CAPITAL POWER CORP (CPX.CA) Stock Fundamental Analysis
TSX:CPX - Toronto Stock Exchange - CA14042M1023 - Common Stock - Currency: CAD
Taking everything into account, CPX scores 5 out of 10 in our fundamental rating. CPX was compared to 39 industry peers in the Independent Power and Renewable Electricity Producers industry. While CPX belongs to the best of the industry regarding profitability, there are some minor concerns on its financial health. CPX has a valuation in line with the averages, but on the other hand it scores bad on growth. Finally CPX also has an excellent dividend rating. This makes CPX very considerable for dividend investing!
1. Profitability
1.1 Basic Checks
CPX had positive earnings in the past year.
CPX had a positive operating cash flow in the past year.
In the past 5 years CPX has always been profitable.
CPX had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
The Return On Assets of CPX (5.14%) is better than 87.18% of its industry peers.
Looking at the Return On Equity, with a value of 14.53%, CPX belongs to the top of the industry, outperforming 87.18% of the companies in the same industry.
CPX has a Return On Invested Capital of 5.55%. This is amongst the best in the industry. CPX outperforms 87.18% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for CPX is in line with the industry average of 4.15%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 5.14% | ||
| ROE | 14.53% | ||
| ROIC | 5.55% |
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 has a better Profit Margin (17.61%) than 89.74% of its industry peers.
CPX's Profit Margin has improved in the last couple of years.
CPX has a Operating Margin of 21.77%. This is comparable to the rest of the industry: CPX outperforms 48.72% of its industry peers.
CPX's Operating Margin has declined in the last couple of years.
CPX has a Gross Margin (52.67%) which is in line with its industry peers.
In the last couple of years the Gross Margin of CPX has declined.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 21.77% | ||
| PM (TTM) | 17.61% | ||
| GM | 52.67% |
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 is destroying value.
CPX has more shares outstanding than it did 1 year ago.
The number of shares outstanding for CPX has been increased compared to 5 years ago.
Compared to 1 year ago, CPX has an improved debt to assets ratio.
2.2 Solvency
Based on the Altman-Z score of 1.10, we must say that CPX is in the distress zone and has some risk of bankruptcy.
CPX has a better Altman-Z score (1.10) than 87.18% of its industry peers.
CPX has a debt to FCF ratio of 74.06. This is a negative value and a sign of low solvency as CPX would need 74.06 years to pay back of all of its debts.
CPX has a better Debt to FCF ratio (74.06) than 74.36% of its industry peers.
A Debt/Equity ratio of 1.08 is on the high side and indicates that CPX has dependencies on debt financing.
CPX has a better Debt to Equity ratio (1.08) than 84.62% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.08 | ||
| Debt/FCF | 74.06 | ||
| Altman-Z | 1.1 |
ROIC/WACC0.93
WACC5.99%
2.3 Liquidity
A Current Ratio of 1.44 indicates that CPX should not have too much problems paying its short term obligations.
The Current ratio of CPX (1.44) is better than 82.05% of its industry peers.
A Quick Ratio of 1.27 indicates that CPX should not have too much problems paying its short term obligations.
CPX has a Quick ratio of 1.27. This is amongst the best in the industry. CPX outperforms 82.05% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.44 | ||
| Quick Ratio | 1.27 |
3. Growth
3.1 Past
CPX shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -34.81%.
Measured over the past years, CPX shows a very strong growth in Earnings Per Share. The EPS has been growing by 31.29% on average per year.
The Revenue for CPX has decreased by -11.82% in the past year. This is quite bad
CPX shows quite a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 13.98% yearly.
EPS 1Y (TTM)-34.81%
EPS 3Y37.52%
EPS 5Y31.29%
EPS Q2Q%136.49%
Revenue 1Y (TTM)-11.82%
Revenue growth 3Y23.8%
Revenue growth 5Y13.98%
Sales Q2Q%-13.31%
3.2 Future
Based on estimates for the next years, CPX will show a very negative growth in Earnings Per Share. The EPS will decrease by -16.20% on average per year.
The Revenue is expected to decrease by -8.74% on average over the next years.
