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 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

BLXIndustryMarket
7 Day2.6%2.1%0.7%
30 Day20.0%13.0%1.1%
90 Day30.1%21.3%4.4%
1 Year78.5%72.8%48.4%41.7%8.7%5.4%
3 Year70.0%55.1%59.7%38.1%16.8%6.2%
5 Year174.3%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

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$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

TodayFeb 20 2020Ex Dividend DateFeb 27 2020Dividend Pay DateMar 16 202018 days from Ex DividendBuy in the next 6 days to receive upcoming dividend

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

NamePositionTenureCompensationOwnership
Patrick Lemaire
President13.4yrsCA$1.29m0.032% CA$975.8k
Patrick Decostre
VP & COO0.6yrsCA$571.70k0.0052% CA$157.6k
Pascal Hurtubise
VP, Chief Legal Officer & Corporate Secretary2.6yrsCA$381.45k0.0027% CA$82.3k
Bruno Guilmette
CFO & VP1.1yrsno data0.00065% CA$19.8k
Stéphane Milot
Director of Investor Relations1.1yrsno datano data
Julie Cusson
Vice President of Public and Corporate Affairs0yrsno data0.0017% CA$50.6k
Marie-Josée Arsenault
Vice President of Talent & Culture0yrsno data0.0031% CA$95.4k
Sylvain Aird
Vice President of Europe Business Development2.6yrsCA$435.97kno 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

NamePositionTenureCompensationOwnership
Patrick Lemaire
President13.4yrsCA$1.29m0.032% CA$975.8k
Marie Giguére
Independent Director2.2yrsno data0.0031% CA$94.8k
Alain Ducharme
Independent Director8.8yrsno data0.0026% CA$79.0k
Yves Rheault
Independent Director23.1yrsno data0.0084% CA$256.4k
Alain Rhéaume
Independent Chairman of the Board2.9yrsno data0.0036% CA$110.7k
Edward Kernaghan
Independent Director14.1yrsno data2.58% CA$78.8m
Lise Croteau
Independent Director1.8yrsno datano data
Dany St-Pierre
Independent Director3.8yrsno datano data
André Courville
Independent Director0.8yrsno data0.0010% CA$31.7k
Ghyslain Deschamps
Independent Director1.8yrsno datano 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

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 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

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/02/19 23:50
End of Day Share Price2020/02/19 00:00
Earnings2019/09/30
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.