POLARIS RENEWABLE ENERGY INC (PIF.CA) Stock Fundamental Analysis
TSX:PIF - Toronto Stock Exchange - CA73108L1013 - Common Stock - Currency: CAD
We assign a fundamental rating of 5 out of 10 to PIF. PIF was compared to 37 industry peers in the Independent Power and Renewable Electricity Producers industry. Both the profitability and the financial health of PIF get a neutral evaluation. Nothing too spectacular is happening here. PIF is valued quite cheap, but it does not seem to be growing. These ratings could make PIF a good candidate for value investing.
1. Profitability
1.1 Basic Checks
In the past year PIF was profitable.
PIF had a positive operating cash flow in the past year.
Each year in the past 5 years PIF has been profitable.
PIF 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 0.45%, PIF is in the better half of the industry, outperforming 70.27% of the companies in the same industry.
PIF has a Return On Equity of 1.15%. This is comparable to the rest of the industry: PIF outperforms 59.46% of its industry peers.
PIF has a Return On Invested Capital of 2.83%. This is in the better half of the industry: PIF outperforms 70.27% of its industry peers.
The Average Return On Invested Capital over the past 3 years for PIF is in line with the industry average of 5.07%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 0.45% | ||
| ROE | 1.15% | ||
| ROIC | 2.83% |
ROA(3y)1.06%
ROA(5y)1.83%
ROE(3y)2.15%
ROE(5y)3.85%
ROIC(3y)3.16%
ROIC(5y)3.41%
1.3 Margins
The Profit Margin of PIF (3.95%) is better than 75.68% of its industry peers.
In the last couple of years the Profit Margin of PIF has declined.
PIF has a Operating Margin of 32.63%. This is amongst the best in the industry. PIF outperforms 86.49% of its industry peers.
PIF's Operating Margin has declined in the last couple of years.
With a Gross Margin value of 46.24%, PIF perfoms like the industry average, outperforming 43.24% of the companies in the same industry.
In the last couple of years the Gross Margin of PIF has declined.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 32.63% | ||
| PM (TTM) | 3.95% | ||
| GM | 46.24% |
OM growth 3Y6.86%
OM growth 5Y-7.7%
PM growth 3Y67.36%
PM growth 5Y-27.97%
GM growth 3Y3.85%
GM growth 5Y-3.87%
2. Health
2.1 Basic Checks
With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), PIF is destroying value.
The number of shares outstanding for PIF has been reduced compared to 1 year ago.
PIF has more shares outstanding than it did 5 years ago.
PIF has a worse debt/assets ratio than last year.
2.2 Solvency
PIF has an Altman-Z score of -0.02. This is a bad value and indicates that PIF is not financially healthy and even has some risk of bankruptcy.
With a Altman-Z score value of -0.02, PIF perfoms like the industry average, outperforming 56.76% of the companies in the same industry.
The Debt to FCF ratio of PIF is 10.44, which is on the high side as it means it would take PIF, 10.44 years of fcf income to pay off all of its debts.
The Debt to FCF ratio of PIF (10.44) is better than 83.78% of its industry peers.
A Debt/Equity ratio of 1.21 is on the high side and indicates that PIF has dependencies on debt financing.
The Debt to Equity ratio of PIF (1.21) is better than 81.08% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.21 | ||
| Debt/FCF | 10.44 | ||
| Altman-Z | -0.02 |
ROIC/WACC0.45
WACC6.3%
2.3 Liquidity
PIF has a Current Ratio of 6.76. This indicates that PIF is financially healthy and has no problem in meeting its short term obligations.
PIF has a Current ratio of 6.76. This is amongst the best in the industry. PIF outperforms 97.30% of its industry peers.
PIF has a Quick Ratio of 6.76. This indicates that PIF is financially healthy and has no problem in meeting its short term obligations.
The Quick ratio of PIF (6.76) is better than 97.30% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 6.76 | ||
| Quick Ratio | 6.76 |
3. Growth
3.1 Past
The earnings per share for PIF have decreased strongly by -63.64% in the last year.
Measured over the past years, PIF shows a very negative growth in Earnings Per Share. The EPS has been decreasing by -36.65% on average per year.
The Revenue has decreased by -4.57% in the past year.
