CAPITAL POWER CORP (CPX.CA) Stock Fundamental Analysis
Canada • Toronto Stock Exchange • TSX:CPX • CA14042M1023
59.75 CAD
-1.78 (-2.89%)
Last: Jan 30, 2026, 07:00 PM
Overall CPX gets a fundamental rating of 4 out of 10. We evaluated CPX against 33 industry peers in the Independent Power and Renewable Electricity Producers industry. While CPX is still in line with the averages on profitability rating, there are concerns on its financial health. CPX is valued expensive and it does not seem to be growing.
1. Profitability
1.1 Basic Checks
- In the past year CPX was profitable.
- In the past year CPX had a positive cash flow from operations.
- Each year in the past 5 years CPX has been profitable.
- In the past 5 years CPX always reported a positive cash flow from operatings.
1.2 Ratios
- With an excellent Return On Assets value of 2.50%, CPX belongs to the best of the industry, outperforming 81.82% of the companies in the same industry.
- The Return On Equity of CPX (7.64%) is better than 84.85% of its industry peers.
- CPX has a Return On Invested Capital (2.38%) which is in line with its industry peers.
- The Average Return On Invested Capital over the past 3 years for CPX is above the industry average of 3.78%.
| 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
- CPX has a better Profit Margin (10.96%) than 87.88% of its industry peers.
- CPX's Profit Margin has improved in the last couple of years.
- Looking at the Operating Margin, with a value of 11.65%, CPX is in line with its industry, outperforming 54.55% 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 of 47.75%. This is in the lower half of the industry: CPX underperforms 63.64% of its industry peers.
- In the last couple of years the Gross Margin of CPX 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
- 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.
- Compared to 5 years ago, CPX has more shares outstanding
- Compared to 1 year ago, CPX has an improved debt to assets ratio.
2.2 Solvency
- CPX has an Altman-Z score of 0.80. This is a bad value and indicates that CPX is not financially healthy and even has some risk of bankruptcy.
- The Altman-Z score of CPX (0.80) is better than 93.94% of its industry peers.
- The Debt to FCF ratio of CPX is 31.16, which is on the high side as it means it would take CPX, 31.16 years of fcf income to pay off all of its debts.
- The Debt to FCF ratio of CPX (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 has dependencies on debt financing.
- With a decent Debt to Equity ratio value of 1.22, CPX is doing good in the industry, outperforming 78.79% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.22 | ||
| Debt/FCF | 31.16 | ||
| Altman-Z | 0.8 |
ROIC/WACC0.37
WACC6.42%
2.3 Liquidity
- CPX has a Current Ratio of 0.74. This is a bad value and indicates that CPX is not financially healthy enough and could expect problems in meeting its short term obligations.
- CPX has a Current ratio (0.74) which is in line with its industry peers.
- CPX has a Quick Ratio of 0.74. This is a bad value and indicates that CPX is not financially healthy enough and could expect problems in meeting its short term obligations.
- Looking at the Quick ratio, with a value of 0.63, CPX is in line with its industry, outperforming 42.42% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.74 | ||
| Quick Ratio | 0.63 |
3. Growth
3.1 Past
- The earnings per share for CPX 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
- The Revenue for CPX has decreased by -10.55% 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)-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 is expected to show a decrease in Earnings Per Share. In the coming years, the EPS will decrease by -3.65% yearly.
- CPX 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
- 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 rather expensively with a Price/Earnings ratio of 21.34.
- CPX's Price/Earnings ratio is a bit cheaper when compared to the industry. CPX is cheaper than 78.79% of the companies in the same industry.
- The average S&P500 Price/Earnings ratio is at 28.32. CPX is valued slightly cheaper when compared to this.
- The Price/Forward Earnings ratio is 21.31, which indicates a rather expensive current valuation of CPX.
- 72.73% of the companies in the same industry are more expensive than CPX, based on the Price/Forward Earnings ratio.
- The average S&P500 Price/Forward Earnings ratio is at 25.57. CPX is around the same levels.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 21.34 | ||
| Fwd PE | 21.31 |
4.2 Price Multiples
- Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of CPX indicates a slightly more expensive valuation: CPX is more expensive than 63.64% of the companies listed in the same industry.
- The rest of the industry has a similar Price/Free Cash Flow ratio as CPX.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 42.54 | ||
| EV/EBITDA | 16.51 |
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 -13.45% in the coming years.
PEG (NY)N/A
PEG (5Y)0.68
EPS Next 2Y-26.22%
EPS Next 3Y-13.45%
5. Dividend
5.1 Amount
- With a Yearly Dividend Yield of 4.49%, CPX is a good candidate for dividend investing.
- Compared to an average industry Dividend Yield of 3.73, CPX pays a bit more dividend than its industry peers.
- Compared to an average S&P500 Dividend Yield of 1.83, CPX pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.49% |
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 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
- CPX pays out 84.33% of its income as dividend. This is not a sustainable payout ratio.
- The Dividend Rate of CPX 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 / CPX.CA FAQ
What is the fundamental rating for CPX stock?
ChartMill assigns a fundamental rating of 4 / 10 to CPX.CA.
What is the valuation status for CPX stock?
ChartMill assigns a valuation rating of 3 / 10 to CAPITAL POWER CORP (CPX.CA). This can be considered as Overvalued.
How profitable is CAPITAL POWER CORP (CPX.CA) stock?
CAPITAL POWER CORP (CPX.CA) has a profitability rating of 6 / 10.
What are the PE and PB ratios of CAPITAL POWER CORP (CPX.CA) stock?
The Price/Earnings (PE) ratio for CAPITAL POWER CORP (CPX.CA) is 21.34 and the Price/Book (PB) ratio is 1.86.
What is the earnings growth outlook for CAPITAL POWER CORP?
The Earnings per Share (EPS) of CAPITAL POWER CORP (CPX.CA) is expected to decline by -66.21% in the next year.