TSX:PL

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Pinnacle Renewable Energy

Executive Summary

Pinnacle Renewable Energy Inc., together with its subsidiaries, manufactures, distributes, and sells industrial wood pellets for industrial electrical power generation and home heating consumption in North America, Asia, and Europe.


Snowflake Analysis

Concerning outlook with worrying balance sheet.


Similar Companies

Share Price & News

How has Pinnacle Renewable Energy's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: PL's share price has been volatile over the past 3 months.


Market Performance


7 Day Return

5.4%

PL

3.0%

CA Oil and Gas

2.3%

CA Market


1 Year Return

-56.1%

PL

-30.0%

CA Oil and Gas

-12.4%

CA Market

Return vs Industry: PL underperformed the Canadian Oil and Gas industry which returned -30% over the past year.

Return vs Market: PL underperformed the Canadian Market which returned -12.4% over the past year.


Shareholder returns

PLIndustryMarket
7 Day5.4%3.0%2.3%
30 Day6.9%-11.3%-2.9%
90 Day-29.8%8.6%12.2%
1 Year-53.3%-56.1%-26.2%-30.0%-9.4%-12.4%
3 Yearn/a-25.3%-34.5%4.2%-5.7%
5 Yearn/a-30.0%-41.9%22.1%3.8%

Price Volatility Vs. Market

How volatile is Pinnacle Renewable Energy's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is Pinnacle Renewable Energy undervalued compared to its fair value and its price relative to the market?

0.97x

Price to Book (PB) ratio


Share Price vs. Fair Value

Below Fair Value: PL (CA$4.49) is trading above our estimate of fair value (CA$2.22)

Significantly Below Fair Value: PL is trading above our estimate of fair value.


Price To Earnings Ratio

PE vs Industry: PL is unprofitable, so we can't compare its PE Ratio to the Oil and Gas industry average.

PE vs Market: PL is unprofitable, so we can't compare its PE Ratio to the Canadian market.


Price to Earnings Growth Ratio

PEG Ratio: Insufficient data to calculate PL's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: PL is overvalued based on its PB Ratio (1x) compared to the CA Oil and Gas industry average (0.7x).


Next Steps

Future Growth

How is Pinnacle Renewable Energy forecast to perform in the next 1 to 3 years based on estimates from 8 analysts?

130.6%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: PL is forecast to remain unprofitable over the next 3 years.

Earnings vs Market: PL is forecast to remain unprofitable over the next 3 years.

High Growth Earnings: PL is forecast to remain unprofitable over the next 3 years.

Revenue vs Market: PL's revenue (18.5% per year) is forecast to grow faster than the Canadian market (5.5% per year).

High Growth Revenue: PL's revenue (18.5% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: Insufficient data to determine if PL's Return on Equity is forecast to be high in 3 years time


Next Steps

Past Performance

How has Pinnacle Renewable Energy performed over the past 5 years?

-5.7%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: PL is currently unprofitable.

Growing Profit Margin: PL is currently unprofitable.


Past Earnings Growth Analysis

Earnings Trend: PL is unprofitable, and losses have increased over the past 5 years at a rate of -5.7% per year.

Accelerating Growth: Unable to compare PL's earnings growth over the past year to its 5-year average as it is currently unprofitable

Earnings vs Industry: PL is unprofitable, making it difficult to compare its past year earnings growth to the Oil and Gas industry (-16.2%).


Return on Equity

High ROE: PL has a negative Return on Equity (-5.98%), as it is currently unprofitable.


Next Steps

Financial Health

How is Pinnacle Renewable Energy's financial position?


Financial Position Analysis

Short Term Liabilities: PL's short term assets (CA$103.6M) exceed its short term liabilities (CA$76.4M).

Long Term Liabilities: PL's short term assets (CA$103.6M) do not cover its long term liabilities (CA$360.7M).


Debt to Equity History and Analysis

Debt Level: PL's debt to equity ratio (170.9%) is considered high.

Reducing Debt: Insufficient data to determine if PL's debt to equity ratio has reduced over the past 5 years.


Balance Sheet


Cash Runway Analysis

For companies that have on average been loss making in the past we assess whether they have at least 1 year of cash runway.

Stable Cash Runway: PL has less than a year of cash runway based on its current free cash flow.

Forecast Cash Runway: Insufficient data to determine if PL has enough cash runway if its free cash flow continues to grow or shrink based on historical rates.


Next Steps

Dividend

What is Pinnacle Renewable Energy current dividend yield, its reliability and sustainability?

3.34%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: PL's dividend (3.34%) is higher than the bottom 25% of dividend payers in the Canadian market (1.91%).

High Dividend: PL's dividend (3.34%) is low compared to the top 25% of dividend payers in the Canadian market (6.02%).


