX-PR-E.
- Compared to the rest of the industry, the Price/Earnings ratio of CPX-PR-E indicates a rather cheap valuation: CPX-PR-E is cheaper than 90.91% of the companies listed in the same industry.
- CPX-PR-E is valuated cheaply when we compare the Price/Earnings ratio to 28.87, which is the current average of the S&P500 Index.
- With a Price/Forward Earnings ratio of 9.22, the valuation of CPX-PR-E can be described as very reasonable.
- Compared to the rest of the industry, the Price/Forward Earnings ratio of CPX-PR-E indicates a rather cheap valuation: CPX-PR-E is cheaper than 93.94% of the companies listed in the same industry.
- CPX-PR-E is valuated cheaply when we compare the Price/Forward Earnings ratio to 25.96, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 9.24 | ||
| Fwd PE | 9.22 |
4.2 Price Multiples
- 66.67% of the companies in the same industry are more expensive than CPX-PR-E, based on the Enterprise Value to EBITDA ratio.
- Based on the Price/Free Cash Flow ratio, CPX-PR-E is valued a bit cheaper than the industry average as 72.73% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 18.41 | ||
| EV/EBITDA | 11.04 |
4.3 Compensation for Growth
- The decent profitability rating of CPX-PR-E may justify a higher PE ratio.
- A cheap valuation may be justified as CPX-PR-E's earnings are expected to decrease with -13.45% in the coming years.
PEG (NY)N/A
PEG (5Y)0.3
EPS Next 2Y-26.22%
EPS Next 3Y-13.45%
5. Dividend
5.1 Amount
- CPX-PR-E has a Yearly Dividend Yield of 4.75%, which is a nice return.
- Compared to an average industry Dividend Yield of 3.52, CPX-PR-E pays a bit more dividend than its industry peers.
- Compared to an average S&P500 Dividend Yield of 1.82, CPX-PR-E pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.75% |
5.2 History
- The dividend of CPX-PR-E decreases each year by -1.04%.
- CPX-PR-E has been paying a dividend for at least 10 years, so it has a reliable track record.
- CPX-PR-E has not decreased its dividend in the last 3 years.
Dividend Growth(5Y)-1.04%
Div Incr Years2
Div Non Decr Years4
5.3 Sustainability
- CPX-PR-E pays out 84.33% of its income as dividend. This is not a sustainable payout ratio.
- The Dividend Rate of CPX-PR-E 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 6.631 PERP / CPX-PR-E.CA FAQ
Can you provide the ChartMill fundamental rating for CAPITAL POWER CORP - CPXCN 6.631 PERP?
ChartMill assigns a fundamental rating of 5 / 10 to CPX-PR-E.CA.
What is the valuation status of CAPITAL POWER CORP - CPXCN 6.631 PERP (CPX-PR-E.CA) stock?
ChartMill assigns a valuation rating of 6 / 10 to CAPITAL POWER CORP - CPXCN 6.631 PERP (CPX-PR-E.CA). This can be considered as Fairly Valued.
What is the profitability of CPX-PR-E stock?
CAPITAL POWER CORP - CPXCN 6.631 PERP (CPX-PR-E.CA) has a profitability rating of 7 / 10.
What are the PE and PB ratios of CAPITAL POWER CORP - CPXCN 6.631 PERP (CPX-PR-E.CA) stock?
The Price/Earnings (PE) ratio for CAPITAL POWER CORP - CPXCN 6.631 PERP (CPX-PR-E.CA) is 9.24 and the Price/Book (PB) ratio is 0.8.
How financially healthy is CAPITAL POWER CORP - CPXCN 6.631 PERP?
The financial health rating of CAPITAL POWER CORP - CPXCN 6.631 PERP (CPX-PR-E.CA) is 3 / 10.