CAPITAL POWER CORP (CPX.CA) Stock Fundamental Analysis
TSX:CPX - Toronto Stock Exchange - CA14042M1023 - Common Stock - Currency: CAD
CPX gets a fundamental rating of 5 out of 10. The analysis compared the fundamentals against 37 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.
1. Profitability
1.1 Basic Checks
In the past year CPX was profitable.
CPX had a positive operating cash flow in the past year.
In the past 5 years CPX has always been profitable.
Each year in the past 5 years CPX had a positive operating cash flow.
1.2 Ratios
Looking at the Return On Assets, with a value of 4.78%, CPX belongs to the top of the industry, outperforming 83.78% of the companies in the same industry.
Looking at the Return On Equity, with a value of 13.23%, CPX belongs to the top of the industry, outperforming 83.78% of the companies in the same industry.
With an excellent Return On Invested Capital value of 5.07%, CPX belongs to the best of the industry, outperforming 83.78% of the companies in the same industry.
Measured over the past 3 years, the Average Return On Invested Capital for CPX is in line with the industry average of 5.07%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 4.78% | ||
| ROE | 13.23% | ||
| ROIC | 5.07% |
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
Looking at the Profit Margin, with a value of 16.84%, CPX belongs to the top of the industry, outperforming 89.19% of the companies in the same industry.
CPX's Profit Margin has improved in the last couple of years.
Looking at the Operating Margin, with a value of 20.19%, CPX is in line with its industry, outperforming 48.65% of the companies in the same industry.
In the last couple of years the Operating Margin of CPX has declined.
CPX has a Gross Margin (51.99%) 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 | 20.19% | ||
| PM (TTM) | 16.84% | ||
| GM | 51.99% |
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 is destroying value.
CPX has more shares outstanding than it did 1 year ago.
Compared to 5 years ago, CPX has more shares outstanding
The debt/assets ratio for CPX has been reduced compared to a year ago.
2.2 Solvency
Based on the Altman-Z score of 1.16, we must say that CPX is in the distress zone and has some risk of bankruptcy.
CPX's Altman-Z score of 1.16 is amongst the best of the industry. CPX outperforms 91.89% of its industry peers.
A Debt/Equity ratio of 0.99 indicates that CPX is somewhat dependend on debt financing.
CPX has a better Debt to Equity ratio (0.99) than 83.78% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.99 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 1.16 |
ROIC/WACC0.81
WACC6.29%
2.3 Liquidity
A Current Ratio of 1.19 indicates that CPX should not have too much problems paying its short term obligations.
CPX's Current ratio of 1.19 is fine compared to the rest of the industry. CPX outperforms 75.68% of its industry peers.
CPX has a Quick Ratio of 1.06. This is a normal value and indicates that CPX is financially healthy and should not expect problems in meeting its short term obligations.
CPX has a better Quick ratio (1.06) than 78.38% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.19 | ||
| Quick Ratio | 1.06 |
3. Growth
3.1 Past
The earnings per share for CPX have decreased strongly by -16.33% in the last year.
CPX shows a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 31.29% yearly.
Looking at the last year, CPX shows a very negative growth in Revenue. The Revenue has decreased by -11.83% in the last year.
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)-16.33%
EPS 3Y37.52%
EPS 5Y31.29%
EPS Q2Q%-34.39%
Revenue 1Y (TTM)-11.83%
Revenue growth 3Y23.8%
Revenue growth 5Y13.98%
Sales Q2Q%-11.71%
3.2 Future
The Earnings Per Share is expected to grow by 9.14% on average over the next years. This is quite good.
CPX is expected to show a decrease in Revenue. In the coming years, the Revenue will decrease by -1.20% yearly.
EPS Next Y-43.12%
EPS Next 2Y-22.17%
EPS Next 3Y-16.2%
EPS Next 5Y9.14%
Revenue Next Year-0.03%
Revenue Next 2Y7.83%
Revenue Next 3Y15.45%
Revenue Next 5Y-1.2%
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 correctly with a Price/Earnings ratio of 12.73.
Based on the Price/Earnings ratio, CPX is valued cheaply inside the industry as 83.78% of the companies are valued more expensively.
When comparing the Price/Earnings ratio of CPX to the average of the S&P500 Index (27.51), we can say CPX is valued rather cheaply.
The Price/Forward Earnings ratio is 18.81, which indicates a rather expensive current valuation of CPX.
CPX's Price/Forward Earnings ratio is a bit cheaper when compared to the industry. CPX is cheaper than 78.38% of the companies in the same industry.
When comparing the Price/Forward Earnings ratio of CPX to the average of the S&P500 Index (35.58), we can say CPX is valued slightly cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 12.73 | ||
| Fwd PE | 18.81 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of CPX is on the same level as its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 10.85 |
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)0.41
EPS Next 2Y-22.17%
EPS Next 3Y-16.2%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 4.62%, CPX is a good candidate for dividend investing.
Compared to an average industry Dividend Yield of 5.45, CPX pays a bit more dividend than its industry peers.
