BORALEX INC -A (BLX.CA) Stock Fundamental Analysis
TSX:BLX - Toronto Stock Exchange - CA09950M3003 - Common Stock - Currency: CAD
We assign a fundamental rating of 4 out of 10 to BLX. BLX was compared to 39 industry peers in the Independent Power and Renewable Electricity Producers industry. While BLX is still in line with the averages on profitability rating, there are concerns on its financial health. While showing a medium growth rate, BLX is valued expensive at the moment.
1. Profitability
1.1 Basic Checks
BLX had positive earnings in the past year.
In the past year BLX had a positive cash flow from operations.
BLX had positive earnings in each of the past 5 years.
In the past 5 years BLX always reported a positive cash flow from operatings.
1.2 Ratios
Looking at the Return On Assets, with a value of 0.47%, BLX is in the better half of the industry, outperforming 76.92% of the companies in the same industry.
The Return On Equity of BLX (2.25%) is better than 64.10% of its industry peers.
BLX has a Return On Invested Capital (2.42%) which is in line with its industry peers.
BLX had an Average Return On Invested Capital over the past 3 years of 2.63%. This is in line with the industry average of 3.92%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 0.47% | ||
| ROE | 2.25% | ||
| ROIC | 2.42% |
ROA(3y)0.71%
ROA(5y)0.69%
ROE(3y)2.94%
ROE(5y)3.22%
ROIC(3y)2.63%
ROIC(5y)2.59%
1.3 Margins
With a decent Profit Margin value of 4.22%, BLX is doing good in the industry, outperforming 79.49% of the companies in the same industry.
BLX's Profit Margin has improved in the last couple of years.
The Operating Margin of BLX (26.61%) is better than 61.54% of its industry peers.
BLX's Operating Margin has been stable in the last couple of years.
The Gross Margin of BLX (76.79%) is better than 74.36% of its industry peers.
BLX's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 26.61% | ||
| PM (TTM) | 4.22% | ||
| GM | 76.79% |
OM growth 3Y0.2%
OM growth 5Y1.4%
PM growth 3Y19.71%
PM growth 5YN/A
GM growth 3Y-0.46%
GM growth 5Y-0.28%
2. Health
2.1 Basic Checks
With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), BLX is destroying value.
The number of shares outstanding for BLX remains at a similar level compared to 1 year ago.
BLX has more shares outstanding than it did 5 years ago.
Compared to 1 year ago, BLX has a worse debt to assets ratio.
2.2 Solvency
BLX has an Altman-Z score of 0.55. This is a bad value and indicates that BLX is not financially healthy and even has some risk of bankruptcy.
Looking at the Altman-Z score, with a value of 0.55, BLX is in the better half of the industry, outperforming 69.23% of the companies in the same industry.
BLX has a Debt/Equity ratio of 2.46. This is a high value indicating a heavy dependency on external financing.
Looking at the Debt to Equity ratio, with a value of 2.46, BLX is in the better half of the industry, outperforming 69.23% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 2.46 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 0.55 |
ROIC/WACC0.51
WACC4.73%
2.3 Liquidity
BLX has a Current Ratio of 0.96. This is a bad value and indicates that BLX is not financially healthy enough and could expect problems in meeting its short term obligations.
The Current ratio of BLX (0.96) is better than 66.67% of its industry peers.
A Quick Ratio of 0.96 indicates that BLX may have some problems paying its short term obligations.
The Quick ratio of BLX (0.96) is better than 69.23% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.96 | ||
| Quick Ratio | 0.96 |
3. Growth
3.1 Past
The earnings per share for BLX have decreased strongly by -26.88% in the last year.
BLX shows a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 58.74% yearly.
BLX shows a very negative growth in Revenue. In the last year, the Revenue has decreased by -16.54%.
The Revenue has been growing by 8.24% on average over the past years. This is quite good.
EPS 1Y (TTM)-26.88%
EPS 3Y58.74%
EPS 5YN/A
EPS Q2Q%-50%
Revenue 1Y (TTM)-16.54%
Revenue growth 3Y7.27%
Revenue growth 5Y8.24%
Sales Q2Q%-27.62%
3.2 Future
Based on estimates for the next years, BLX will show a very strong growth in Earnings Per Share. The EPS will grow by 31.78% on average per year.
