TSX:BLX

Stock Analysis Report

NOT FOR DISTRIBUTION
Header cover image

Market Cap

CA$4.0b

Last Updated

2021/08/01 22:03 UTC

Data Sources

Company Financials +

Executive Summary

Boralex Inc., together with its subsidiaries, engages in the development, construction, and operation of renewable energy power facilities primarily in Canada, France, the United Kingdom, and the United States. More Details


Snowflake Analysis

Reasonable growth potential with acceptable track record.


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 is less volatile than 75% of Canadian stocks over the past 3 months, typically moving +/- 3% a week.

Volatility Over Time: BLX's weekly volatility (3%) has been stable over the past year.


Market Performance


7 Day Return

2.7%

BLX

1.3%

CA Renewable Energy

1.4%

CA Market


1 Year Return

12.4%

BLX

27.6%

CA Renewable Energy

29.1%

CA Market

Return vs Industry: BLX underperformed the Canadian Renewable Energy industry which returned 27.6% over the past year.

Return vs Market: BLX underperformed the Canadian Market which returned 29% over the past year.


Shareholder returns

BLXIndustryMarket
7 Day2.7%1.3%1.4%
30 Day0.4%2.3%-0.5%
90 Day2.2%5.7%3.0%
1 Year14.4%12.4%31.6%27.6%33.0%29.1%
3 Year113.0%96.8%122.5%94.4%31.5%18.7%
5 Year132.5%102.9%144.8%92.8%51.9%29.5%

Long-Term 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$39.27) is trading below our estimate of fair value (CA$80.12)

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


Price To Earnings Ratio

PE vs Industry: BLX is poor value based on its PE Ratio (81.9x) compared to the Canadian Renewable Energy industry average (18.4x).

PE vs Market: BLX is poor value based on its PE Ratio (81.9x) compared to the Canadian market (13.6x).


Price to Earnings Growth Ratio

PEG Ratio: BLX is poor value based on its PEG Ratio (2.9x)


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 (2.7x).


Future Growth

How is Boralex forecast to perform in the next 1 to 3 years based on estimates from 7 analysts?

28.1%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: BLX's forecast earnings growth (28.1% per year) is above the savings rate (1.5%).

Earnings vs Market: BLX's earnings (28.1% per year) are forecast to grow faster than the Canadian market (14% per year).

High Growth Earnings: earnings are expected to grow significantly over the next 3 years.

Revenue vs Market: BLX's revenue (6.7% per year) is forecast to grow faster than the Canadian market (5.2% per year).

High Growth Revenue: BLX's revenue (6.7% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: BLX's Return on Equity is forecast to be low in 3 years time (8.2%).


Past Performance

How has Boralex performed over the past 5 years?

7.2%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: BLX has high quality earnings.

Growing Profit Margin: BLX became profitable in the past.


Past Earnings Growth Analysis

Earnings Trend: BLX has become profitable over the past 5 years, growing earnings by 7.2% per year.

Accelerating Growth: BLX has become profitable in the last year, making the earnings growth rate difficult to compare to its 5-year average.

Earnings vs Industry: BLX has become profitable in the last year, making it difficult to compare its past year earnings growth to the Renewable Energy industry (-34.5%).


Return on Equity

High ROE: BLX's Return on Equity (4.3%) is considered low.


Financial Health

How is Boralex's financial position?


Financial Position Analysis

Short Term Liabilities: BLX's short term assets (CA$448.0M) exceed its short term liabilities (CA$385.0M).

Long Term Liabilities: BLX's short term assets (CA$448.0M) do not cover its long term liabilities (CA$4.2B).


Debt to Equity History and Analysis

Debt Level: BLX's debt to equity ratio (289.5%) is considered high.

Reducing Debt: BLX's debt to equity ratio has reduced from 299.1% to 289.5% over the past 5 years.

Debt Coverage: BLX's debt is not well covered by operating cash flow (9.7%).

Interest Coverage: BLX's interest payments on its debt are not well covered by EBIT (1.4x coverage).


Balance Sheet


Dividend

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

1.68%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: BLX's dividend (1.68%) is higher than the bottom 25% of dividend payers in the Canadian market (1.58%).

High Dividend: BLX's dividend (1.68%) is low compared to the top 25% of dividend payers in the Canadian market (4.57%).


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 7 years.


Current Payout to Shareholders

Dividend Coverage: With its high payout ratio (137.6%), BLX's dividend payments are not well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: BLX's dividends in 3 years are forecast to be covered by earnings (61.6% payout ratio).


Next Steps

Management

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

2.5yrs

Average management tenure


CEO

Patrick Decostre (48 yo)

0.58

Tenure

CA$1,133,750

Compensation

Mr. Patrick Decostre serves as the President, Chief Executive Officer and Director of Boralex Inc. since December 1, 2020. He served as Chief Operating Officer of Boralex Inc. since July 2019 until Novembe...


CEO Compensation Analysis

Compensation vs Market: Patrick's total compensation ($USD909.15K) is below average for companies of similar size in the Canadian market ($USD3.01M).

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


Leadership Team

Experienced Management: BLX's management team is considered experienced (2.5 years average tenure).


Board Members

Experienced Board: BLX's board of directors are considered experienced (3.2 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 6.4%.


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$4.030b
  • Shares outstanding: 102.62m
  • Website: https://www.boralex.com

Number of Employees


Location

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

Listings


Biography

Boralex Inc., together with its subsidiaries, engages in the development, construction, and operation of renewable energy power facilities primarily in Canada, France, the United Kingdom, and the United St...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2021/08/01 22:03
End of Day Share Price2021/07/30 00:00
Earnings2021/03/31
Annual Earnings2020/12/31


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.