CPX

Capital PowerTSX:CPX Stock Report

Market Cap

CA$5.0b

7D

-0.9%

1Y

50.4%

Updated

19 Sep, 2021

Data

Company Financials +
CPX fundamental analysis
Snowflake Score
Valuation3/6
Future Growth1/6
Past Performance3/6
Financial Health2/6
Dividends4/6

CPX Overview

Capital Power Corporation develops, acquires, owns, and operates power generation facilities in Canada and the United States.

Capital Power Competitors

TransAlta

TSX:TA

CA$3.5b

Maxim Power

TSX:MXG

CA$150.2m

Fortis

TSX:FTS

CA$27.1b

Emera

TSX:EMA

CA$15.1b

Price History & Performance

Summary of all time highs, changes and price drops for Capital Power
Historical stock prices
Current Share PriceCA$43.59
52 Week HighCA$28.40
52 Week LowCA$44.42
Beta0.73
1 Month Change1.99%
3 Month Change6.16%
1 Year Change50.36%
3 Year Change48.01%
5 Year Change109.17%
Change since IPO92.54%

Recent News & Updates

Shareholder Returns

CPXCA Renewable EnergyCA Market
7D-0.9%-0.8%-0.6%
1Y50.4%19.2%28.9%

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

Return vs Market: CPX exceeded the Canadian Market which returned 28.9% over the past year.

Price Volatility

Is CPX's price volatile compared to industry and market?
CPX volatility
CPX Beta0.73
Industry Beta0.62
Market Beta1

Stable Share Price: CPX is less volatile than 75% of Canadian stocks over the past 3 months, typically moving +/- 1% a week.

Volatility Over Time: CPX's weekly volatility (1%) has been stable over the past year.

About the Company

FoundedEmployeesCEOWebsite
1891810Brian Vaasjohttps://www.capitalpower.com

Capital Power Corporation develops, acquires, owns, and operates power generation facilities in Canada and the United States. It generates electricity from various energy sources, including natural and landfill gas, coal, wind, waste heat, solid fuels, and solar. The company owns an approximately 6,500 megawatts of power generation capacity at 28 facilities.

Capital Power Fundamentals Summary

How do Capital Power's earnings and revenue compare to its market cap?
CPX fundamental statistics
Market CapCA$5.02b
Earnings (TTM)CA$179.00m
Revenue (TTM)CA$1.72b

28.0x

P/E Ratio

2.9x

P/S Ratio

Earnings & Revenue

Key profitability statistics from the latest earnings report
CPX income statement (TTM)
RevenueCA$1.72b
Cost of RevenueCA$621.00m
Gross ProfitCA$1.10b
ExpensesCA$918.00m
EarningsCA$179.00m

Last Reported Earnings

Jun 30, 2021

Next Earnings Date

n/a

Earnings per share (EPS)1.68
Gross Margin63.85%
Net Profit Margin10.42%
Debt/Equity Ratio96.1%

How did CPX perform over the long term?

See historical performance and comparison

Dividends

5.0%

Current Dividend Yield

122%

Payout Ratio

Does CPX pay a reliable dividends?

See CPX dividend history and benchmarks
When do you need to buy CPX by to receive an upcoming dividend?
Capital Power dividend dates
Ex Dividend DateSep 28 2021
Dividend Pay DateOct 29 2021
Days until Ex dividend8 days
Days until Dividend pay date39 days

Does CPX pay a reliable dividends?

See CPX dividend history and benchmarks

Valuation

Is Capital Power 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: CPX (CA$43.59) is trading below our estimate of fair value (CA$150.79)

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


Price To Earnings Ratio

PE vs Industry: CPX is poor value based on its PE Ratio (28x) compared to the Canadian Renewable Energy industry average (10.7x).

PE vs Market: CPX is poor value based on its PE Ratio (28x) compared to the Canadian market (12.8x).


Price to Earnings Growth Ratio

PEG Ratio: CPX is poor value based on its PEG Ratio (11.2x)


Price to Book Ratio

PB vs Industry: CPX is good value based on its PB Ratio (2.3x) compared to the CA Renewable Energy industry average (2.4x).


Future Growth

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

2.5%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: CPX's forecast earnings growth (2.5% per year) is above the savings rate (1.5%).

