INNERGEX RENEWABLE ENERG - INECN 3.244 PERP (INE-PR-A.CA) Stock Fundamental Analysis
Canada - Toronto Stock Exchange - TSX:INE-PR-A - CA45790B5009
25.34 CAD
-0.01 (-0.04%)
We assign a fundamental rating of 3 out of 10 to INE-PR-A. INE-PR-A was compared to 33 industry peers in the Independent Power and Renewable Electricity Producers industry. INE-PR-A has a medium profitability rating, but doesn't score so well on its financial health evaluation. INE-PR-A is quite expensive at the moment. It does show a decent growth rate.
1. Profitability
1.1 Basic Checks
- INE-PR-A had positive earnings in the past year.
- INE-PR-A had a positive operating cash flow in the past year.
- INE-PR-A had negative earnings in 4 of the past 5 years.
- INE-PR-A had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
- Looking at the Return On Assets, with a value of 0.42%, INE-PR-A is in the better half of the industry, outperforming 62.16% of the companies in the same industry.
- With a decent Return On Equity value of 3.63%, INE-PR-A is doing good in the industry, outperforming 64.86% of the companies in the same industry.
- INE-PR-A's Return On Invested Capital of 2.80% is fine compared to the rest of the industry. INE-PR-A outperforms 62.16% of its industry peers.
- Measured over the past 3 years, the Average Return On Invested Capital for INE-PR-A is in line with the industry average of 3.83%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 0.42% | ||
| ROE | 3.63% | ||
| ROIC | 2.8% |
ROA(3y)-0.69%
ROA(5y)-1.06%
ROE(3y)-5.1%
ROE(5y)-7.44%
ROIC(3y)2.87%
ROIC(5y)2.76%
1.3 Margins
- With a decent Profit Margin value of 3.69%, INE-PR-A is doing good in the industry, outperforming 67.57% of the companies in the same industry.
- INE-PR-A has a better Operating Margin (31.18%) than 64.86% of its industry peers.
- INE-PR-A's Operating Margin has declined in the last couple of years.
- The Gross Margin of INE-PR-A (77.74%) is better than 81.08% of its industry peers.
- In the last couple of years the Gross Margin of INE-PR-A has remained more or less at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 31.18% | ||
| PM (TTM) | 3.69% | ||
| GM | 77.74% |
OM growth 3Y-4.88%
OM growth 5Y-4.19%
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y-0.99%
GM growth 5Y-1.16%
2. Health
2.1 Basic Checks
- INE-PR-A has a Return on Invested Capital (ROIC), which is below the Cost of Capital (WACC), which means it is destroying value.
- INE-PR-A has less shares outstanding than it did 1 year ago.
- Compared to 5 years ago, INE-PR-A has more shares outstanding
- INE-PR-A has a better debt/assets ratio than last year.
2.2 Solvency
- Based on the Altman-Z score of 0.29, we must say that INE-PR-A is in the distress zone and has some risk of bankruptcy.
- INE-PR-A has a Altman-Z score of 0.29. This is in the better half of the industry: INE-PR-A outperforms 64.86% of its industry peers.
- A Debt/Equity ratio of 5.56 is on the high side and indicates that INE-PR-A has dependencies on debt financing.
- INE-PR-A has a Debt to Equity ratio (5.56) which is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 5.56 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 0.29 |
ROIC/WACC0.55
WACC5.14%
2.3 Liquidity
- A Current Ratio of 0.67 indicates that INE-PR-A may have some problems paying its short term obligations.
- Looking at the Current ratio, with a value of 0.67, INE-PR-A is in line with its industry, outperforming 51.35% of the companies in the same industry.
- A Quick Ratio of 0.67 indicates that INE-PR-A may have some problems paying its short term obligations.
- With a Quick ratio value of 0.67, INE-PR-A perfoms like the industry average, outperforming 54.05% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.67 | ||
| Quick Ratio | 0.67 |
3. Growth
3.1 Past
- The Earnings Per Share has grown by an impressive 600.00% over the past year.
- INE-PR-A shows a small growth in Revenue. In the last year, the Revenue has grown by 0.97%.
