TSX:ATP

Stock Analysis Report

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Executive Summary

Atlantic Power Corporation owns and operates a fleet of power generation assets in the United States and Canada. More Details


Snowflake Analysis

Moderate growth potential and slightly overvalued.


Similar Companies

Share Price & News

How has Atlantic Power's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: ATP is less volatile than 75% of Canadian stocks over the past 3 months, typically moving +/- 4% a week.

Volatility Over Time: ATP's weekly volatility (4%) has been stable over the past year.


Market Performance


7 Day Return

-1.1%

ATP

4.3%

CA Renewable Energy

1.7%

CA Market


1 Year Return

-14.9%

ATP

43.5%

CA Renewable Energy

0.2%

CA Market

Return vs Industry: ATP underperformed the Canadian Renewable Energy industry which returned 43.5% over the past year.

Return vs Market: ATP underperformed the Canadian Market which returned 0.2% over the past year.


Shareholder returns

ATPIndustryMarket
7 Day-1.1%4.3%1.7%
30 Day-1.5%9.1%7.0%
90 Day-4.6%23.5%5.1%
1 Year-14.9%-14.9%49.6%43.5%3.9%0.2%
3 Year-16.3%-16.3%106.2%77.7%13.1%2.1%
5 Year0.4%0.4%200.9%135.5%46.5%24.1%

Long-Term Price Volatility Vs. Market

How volatile is Atlantic Power's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is Atlantic Power undervalued compared to its fair value and its price relative to the market?

>50%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: ATP (CA$2.68) is trading below our estimate of fair value (CA$17.14)

Significantly Below Fair Value: ATP is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: ATP is unprofitable, so we can't compare its PE Ratio to the CA Renewable Energy industry average.

PE vs Market: ATP 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 ATP's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: ATP has negative assets, so we can't compare its PB Ratio to the CA Renewable Energy industry average.


Next Steps

Future Growth

How is Atlantic Power forecast to perform in the next 1 to 3 years based on estimates from 2 analysts?

-5.4%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: ATP is forecast to become profitable over the next 3 years, which is considered faster growth than the savings rate (1.7%).

Earnings vs Market: ATP is forecast to become profitable over the next 3 years, which is considered above average market growth.

High Growth Earnings: ATP's is expected to become profitable in the next 3 years.

Revenue vs Market: ATP's revenue is expected to decline over the next 3 years (-3.8% per year).

High Growth Revenue: ATP's revenue is forecast to decline over the next 3 years (-3.8% per year).


Earnings per Share Growth Forecasts


Future Return on Equity

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


Next Steps

Past Performance

How has Atlantic Power performed over the past 5 years?

38.4%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: ATP is currently unprofitable.

Growing Profit Margin: ATP is currently unprofitable.


Past Earnings Growth Analysis

Earnings Trend: ATP is unprofitable, but has reduced losses over the past 5 years at a rate of 38.4% per year.

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

Earnings vs Industry: ATP is unprofitable, making it difficult to compare its past year earnings growth to the Renewable Energy industry (84.8%).


Return on Equity

High ROE: ATP has a negative Return on Equity (-21.21%), as it is currently unprofitable.


Next Steps

Financial Health

How is Atlantic Power's financial position?


Financial Position Analysis

Short Term Liabilities: ATP's short term assets ($89.9M) do not cover its short term liabilities ($130.9M).

Long Term Liabilities: ATP's short term assets ($89.9M) do not cover its long term liabilities ($590.2M).


Debt to Equity History and Analysis

Debt Level: ATP's debt to equity ratio (485.2%) is considered high.

Reducing Debt: ATP's debt to equity ratio has increased from 195.8% to 485.2% 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: Whilst unprofitable ATP has sufficient cash runway for more than 3 years if it maintains its current positive free cash flow level.

Forecast Cash Runway: ATP is unprofitable but has sufficient cash runway for more than 3 years, due to free cash flow being positive and growing by 8.7% per year.


Next Steps

Dividend

What is Atlantic Power current dividend yield, its reliability and sustainability?


