Boralex (TSX:BLX) - Share price, News & Analysis

Q: What is the Fair Price of BLX when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

BLX (CA$50.12) is trading above our estimate of [[fair value]] (CA$46.88)

BLX fundamental analysis
Snowflake Score
Valuation	0/6
Future Growth	3/6
Past Performance	5/6
Financial Health	2/6
Dividends	1/6

BLX Stock Overview

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

Rewards

Earnings are forecast to grow 32.58% per year

Earnings grew by 42.5% over the past year

Risk Analysis

Interest payments are not well covered by earnings

Boralex Competitors

TransAlta Renewables

TSX:RNW

CA$4.8b

Northland Power

TSX:NPI

CA$10.7b

Brookfield Renewable

TSX:BEPC

CA$19.4b

Polaris Renewable Energy

TSX:PIF

CA$397.1m

Price History & Performance

Summary of all time highs, changes and price drops for Boralex
Historical stock prices
Current Share Price	CA$50.12
52 Week High	CA$50.31
52 Week Low	CA$30.04
Beta	0.50
1 Month Change	15.94%
3 Month Change	25.93%
1 Year Change	35.13%
3 Year Change	140.04%
5 Year Change	127.61%
Change since IPO	1,374.12%

Recent News & Updates

Aug 08

Calculating The Intrinsic Value Of Boralex Inc. (TSE:BLX)

Today we'll do a simple run through of a valuation method used to estimate the attractiveness of Boralex Inc. ( TSE:BLX...

Jul 07

Boralex (TSE:BLX) Is Experiencing Growth In Returns On Capital

If you're looking for a multi-bagger, there's a few things to keep an eye out for. Firstly, we'd want to identify a...

Shareholder Returns

	BLX	CA Renewable Energy	CA Market
7D	3.6%	0.9%	1.3%
1Y	35.1%	5.5%	3.3%

Return vs Industry: BLX exceeded the Canadian Renewable Energy industry which returned 6% over the past year.

Return vs Market: BLX exceeded the Canadian Market which returned 2.1% over the past year.

Price Volatility

Is BLX's price volatile compared to industry and market?
BLX volatility
BLX Average Weekly Movement	4.2%
Renewable Energy Industry Average Movement	4.7%
Market Average Movement	10.5%
10% most volatile stocks in CA Market	18.9%
10% least volatile stocks in CA Market	4.2%

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

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

About the Company

Founded	Employees	CEO	Website
1982	562	Patrick Decostre	https://www.boralex.com

Boralex Inc., together with its subsidiaries, engages in the development, construction, and operation of renewable energy power facilities primarily in Canada, France, and the United States. As of December 31, 2021, the company had interests in 90 wind power stations with an installed capacity of 2,032 megawatts (MW); 16 hydroelectric power stations with a capacity of 181 MW; 12 solar power stations with an installed capacity of 244 MW; and one thermal power station with an installed capacity of 35 MW. It also operates two hydroelectric power stations on behalf of R.S.P. Énergie Inc. Boralex Inc. was incorporated in 1982 and is headquartered in Kingsey Falls, Canada.

Boralex Fundamentals Summary

How do Boralex's earnings and revenue compare to its market cap?
BLX fundamental statistics
Market Cap	CA$5.15b
Earnings (TTM)	CA$57.00m
Revenue (TTM)	CA$731.00m

90.4x

P/E Ratio

7.0x

P/S Ratio

Is BLX overvalued?

See Fair Value and valuation analysis

Earnings & Revenue

Key profitability statistics from the latest earnings report
BLX income statement (TTM)
Revenue	CA$731.00m
Cost of Revenue	CA$146.00m
Gross Profit	CA$585.00m
Other Expenses	CA$528.00m
Earnings	CA$57.00m

Last Reported Earnings

Jun 30, 2022

Next Earnings Date

n/a

Earnings per share (EPS)	0.55
Gross Margin	80.03%
Net Profit Margin	7.80%
Debt/Equity Ratio	155.4%

How did BLX perform over the long term?

