CAPITAL POWER CORP (CPX.CA) Stock Fundamental Analysis
Canada - Toronto Stock Exchange - TSX:CPX - CA14042M1023 - Common Stock
58.55 CAD
-0.43 (-0.73%)
CPX gets a fundamental rating of 4 out of 10. The analysis compared the fundamentals against 32 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 quite expensive at the moment. It does show a decent growth rate. CPX also has an excellent dividend rating.
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.
In the past 5 years CPX has always been profitable.
CPX had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
CPX's Return On Assets of 2.50% is amongst the best of the industry. CPX outperforms 84.38% of its industry peers.
With an excellent Return On Equity value of 7.64%, CPX belongs to the best of the industry, outperforming 87.50% of the companies in the same industry.
CPX has a Return On Invested Capital of 2.38%. This is comparable to the rest of the industry: CPX outperforms 50.00% of its industry peers.
The Average Return On Invested Capital over the past 3 years for CPX is above the industry average of 2.79%.
| 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 87.50% of its industry peers.
CPX's Profit Margin has improved in the last couple of years.
The Operating Margin of CPX (11.65%) is comparable to the rest of the industry.
In the last couple of years the Operating Margin of CPX has declined.
CPX's Gross Margin of 47.75% is on the low side compared to the rest of the industry. CPX is outperformed by 65.63% of its industry peers.
CPX's Gross Margin has declined in the last couple of years.
| 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.
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 0.79, we must say that CPX is in the distress zone and has some risk of bankruptcy.
CPX has a better Altman-Z score (0.79) than 93.75% 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.
CPX has a Debt to FCF ratio (31.16) which 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.
Looking at the Debt to Equity ratio, with a value of 1.22, CPX belongs to the top of the industry, outperforming 81.25% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.22 | ||
| Debt/FCF | 31.16 | ||
| Altman-Z | 0.79 |
ROIC/WACC0.38
WACC6.27%
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's Current ratio of 0.74 is in line compared to the rest of the industry. CPX outperforms 43.75% of its industry peers.
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%.
The Revenue has been growing by 13.98% on average over the past years. This is quite good.
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 quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 9.17% yearly.
The Revenue is expected to grow by 0.43% on average over the next years.
EPS Next Y-67.58%
EPS Next 2Y-25.59%
EPS Next 3Y-14.06%
EPS Next 5Y9.17%
Revenue Next Year-2.48%
Revenue Next 2Y2.76%
Revenue Next 3Y3.58%
Revenue Next 5Y0.43%
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 20.91.
Based on the Price/Earnings ratio, CPX is valued cheaply inside the industry as 81.25% of the companies are valued more expensively.
Compared to an average S&P500 Price/Earnings ratio of 26.51, CPX is valued a bit cheaper.
With a Price/Forward Earnings ratio of 20.53, CPX is valued on the expensive side.
CPX's Price/Forward Earnings ratio is a bit cheaper when compared to the industry. CPX is cheaper than 75.00% of the companies in the same industry.
When comparing the Price/Forward Earnings ratio of CPX to the average of the S&P500 Index (23.13), we can say CPX is valued inline with the index average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 20.91 | ||
| Fwd PE | 20.53 |
4.2 Price Multiples
65.63% of the companies in the same industry are cheaper than CPX, based on the Enterprise Value to EBITDA ratio.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of CPX is on the same level as its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 41.68 | ||
| EV/EBITDA | 16.32 |
4.3 Compensation for Growth
The decent profitability rating of CPX may justify a higher PE ratio.
CPX's earnings are expected to decrease with -14.06% in the coming years. This may justify a cheaper valuation.
PEG (NY)N/A
PEG (5Y)0.67
EPS Next 2Y-25.59%
EPS Next 3Y-14.06%
5. Dividend
5.1 Amount
CPX has a Yearly Dividend Yield of 6.51%, which is a nice return.
CPX's Dividend Yield is rather good when compared to the industry average which is at 4.02. CPX pays more dividend than 90.63% of the companies in the same industry.
CPX's Dividend Yield is rather good when compared to the S&P500 average which is at 2.00.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 6.51% |
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 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
CPX pays out 84.33% of its income as dividend. This is not a sustainable payout ratio.
