CAPITAL POWER CORP (CPX.CA) Stock Fundamental Analysis
Canada - Toronto Stock Exchange - TSX:CPX - CA14042M1023 - Common Stock
62.21 CAD
+0.48 (+0.78%)
CPX gets a fundamental rating of 4 out of 10. The analysis compared the fundamentals against 33 industry peers in the Independent Power and Renewable Electricity Producers industry. CPX has a medium profitability rating, but doesn't score so well on its financial health evaluation. CPX does not seem to be growing, but still is valued expensively.
1. Profitability
1.1 Basic Checks
- In the past year CPX was profitable.
- 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 Return On Assets of 2.50%. This is amongst the best in the industry. CPX outperforms 81.82% of its industry peers.
- Looking at the Return On Equity, with a value of 7.64%, CPX belongs to the top of the industry, outperforming 84.85% of the companies in the same industry.
- The Return On Invested Capital of CPX (2.38%) 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
- Looking at the Profit Margin, with a value of 10.96%, CPX belongs to the top 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 (11.65%) which is comparable to the rest of the 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.
- 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.
- The number of shares outstanding for CPX has been increased compared to 1 year ago.
- The number of shares outstanding for CPX has been increased compared to 5 years ago.
- CPX has a better debt/assets ratio than last year.
2.2 Solvency
- CPX has an Altman-Z score of 0.82. This is a bad value and indicates that CPX is not financially healthy and even has some risk of bankruptcy.
- CPX has a Altman-Z score of 0.82. This is amongst the best in the industry. CPX outperforms 93.94% of its industry peers.
- CPX has a debt to FCF ratio of 31.16. This is a negative value and a sign of low solvency as CPX would need 31.16 years to pay back of all of its debts.
- The Debt to FCF ratio of CPX (31.16) is comparable to the rest of the industry.
- CPX has a Debt/Equity ratio of 1.22. This is a high value indicating a heavy dependency on external financing.
- CPX has a better Debt to Equity ratio (1.22) than 78.79% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.22 | ||
| Debt/FCF | 31.16 | ||
| Altman-Z | 0.82 |
ROIC/WACC0.37
WACC6.47%
2.3 Liquidity
- A Current Ratio of 0.74 indicates that CPX may have some problems paying its short term obligations.
- CPX has a Current ratio (0.74) which is in line with 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 of 0.63. This is comparable to the rest of the industry: CPX outperforms 42.42% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.74 | ||
| Quick Ratio | 0.63 |
3. Growth
3.1 Past
- CPX shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -32.37%.
- CPX shows a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 31.29% yearly.
- 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
- The Earnings Per Share is expected to decrease by -3.65% on average over the next years.
- Based on estimates for the next years, CPX will show a small growth in Revenue. The Revenue will grow by 2.59% on average per year.
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.
- 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
- A Price/Earnings ratio of 22.22 indicates a rather expensive valuation of CPX.
- Based on the Price/Earnings ratio, CPX is valued a bit cheaper than the industry average as 78.79% of the companies are valued more expensively.
- The average S&P500 Price/Earnings ratio is at 28.60. CPX is valued slightly cheaper when compared to this.
- Based on the Price/Forward Earnings ratio of 22.19, the valuation of CPX can be described as rather expensive.
- Based on the Price/Forward Earnings ratio, CPX is valued a bit cheaper than 72.73% of the companies in the same industry.
- The average S&P500 Price/Forward Earnings ratio is at 25.83. CPX is around the same levels.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 22.22 | ||
| Fwd PE | 22.19 |
4.2 Price Multiples
- CPX's Enterprise Value to EBITDA ratio is a bit more expensive when compared to the industry. CPX is more expensive than 63.64% of the companies in the same industry.
- CPX's Price/Free Cash Flow is on the same level as the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 44.29 | ||
| EV/EBITDA | 16.91 |
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)0.71
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 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.
- CPX's earnings and Dividend Rate are 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 22.22 and the Price/Book (PB) ratio is 1.93.
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.