See historical performance and comparison

Dividends

1.3%

Current Dividend Yield

119%

Payout Ratio

Does BLX pay a reliable dividends?

See BLX dividend history and benchmarks

When do you need to buy BLX by to receive an upcoming dividend?
Boralex dividend dates
Ex Dividend Date	Aug 30 2022
Dividend Pay Date	Sep 16 2022
Days until Ex dividend	10 days
Days until Dividend pay date	27 days

Does BLX pay a reliable dividends?

See BLX dividend history and benchmarks

We’ve recently updated our valuation analysis.

Valuation

Is BLX undervalued compared to its fair value, analyst forecasts and its price relative to the market?

Valuation Score

0/6

Valuation Score 0/6

Price-To-Earnings vs Peers
Price-To-Earnings vs Industry
Price-To-Earnings vs Fair Ratio
Below Fair Value
Significantly Below Fair Value
Analyst Forecast

Key Valuation Metric

Which metric is best to use when looking at relative valuation for BLX?

Other financial metrics that can be useful for relative valuation.

The above table shows the n/a ratio for BLX. This is calculated by dividing BLX's market cap by their current preferred multiple.
What is BLX's n/a Ratio?
n/a Ratio	0x
n/a	n/a
Market Cap	CA$5.15b

BLX key valuation metrics and ratios. From Price to Earnings, Price to Sales and Price to Book to Price to Earnings Growth Ratio, Enterprise Value and EBITDA.
Key Statistics
Enterprise Value/Revenue	11.3x
Enterprise Value/EBITDA	16.9x
PEG Ratio	2.8x

Price to Earnings Ratio vs Peers

How does BLX's PE Ratio compare to its peers?

BLX PE Ratio vs Peers

The above table shows the PE ratio for BLX vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
Company	PE	Estimated Growth	Market Cap
Peer Average	58.4x
RNW TransAlta Renewables	41.2x	25.0%	CA$4.8b
NPI Northland Power	19.2x	-17.9%	CA$10.7b
BEPC Brookfield Renewable	36.4x	-69.7%	CA$19.4b
PIF Polaris Renewable Energy	137x	136.4%	CA$397.1m
BLX Boralex	90.4x	32.6%	CA$5.2b

Price-To-Earnings vs Peers: BLX is expensive based on its Price-To-Earnings Ratio (90.4x) compared to the peer average (58.4x).

Price to Earnings Ratio vs Industry

How does BLX's PE Ratio compare vs other companies in the Global Renewable Energy Industry?

Price-To-Earnings vs Industry: BLX is expensive based on its Price-To-Earnings Ratio (90.4x) compared to the Canadian Renewable Energy industry average (38.4x)

Price to Earnings Ratio vs Fair Ratio

What is BLX's PE Ratio compared to its Fair PE Ratio? This is the expected PE Ratio taking into account the company's forecast earnings growth, profit margins and other risk factors.

BLX PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio	90.4x
Fair PE Ratio	45.4x

Price-To-Earnings vs Fair Ratio: BLX is expensive based on its Price-To-Earnings Ratio (90.4x) compared to the estimated Fair Price-To-Earnings Ratio (45.4x).

Share Price vs Fair Value

What is the Fair Price of BLX when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: BLX (CA$50.12) is trading above our estimate of fair value (CA$46.88)

Significantly Below Fair Value: BLX is trading above our estimate of fair value.

Analyst Price Targets

What is the analyst 12-month forecast and do we have any statistical confidence in the consensus price target?

Analyst Forecast: Target price is lower than the current share price.

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Future Growth

How is Boralex forecast to perform in the next 1 to 3 years based on estimates from 10 analysts?

Future Growth Score

3/6

Future Growth Score 3/6

Earnings vs Savings Rate
Earnings vs Market
High Growth Earnings
Revenue vs Market
High Growth Revenue
Future ROE

32.6%

Forecasted annual earnings growth

Earnings and Revenue Growth Forecasts

Analyst Future Growth Forecasts

Earnings vs Savings Rate: BLX's forecast earnings growth (32.6% per year) is above the savings rate (1.6%).