Stability and Growth of Payments

Stable Dividend: PL has been paying a dividend for less than 10 years and during this time payments have been volatile.

Growing Dividend: PL has only been paying a dividend for 2 years, and since then payments have fallen.


Current Payout to Shareholders

Dividend Coverage: PL is paying a dividend but the company is unprofitable.


Future Payout to Shareholders

Future Dividend Coverage: Insufficient data to determine if a dividend will be paid in 3 years and that it will be covered by earnings.


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

3.7yrs

Average management tenure


CEO

Rob McCurdy (63yo)

7.83yrs

Tenure

CA$656,763

Compensation

Mr. Robert McCurdy, also known as Rob, has been Chief Executive Officer of Pinnacle Renewable Energy Inc. (formerly known as Pinnacle Renewable Holdings Inc.) since September 2012 and had been its Director ...


CEO Compensation Analysis

Compensation vs Market: Rob's total compensation ($USD483.87K) is above average for companies of similar size in the Canadian market ($USD173.14K).

Compensation vs Earnings: Insufficient data to compare Rob's compensation with company performance.


Leadership Team

NamePositionTenureCompensationOwnership
Robert McCurdy
Chief Executive Officer7.83yrsCA$656.76kno data
Andrea Johnston
Chief Financial Officer3.33yrsCA$420.69k0.15% CA$225.5k
Scott Bax
Chief Operating Officer1yrCA$389.72k0.084% CA$125.2k
Vaughan Bassett
Senior Vice President of Sales & Logistics9.17yrsCA$331.88k0.18% CA$273.9k
Leroy Reitsma
Senior Advisor & Director9.17yrsCA$401.45k3.7% CA$5.5m
Iryna Chernykh
Director of Accountingno datano datano data
Ranj Sangra
General Counsel & Corporate Secretary2yrsno data0.0045% CA$6.7k
Erin Strong
Director of Human Resources4yrsno data0.0051% CA$7.6k

3.7yrs

Average Tenure

Experienced Management: PL's management team is considered experienced (3.7 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Leroy Reitsma
Senior Advisor & Director9.17yrsCA$401.45k3.7% CA$5.5m
Rex McLennan
Independent Director0.67yrCA$7.69k0.030% CA$44.9k
Gregory Baylin
Independent Chair of the Boardno datano datano data
D. Lay
Independent Director8.17yrsno datano data
Duncan Davies
Independent Director0.25yrno datano data
J. MacDiarmid
Independent Director2.5yrsCA$81.00k0.079% CA$117.6k
Jane O'Hagan
Independent Director2.5yrsCA$75.00kno data
Patrick Bell
Independent Vice Chair of the Boardno dataCA$98.50k0.0044% CA$6.6k

2.5yrs

Average Tenure

61yo

Average Age

Experienced Board: PL's board of directors are not considered experienced ( 2.5 years average tenure), which suggests a new board.


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: PL insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Top Shareholders

Company Information

Pinnacle Renewable Energy Inc.'s company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Pinnacle Renewable Energy Inc.
  • Ticker: PL
  • Exchange: TSX
  • Founded: 1989
  • Industry: Coal and Consumable Fuels
  • Sector: Energy
  • Market Cap: CA$149.784m
  • Shares outstanding: 33.36m
  • Website: https://www.pinnaclepellet.com

Number of Employees


Location

  • Pinnacle Renewable Energy Inc.
  • 350-3600 Lysander Lane
  • Richmond
  • British Columbia
  • V7B 1C3
  • Canada

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
506MUN (Boerse Muenchen)YesCommon SharesDEEURFeb 2018
PLTSX (The Toronto Stock Exchange)YesCommon SharesCACADFeb 2018
506DB (Deutsche Boerse AG)YesCommon SharesDEEURFeb 2018
PINW.FOTCPK (Pink Sheets LLC)YesCommon SharesUSUSDFeb 2018

Biography

Pinnacle Renewable Energy Inc., together with its subsidiaries, manufactures, distributes, and sells industrial wood pellets for industrial electrical power generation and home heating consumption in North America, Asia, and Europe. The company produces renewable fuel in the form of industrial wood pellets for electricity generation, which are used by utilities and large-scale power generators to produce renewable and baseload power. It also owns and operates the Westview port facility at Prince Rupert for the storage, handling, and loading of third party wood pellets. The company was formerly known as Pinnacle Renewable Holdings Inc. and changed its name to Pinnacle Renewable Energy Inc. in December 2018. Pinnacle Renewable Energy Inc. was founded in 1989 and is headquartered in Richmond, Canada. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/07/06 00:03
End of Day Share Price2020/07/03 00:00
Earnings2020/03/27
Annual Earnings2019/12/27


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.