CAPITAL POWER CORP (CPX.CA) Stock Fundamental Analysis
TSX:CPX - Toronto Stock Exchange - CA14042M1023 - Common Stock - Currency: CAD
Taking everything into account, CPX scores 4 out of 10 in our fundamental rating. CPX was compared to 40 industry peers in the Independent Power and Renewable Electricity Producers industry. While CPX belongs to the best of the industry regarding profitability, there are concerns on its financial health. CPX is valued correctly, but it does not seem to be growing. Finally CPX also has an excellent dividend rating.
1. Profitability
1.1 Basic Checks
In the past year CPX was profitable.
CPX had a positive operating cash flow in the past year.
Each year in the past 5 years CPX has been profitable.
Each year in the past 5 years CPX had a positive operating cash flow.
1.2 Ratios
CPX has a better Return On Assets (4.35%) than 80.77% of its industry peers.
The Return On Equity of CPX (13.81%) is better than 80.77% of its industry peers.
The Return On Invested Capital of CPX (7.23%) is better than 84.62% 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 4.67%.
The last Return On Invested Capital (7.23%) for CPX is above the 3 year average (5.61%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 4.35% | ||
| ROE | 13.81% | ||
| ROIC | 7.23% |
ROA(3y)2.61%
ROA(5y)1.93%
ROE(3y)9.28%
ROE(5y)6.63%
ROIC(3y)5.61%
ROIC(5y)5.85%
1.3 Margins
The Profit Margin of CPX (13.34%) is better than 80.77% of its industry peers.
In the last couple of years the Profit Margin of CPX has remained more or less at the same level.
Looking at the Operating Margin, with a value of 23.34%, CPX is doing worse than 76.92% of the companies in the same industry.
In the last couple of years the Operating Margin of CPX has grown nicely.
CPX's Gross Margin of 51.34% is on the low side compared to the rest of the industry. CPX is outperformed by 73.08% of its industry peers.
CPX's Gross Margin has declined in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 23.34% | ||
| PM (TTM) | 13.34% | ||
| GM | 51.34% |
OM growth 3Y2.77%
OM growth 5Y4.21%
PM growth 3Y57.63%
PM growth 5Y1.05%
GM growth 3Y-10.9%
GM growth 5Y-6.56%
2. Health
2.1 Basic Checks
The Return on Invested Capital (ROIC) is just above the Cost of Capital (WACC), so CPX is still creating some value.
Compared to 1 year ago, CPX has more shares outstanding
Compared to 5 years ago, CPX has more shares outstanding
Compared to 1 year ago, CPX has a worse debt to assets ratio.
2.2 Solvency
CPX has an Altman-Z score of 1.10. This is a bad value and indicates that CPX is not financially healthy and even has some risk of bankruptcy.
CPX has a Altman-Z score of 1.10. This is amongst the best in the industry. CPX outperforms 84.62% of its industry peers.
CPX has a Debt/Equity ratio of 1.32. This is a high value indicating a heavy dependency on external financing.
Looking at the Debt to Equity ratio, with a value of 1.32, CPX is in the better half of the industry, outperforming 73.08% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.32 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 1.1 |
ROIC/WACC1.19
WACC6.08%
2.3 Liquidity
CPX has a Current Ratio of 1.05. This is a normal value and indicates that CPX is financially healthy and should not expect problems in meeting its short term obligations.
The Current ratio of CPX (1.05) is comparable to the rest of the industry.
A Quick Ratio of 0.78 indicates that CPX may have some problems paying its short term obligations.
Looking at the Quick ratio, with a value of 0.78, CPX is in line with its industry, outperforming 53.85% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.05 | ||
| Quick Ratio | 0.78 |
3. Growth
3.1 Past
The earnings per share for CPX have decreased strongly by -47.33% in the last year.
CPX shows a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 45.78% yearly.
Looking at the last year, CPX shows a decrease in Revenue. The Revenue has decreased by -7.57% in the last year.
Measured over the past years, CPX shows a very strong growth in Revenue. The Revenue has been growing by 24.75% on average per year.
