Executive Summary
Boralex Inc., together with its subsidiaries, develops, constructs, and operates renewable energy power facilities primarily in Canada, France, and the United States.
Rewards
Risk Analysis
Dividend of 2.09% is not well covered by earnings or forecast to be in the next 3 years
Snowflake Analysis
Moderate growth potential and slightly overvalued.
Similar Companies
Share Price & News
How has Boralex's share price performed over time and what events caused price changes?
Latest Share Price and Events
Stable Share Price: BLX's share price has been volatile over the past 3 months.
Market Performance
7 Day Return
2.6%
BLX
2.1%
CA Renewable Energy
0.7%
CA Market
1 Year Return
72.8%
BLX
41.7%
CA Renewable Energy
5.4%
CA Market
Return vs Industry: BLX exceeded the Canadian Renewable Energy industry which returned 41.7% over the past year.
Return vs Market: BLX exceeded the Canadian Market which returned 5.4% over the past year.
Shareholder returns
| BLX | Industry | Market | |
|---|---|---|---|
| 7 Day | 2.6% | 2.1% | 0.7% |
| 30 Day | 20.0% | 13.0% | 1.1% |
| 90 Day | 30.1% | 21.3% | 4.4% |
| 1 Year | 78.5%72.8% | 48.4%41.7% | 8.7%5.4% |
| 3 Year | 70.0%55.1% | 59.7%38.1% | 16.8%6.2% |
| 5 Year | 174.3%135.6% | 96.8%53.6% | 34.7%15.1% |
Price Volatility Vs. Market
How volatile is Boralex's share price compared to the market and industry in the last 5 years?
Simply Wall St News
1 week ago | Simply Wall St
Do Institutions Own Shares In Boralex Inc. (TSE:BLX)?4 weeks ago | Simply Wall St
Introducing Boralex (TSE:BLX), The Stock That Zoomed 101% In The Last Five Years1 month ago | Simply Wall St
Boralex (TSE:BLX) Has A Mountain Of DebtValuation
Is Boralex 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: BLX (CA$31.57) is trading below our estimate of fair value (CA$74.12)
Significantly Below Fair Value: BLX is trading below fair value by more than 20%.
Price To Earnings Ratio
PE vs Industry: BLX is unprofitable, so we can't compare its PE Ratio to the Renewable Energy industry average.
PE vs Market: BLX 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 BLX's PEG Ratio to determine if it is good value.
Price to Book Ratio
PB vs Industry: BLX is overvalued based on its PB Ratio (3.8x) compared to the CA Renewable Energy industry average (2.4x).
Next Steps
Future Growth
How is Boralex forecast to perform in the next 1 to 3 years based on estimates from 2 analysts?
109.8%
Forecasted annual earnings growth
Earnings and Revenue Growth Forecasts
Analyst Future Growth Forecasts
Earnings vs Savings Rate: BLX is forecast to become profitable over the next 3 years, which is considered faster growth than the savings rate (1.4%).
Earnings vs Market: BLX is forecast to become profitable over the next 3 years, which is considered above average market growth.
High Growth Earnings: BLX's is expected to become profitable in the next 3 years.
Revenue vs Market: BLX's revenue (1.6% per year) is forecast to grow slower than the Canadian market (4.9% per year).
High Growth Revenue: BLX's revenue (1.6% 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 BLX's Return on Equity is forecast to be high in 3 years time
Next Steps
Past Performance
How has Boralex performed over the past 5 years?
-0.04%
Historical annual earnings growth
Earnings and Revenue History
Quality Earnings: BLX is currently unprofitable.
Growing Profit Margin: BLX is currently unprofitable.
Past Earnings Growth Analysis
Earnings Trend: BLX is unprofitable, and losses have increased over the past 5 years at a rate of -0.04% per year.
Accelerating Growth: Unable to compare BLX's earnings growth over the past year to its 5-year average as it is currently unprofitable
Earnings vs Industry: BLX is unprofitable, making it difficult to compare its past year earnings growth to the Renewable Energy industry (-28.4%).
Return on Equity
High ROE: BLX has a negative Return on Equity (-2.23%), as it is currently unprofitable.
Return on Assets
Return on Capital Employed
Next Steps
Financial Health
How is Boralex's financial position?
Financial Position Analysis
Short Term Liabilities: BLX's short term assets (CA$388.0M) do not cover its short term liabilities (CA$482.0M).
Long Term Liabilities: BLX's short term assets (CA$388.0M) do not cover its long term liabilities (CA$3.4B).
Debt to Equity History and Analysis
Debt Level: BLX's debt to equity ratio (438.1%) is considered high.
Reducing Debt: BLX's debt to equity ratio has increased from 363.2% to 438.1% over the past 5 years.
Balance Sheet
Inventory Level: BLX has a high level of physical assets or inventory.
Debt Coverage by Assets: BLX's debt is not covered by short term assets (assets are 0.1x debt).
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 BLX has sufficient cash runway for more than 3 years if it maintains its current positive free cash flow level.
Forecast Cash Runway: BLX is unprofitable but has sufficient cash runway for more than 3 years, due to free cash flow being positive and growing by 4.7% per year.
Next Steps
Dividend
What is Boralex's current dividend yield, its reliability and sustainability?
2.09%
Current Dividend Yield
Upcoming Dividend Payment
Dividend Yield vs Market
Notable Dividend: BLX's dividend (2.09%) is higher than the bottom 25% of dividend payers in the Canadian market (1.89%).
High Dividend: BLX's dividend (2.09%) is low compared to the top 25% of dividend payers in the Canadian market (5.29%).