CPX's Dividend Yield is rather good when compared to the S&P500 average which is at 2.35.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.62% |
5.2 History
The dividend of CPX decreases each year by -1.04%.
CPX has been paying a dividend for at least 10 years, so it has 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)-1.04%
Div Incr Years11
Div Non Decr Years15
5.3 Sustainability
48.21% of the earnings are spent on dividend by CPX. This is a bit on the high side, but may be sustainable.
DP48.21%
EPS Next 2Y-22.17%
EPS Next 3Y-16.2%
TSX:CPX (7/14/2025, 7:00:00 PM)
58.69
+1.27 (+2.21%)
Chartmill FA Rating
GICS SectorUtilities
GICS IndustryGroupUtilities
GICS IndustryIndependent Power and Renewable Electricity Producers
Earnings (Last)
Earnings (Next)
Inst Owners18.26%
Inst Owner ChangeN/A
Ins Owners0.04%
Ins Owner ChangeN/A
Market Cap9.10B
Analysts77.33
Price Target63.92 (8.91%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.62% |
Yearly Dividend2.18
Dividend Growth(5Y)-1.04%
DP48.21%
Div Incr Years11
Div Non Decr Years15
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)85.07%
Min EPS beat(2)68.75%
Max EPS beat(2)101.4%
EPS beat(4)3
Avg EPS beat(4)48.59%
Min EPS beat(4)-9.83%
Max EPS beat(4)101.4%
EPS beat(8)6
Avg EPS beat(8)47.12%
EPS beat(12)9
Avg EPS beat(12)55.43%
EPS beat(16)10
Avg EPS beat(16)38.06%
Revenue beat(2)1
Avg Revenue beat(2)3.41%
Min Revenue beat(2)-7.19%
Max Revenue beat(2)14.01%
Revenue beat(4)2
Avg Revenue beat(4)5.46%
Min Revenue beat(4)-7.19%
Max Revenue beat(4)15.46%
Revenue beat(8)6
Avg Revenue beat(8)21.9%
Revenue beat(12)10
Avg Revenue beat(12)33.02%
Revenue beat(16)11
Avg Revenue beat(16)21.87%
PT rev (1m)0.13%
PT rev (3m)-3.34%
EPS NQ rev (1m)-0.5%
EPS NQ rev (3m)-11.04%
EPS NY rev (1m)0%
EPS NY rev (3m)-0.51%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)0%
Revenue NY rev (1m)0%
Revenue NY rev (3m)26.32%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 12.73 | ||
| Fwd PE | 18.81 | ||
| P/S | 2.5 | ||
| P/FCF | N/A | ||
| P/OCF | 8.97 | ||
| P/B | 1.96 | ||
| P/tB | 2.33 | ||
| EV/EBITDA | 10.85 |
EPS(TTM)4.61
EY7.85%
EPS(NY)3.12
Fwd EY5.32%
FCF(TTM)-0.81
FCFYN/A
OCF(TTM)6.55
OCFY11.15%
SpS23.5
BVpS29.92
TBVpS25.24
PEG (NY)N/A
PEG (5Y)0.41
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 4.78% | ||
| ROE | 13.23% | ||
| ROCE | 6.49% | ||
| ROIC | 5.07% | ||
| ROICexc | 5.4% | ||
| ROICexgc | 5.8% | ||
| OM | 20.19% | ||
| PM (TTM) | 16.84% | ||
| GM | 51.99% | ||
| FCFM | N/A |
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-Score6
Asset Turnover0.28
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.99 | ||
| Debt/FCF | N/A | ||
| Debt/EBITDA | 3.7 | ||
| Cap/Depr | 224.85% | ||
| Cap/Sales | 31.28% | ||
| Interest Coverage | 2.96 | ||
| Cash Conversion | 81.66% | ||
| Profit Quality | N/A | ||
| Current Ratio | 1.19 | ||
| Quick Ratio | 1.06 | ||
| Altman-Z | 1.16 |
F-Score6
WACC6.29%
ROIC/WACC0.81
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)-16.33%
EPS 3Y37.52%
EPS 5Y31.29%
EPS Q2Q%-34.39%
EPS Next Y-43.12%
EPS Next 2Y-22.17%
EPS Next 3Y-16.2%
EPS Next 5Y9.14%
Revenue 1Y (TTM)-11.83%
Revenue growth 3Y23.8%
Revenue growth 5Y13.98%
Sales Q2Q%-11.71%
Revenue Next Year-0.03%
Revenue Next 2Y7.83%
Revenue Next 3Y15.45%
Revenue Next 5Y-1.2%
EBIT growth 1Y-23.97%
EBIT growth 3Y33.82%
EBIT growth 5Y4.84%
EBIT Next Year48.37%
EBIT Next 3Y21.56%
EBIT Next 5Y10.82%
FCF growth 1Y-153.65%
FCF growth 3Y-34.45%
FCF growth 5Y-4.09%
OCF growth 1Y16.8%
OCF growth 3Y9.52%
OCF growth 5Y9.61%