- INE-PR-A shows quite a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 13.46% yearly.
EPS 1Y (TTM)600%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%81.82%
Revenue 1Y (TTM)0.97%
Revenue growth 3Y11.91%
Revenue growth 5Y13.46%
Sales Q2Q%11.94%
3.2 Future
- Based on estimates for the next years, INE-PR-A will show a very negative growth in Earnings Per Share. The EPS will decrease by -14.66% on average per year.
- INE-PR-A is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 4.53% yearly.
EPS Next Y-72.81%
EPS Next 2Y-45.82%
EPS Next 3Y-14.66%
EPS Next 5YN/A
Revenue Next Year16.37%
Revenue Next 2Y7.66%
Revenue Next 3Y4.53%
Revenue Next 5YN/A
3.3 Evolution
- When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.
4. Valuation
4.1 Price/Earnings Ratio
- A Price/Earnings ratio of 72.40 indicates a quite expensive valuation of INE-PR-A.
- INE-PR-A's Price/Earnings ratio is in line with the industry average.
- The average S&P500 Price/Earnings ratio is at 28.39. INE-PR-A is valued rather expensively when compared to this.
- INE-PR-A is expected to report negative earnings next year, which makes the Forward Price/Earnings Ratio negative.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 72.4 | ||
| Fwd PE | N/A |
4.2 Price Multiples
- INE-PR-A's Enterprise Value to EBITDA ratio is in line with the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 16.06 |
4.3 Compensation for Growth
- A cheap valuation may be justified as INE-PR-A's earnings are expected to decrease with -14.66% in the coming years.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y-45.82%
EPS Next 3Y-14.66%
5. Dividend
5.1 Amount
- With a Yearly Dividend Yield of 2.62%, INE-PR-A has a reasonable but not impressive dividend return.
- INE-PR-A's Dividend Yield is comparable with the industry average which is at 3.52.
- Compared to an average S&P500 Dividend Yield of 1.82, INE-PR-A pays a bit more dividend than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.62% |
5.2 History
- The dividend of INE-PR-A decreases each year by -7.77%.
- INE-PR-A has paid a dividend for at least 10 years, which is a reliable track record.
- INE-PR-A has not decreased its dividend in the last 3 years.
Dividend Growth(5Y)-7.77%
Div Incr Years0
Div Non Decr Years3
5.3 Sustainability
- 198.45% of the earnings are spent on dividend by INE-PR-A. This is not a sustainable payout ratio.
- INE-PR-A's earnings and Dividend Rate are declining. This means the current dividend is most likely not sustainable.
DP198.45%
EPS Next 2Y-45.82%
EPS Next 3Y-14.66%
INNERGEX RENEWABLE ENERG - INECN 3.244 PERP / INE-PR-A.CA FAQ
What is the ChartMill fundamental rating of INNERGEX RENEWABLE ENERG - INECN 3.244 PERP (INE-PR-A.CA) stock?
ChartMill assigns a fundamental rating of 3 / 10 to INE-PR-A.CA.
What is the valuation status for INE-PR-A stock?
ChartMill assigns a valuation rating of 1 / 10 to INNERGEX RENEWABLE ENERG - INECN 3.244 PERP (INE-PR-A.CA). This can be considered as Overvalued.
How profitable is INNERGEX RENEWABLE ENERG - INECN 3.244 PERP (INE-PR-A.CA) stock?
INNERGEX RENEWABLE ENERG - INECN 3.244 PERP (INE-PR-A.CA) has a profitability rating of 5 / 10.
What is the valuation of INNERGEX RENEWABLE ENERG - INECN 3.244 PERP based on its PE and PB ratios?
The Price/Earnings (PE) ratio for INNERGEX RENEWABLE ENERG - INECN 3.244 PERP (INE-PR-A.CA) is 72.4 and the Price/Book (PB) ratio is 4.7.
How financially healthy is INNERGEX RENEWABLE ENERG - INECN 3.244 PERP?
The financial health rating of INNERGEX RENEWABLE ENERG - INECN 3.244 PERP (INE-PR-A.CA) is 2 / 10.