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BORALEX INC -A (BLX.CA) Stock Fundamental Analysis

TSX:BLX - Toronto Stock Exchange - CA09950M3003 - Common Stock - Currency: CAD

25.44  -0.36 (-1.4%)

Fundamental Rating

4

We assign a fundamental rating of 4 out of 10 to BLX. BLX was compared to 41 industry peers in the Independent Power and Renewable Electricity Producers industry. BLX has a medium profitability rating, but doesn't score so well on its financial health evaluation. BLX is valied quite expensively at the moment, while it does show a decent growth rate.


Dividend Valuation Growth Profitability Health

5

1. Profitability

1.1 Basic Checks

In the past year BLX was profitable.
BLX had a positive operating cash flow in the past year.
Of the past 5 years BLX 4 years were profitable.
Each year in the past 5 years BLX had a positive operating cash flow.
BLX.CA Yearly Net Income VS EBIT VS OCF VS FCFBLX.CA Yearly Net Income VS EBIT VS OCF VS FCFYearly Net Income VS EBIT VS OCF VS FCF 2015 2016 2017 2018 2019 2020 2021 2022 2023 0 200M -200M 400M

1.2 Ratios

BLX has a Return On Assets of 1.08%. This is in the better half of the industry: BLX outperforms 74.07% of its industry peers.
With a decent Return On Equity value of 4.43%, BLX is doing good in the industry, outperforming 77.78% of the companies in the same industry.
BLX has a Return On Invested Capital of 2.71%. This is comparable to the rest of the industry: BLX outperforms 55.56% of its industry peers.
BLX had an Average Return On Invested Capital over the past 3 years of 2.20%. This is below the industry average of 4.72%.
The 3 year average ROIC (2.20%) for BLX is below the current ROIC(2.71%), indicating increased profibility in the last year.
Industry RankSector Rank
ROA 1.08%
ROE 4.43%
ROIC 2.71%
ROA(3y)0.65%
ROA(5y)0.42%
ROE(3y)2.76%
ROE(5y)1.86%
ROIC(3y)2.2%
ROIC(5y)2.16%
BLX.CA Yearly ROA, ROE, ROICBLX.CA Yearly ROA, ROE, ROICYearly ROA, ROE, ROIC 2015 2016 2017 2018 2019 2020 2021 2022 2023 0 2 -2 4 -4

1.3 Margins

Looking at the Profit Margin, with a value of 7.55%, BLX is in the better half of the industry, outperforming 74.07% of the companies in the same industry.
BLX's Profit Margin has declined in the last couple of years.
BLX's Operating Margin of 28.72% is in line compared to the rest of the industry. BLX outperforms 40.74% of its industry peers.
In the last couple of years the Operating Margin of BLX has grown nicely.
BLX has a Gross Margin (73.40%) which is in line with its industry peers.
BLX's Gross Margin has declined in the last couple of years.
Industry RankSector Rank
OM 28.72%
PM (TTM) 7.55%
GM 73.4%
OM growth 3Y-5.23%
OM growth 5Y7.05%
PM growth 3Y-4.23%
PM growth 5YN/A
GM growth 3Y-6.21%
GM growth 5Y-2.75%
BLX.CA Yearly Profit, Operating, Gross MarginsBLX.CA Yearly Profit, Operating, Gross MarginsYearly Profit, Operating, Gross Margins 2015 2016 2017 2018 2019 2020 2021 2022 2023 0 20 40 60

2

2. Health

2.1 Basic Checks

BLX has a Return on Invested Capital (ROIC), which is below the Cost of Capital (WACC), which means it is destroying value.
Compared to 1 year ago, BLX has about the same amount of shares outstanding.
The number of shares outstanding for BLX has been increased compared to 5 years ago.
BLX has a better debt/assets ratio than last year.
BLX.CA Yearly Shares OutstandingBLX.CA Yearly Shares OutstandingYearly Shares Outstanding 2015 2016 2017 2018 2019 2020 2021 2022 2023 20M 40M 60M 80M 100M
BLX.CA Yearly Total Debt VS Total AssetsBLX.CA Yearly Total Debt VS Total AssetsYearly Total Debt VS Total Assets 2015 2016 2017 2018 2019 2020 2021 2022 2023 2B 4B 6B