The Revenue has been growing slightly by 1.24% on average over the past years.
EPS 1Y (TTM)-63.64%
EPS 3Y95.74%
EPS 5Y-36.65%
EPS Q2Q%23.81%
Revenue 1Y (TTM)-4.57%
Revenue growth 3Y8.38%
Revenue growth 5Y1.24%
Sales Q2Q%-1.8%
3.2 Future
Based on estimates for the next years, PIF will show a very strong growth in Earnings Per Share. The EPS will grow by 77.46% on average per year.
PIF is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 0.16% yearly.
EPS Next Y200.76%
EPS Next 2Y142.03%
EPS Next 3Y77.46%
EPS Next 5YN/A
Revenue Next Year8.5%
Revenue Next 2Y8.49%
Revenue Next 3Y0.16%
Revenue Next 5YN/A
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 accelerating.
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
The Price/Earnings ratio is 45.26, which means the current valuation is very expensive for PIF.
67.57% of the companies in the same industry are more expensive than PIF, based on the Price/Earnings ratio.
PIF is valuated expensively when we compare the Price/Earnings ratio to 27.41, which is the current average of the S&P500 Index.
With a Price/Forward Earnings ratio of 10.15, the valuation of PIF can be described as very reasonable.
Based on the Price/Forward Earnings ratio, PIF is valued cheaper than 89.19% of the companies in the same industry.
When comparing the Price/Forward Earnings ratio of PIF to the average of the S&P500 Index (35.19), we can say PIF is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 45.26 | ||
| Fwd PE | 10.15 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, PIF is valued cheaply inside the industry as 100.00% of the companies are valued more expensively.
100.00% of the companies in the same industry are more expensive than PIF, based on the Price/Free Cash Flow ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 5.92 | ||
| EV/EBITDA | 5.63 |
4.3 Compensation for Growth
PIF's low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
PIF's earnings are expected to grow with 77.46% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.23
PEG (5Y)N/A
EPS Next 2Y142.03%
EPS Next 3Y77.46%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 7.04%, PIF is a good candidate for dividend investing.
Compared to an average industry Dividend Yield of 5.45, PIF pays a bit more dividend than its industry peers.
PIF's Dividend Yield is rather good when compared to the S&P500 average which is at 2.35.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 7.04% |
5.2 History
The dividend of PIF has a limited annual growth rate of 0.04%.
PIF has paid a dividend for at least 10 years, which is a reliable track record.
Dividend Growth(5Y)0.04%
Div Incr Years0
Div Non Decr Years0
5.3 Sustainability
422.84% of the earnings are spent on dividend by PIF. This is not a sustainable payout ratio.
The dividend of PIF is growing, but earnings are growing more, so the dividend growth is sustainable.
DP422.84%
EPS Next 2Y142.03%
EPS Next 3Y77.46%
TSX:PIF (7/11/2025, 7:00:00 PM)
12.22
+0.02 (+0.16%)
Chartmill FA Rating
GICS SectorUtilities
GICS IndustryGroupUtilities
GICS IndustryIndependent Power and Renewable Electricity Producers
Earnings (Last)
Earnings (Next)
Inst Owners22.34%