EPS Next Y-43.12%
EPS Next 2Y-22.17%
EPS Next 3Y-16.2%
EPS Next 5YN/A
Revenue Next Year-16.44%
Revenue Next 2Y-0.63%
Revenue Next 3Y-4.46%
Revenue Next 5Y-8.74%
3.3 Evolution
The EPS growth rate is decreasing: in the next years the growth will be less than in the last years.
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
CPX is valuated reasonably with a Price/Earnings ratio of 9.83.
Compared to the rest of the industry, the Price/Earnings ratio of CPX indicates a rather cheap valuation: CPX is cheaper than 89.74% of the companies listed in the same industry.
When comparing the Price/Earnings ratio of CPX to the average of the S&P500 Index (28.87), we can say CPX is valued rather cheaply.
With a Price/Forward Earnings ratio of 17.28, CPX is valued on the expensive side.
Based on the Price/Forward Earnings ratio, CPX is valued cheaply inside the industry as 82.05% of the companies are valued more expensively.
When comparing the Price/Forward Earnings ratio of CPX to the average of the S&P500 Index (21.38), we can say CPX is valued inline with the index average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 9.83 | ||
| Fwd PE | 17.28 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of CPX indicates a somewhat cheap valuation: CPX is cheaper than 71.79% of the companies listed in the same industry.
CPX's Price/Free Cash Flow ratio is a bit cheaper when compared to the industry. CPX is cheaper than 74.36% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 110.89 | ||
| EV/EBITDA | 8.99 |
4.3 Compensation for Growth
The decent profitability rating of CPX may justify a higher PE ratio.
A cheap valuation may be justified as CPX's earnings are expected to decrease with -16.20% in the coming years.
PEG (NY)N/A
PEG (5Y)0.31
EPS Next 2Y-22.17%
EPS Next 3Y-16.2%
5. Dividend
5.1 Amount
CPX has a Yearly Dividend Yield of 5.20%, which is a nice return.
CPX's Dividend Yield is a higher than the industry average which is at 4.71.
CPX's Dividend Yield is rather good when compared to the S&P500 average which is at 2.46.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 5.2% |
5.2 History
The dividend of CPX decreases each year by -1.04%.
CPX has paid a dividend for at least 10 years, which is a reliable track record.
CPX has not decreased their dividend for at least 10 years, which is a reliable track record.
Dividend Growth(5Y)-1.04%
Div Incr Years11
Div Non Decr Years15
5.3 Sustainability
42.11% of the earnings are spent on dividend by CPX. This is a bit on the high side, but may be sustainable.
CPX's earnings and Dividend Rate are declining. This means the current dividend is most likely not sustainable.
DP42.11%
EPS Next 2Y-22.17%
EPS Next 3Y-16.2%
TSX:CPX (4/28/2025, 7:00:00 PM)
50.61
-0.08 (-0.16%)
Chartmill FA Rating
GICS SectorUtilities
GICS IndustryGroupUtilities
GICS IndustryIndependent Power and Renewable Electricity Producers
Earnings (Last)
Earnings (Next)
Inst Owners18.92%
Inst Owner ChangeN/A
Ins Owners0.02%
Ins Owner ChangeN/A
Market Cap7.65B
Analysts78.67