2.2 Solvency

BLX has an Altman-Z score of 0.62. This is a bad value and indicates that BLX is not financially healthy and even has some risk of bankruptcy.
BLX has a Altman-Z score of 0.62. This is in the better half of the industry: BLX outperforms 70.37% of its industry peers.
A Debt/Equity ratio of 2.11 is on the high side and indicates that BLX has dependencies on debt financing.
BLX has a Debt to Equity ratio (2.11) which is in line with its industry peers.
Industry RankSector Rank
Debt/Equity 2.11
Debt/FCF N/A
Altman-Z 0.62
ROIC/WACC0.61
WACC4.44%
BLX.CA Yearly LT Debt VS Equity VS FCFBLX.CA Yearly LT Debt VS Equity VS FCFYearly LT Debt VS Equity VS FCF 2015 2016 2017 2018 2019 2020 2021 2022 2023 0 1B 2B 3B

2.3 Liquidity

BLX has a Current Ratio of 0.86. This is a bad value and indicates that BLX is not financially healthy enough and could expect problems in meeting its short term obligations.
BLX's Current ratio of 0.86 is in line compared to the rest of the industry. BLX outperforms 55.56% of its industry peers.
BLX has a Quick Ratio of 0.86. This is a bad value and indicates that BLX is not financially healthy enough and could expect problems in meeting its short term obligations.
BLX has a Quick ratio of 0.86. This is in the better half of the industry: BLX outperforms 74.07% of its industry peers.
Industry RankSector Rank
Current Ratio 0.86
Quick Ratio 0.86
BLX.CA Yearly Current Assets VS Current LiabilitesBLX.CA Yearly Current Assets VS Current LiabilitesYearly Current Assets VS Current Liabilites 2015 2016 2017 2018 2019 2020 2021 2022 2023 200M 400M 600M 800M

6

3. Growth

3.1 Past

BLX shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 21.13%, which is quite impressive.
BLX shows quite a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 19.87% yearly.
BLX shows a decrease in Revenue. In the last year, the revenue decreased by -8.38%.
BLX shows quite a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 16.37% yearly.
EPS 1Y (TTM)21.13%
EPS 3Y19.87%
EPS 5YN/A
EPS Q2Q%-333.33%
Revenue 1Y (TTM)-8.38%
Revenue growth 3Y17.31%
Revenue growth 5Y16.37%
Sales Q2Q%-12.28%

3.2 Future

Based on estimates for the next years, BLX will show a quite strong growth in Earnings Per Share. The EPS will grow by 18.60% 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 11.05% on average per year.
EPS Next Y9.69%
EPS Next 2Y4.21%
EPS Next 3Y9.48%
EPS Next 5Y18.6%
Revenue Next Year-3.46%
Revenue Next 2Y5.41%
Revenue Next 3Y6.81%
Revenue Next 5Y11.05%

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 stable.
The estimated forward Revenue growth is still strong, although it is decreasing when compared to the stronger growth in the past years.
BLX.CA Yearly Revenue VS EstimatesBLX.CA Yearly Revenue VS EstimatesYearly Revenue VS Estimates 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 500M 1B 1.5B
BLX.CA Yearly EPS VS EstimatesBLX.CA Yearly EPS VS EstimatesYearly EPS VS Estimates 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 0 0.5 1 1.5 2

2

4. Valuation

4.1 Price/Earnings Ratio

The Price/Earnings ratio is 29.58, which means the current valuation is very expensive for BLX.
BLX's Price/Earnings ratio is a bit cheaper when compared to the industry. BLX is cheaper than 74.07% of the companies in the same industry.
The average S&P500 Price/Earnings ratio is at 28.12. BLX is around the same levels.
With a Price/Forward Earnings ratio of 25.19, BLX can be considered very expensive at the moment.
Compared to the rest of the industry, the Price/Forward Earnings ratio of BLX is on the same level as its industry peers.
The average S&P500 Price/Forward Earnings ratio is at 94.77. BLX is valued rather cheaply when compared to this.
Industry RankSector Rank
PE 29.58
Fwd PE 25.19
BLX.CA Price Earnings VS Forward Price EarningsBLX.CA Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 20 40 60 80