DP84.33%
EPS Next 2Y-25.59%
EPS Next 3Y-14.06%
TSX:CPX (12/31/2025, 7:00:00 PM)
58.55
-0.43 (-0.73%)
Chartmill FA Rating
GICS SectorUtilities
GICS IndustryGroupUtilities
GICS IndustryIndependent Power and Renewable Electricity Producers
Earnings (Last)
Earnings (Next)
Inst Owners22.49%
Inst Owner ChangeN/A
Ins Owners0.04%
Ins Owner ChangeN/A
Market Cap9.13B
Revenue(TTM)3.50B
Net Income(TTM)383.00M
Analysts73.75
Price Target75.1 (28.27%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 6.51% |
Yearly Dividend2.18
Dividend Growth(5Y)-1.04%
DP84.33%
Div Incr Years11
Div Non Decr Years15
Ex-DateN/A
Surprises & Revisions
EPS beat(2)0
Avg EPS beat(2)-130.18%
Min EPS beat(2)-253.19%
Max EPS beat(2)-7.16%
EPS beat(4)2
Avg EPS beat(4)-22.55%
Min EPS beat(4)-253.19%
Max EPS beat(4)101.4%
EPS beat(8)5
Avg EPS beat(8)7.39%
EPS beat(12)7
Avg EPS beat(12)27.64%
EPS beat(16)10
Avg EPS beat(16)25.28%
Revenue beat(2)1
Avg Revenue beat(2)-10.69%
Min Revenue beat(2)-45.83%
Max Revenue beat(2)24.45%
Revenue beat(4)2
Avg Revenue beat(4)-3.64%
Min Revenue beat(4)-45.83%
Max Revenue beat(4)24.45%
Revenue beat(8)5
Avg Revenue beat(8)8.37%
Revenue beat(12)9
Avg Revenue beat(12)25.13%
Revenue beat(16)12
Avg Revenue beat(16)23.25%
PT rev (1m)-1.34%
PT rev (3m)12.69%
EPS NQ rev (1m)-4.99%
EPS NQ rev (3m)-29.1%
EPS NY rev (1m)-8.29%
EPS NY rev (3m)-3.43%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-1.62%
Revenue NY rev (1m)-1.73%
Revenue NY rev (3m)4.77%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 20.91 | ||
| Fwd PE | 20.53 | ||
| P/S | 2.61 | ||
| P/FCF | 41.68 | ||
| P/OCF | 7.67 | ||
| P/B | 1.82 | ||
| P/tB | 2.08 | ||
| EV/EBITDA | 16.32 |
EPS(TTM)2.8
EY4.78%
EPS(NY)2.85
Fwd EY4.87%
FCF(TTM)1.4
FCFY2.4%
OCF(TTM)7.63
OCFY13.04%
SpS22.42
BVpS32.17
TBVpS28.09
PEG (NY)N/A
PEG (5Y)0.67
Graham Number45.02
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.5% | ||
| ROE | 7.64% | ||
| ROCE | 3.04% | ||
| ROIC | 2.38% | ||
| ROICexc | 2.41% | ||
| ROICexgc | 2.54% | ||
| OM | 11.65% | ||
| PM (TTM) | 10.96% | ||
| GM | 47.75% | ||
| FCFM | 6.27% |
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%
ROICexgc growth 3Y17.86%
ROICexgc 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-Score4
Asset Turnover0.23
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.22 | ||
| Debt/FCF | 31.16 | ||
| Debt/EBITDA | 6.34 | ||
| Cap/Depr | 174.01% | ||
| Cap/Sales | 27.78% | ||
| Interest Coverage | 1.47 | ||
| Cash Conversion | 123.32% | ||
| Profit Quality | 57.18% | ||
| Current Ratio | 0.74 | ||
| Quick Ratio | 0.63 | ||
| Altman-Z | 0.79 |
F-Score4
WACC6.27%
ROIC/WACC0.38
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)-32.37%
EPS 3Y37.52%
EPS 5Y31.29%
EPS Q2Q%-28.79%
EPS Next Y-67.58%
EPS Next 2Y-25.59%
EPS Next 3Y-14.06%
EPS Next 5Y9.17%
Revenue 1Y (TTM)-10.55%
Revenue growth 3Y23.8%
Revenue growth 5Y13.98%
Sales Q2Q%17.77%
Revenue Next Year-2.48%
Revenue Next 2Y2.76%
Revenue Next 3Y3.58%
Revenue Next 5Y0.43%
EBIT growth 1Y-55.37%
EBIT growth 3Y33.82%
EBIT growth 5Y4.84%
EBIT Next Year52.1%
EBIT Next 3Y19.99%
EBIT Next 5Y13.35%
FCF growth 1Y-2.23%
FCF growth 3Y-34.45%
FCF growth 5Y-4.09%
OCF growth 1Y34.92%
OCF growth 3Y9.52%
OCF growth 5Y9.61%
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 20.91 and the Price/Book (PB) ratio is 1.82.
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 -67.58% in the next year.