Price Target64.01 (26.48%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 5.2% |
Yearly Dividend2.18
Dividend Growth(5Y)-1.04%
DP42.11%
Div Incr Years11
Div Non Decr Years15
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)67.72%
Min EPS beat(2)34.04%
Max EPS beat(2)101.4%
EPS beat(4)3
Avg EPS beat(4)61.76%
Min EPS beat(4)-9.83%
Max EPS beat(4)121.43%
EPS beat(8)6
Avg EPS beat(8)66.88%
EPS beat(12)9
Avg EPS beat(12)51.79%
EPS beat(16)10
Avg EPS beat(16)34.07%
Revenue beat(2)1
Avg Revenue beat(2)4.13%
Min Revenue beat(2)-7.19%
Max Revenue beat(2)15.46%
Revenue beat(4)2
Avg Revenue beat(4)3.13%
Min Revenue beat(4)-7.19%
Max Revenue beat(4)15.46%
Revenue beat(8)6
Avg Revenue beat(8)32.76%
Revenue beat(12)9
Avg Revenue beat(12)30.26%
Revenue beat(16)11
Avg Revenue beat(16)21.28%
PT rev (1m)-3.71%
PT rev (3m)3.04%
EPS NQ rev (1m)-10.38%
EPS NQ rev (3m)-26.31%
EPS NY rev (1m)-0.51%
EPS NY rev (3m)-8.94%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-30.17%
Revenue NY rev (1m)5.58%
Revenue NY rev (3m)18.8%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 9.83 | ||
| Fwd PE | 17.28 | ||
| P/S | 2.03 | ||
| P/FCF | 110.89 | ||
| P/OCF | 6.72 | ||
| P/B | 1.67 | ||
| P/tB | 2 | ||
| EV/EBITDA | 8.99 |
EPS(TTM)5.15
EY10.18%
EPS(NY)2.93
Fwd EY5.79%
FCF(TTM)0.46
FCFY0.9%
OCF(TTM)7.53
OCFY14.89%
SpS24.98
BVpS30.27
TBVpS25.35
PEG (NY)N/A
PEG (5Y)0.31
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 5.14% | ||
| ROE | 14.53% | ||
| ROCE | 7.1% | ||
| ROIC | 5.55% | ||
| ROICexc | 6% | ||
| ROICexgc | 6.44% | ||
| OM | 21.77% | ||
| PM (TTM) | 17.61% | ||
| GM | 52.67% | ||
| FCFM | 1.83% |
ROA(3y)4.16%
ROA(5y)2.78%
ROE(3y)13.61%
ROE(5y)9.04%
ROIC(3y)5.9%
ROIC(5y)5.1%
ROICexc(3y)6.62%
ROICexc(5y)5.57%
ROICexgc(3y)7.3%
ROICexgc(5y)6.15%
ROCE(3y)7.55%
ROCE(5y)6.53%
ROICexcg growth 3Y17.86%
ROICexcg growth 5Y-4.56%
ROICexc growth 3Y19.31%
ROICexc growth 5Y-3.64%
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%
F-Score5
Asset Turnover0.29
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.08 | ||
| Debt/FCF | 74.06 | ||
| Debt/EBITDA | 3.74 | ||
| Cap/Depr | 212.72% | ||
| Cap/Sales | 28.34% | ||
| Interest Coverage | 3.75 | ||
| Cash Conversion | 85.96% | ||
| Profit Quality | 10.38% | ||
| Current Ratio | 1.44 | ||
| Quick Ratio | 1.27 | ||
| Altman-Z | 1.1 |
F-Score5
WACC5.99%
ROIC/WACC0.93
Cap/Depr(3y)154%
Cap/Depr(5y)128.29%
Cap/Sales(3y)22.84%
Cap/Sales(5y)23.11%
Profit Quality(3y)93.29%
Profit Quality(5y)241.73%
High Growth Momentum
Growth
EPS 1Y (TTM)-34.81%
EPS 3Y37.52%
EPS 5Y31.29%
EPS Q2Q%136.49%
EPS Next Y-43.12%
EPS Next 2Y-22.17%
EPS Next 3Y-16.2%
EPS Next 5YN/A
Revenue 1Y (TTM)-11.82%
Revenue growth 3Y23.8%
Revenue growth 5Y13.98%
Sales Q2Q%-13.31%
Revenue Next Year-16.44%
Revenue Next 2Y-0.63%
Revenue Next 3Y-4.46%
Revenue Next 5Y-8.74%
EBIT growth 1Y-21.79%
EBIT growth 3Y33.82%
EBIT growth 5Y4.84%
EBIT Next Year33.08%
EBIT Next 3Y10.88%
EBIT Next 5Y1.1%
FCF growth 1Y-30.3%
FCF growth 3Y-34.45%
FCF growth 5Y-4.09%
OCF growth 1Y38.56%
OCF growth 3Y9.52%
OCF growth 5Y9.61%