Earnings vs Market: CPX's earnings (2.5% per year) are forecast to grow slower than the Canadian market (12.3% per year).

High Growth Earnings: CPX's earnings are forecast to grow, but not significantly.

Revenue vs Market: CPX's revenue (2.6% per year) is forecast to grow slower than the Canadian market (6.2% per year).

High Growth Revenue: CPX's revenue (2.6% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: CPX's Return on Equity is forecast to be low in 3 years time (10.1%).


Past Performance

How has Capital Power performed over the past 5 years?

1.6%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: CPX has high quality earnings.

Growing Profit Margin: CPX became profitable in the past.


Past Earnings Growth Analysis

Earnings Trend: CPX's earnings have grown by 1.6% per year over the past 5 years.

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

Earnings vs Industry: CPX has become profitable in the last year, making it difficult to compare its past year earnings growth to the Renewable Energy industry (-25.1%).


Return on Equity

High ROE: CPX's Return on Equity (7.1%) is considered low.


Financial Health

How is Capital Power's financial position?


Financial Position Analysis

Short Term Liabilities: CPX's short term assets (CA$860.0M) do not cover its short term liabilities (CA$967.0M).

Long Term Liabilities: CPX's short term assets (CA$860.0M) do not cover its long term liabilities (CA$4.5B).


Debt to Equity History and Analysis

Debt Level: CPX's debt to equity ratio (96.1%) is considered high.

Reducing Debt: CPX's debt to equity ratio has increased from 58.6% to 96.1% over the past 5 years.

Debt Coverage: CPX's debt is well covered by operating cash flow (24.5%).

Interest Coverage: CPX's interest payments on its debt are well covered by EBIT (3x coverage).


Balance Sheet


Dividend

What is Capital Power current dividend yield, its reliability and sustainability?

5.02%

Current Dividend Yield


Upcoming Dividend Payment

TodaySep 20 2021Ex Dividend DateSep 28 2021Dividend Pay DateOct 29 202131 days from Ex DividendBuy in the next 8 days to receive the upcoming dividend

Dividend Yield vs Market

Notable Dividend: CPX's dividend (5.02%) is higher than the bottom 25% of dividend payers in the Canadian market (1.64%).

High Dividend: CPX's dividend (5.02%) is in the top 25% of dividend payers in the Canadian market (4.51%)


Stability and Growth of Payments

Stable Dividend: CPX's dividends per share have been stable in the past 10 years.

Growing Dividend: CPX's dividend payments have increased over the past 10 years.


Current Payout to Shareholders

Dividend Coverage: With its high payout ratio (122.3%), CPX's dividend payments are not well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: CPX's dividends in 3 years are not forecast to be well covered by earnings (100.1% payout ratio).


Next Steps

Management

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

1.2yrs

Average management tenure


CEO

Brian Vaasjo (66 yo)

12.17yrs

Tenure

CA$3,985,653

Compensation

Mr. Brian Tellef Vaasjo has been the Chief Executive Officer and President of Capital Power Corporation since July 2009 and has been its Director since May 5, 2009. Mr. Vaasjo has several years of industry...


CEO Compensation Analysis

Compensation vs Market: Brian's total compensation ($USD3.13M) is about average for companies of similar size in the Canadian market ($USD2.93M).

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


Leadership Team

Experienced Management: CPX's management team is not considered experienced ( 1.2 years average tenure), which suggests a new team.


Board Members

Experienced Board: CPX's board of directors are considered experienced (4.4 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 been diluted in the past year, with total shares outstanding growing by 9.6%.


Top Shareholders

Company Information

Capital Power Corporation's employee growth, exchange listings and data sources


Key Information

  • Name: Capital Power Corporation
  • Ticker: CPX
  • Exchange: TSX
  • Founded: 1891
  • Industry: Independent Power Producers and Energy Traders
  • Sector: Utilities
  • Market Cap: CA$5.018b
  • Shares outstanding: 115.13m
  • Website: https://www.capitalpower.com

Number of Employees


Location

  • Capital Power Corporation
  • 10423-101 Street NW
  • Suite 1200
  • Edmonton
  • Alberta
  • T5H 0E9
  • Canada

Listings


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2021/09/19 22:06
End of Day Share Price2021/09/17 00:00
Earnings2021/06/30
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.