Based on estimates for the next years, BLX will show a quite strong growth in Revenue. The Revenue will grow by 15.56% on average per year.
EPS Next Y33.43%
EPS Next 2Y35.85%
EPS Next 3Y29.58%
EPS Next 5Y31.78%
Revenue Next Year9.09%
Revenue Next 2Y10.73%
Revenue Next 3Y7.55%
Revenue Next 5Y15.56%
3.3 Evolution
Although the future EPS growth is still strong, it is not able to hold up the even more excellent growth rate of the past years.
The Revenue growth rate is accelerating: in the next years the growth will be better than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
BLX is valuated quite expensively with a Price/Earnings ratio of 44.26.
Compared to the rest of the industry, the Price/Earnings ratio of BLX indicates a somewhat cheap valuation: BLX is cheaper than 76.92% of the companies listed in the same industry.
When comparing the Price/Earnings ratio of BLX to the average of the S&P500 Index (26.03), we can say BLX is valued expensively.
A Price/Forward Earnings ratio of 33.17 indicates a quite expensive valuation of BLX.
Based on the Price/Forward Earnings ratio, BLX is valued a bit cheaper than the industry average as 76.92% of the companies are valued more expensively.
The average S&P500 Price/Forward Earnings ratio is at 21.94. BLX is valued rather expensively when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 44.26 | ||
| Fwd PE | 33.17 |
4.2 Price Multiples
BLX's Enterprise Value to EBITDA ratio is in line with the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 13.09 |
4.3 Compensation for Growth
The PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
The decent profitability rating of BLX may justify a higher PE ratio.
A more expensive valuation may be justified as BLX's earnings are expected to grow with 29.58% in the coming years.
PEG (NY)1.32
PEG (5Y)N/A
EPS Next 2Y35.85%
EPS Next 3Y29.58%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 2.23%, BLX has a reasonable but not impressive dividend return.
BLX's Dividend Yield is slightly below the industry average, which is at 4.45.
BLX's Dividend Yield is comparable with the S&P500 average which is at 2.36.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.23% |
5.2 History
The dividend of BLX has a limited annual growth rate of 0.48%.
BLX has been paying a dividend for at least 10 years, so it has a reliable track record.
BLX has not decreased its dividend for at least 10 years, so it has a reliable track record of non decreasing dividend.
Dividend Growth(5Y)0.48%
Div Incr Years0
Div Non Decr Years10
5.3 Sustainability
BLX pays out 188.89% of its income as dividend. This is not a sustainable payout ratio.
The dividend of BLX is growing, but earnings are growing more, so the dividend growth is sustainable.
DP188.89%
EPS Next 2Y35.85%
EPS Next 3Y29.58%
TSX:BLX (5/21/2025, 7:00:00 PM)
30.1
-0.82 (-2.65%)
Chartmill FA Rating
GICS SectorUtilities
GICS IndustryGroupUtilities
GICS IndustryIndependent Power and Renewable Electricity Producers
Earnings (Last)
Earnings (Next)
Inst Owners58.69%
Inst Owner ChangeN/A
Ins Owners0.1%