Inst Owner ChangeN/A
Ins Owners3.09%
Ins Owner ChangeN/A
Market Cap256.99M
Analysts84.44
Price Target24.48 (100.33%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 7.04% |
Yearly Dividend0.82
Dividend Growth(5Y)0.04%
DP422.84%
Div Incr Years0
Div Non Decr Years0
Ex-Date
Surprises & Revisions
EPS beat(2)0
Avg EPS beat(2)-169.13%
Min EPS beat(2)-265.02%
Max EPS beat(2)-73.24%
EPS beat(4)1
Avg EPS beat(4)-72.2%
Min EPS beat(4)-265.02%
Max EPS beat(4)83.46%
EPS beat(8)3
Avg EPS beat(8)-33.68%
EPS beat(12)5
Avg EPS beat(12)-24.73%
EPS beat(16)6
Avg EPS beat(16)-41.64%
Revenue beat(2)0
Avg Revenue beat(2)-4.47%
Min Revenue beat(2)-5.25%
Max Revenue beat(2)-3.69%
Revenue beat(4)1
Avg Revenue beat(4)-2.53%
Min Revenue beat(4)-5.25%
Max Revenue beat(4)0.13%
Revenue beat(8)2
Avg Revenue beat(8)-2.65%
Revenue beat(12)2
Avg Revenue beat(12)-2.84%
Revenue beat(16)3
Avg Revenue beat(16)2.76%
PT rev (1m)0%
PT rev (3m)0%
EPS NQ rev (1m)0%
EPS NQ rev (3m)0%
EPS NY rev (1m)0%
EPS NY rev (3m)0%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)0%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-0.95%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 45.26 | ||
| Fwd PE | 10.15 | ||
| P/S | 2.48 | ||
| P/FCF | 5.92 | ||
| P/OCF | 5.35 | ||
| P/B | 0.72 | ||
| P/tB | 0.94 | ||
| EV/EBITDA | 5.63 |
EPS(TTM)0.27
EY2.21%
EPS(NY)1.2
Fwd EY9.85%
FCF(TTM)2.06
FCFY16.9%
OCF(TTM)2.28
OCFY18.69%
SpS4.94
BVpS16.92
TBVpS13.05
PEG (NY)0.23
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 0.45% | ||
| ROE | 1.15% | ||
| ROCE | 3.94% | ||
| ROIC | 2.83% | ||
| ROICexc | 4.29% | ||
| ROICexgc | 5.01% | ||
| OM | 32.63% | ||
| PM (TTM) | 3.95% | ||
| GM | 46.24% | ||
| FCFM | 41.82% |
ROA(3y)1.06%
ROA(5y)1.83%
ROE(3y)2.15%
ROE(5y)3.85%
ROIC(3y)3.16%
ROIC(5y)3.41%
ROICexc(3y)3.35%
ROICexc(5y)3.81%
ROICexgc(3y)3.87%
ROICexgc(5y)4.24%
ROCE(3y)4.39%
ROCE(5y)4.74%
ROICexcg growth 3Y-1.71%
ROICexcg growth 5Y-14.23%
ROICexc growth 3Y-2.87%
ROICexc growth 5Y-14.78%
OM growth 3Y6.86%
OM growth 5Y-7.7%
PM growth 3Y67.36%
PM growth 5Y-27.97%
GM growth 3Y3.85%
GM growth 5Y-3.87%
F-Score5
Asset Turnover0.11
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.21 | ||
| Debt/FCF | 10.44 | ||
| Debt/EBITDA | 5.8 | ||
| Cap/Depr | 11.42% | ||
| Cap/Sales | 4.44% | ||
| Interest Coverage | 1.49 | ||
| Cash Conversion | 64.72% | ||
| Profit Quality | 1059.9% | ||
| Current Ratio | 6.76 | ||
| Quick Ratio | 6.76 | ||
| Altman-Z | -0.02 |
F-Score5
WACC6.3%
ROIC/WACC0.45
Cap/Depr(3y)59.13%
Cap/Depr(5y)47.42%
Cap/Sales(3y)23.61%
Cap/Sales(5y)18.84%
Profit Quality(3y)459.41%
Profit Quality(5y)1604.85%
High Growth Momentum
Growth
EPS 1Y (TTM)-63.64%
EPS 3Y95.74%
EPS 5Y-36.65%
EPS Q2Q%23.81%
EPS Next Y200.76%
EPS Next 2Y142.03%
EPS Next 3Y77.46%
EPS Next 5YN/A
Revenue 1Y (TTM)-4.57%
Revenue growth 3Y8.38%
Revenue growth 5Y1.24%
Sales Q2Q%-1.8%
Revenue Next Year8.5%
Revenue Next 2Y8.49%
Revenue Next 3Y0.16%
Revenue Next 5YN/A
EBIT growth 1Y-12.12%
EBIT growth 3Y15.81%
EBIT growth 5Y-6.56%
EBIT Next Year130.11%
EBIT Next 3Y29.67%
EBIT Next 5YN/A
FCF growth 1Y-2.71%
FCF growth 3Y-1.06%
FCF growth 5YN/A
OCF growth 1Y-20.26%
OCF growth 3Y-5.19%
OCF growth 5Y-4.71%