CAPITAL POWER CORP (CPX.CA) Stock Fundamental Analysis
TSX:CPX - CA14042M1023 - Common Stock
57.27 CAD
-0.41 (-0.71%)
Taking everything into account, CPX scores 4 out of 10 in our fundamental rating. CPX was compared to 31 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 has a expensive valuation and it also scores bad on growth.
1. Profitability
1.1 Basic Checks
In the past year CPX was profitable.
In the past year CPX had a positive cash flow from operations.
CPX had positive earnings in each of the past 5 years.
In the past 5 years CPX always reported a positive cash flow from operatings.
1.2 Ratios
The Return On Assets of CPX (2.70%) is better than 77.42% of its industry peers.
With an excellent Return On Equity value of 8.38%, CPX belongs to the best of the industry, outperforming 80.65% of the companies in the same industry.
CPX has a Return On Invested Capital (2.50%) which is in line with its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for CPX is in line with the industry average of 4.61%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.7% | ||
| ROE | 8.38% | ||
| ROIC | 2.5% |
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 12.35%, CPX belongs to the top of the industry, outperforming 83.87% of the companies in the same industry.
In the last couple of years the Profit Margin of CPX has grown nicely.
CPX has a Operating Margin of 13.10%. This is comparable to the rest of the industry: CPX outperforms 51.61% 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 50.18%, CPX is doing worse than 67.74% of the companies in the same industry.
CPX's Gross Margin has declined in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 13.1% | ||
| PM (TTM) | 12.35% | ||
| GM | 50.18% |
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.
CPX has more shares outstanding than it did 1 year ago.
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 0.80, we must say that CPX is in the distress zone and has some risk of bankruptcy.
CPX has a better Altman-Z score (0.80) than 93.55% of its industry peers.
A Debt/Equity ratio of 1.34 is on the high side and indicates that CPX has dependencies on debt financing.
CPX has a Debt to Equity ratio of 1.34. This is in the better half of the industry: CPX outperforms 77.42% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.34 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 0.8 |
ROIC/WACC0.39
WACC6.44%
2.3 Liquidity
A Current Ratio of 0.93 indicates that CPX may have some problems paying its short term obligations.
CPX has a Current ratio of 0.93. This is in the better half of the industry: CPX outperforms 67.74% of its industry peers.
CPX has a Quick Ratio of 0.93. 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 Quick ratio of 0.80 is in line compared to the rest of the industry. CPX outperforms 58.06% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.93 | ||
| Quick Ratio | 0.8 |
3. Growth
3.1 Past
CPX shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -37.40%.
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 -17.76%.
Measured over the past years, CPX shows a quite strong growth in Revenue. The Revenue has been growing by 13.98% on average per year.
EPS 1Y (TTM)-37.4%
EPS 3Y37.52%
EPS 5Y31.29%
EPS Q2Q%-280.39%
Revenue 1Y (TTM)-17.76%
Revenue growth 3Y23.8%
Revenue growth 5Y13.98%
Sales Q2Q%-43.02%
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 9.26% yearly.
The Revenue is expected to decrease by -1.20% on average over the next years.
EPS Next Y-61.48%
EPS Next 2Y-12.68%
EPS Next 3Y-8.48%
EPS Next 5Y9.26%
Revenue Next Year-6.3%
Revenue Next 2Y6.27%
Revenue Next 3Y6.24%
Revenue Next 5Y-1.2%
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
The Price/Earnings ratio is 18.01, which indicates a rather expensive current valuation of CPX.
80.65% of the companies in the same industry are more expensive than CPX, based on the Price/Earnings ratio.
CPX is valuated rather cheaply when we compare the Price/Earnings ratio to 27.13, which is the current average of the S&P500 Index.
With a Price/Forward Earnings ratio of 14.58, CPX is valued correctly.
CPX's Price/Forward Earnings ratio is a bit cheaper when compared to the industry. CPX is cheaper than 74.19% of the companies in the same industry.
When comparing the Price/Forward Earnings ratio of CPX to the average of the S&P500 Index (22.76), we can say CPX is valued slightly cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 18.01 | ||
| Fwd PE | 14.58 |
4.2 Price Multiples
70.97% of the companies in the same industry are cheaper than CPX, based on the Enterprise Value to EBITDA ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 16.36 |
4.3 Compensation for Growth
CPX has a very decent profitability rating, which may justify a higher PE ratio.
A cheap valuation may be justified as CPX's earnings are expected to decrease with -8.48% in the coming years.
PEG (NY)N/A
PEG (5Y)0.58
EPS Next 2Y-12.68%
EPS Next 3Y-8.48%
5. Dividend
5.1 Amount
CPX has a Yearly Dividend Yield of 4.79%, which is a nice return.
CPX's Dividend Yield is a higher than the industry average which is at 4.66.