Ins Owner ChangeN/A
Market Cap3.09B
Analysts78.57
Price Target39.58 (31.5%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.23% |
Yearly Dividend0.66
Dividend Growth(5Y)0.48%
DP188.89%
Div Incr Years0
Div Non Decr Years10
Ex-Date
Surprises & Revisions
EPS beat(2)0
Avg EPS beat(2)-37.72%
Min EPS beat(2)-56.27%
Max EPS beat(2)-19.18%
EPS beat(4)2
Avg EPS beat(4)-1.37%
Min EPS beat(4)-56.27%
Max EPS beat(4)50.02%
EPS beat(8)4
Avg EPS beat(8)11.05%
EPS beat(12)6
Avg EPS beat(12)-5.49%
EPS beat(16)7
Avg EPS beat(16)-41.84%
Revenue beat(2)0
Avg Revenue beat(2)-9.78%
Min Revenue beat(2)-14.25%
Max Revenue beat(2)-5.31%
Revenue beat(4)1
Avg Revenue beat(4)-5.67%
Min Revenue beat(4)-14.25%
Max Revenue beat(4)3.84%
Revenue beat(8)4
Avg Revenue beat(8)1.33%
Revenue beat(12)6
Avg Revenue beat(12)1.96%
Revenue beat(16)6
Avg Revenue beat(16)-0.58%
PT rev (1m)0%
PT rev (3m)-5.13%
EPS NQ rev (1m)9.3%
EPS NQ rev (3m)-4.08%
EPS NY rev (1m)0%
EPS NY rev (3m)-10.17%
Revenue NQ rev (1m)1.89%
Revenue NQ rev (3m)-8.57%
Revenue NY rev (1m)-4.08%
Revenue NY rev (3m)-7.02%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 44.26 | ||
| Fwd PE | 33.17 | ||
| P/S | 3.63 | ||
| P/FCF | N/A | ||
| P/OCF | 14.39 | ||
| P/B | 1.93 | ||
| P/tB | 7.71 | ||
| EV/EBITDA | 13.09 |
EPS(TTM)0.68
EY2.26%
EPS(NY)0.91
Fwd EY3.01%
FCF(TTM)-2.31
FCFYN/A
OCF(TTM)2.09
OCFY6.95%
SpS8.3
BVpS15.58
TBVpS3.9
PEG (NY)1.32
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 0.47% | ||
| ROE | 2.25% | ||
| ROCE | 3.42% | ||
| ROIC | 2.42% | ||
| ROICexc | 2.67% | ||
| ROICexgc | 3.33% | ||
| OM | 26.61% | ||
| PM (TTM) | 4.22% | ||
| GM | 76.79% | ||
| FCFM | N/A |
ROA(3y)0.71%
ROA(5y)0.69%
ROE(3y)2.94%
ROE(5y)3.22%
ROIC(3y)2.63%
ROIC(5y)2.59%
ROICexc(3y)2.85%
ROICexc(5y)2.78%
ROICexgc(3y)3.67%
ROICexgc(5y)3.66%
ROCE(3y)3.71%
ROCE(5y)3.65%
ROICexcg growth 3Y-1.44%
ROICexcg growth 5Y1.01%
ROICexc growth 3Y1.57%
ROICexc growth 5Y1.49%
OM growth 3Y0.2%
OM growth 5Y1.4%
PM growth 3Y19.71%
PM growth 5YN/A
GM growth 3Y-0.46%
GM growth 5Y-0.28%
F-Score4
Asset Turnover0.11
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 2.46 | ||
| Debt/FCF | N/A | ||
| Debt/EBITDA | 7.52 | ||
| Cap/Depr | 152.19% | ||
| Cap/Sales | 52.99% | ||
| Interest Coverage | 1.72 | ||
| Cash Conversion | 41.03% | ||
| Profit Quality | N/A | ||
| Current Ratio | 0.96 | ||
| Quick Ratio | 0.96 | ||
| Altman-Z | 0.55 |
F-Score4
WACC4.73%
ROIC/WACC0.51
Cap/Depr(3y)110.38%
Cap/Depr(5y)89.71%
Cap/Sales(3y)36.6%
Cap/Sales(5y)31.38%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)-26.88%
EPS 3Y58.74%
EPS 5YN/A
EPS Q2Q%-50%
EPS Next Y33.43%
EPS Next 2Y35.85%
EPS Next 3Y29.58%
EPS Next 5Y31.78%
Revenue 1Y (TTM)-16.54%
Revenue growth 3Y7.27%
Revenue growth 5Y8.24%
Sales Q2Q%-27.62%
Revenue Next Year9.09%
Revenue Next 2Y10.73%
Revenue Next 3Y7.55%
Revenue Next 5Y15.56%
EBIT growth 1Y-7.72%
EBIT growth 3Y7.49%
EBIT growth 5Y9.76%
EBIT Next Year137.97%
EBIT Next 3Y34.52%
EBIT Next 5Y36.78%
FCF growth 1Y-209.72%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y-56.65%
OCF growth 3Y-14.58%
OCF growth 5Y-6.07%