TSX:BLX

Stock Analysis Report

Executive Summary

Boralex Inc., together with its subsidiaries, develops, constructs, and operates renewable energy power facilities primarily in Canada, France, and the United States.

Snowflake

Fundamentals

Slightly overvalued with imperfect balance sheet.


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


Market Performance


7 Day Return

-1.6%

BLX

0.7%

CA Renewable Energy

0.2%

CA Market


1 Year Return

24.9%

BLX

19.2%

CA Renewable Energy

3.5%

CA Market

Return vs Industry: BLX exceeded the Canadian Renewable Energy industry which returned 19.2% over the past year.

Return vs Market: BLX exceeded the Canadian Market which returned 3.5% over the past year.


Shareholder returns

BLXIndustryMarket
7 Day-1.6%0.7%0.2%
30 Day-1.0%1.2%-3.3%
90 Day12.1%2.9%-1.9%
1 Year29.4%24.9%25.2%19.2%7.3%3.5%
3 Year29.2%17.8%31.0%13.0%14.7%4.4%
5 Year99.1%68.8%56.7%21.1%26.2%7.7%

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

Valuation

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$22.3) is trading below our estimate of fair value (CA$66.4)

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 (2.5x) compared to the CA Renewable Energy industry average (1.9x).


Next Steps

  • Explore potentially undervalued companies in the Utilities industry.

Future Growth

How is Boralex forecast to perform in the next 1 to 3 years based on estimates from 4 analysts?

66.3%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

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

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

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

Revenue vs Market: BLX's revenue (0.8% per year) is forecast to grow slower than the Canadian market (5.5% per year).

High Growth Revenue: BLX's revenue (0.8% 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?

0.2%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Earnings Trend: BLX is unprofitable, but has reduced losses over the past 5 years at a rate of 0.2% 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 (33.9%).


Return on Equity

High ROE: BLX has a negative Return on Equity (-2.19%), as it is currently unprofitable.


Return on Assets

ROA vs Industry: BLX is currently unprofitable, so its Return on Assets is negative.


Return on Capital Employed

ROCE Improving: BLX is currently unprofitable, so its Return on Capital Employed is negative.


Next Steps

Financial Health

How is Boralex's financial position?


Financial Position Analysis

Short Term Liabilities: BLX's short term assets (CA$397.0M) exceeds its short term liabilities (CA$393.0M)

Long Term Liabilities: BLX's short term assets (397.0M) do not cover its long term liabilities (3.6B)


Debt to Equity History and Analysis

Debt Level: BLX's debt to equity ratio (411.3%) is considered high

Reducing Debt: BLX's debt to equity ratio has increased from 254.3% to 411.3% 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: BLX has sufficient cash runway for more than 3 years based on its current free cash flow.

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


Next Steps

Dividend

What is Boralex's current dividend yield, its reliability and sustainability?

2.96%

Current Dividend Yield


Dividend Yield vs Market

company3.0%marketbottom25%2.0%markettop25%5.9%industryaverage4.8%forecastin3Years3.1%

Current dividend yield vs market & industry


Stability and Growth of Payments

Notable Dividend: BLX's dividend (2.96%) is higher than the bottom 25% of dividend payers in the Canadian market (1.98%).

High Dividend: BLX's dividend (2.96%) is low compared to the top 25% of dividend payers in the Canadian market (5.92%).

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 (118.5% payout ratio).


Next Steps

Management

What is the CEO of Boralex's salary, the management and board of directors tenure and is there insider trading?

1.5yrs

Average management tenure


CEO

Patrick Lemaire (55yo)

13.1yrs

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 ($USD987.00K) is about average for companies of similar size in the Canadian market ($USD2.30M).

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


Management Age and Tenure

1.5yrs

Average Tenure

53yo

Average Age

Experienced Management: BLX's management team is not considered experienced ( 1.5 years average tenure), which suggests a new team.


Board Age and Tenure

3.0yrs

Average Tenure

61yo

Average Age

Experienced Board: BLX's board of directors are considered experienced (3 years average tenure).


Insider Trading

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


Recent Insider Transactions

BuyCA$20,75030 Aug 19
André Courville
EntityIndividual
Role
Member of the Board of Directors
Independent Director
Shares1,000
Max PriceCA$20.75
SellCA$40,79512 Dec 18
Sylvain Aird
EntityIndividual
Role
Other Key Executive
Vice President of Europe Business Development
Shares2,257
Max PriceCA$18.08

Ownership Breakdown


Management Team

  • Patrick Lemaire (55yo)

    President

    • Tenure: 13.1yrs
    • Compensation: CA$1.29m
  • Stéphane Milot

    Director of Investor Relations

    • Tenure: 0.8yrs
  • Bruno Guilmette (53yo)

    CFO & VP

    • Tenure: 0.8yrs
  • Sylvain Aird (47yo)

    Vice President of Europe Business Development

    • Tenure: 2.3yrs
    • Compensation: CA$435.97k
  • Patrick Decostre

    VP & COO

    • Tenure: 0.3yrs
    • Compensation: CA$571.70k
  • Julie Cusson

    Vice President of Public and Corporate Affairs

    • Tenure: 0yrs
  • Marie-Josée Arsenault

    Vice President - Talent & Culture

    • Tenure: 0yrs
  • Pascal Hurtubise

    VP, Chief Legal Officer & Corporate Secretary

    • Tenure: 2.3yrs
    • Compensation: CA$381.45k

Board Members

  • Patrick Lemaire (55yo)

    President

    • Tenure: 13.1yrs
    • Compensation: CA$1.29m
  • Marie Giguére (67yo)

    Independent Director

    • Tenure: 1.8yrs
  • Alain Ducharme (63yo)

    Independent Director

    • Tenure: 8.4yrs
  • Yves Rheault (74yo)

    Independent Director

    • Tenure: 22.8yrs
  • Alain Rhéaume (67yo)

    Independent Chairman of the Board

    • Tenure: 2.6yrs
  • Edward Kernaghan (47yo)

    Independent Director

    • Tenure: 13.8yrs
  • Lise Croteau (59yo)

    Independent Director

    • Tenure: 1.4yrs
  • Dany St-Pierre (57yo)

    Independent Director

    • Tenure: 3.4yrs
  • André Courville (65yo)

    Independent Director

    • Tenure: 0.4yrs
  • Ghyslain Deschamps (52yo)

    Independent Director

    • Tenure: 1.4yrs

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$1.990b
  • Shares outstanding: 89.25m
  • Website: https://www.boralex.com

Number of Employees


Location

  • Boralex Inc.
  • 36 Lajeunesse Street
  • Kingsey Falls
  • Quebec
  • J0A 1B0
  • Canada

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
BLXTSX (The Toronto Stock Exchange)YesClass A Common StockCACADAug 1988
B3HDB (Deutsche Boerse AG)YesClass A Common StockDEEURAug 1988
BRLX.FOTCPK (Pink Sheets LLC)YesClass A Common StockUSUSDAug 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 h ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/10/22 23:32
End of Day Share Price2019/10/22 00:00
Earnings2019/06/30
Annual Earnings2018/12/31


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.