CAPITAL POWER CORP (CPX.CA) Stock Fundamental Analysis
Canada - Toronto Stock Exchange - TSX:CPX - CA14042M1023 - Common Stock
61.73 CAD
+1.88 (+3.14%)
Taking everything into account, CPX scores 4 out of 10 in our fundamental rating. CPX was compared to 33 industry peers in the Independent Power and Renewable Electricity Producers industry. There are concerns on the financial health of CPX while its profitability can be described as average. CPX has a expensive valuation and it also scores bad on growth.
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.
- Each year in the past 5 years CPX has been profitable.
- CPX had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
- CPX has a better Return On Assets (2.50%) than 81.82% of its industry peers.
- With an excellent Return On Equity value of 7.64%, CPX belongs to the best of the industry, outperforming 84.85% of the companies in the same industry.
- CPX has a Return On Invested Capital (2.38%) which is comparable to the rest of the industry.
- Measured over the past 3 years, the Average Return On Invested Capital for CPX 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 belongs to the best of the industry, outperforming 87.88% of the companies in the same industry.
- CPX's Profit Margin has improved in the last couple of years.
- CPX has a Operating Margin of 11.65%. This is comparable to the rest of the industry: CPX outperforms 54.55% of its industry peers.
- In the last couple of years the Operating Margin of CPX has declined.
- Looking at the Gross Margin, with a value of 47.75%, CPX is doing worse than 63.64% of the companies in the same industry.
- 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
- With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), CPX is destroying value.
- Compared to 1 year ago, CPX has more shares outstanding
- CPX has more shares outstanding than it did 5 years ago.
- CPX has a better debt/assets ratio than last year.
2.2 Solvency
- Based on the Altman-Z score of 0.81, we must say that CPX is in the distress zone and has some risk of bankruptcy.
- CPX's Altman-Z score of 0.81 is amongst the best of the industry. CPX outperforms 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.
- Looking at the Debt to FCF ratio, with a value of 31.16, CPX is in line with its industry, outperforming 51.52% of the companies in the same industry.
- CPX has a Debt/Equity ratio of 1.22. This is a high value indicating a heavy dependency on external financing.
- CPX's Debt to Equity ratio of 1.22 is fine compared to the rest of the industry. CPX outperforms 78.79% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.22 | ||
| Debt/FCF | 31.16 | ||
| Altman-Z | 0.81 |
ROIC/WACC0.37
WACC6.46%
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.
- The Current ratio of CPX (0.74) is comparable to the rest of the industry.
- A Quick Ratio of 0.63 indicates that CPX may have some problems paying its short term obligations.
- CPX has a Quick ratio (0.63) which is in line with its industry peers.
| 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.
- 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.
- CPX shows a very negative growth in Revenue. In the last year, the Revenue has decreased by -10.55%.
- 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
- 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.
- 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
- With a Price/Earnings ratio of 22.05, CPX is valued on the expensive side.
- Compared to the rest of the industry, the Price/Earnings ratio of CPX indicates a somewhat cheap valuation: CPX is cheaper than 78.79% of the companies listed in the same industry.
- CPX is valuated rather cheaply when we compare the Price/Earnings ratio to 28.82, which is the current average of the S&P500 Index.
- CPX is valuated rather expensively with a Price/Forward Earnings ratio of 22.02.
- 72.73% of the companies in the same industry are more expensive than CPX, based on the Price/Forward Earnings ratio.
- CPX is valuated at similar levels of the S&P average when we compare the Price/Forward Earnings ratio to 25.95, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 22.05 | ||
| Fwd PE | 22.02 |
4.2 Price Multiples
- 63.64% of the companies in the same industry are cheaper than CPX, based on the Enterprise Value to EBITDA ratio.
- CPX's Price/Free Cash Flow ratio is in line with the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 43.95 | ||
| EV/EBITDA | 16.83 |
4.3 Compensation for Growth
- CPX has a very decent profitability rating, which may justify a higher PE ratio.
- CPX's earnings are expected to decrease with -13.45% in the coming years. This may justify a cheaper valuation.
PEG (NY)N/A
PEG (5Y)0.7
EPS Next 2Y-26.22%
EPS Next 3Y-13.45%
5. Dividend
5.1 Amount
- With a Yearly Dividend Yield of 4.75%, CPX is a good candidate for dividend investing.
- Compared to an average industry Dividend Yield of 3.52, 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 1.82.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.75% |
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 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
- 84.33% of the earnings are spent on dividend by CPX. 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 22.05 and the Price/Book (PB) ratio is 1.92.
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.