Earnings vs Market: BLX's earnings (32.6% per year) are forecast to grow faster than the Canadian market (7.6% per year).

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

Revenue vs Market: BLX's revenue (2.9% per year) is forecast to grow slower than the Canadian market (6.6% per year).

High Growth Revenue: BLX's revenue (2.9% 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

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Past Performance

How has Boralex performed over the past 5 years?

Past Performance Score

5/6

Past Performance Score 5/6

Quality Earnings
Growing Profit Margin
Earnings Trend
Accelerating Growth
Earnings vs Industry
High ROE

39.8%

Historical annual earnings growth

Earnings and Revenue History

Quality Earnings: BLX has high quality earnings.

Growing Profit Margin: BLX's current net profit margins (7.8%) are higher than last year (6%).

Past Earnings Growth Analysis

Earnings Trend: BLX has become profitable over the past 5 years, growing earnings by 39.8% per year.

Accelerating Growth: BLX's earnings growth over the past year (42.5%) exceeds its 5-year average (39.8% per year).

Earnings vs Industry: BLX earnings growth over the past year (42.5%) exceeded the Renewable Energy industry -14%.

Return on Equity

High ROE: BLX's Return on Equity (3.4%) is considered low.

Discover strong past performing companies

Financial Health

How is Boralex's financial position?

Financial Health Score

2/6

Financial Health Score 2/6

Short Term Liabilities
Long Term Liabilities
Debt Level
Reducing Debt
Debt Coverage
Interest Coverage

Financial Position Analysis

Short Term Liabilities: BLX's short term assets (CA$896.0M) exceed its short term liabilities (CA$466.0M).

Long Term Liabilities: BLX's short term assets (CA$896.0M) do not cover its long term liabilities (CA$3.8B).

Debt to Equity History and Analysis

Debt Level: BLX's net debt to equity ratio (121%) is considered high.

Reducing Debt: BLX's debt to equity ratio has reduced from 382.2% to 155.4% over the past 5 years.

Debt Coverage: BLX's debt is not well covered by operating cash flow (11.4%).

Interest Coverage: BLX's interest payments on its debt are not well covered by EBIT (1.6x coverage).

Balance Sheet

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Dividend

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

Dividend Score

1/6

Dividend Score 1/6

Notable Dividend
High Dividend
Stable Dividend
Growing Dividend
Earnings Coverage
Cash Flow Coverage

1.32%

Current Dividend Yield

Upcoming Dividend Payment

Dividend Yield vs Market

Notable Dividend: BLX's dividend (1.32%) isn’t notable compared to the bottom 25% of dividend payers in the Canadian market (1.86%).

High Dividend: BLX's dividend (1.32%) is low compared to the top 25% of dividend payers in the Canadian market (5.31%).

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 8 years.

Earnings Payout to Shareholders

Earnings Coverage: With its high payout ratio (118.9%), BLX's dividend payments are not well covered by earnings.

Cash Payout to Shareholders

Cash Flow Coverage: With its reasonable cash payout ratio (64%), BLX's dividend payments are covered by cash flows.

Discover strong dividend paying companies

Management

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

3.5yrs

Average management tenure

CEO

Patrick Decostre (49 yo)

1.67yrs

Tenure

CA$1,546,337

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 ($USD1.20M) is below average for companies of similar size in the Canadian market ($USD3.56M).

Compensation vs Earnings: Patrick's compensation has increased by more than 20% in the past year.

Leadership Team

Experienced Management: BLX's management team is considered experienced (3.5 years average tenure).

Board Members

Experienced Board: BLX's board of directors are considered experienced (4.3 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.

Data	Last Updated (UTC time)
Company Analysis	2022/08/18 00:00
End of Day Share Price	2022/08/18 00:00
Earnings	2022/06/30
Annual Earnings	2021/12/31