EPS 1Y (TTM)-47.33%
EPS 3Y86.39%
EPS 5Y45.78%
EPS Q2Q%-41.59%
Revenue 1Y (TTM)-7.57%
Revenue growth 3Y30.27%
Revenue growth 5Y24.75%
Sales Q2Q%-10.43%
3.2 Future
CPX is expected to show a very negative growth in Earnings Per Share. In the coming years, the EPS will decrease by -33.93% yearly.
The Revenue is expected to decrease by -11.53% on average over the next years. This is quite bad
EPS Next Y-46.07%
EPS Next 2Y-37.29%
EPS Next 3Y-25.91%
EPS Next 5Y-33.93%
Revenue Next Year3.03%
Revenue Next 2Y-12.14%
Revenue Next 3Y-6.9%
Revenue Next 5Y-11.53%
3.3 Evolution
The EPS growth rate is decreasing: in the next years the growth will be less than in the last years.
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
CPX is valuated correctly with a Price/Earnings ratio of 12.91.
Compared to the rest of the industry, the Price/Earnings ratio of CPX indicates a rather cheap valuation: CPX is cheaper than 80.77% of the companies listed in the same industry.
When comparing the Price/Earnings ratio of CPX to the average of the S&P500 Index (29.62), we can say CPX is valued rather cheaply.
A Price/Forward Earnings ratio of 17.20 indicates a rather expensive valuation of CPX.
Based on the Price/Forward Earnings ratio, CPX is valued a bit cheaper than 73.08% of the companies in the same industry.
CPX's Price/Forward Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 22.70.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 12.91 | ||
| Fwd PE | 17.2 |
4.2 Price Multiples
The rest of the industry has a similar Enterprise Value to EBITDA ratio as CPX.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 8.75 |
4.3 Compensation for Growth
The decent profitability rating of CPX may justify a higher PE ratio.
CPX's earnings are expected to decrease with -25.91% in the coming years. This may justify a cheaper valuation.
PEG (NY)N/A
PEG (5Y)0.28
EPS Next 2Y-37.29%
EPS Next 3Y-25.91%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 4.79%, CPX is a good candidate for dividend investing.
CPX's Dividend Yield is a higher than the industry average which is at 4.45.
Compared to an average S&P500 Dividend Yield of 2.27, CPX pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.79% |
5.2 History
The dividend of CPX has a limited annual growth rate of 3.24%.
CPX has paid a dividend for at least 10 years, which is a reliable track record.
CPX has not decreased its dividend for at least 10 years, so it has a reliable track record of non decreasing dividend.
Dividend Growth(5Y)3.24%
Div Incr Years11
Div Non Decr Years15
5.3 Sustainability
CPX pays out 51.44% of its income as dividend. This is a bit on the high side, but may be sustainable.
CPX's earnings are declining while the Dividend Rate has been growing. This means the dividend growth is most likely not sustainable.
DP51.44%
EPS Next 2Y-37.29%
EPS Next 3Y-25.91%
TSX:CPX (2/21/2025, 7:00:00 PM)
53.43
-1.05 (-1.93%)
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 Cap7.44B
Analysts72.86
Price Target64.77 (21.22%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.79% |