Compared to an average S&P500 Dividend Yield of 2.32, CPX pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.79% |
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 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 74.33% of its income as dividend. This is not a sustainable payout ratio.
DP74.33%
EPS Next 2Y-12.68%
EPS Next 3Y-8.48%
TSX:CPX (8/29/2025, 7:00:00 PM)
57.27
-0.41 (-0.71%)
Chartmill FA Rating
GICS SectorUtilities
GICS IndustryGroupUtilities
GICS IndustryIndependent Power and Renewable Electricity Producers
Earnings (Last)
Earnings (Next)
Inst Owners18.26%
Inst Owner ChangeN/A
Ins Owners0.04%
Ins Owner ChangeN/A
Market Cap8.90B
Analysts75
Price Target66.64 (16.36%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.79% |
Yearly Dividend2.18
Dividend Growth(5Y)-1.04%
DP74.33%
Div Incr Years11
Div Non Decr Years15
Ex-Date
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)-92.22%
Min EPS beat(2)-253.19%
Max EPS beat(2)68.75%
EPS beat(4)3
Avg EPS beat(4)-12.25%
Min EPS beat(4)-253.19%
Max EPS beat(4)101.4%
EPS beat(8)6
Avg EPS beat(8)16.35%
EPS beat(12)8
Avg EPS beat(12)30.77%
EPS beat(16)10
Avg EPS beat(16)23.77%
Revenue beat(2)1
Avg Revenue beat(2)-15.91%
Min Revenue beat(2)-45.83%
Max Revenue beat(2)14.01%
Revenue beat(4)2
Avg Revenue beat(4)-5.89%
Min Revenue beat(4)-45.83%
Max Revenue beat(4)15.46%
Revenue beat(8)5
Avg Revenue beat(8)13.32%
Revenue beat(12)9
Avg Revenue beat(12)25.65%
Revenue beat(16)11
Avg Revenue beat(16)20.06%
PT rev (1m)3.43%
PT rev (3m)4.39%
EPS NQ rev (1m)-3.07%
EPS NQ rev (3m)-15.12%
EPS NY rev (1m)-32.28%
EPS NY rev (3m)-32.28%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)43.33%
Revenue NY rev (1m)-1.77%
Revenue NY rev (3m)-6.27%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 18.01 | ||
| Fwd PE | 14.58 | ||
| P/S | 2.69 | ||
| P/FCF | N/A | ||
| P/OCF | 8.71 | ||
| P/B | 1.83 | ||
| P/tB | 2.11 | ||
| EV/EBITDA | 16.36 |
EPS(TTM)3.18
EY5.55%
EPS(NY)3.93
Fwd EY6.86%
FCF(TTM)-0.21
FCFYN/A
OCF(TTM)6.57
OCFY11.48%
SpS21.3
BVpS31.38
TBVpS27.2
PEG (NY)N/A
PEG (5Y)0.58
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.7% | ||
| ROE | 8.38% | ||
| ROCE | 3.2% | ||
| ROIC | 2.5% | ||
| ROICexc | 2.56% | ||
| ROICexgc | 2.69% | ||
| OM | 13.1% | ||
| PM (TTM) | 12.35% | ||
| GM | 50.18% | ||
| FCFM | N/A |
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%
ROICexcg growth 3Y17.86%
ROICexcg 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 Turnover0.22
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.34 | ||
| Debt/FCF | N/A | ||
| Debt/EBITDA | 6.82 | ||
| Cap/Depr | 200.95% | ||
| Cap/Sales | 31.85% | ||
| Interest Coverage | 1.63 | ||
| Cash Conversion | 106.57% | ||
| Profit Quality | N/A | ||
| Current Ratio | 0.93 | ||
| Quick Ratio | 0.8 | ||
| Altman-Z | 0.8 |
F-Score4
WACC6.44%
ROIC/WACC0.39
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)-37.4%
EPS 3Y37.52%
EPS 5Y31.29%
EPS Q2Q%-280.39%
EPS Next Y-61.48%
EPS Next 2Y-12.68%
EPS Next 3Y-8.48%
EPS Next 5Y9.26%
Revenue 1Y (TTM)-17.76%
Revenue growth 3Y23.8%
Revenue growth 5Y13.98%
Sales Q2Q%-43.02%
Revenue Next Year-6.3%
Revenue Next 2Y6.27%
Revenue Next 3Y6.24%
Revenue Next 5Y-1.2%
EBIT growth 1Y-56.34%
EBIT growth 3Y33.82%
EBIT growth 5Y4.84%
EBIT Next Year48.37%
EBIT Next 3Y21.56%
EBIT Next 5Y14.18%
FCF growth 1Y-121.71%
FCF growth 3Y-34.45%
FCF growth 5Y-4.09%
OCF growth 1Y32.38%
OCF growth 3Y9.52%
OCF growth 5Y9.61%