POLARIS RENEWABLE ENERGY INC (PIF.CA) Stock Fundamental Analysis
TSX:PIF - Toronto Stock Exchange - CA73108L1013 - Common Stock - Currency: CAD
Overall PIF gets a fundamental rating of 5 out of 10. We evaluated PIF against 37 industry peers in the Independent Power and Renewable Electricity Producers industry. PIF has only an average score on both its financial health and profitability. PIF has a bad growth rate and is valued cheaply. With these ratings, PIF could be worth investigating further for value investing!.
1. Profitability
1.1 Basic Checks
In the past year PIF was profitable.
In the past year PIF had a positive cash flow from operations.
PIF had positive earnings in each of the past 5 years.
PIF had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
With a decent Return On Assets value of 0.45%, PIF is doing good in the industry, outperforming 70.27% of the companies in the same industry.
The Return On Equity of PIF (1.15%) is comparable to the rest of the industry.
PIF's Return On Invested Capital of 2.83% is fine compared to the rest 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
Looking at the Profit Margin, with a value of 3.95%, PIF is in the better half of the industry, outperforming 75.68% of the companies in the same industry.
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.
In the last couple of years the Operating Margin of PIF has declined.
PIF has a Gross Margin (46.24%) which is in line with its industry peers.
PIF's Gross Margin has declined in the last couple of years.
| 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.
Compared to 1 year ago, PIF has less shares outstanding
The number of shares outstanding for PIF has been increased compared to 5 years ago.
PIF has a worse debt/assets ratio than last year.
2.2 Solvency
Based on the Altman-Z score of -0.02, we must say that PIF is in the distress zone and has some risk of bankruptcy.
Looking at the Altman-Z score, with a value of -0.02, PIF is in line with its industry, outperforming 56.76% of the companies in the same industry.
PIF has a debt to FCF ratio of 10.44. This is a negative value and a sign of low solvency as PIF would need 10.44 years to pay back of all of its debts.
Looking at the Debt to FCF ratio, with a value of 10.44, PIF belongs to the top of the industry, outperforming 83.78% of the companies in the same industry.
A Debt/Equity ratio of 1.21 is on the high side and indicates that PIF has dependencies on debt financing.
PIF has a Debt to Equity ratio of 1.21. This is in the better half of the industry: PIF outperforms 78.38% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.21 | ||
| Debt/FCF | 10.44 | ||
| Altman-Z | -0.02 |
ROIC/WACC0.45
WACC6.36%
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.
The Current ratio of PIF (6.76) is better than 94.59% of its industry peers.
A Quick Ratio of 6.76 indicates that PIF has no problem at all paying its short term obligations.
PIF has a better Quick ratio (6.76) than 94.59% 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.
PIF shows a decrease in Revenue. In the last year, the revenue decreased by -4.57%.
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.
The Revenue is expected to grow by 0.16% on average over the next years.
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
PIF is valuated quite expensively with a Price/Earnings ratio of 44.43.
PIF's Price/Earnings ratio is a bit cheaper when compared to the industry. PIF is cheaper than 67.57% of the companies in the same industry.
Compared to an average S&P500 Price/Earnings ratio of 27.25, PIF is valued quite expensively.
A Price/Forward Earnings ratio of 10.23 indicates a reasonable valuation of PIF.
89.19% of the companies in the same industry are more expensive than PIF, based on the Price/Forward Earnings ratio.
Compared to an average S&P500 Price/Forward Earnings ratio of 36.80, PIF is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 44.43 | ||
| Fwd PE | 10.23 |
4.2 Price Multiples
PIF's Enterprise Value to EBITDA ratio is rather cheap when compared to the industry. PIF is cheaper than 100.00% of the companies in the same industry.
Based on the Price/Free Cash Flow ratio, PIF is valued cheaply inside the industry as 97.30% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 5.97 | ||
| EV/EBITDA | 5.66 |
4.3 Compensation for Growth
The low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
A more expensive valuation may be justified as PIF's earnings are expected to grow with 77.46% in the coming years.
PEG (NY)0.22
PEG (5Y)N/A
EPS Next 2Y142.03%
EPS Next 3Y77.46%
5. Dividend
5.1 Amount
PIF has a Yearly Dividend Yield of 7.08%, which is a nice return.
Compared to an average industry Dividend Yield of 3.86, PIF pays a better dividend. On top of this PIF pays more dividend than 94.59% of the companies listed in the same industry.
Compared to an average S&P500 Dividend Yield of 2.34, PIF pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 7.08% |
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.
PIF's earnings are growing more than its dividend. This makes the dividend growth sustainable.
DP422.84%
EPS Next 2Y142.03%
EPS Next 3Y77.46%
TSX:PIF (7/31/2025, 7:00:00 PM)
12.44
+0.29 (+2.39%)
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 Cap261.61M
Analysts84.44
Price Target24.48 (96.78%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 7.08% |
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 | 44.43 | ||
| Fwd PE | 10.23 | ||
| P/S | 2.5 | ||
| P/FCF | 5.97 | ||
| P/OCF | 5.39 | ||
| P/B | 0.73 | ||
| P/tB | 0.94 | ||
| EV/EBITDA | 5.66 |
EPS(TTM)0.28
EY2.25%
EPS(NY)1.22
Fwd EY9.77%
FCF(TTM)2.09
FCFY16.76%
OCF(TTM)2.31
OCFY18.54%
SpS4.99
BVpS17.09
TBVpS13.18
PEG (NY)0.22
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
WACC6.36%
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%