4.2 Price Multiples

BLX's Enterprise Value to EBITDA ratio is in line with the industry average.
Industry RankSector Rank
P/FCF N/A
EV/EBITDA 10.72
BLX.CA Per share dataBLX.CA EPS, Sales, OCF, FCF, BookValue per sharePer Share Data Per Share 0 5 10 15

4.3 Compensation for Growth

The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
PEG (NY)3.05
PEG (5Y)N/A
EPS Next 2Y4.21%
EPS Next 3Y9.48%

5

5. Dividend

5.1 Amount

BLX has a Yearly Dividend Yield of 2.63%.
The stock price of BLX dropped by -23.42% in the last 3 months. With lower prices the dividend yield is higher, but it may be a sign investors do not trust the long term dividend.
BLX's Dividend Yield is slightly below the industry average, which is at 4.56.
BLX's Dividend Yield is comparable with the S&P500 average which is at 2.29.
Industry RankSector Rank
Dividend Yield 2.63%

5.2 History

The dividend of BLX has a limited annual growth rate of 1.83%.
BLX has been paying a dividend for at least 10 years, so it has a reliable track record.
BLX has not decreased their dividend for at least 10 years, which is a reliable track record.
Dividend Growth(5Y)1.83%
Div Incr Years0
Div Non Decr Years10
BLX.CA Yearly Dividends per shareBLX.CA Yearly Dividends per shareYearly Dividends per share 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 0.2 0.4 0.6

5.3 Sustainability

95.77% of the earnings are spent on dividend by BLX. This is not a sustainable payout ratio.
The dividend of BLX is growing, but earnings are growing more, so the dividend growth is sustainable.
DP95.77%
EPS Next 2Y4.21%
EPS Next 3Y9.48%
BLX.CA Yearly Income VS Free CF VS DividendBLX.CA Yearly Income VS Free CF VS DividendYearly Income VS Free CF VS Dividend 2015 2016 2017 2018 2019 2020 2021 2022 2023 0 100M -100M 200M -200M
BLX.CA Dividend Payout.BLX.CA Dividend Payout, showing the Payout Ratio.BLX.CA Dividend Payout.PayoutRetained Earnings

BORALEX INC -A

TSX:BLX (2/7/2025, 7:00:00 PM)

25.44

-0.36 (-1.4%)