Dividend Yield vs Market

Notable Dividend: Unable to evaluate ATP's dividend yield against the bottom 25% of dividend payers, as the company has not reported any recent payouts.

High Dividend: Unable to evaluate ATP's dividend yield against the top 25% of dividend payers, as the company has not reported any recent payouts.


Stability and Growth of Payments

Stable Dividend: Insufficient data to determine if ATP's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if ATP's dividend payments have been increasing.


Current Payout to Shareholders

Dividend Coverage: ATP is not paying a notable dividend for the Canadian market.


Future Payout to Shareholders

Future Dividend Coverage: No need to calculate the sustainability of ATP's dividend in 3 years as they are not forecast to pay a notable one for the Canadian market.


Next Steps

Management

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

5.2yrs

Average management tenure


CEO

Jim Moore (62 yo)

5.83yrs

Tenure

US$1,693,215

Compensation

Mr. James J. Moore, Jr., J.D. also known as Jim, has been Chief Executive Officer and President at Atlantic Power Corporation since January 26, 2015. Mr. Moore has more than 30 years of operating experienc...


CEO Compensation Analysis

Compensation vs Market: Jim's total compensation ($USD1.69M) is above average for companies of similar size in the Canadian market ($USD583.69K).

Compensation vs Earnings: Jim's compensation has been consistent with company performance over the past year.


Leadership Team

NamePositionTenureCompensationOwnership
James Moore
CEO, President & Director5.83yrsUS$1.69m1.23%
$ 2.9m
Terrence Ronan
Executive VP8.25yrsUS$1.19m0.62%
$ 1.5m
Jeffrey Levy
Senior VP4.83yrsUS$825.25k0.24%
$ 559.9k
Joseph Cofelice
Executive Vice President of Commercial Development5.17yrsUS$1.19m0.99%
$ 2.4m
Nick Galotti
Senior Vice President of Operations0.83yrno datano data
James D'Angelo
Chief Administrative Officer & Senior VP5.17yrsno data0.11%
$ 264.1k
Brian Dee
Senior Vice President of Finance & Treasurer0.83yrno datano data
Ron Bialobrzeski
Director of Financeno datano datano data

5.2yrs

Average Tenure

60yo

Average Age

Experienced Management: ATP's management team is seasoned and experienced (5.2 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
James Moore
CEO, President & Director5.83yrsUS$1.69m1.23%
$ 2.9m
Gilbert Palter
Independent Director5.42yrsUS$134.21k0.70%
$ 1.7m
Kevin Howell
Independent Chairman1.42yrsUS$148.56k0.22%
$ 515.3k
Richard Duncan
Independent Director10.42yrsUS$145.00k0.017%
$ 40.3k
Danielle Mottor
Independent Director1.83yrsUS$117.97kno data

5.4yrs

Average Tenure

62yo

Average Age

Experienced Board: ATP's board of directors are considered experienced (5.4 years average tenure).


Ownership

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


Insider Trading Volume

Insider Buying: Insufficient data to determine if 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

Atlantic Power Corporation's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Atlantic Power Corporation
  • Ticker: ATP
  • Exchange: TSX
  • Founded: 2004
  • Industry: Independent Power Producers and Energy Traders
  • Sector: Utilities
  • Market Cap: CA$238.224m
  • Shares outstanding: 89.22m
  • Website: https://www.atlanticpower.com

Number of Employees


Location

  • Atlantic Power Corporation
  • 3 Allied Drive
  • Suite 155
  • Dedham
  • Massachusetts
  • 2026
  • United States

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
ATPTSX (The Toronto Stock Exchange)YesCommon SharesCACADNov 2004
ATNYSE (New York Stock Exchange)YesCommon SharesUSUSDNov 2004
6AWDB (Deutsche Boerse AG)YesCommon SharesDEEURNov 2004

Biography

Atlantic Power Corporation owns and operates a fleet of power generation assets in the United States and Canada. As of December 31, 2019, its portfolio consisted of twenty-one operating projects with an ag...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/11/25 00:05
End of Day Share Price2020/11/24 00:00
Earnings2020/09/30
Annual Earnings2019/12/31


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.