Stability and Growth of Payments
Stable Dividend: Whilst dividend payments have been stable, BLX has been paying a dividend for less than 10 years.
Growing Dividend: BLX's dividend payments have increased, but the company has only paid a dividend for 6 years.
Current Payout to Shareholders
Dividend Coverage: BLX is paying a dividend but the company is unprofitable.
Future Payout to Shareholders
Future Dividend Coverage: BLX's dividends in 3 years are not forecast to be well covered by earnings (90.9% payout ratio).
Next Steps
Management
How experienced are the management team and are they aligned to shareholders interests?
1.8yrs
Average management tenure
CEO
Patrick Lemaire (55yo)
13.4yrs
Tenure
CA$1,291,561
Compensation
Mr. Patrick Lemaire has been the Chief Executive Officer and President of Boralex Power Inc. September 2006, administrator of Boralex Power Limited Partnership. Mr. Lemaire has been the Chief Executive Off ...
CEO Compensation Analysis
Compensation vs Market: Patrick's total compensation ($USD976.60K) is below average for companies of similar size in the Canadian market ($USD2.15M).
Compensation vs Earnings: Patrick's compensation has been consistent with company performance over the past year.
Leadership Team
| Name | Position | Tenure | Compensation | Ownership |
|---|---|---|---|---|
| President | 13.4yrs | CA$1.29m | 0.032% CA$975.8k | |
| VP & COO | 0.6yrs | CA$571.70k | 0.0052% CA$157.6k | |
| VP, Chief Legal Officer & Corporate Secretary | 2.6yrs | CA$381.45k | 0.0027% CA$82.3k | |
| CFO & VP | 1.1yrs | no data | 0.00065% CA$19.8k | |
| Director of Investor Relations | 1.1yrs | no data | no data | |
| Vice President of Public and Corporate Affairs | 0yrs | no data | 0.0017% CA$50.6k | |
| Vice President of Talent & Culture | 0yrs | no data | 0.0031% CA$95.4k | |
| Vice President of Europe Business Development | 2.6yrs | CA$435.97k | no data |
1.8yrs
Average Tenure
53yo
Average Age
Experienced Management: BLX's management team is not considered experienced ( 1.8 years average tenure), which suggests a new team.
Board Members
| Name | Position | Tenure | Compensation | Ownership |
|---|---|---|---|---|
| President | 13.4yrs | CA$1.29m | 0.032% CA$975.8k | |
| Independent Director | 2.2yrs | no data | 0.0031% CA$94.8k | |
| Independent Director | 8.8yrs | no data | 0.0026% CA$79.0k | |
| Independent Director | 23.1yrs | no data | 0.0084% CA$256.4k | |
| Independent Chairman of the Board | 2.9yrs | no data | 0.0036% CA$110.7k | |
| Independent Director | 14.1yrs | no data | 2.58% CA$78.8m | |
| Independent Director | 1.8yrs | no data | no data | |
| Independent Director | 3.8yrs | no data | no data | |
| Independent Director | 0.8yrs | no data | 0.0010% CA$31.7k | |
| Independent Director | 1.8yrs | no data | no data |
3.3yrs
Average Tenure
61yo
Average Age
Experienced Board: BLX's board of directors are considered experienced (3.3 years average tenure).
Ownership
Who are the major shareholders and have insiders been buying or selling?
Insider Trading Volume
Insider Buying: BLX insiders have bought more shares than they have sold in the past 3 months.
Recent Insider Transactions
Ownership Breakdown
Dilution of Shares: Shareholders have been diluted in the past year, with total shares outstanding growing by 16.3%.
Top Shareholders
Company Information
Boralex Inc.'s company bio, employee growth, exchange listings and data sources
Key Information
- Name: Boralex Inc.
- Ticker: BLX
- Exchange: TSX
- Founded: 1982
- Industry: Renewable Electricity
- Sector: Utilities
- Market Cap: CA$3.049b
- Shares outstanding: 96.46m
- Website: https://www.boralex.com
Number of Employees
Location
- Boralex Inc.
- 36 Lajeunesse Street
- Kingsey Falls
- Quebec
- J0A 1B0
- Canada
Listings
| Ticker | Exchange | Primary Security | Security Type | Country | Currency | Listed on |
|---|---|---|---|---|---|---|
| BLX | TSX (The Toronto Stock Exchange) | Yes | Class A Common Stock | CA | CAD | Aug 1988 |
| B3H | DB (Deutsche Boerse AG) | Yes | Class A Common Stock | DE | EUR | Aug 1988 |
| BRLX.F | OTCPK (Pink Sheets LLC) | Yes | Class A Common Stock | US | USD | Aug 1988 |
Biography
Boralex Inc., together with its subsidiaries, develops, constructs, and operates renewable energy power facilities primarily in Canada, France, and the United States. As of December 31, 2018, the company had interests in 81 wind power stations with an installed capacity of 1,723 megawatts (MW); 15 hydroelectric power stations with a capacity of 156 MW; 2 thermal power stations with an installed capacity of 47 MW; and 3 solar power stations with an installed capacity of 16 MW. It also operates two hydroelectric power stations on behalf of R.S.P. Énergie Inc. The company was founded in 1982 and is headquartered in Kingsey Falls, Canada.
Company Analysis and Financial Data Status
| Data | Last Updated (UTC time) |
|---|---|
| Company Analysis | 2020/02/19 23:50 |
| End of Day Share Price | 2020/02/19 00:00 |
| Earnings | 2019/09/30 |
| Annual Earnings | 2018/12/31 |
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.