Chartmill FA Rating
GICS SectorUtilities
GICS IndustryGroupUtilities
GICS IndustryIndependent Power and Renewable Electricity Producers
Earnings (Last)11-14 2024-11-14/bmo
Earnings (Next)02-28 2025-02-28/amc
Inst Owners58.17%
Inst Owner ChangeN/A
Ins Owners0.09%
Ins Owner ChangeN/A
Market Cap2.61B
Analysts78.57
Price Target41.72 (63.99%)
Short Float %N/A
Short RatioN/A
Dividend
Industry RankSector Rank
Dividend Yield 2.63%
Yearly Dividend0.66
Dividend Growth(5Y)1.83%
DP95.77%
Div Incr Years0
Div Non Decr Years10
Ex-DateN/A
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)15.42%
Min EPS beat(2)-19.18%
Max EPS beat(2)50.02%
EPS beat(4)2
Avg EPS beat(4)6.26%
Min EPS beat(4)-25.74%
Max EPS beat(4)50.02%
EPS beat(8)4
Avg EPS beat(8)10.86%
EPS beat(12)6
Avg EPS beat(12)-4.57%
EPS beat(16)7
Avg EPS beat(16)-40.92%
Revenue beat(2)0
Avg Revenue beat(2)-6.14%
Min Revenue beat(2)-6.97%
Max Revenue beat(2)-5.31%
Revenue beat(4)2
Avg Revenue beat(4)3.02%
Min Revenue beat(4)-6.97%
Max Revenue beat(4)20.51%
Revenue beat(8)5
Avg Revenue beat(8)8.58%
Revenue beat(12)6
Avg Revenue beat(12)2.53%
Revenue beat(16)7
Avg Revenue beat(16)0.43%
PT rev (1m)-2.62%
PT rev (3m)-2.85%
EPS NQ rev (1m)-15.71%
EPS NQ rev (3m)-14.08%
EPS NY rev (1m)-3.92%
EPS NY rev (3m)-7.34%
Revenue NQ rev (1m)-0.12%
Revenue NQ rev (3m)2.41%
Revenue NY rev (1m)2.44%
Revenue NY rev (3m)-0.1%
Valuation
Industry RankSector Rank
PE 29.58
Fwd PE 25.19
P/S 2.78
P/FCF N/A
P/OCF 8.98
P/B 1.63
P/tB 6.02
EV/EBITDA 10.72
EPS(TTM)0.86
EY3.38%
EPS(NY)1.01
Fwd EY3.97%
FCF(TTM)-0.38
FCFYN/A
OCF(TTM)2.83
OCFY11.13%
SpS9.15
BVpS15.61
TBVpS4.22
PEG (NY)3.05
PEG (5Y)N/A
Profitability
Industry RankSector Rank
ROA 1.08%
ROE 4.43%
ROCE 4.55%
ROIC 2.71%
ROICexc 2.85%
ROICexgc 3.6%
OM 28.72%
PM (TTM) 7.55%
GM 73.4%
FCFM N/A
ROA(3y)0.65%
ROA(5y)0.42%
ROE(3y)2.76%
ROE(5y)1.86%
ROIC(3y)2.2%
ROIC(5y)2.16%
ROICexc(3y)2.36%
ROICexc(5y)2.3%
ROICexgc(3y)3.12%
ROICexgc(5y)3.04%
ROCE(3y)3.71%
ROCE(5y)3.63%
ROICexcg growth 3Y3.76%
ROICexcg growth 5Y17.04%
ROICexc growth 3Y5.75%
ROICexc growth 5Y17.62%
OM growth 3Y-5.23%
OM growth 5Y7.05%
PM growth 3Y-4.23%
PM growth 5YN/A
GM growth 3Y-6.21%
GM growth 5Y-2.75%
F-Score4
Asset Turnover0.14
Health
Industry RankSector Rank
Debt/Equity 2.11
Debt/FCF N/A
Debt/EBITDA 5.95
Cap/Depr 110.37%
Cap/Sales 35.11%
Interest Coverage 1.96
Cash Conversion 51.14%
Profit Quality N/A
Current Ratio 0.86
Quick Ratio 0.86
Altman-Z 0.62
F-Score4
WACC4.44%
ROIC/WACC0.61
Cap/Depr(3y)78.39%
Cap/Depr(5y)72.31%
Cap/Sales(3y)27%
Cap/Sales(5y)26.32%
Profit Quality(3y)737.99%
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)21.13%
EPS 3Y19.87%
EPS 5YN/A
EPS Q2Q%-333.33%
EPS Next Y9.69%
EPS Next 2Y4.21%
EPS Next 3Y9.48%
EPS Next 5Y18.6%
Revenue 1Y (TTM)-8.38%
Revenue growth 3Y17.31%
Revenue growth 5Y16.37%
Sales Q2Q%-12.28%
Revenue Next Year-3.46%
Revenue Next 2Y5.41%
Revenue Next 3Y6.81%
Revenue Next 5Y11.05%
EBIT growth 1Y24.42%
EBIT growth 3Y11.18%
EBIT growth 5Y24.57%
EBIT Next Year142.02%
EBIT Next 3Y39.2%
EBIT Next 5Y30.69%
FCF growth 1Y-127.66%
FCF growth 3Y-0.15%
FCF growth 5YN/A
OCF growth 1Y-28.15%
OCF growth 3Y11.07%
OCF growth 5Y19.68%