Yearly Dividend2.47
Dividend Growth(5Y)3.24%
DP51.44%
Div Incr Years11
Div Non Decr Years15
Ex-DateN/A
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)12.11%
Min EPS beat(2)-9.83%
Max EPS beat(2)34.04%
EPS beat(4)3
Avg EPS beat(4)37.33%
Min EPS beat(4)-9.83%
Max EPS beat(4)121.43%
EPS beat(8)5
Avg EPS beat(8)52.73%
EPS beat(12)8
Avg EPS beat(12)41.23%
EPS beat(16)9
Avg EPS beat(16)23.17%
Revenue beat(2)1
Avg Revenue beat(2)7.51%
Min Revenue beat(2)-0.43%
Max Revenue beat(2)15.46%
Revenue beat(4)3
Avg Revenue beat(4)20.38%
Min Revenue beat(4)-0.43%
Max Revenue beat(4)61.84%
Revenue beat(8)7
Avg Revenue beat(8)39.51%
Revenue beat(12)10
Avg Revenue beat(12)32.22%
Revenue beat(16)12
Avg Revenue beat(16)22.32%
PT rev (1m)4.27%
PT rev (3m)39.56%
EPS NQ rev (1m)38.78%
EPS NQ rev (3m)34.88%
EPS NY rev (1m)-1.75%
EPS NY rev (3m)1.65%
Revenue NQ rev (1m)-37.06%
Revenue NQ rev (3m)-37.06%
Revenue NY rev (1m)1.16%
Revenue NY rev (3m)13.98%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 12.91 | ||
| Fwd PE | 17.2 | ||
| P/S | 1.9 | ||
| P/FCF | N/A | ||
| P/OCF | 10.82 | ||
| P/B | 1.97 | ||
| P/tB | 2.54 | ||
| EV/EBITDA | 8.75 |
EPS(TTM)4.14
EY7.75%
EPS(NY)3.11
Fwd EY5.82%
FCF(TTM)-1.66
FCFYN/A
OCF(TTM)4.94
OCFY9.25%
SpS28.05
BVpS27.08
TBVpS21
PEG (NY)N/A
PEG (5Y)0.28
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 4.35% | ||
| ROE | 13.81% | ||
| ROCE | 8.55% | ||
| ROIC | 7.23% | ||
| ROICexc | 7.34% | ||
| ROICexgc | 7.98% | ||
| OM | 23.34% | ||
| PM (TTM) | 13.34% | ||
| GM | 51.34% | ||
| FCFM | N/A |
ROA(3y)2.61%
ROA(5y)1.93%
ROE(3y)9.28%
ROE(5y)6.63%
ROIC(3y)5.61%
ROIC(5y)5.85%
ROICexc(3y)6.29%
ROICexc(5y)6.28%
ROICexgc(3y)7%
ROICexgc(5y)7.02%
ROCE(3y)6.63%
ROCE(5y)6.92%
ROICexcg growth 3Y33.89%
ROICexcg growth 5Y26.24%
ROICexc growth 3Y33.88%
ROICexc growth 5Y25.62%
OM growth 3Y2.77%
OM growth 5Y4.21%
PM growth 3Y57.63%
PM growth 5Y1.05%
GM growth 3Y-10.9%
GM growth 5Y-6.56%
F-Score6
Asset Turnover0.33
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.32 | ||
| Debt/FCF | N/A | ||
| Debt/EBITDA | 3.51 | ||
| Cap/Depr | 180.91% | ||
| Cap/Sales | 23.52% | ||
| Interest Coverage | 4.63 | ||
| Cash Conversion | 48.45% | ||
| Profit Quality | N/A | ||
| Current Ratio | 1.05 | ||
| Quick Ratio | 0.78 | ||
| Altman-Z | 1.1 |
F-Score6
WACC6.08%
ROIC/WACC1.19
Cap/Depr(3y)121.56%
Cap/Depr(5y)112.59%
Cap/Sales(3y)23.81%
Cap/Sales(5y)23.91%
Profit Quality(3y)275.44%
Profit Quality(5y)262.02%
High Growth Momentum
Growth
EPS 1Y (TTM)-47.33%
EPS 3Y86.39%
EPS 5Y45.78%
EPS Q2Q%-41.59%
EPS Next Y-46.07%
EPS Next 2Y-37.29%
EPS Next 3Y-25.91%
EPS Next 5Y-33.93%
Revenue 1Y (TTM)-7.57%
Revenue growth 3Y30.27%
Revenue growth 5Y24.75%
Sales Q2Q%-10.43%
Revenue Next Year3.03%
Revenue Next 2Y-12.14%
Revenue Next 3Y-6.9%
Revenue Next 5Y-11.53%
EBIT growth 1Y16.33%
EBIT growth 3Y33.88%
EBIT growth 5Y30.01%
EBIT Next Year25.43%
EBIT Next 3Y10.55%
EBIT Next 5Y2.27%
FCF growth 1Y-161.27%
FCF growth 3Y-31.28%
FCF growth 5Y0.83%
OCF growth 1Y-36.18%
OCF growth 3Y10.39%
OCF growth 5Y12.81%