Executive Summary
Capital Power Corporation develops, acquires, owns, and operates power generation facilities in Canada and the United States. More Details
Rewards
Risk Analysis
Dividend of 4.93% is not well covered by earnings or forecast to be in the next 3 years
Snowflake Analysis
Solid track record average dividend payer.
Similar Companies
Share Price & News
How has Capital Power's share price performed over time and what events caused price changes?
Latest Share Price and Events
Stable Share Price: CPX is less volatile than 75% of Canadian stocks over the past 3 months, typically moving +/- 2% a week.
Volatility Over Time: CPX's weekly volatility (2%) has been stable over the past year.
Market Performance
7 Day Return
1.0%
CPX
-1.1%
CA Renewable Energy
-0.9%
CA Market
1 Year Return
49.6%
CPX
35.6%
CA Renewable Energy
36.1%
CA Market
Return vs Industry: CPX exceeded the Canadian Renewable Energy industry which returned 35.6% over the past year.
Return vs Market: CPX exceeded the Canadian Market which returned 36.1% over the past year.
Shareholder returns
| CPX | Industry | Market | |
|---|---|---|---|
| 7 Day | 1.0% | -1.1% | -0.9% |
| 30 Day | 4.1% | 0.1% | 1.9% |
| 90 Day | 15.4% | -6.1% | 6.2% |
| 1 Year | 59.4%49.6% | 40.2%35.6% | 40.5%36.1% |
| 3 Year | 98.8%64.4% | 114.3%86.7% | 31.7%19.0% |
| 5 Year | 200.2%120.7% | 149.8%97.4% | 59.5%35.6% |
Long-Term Price Volatility Vs. Market
How volatile is Capital Power's share price compared to the market and industry in the last 5 years?
Simply Wall St News
3 weeks ago | Simply Wall St
Capital Power (TSE:CPX) Use Of Debt Could Be Considered Risky2 months ago | Simply Wall St
We Think Shareholders Are Less Likely To Approve A Large Pay Rise For Capital Power Corporation's (TSE:CPX) CEO For Now2 months ago | Simply Wall St
Did You Participate In Any Of Capital Power's (TSE:CPX) Fantastic 192% Return ?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$41.61) is trading below our estimate of fair value (CA$118.64)
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 (24x) compared to the Canadian Renewable Energy industry average (18.1x).
PE vs Market: CPX is poor value based on its PE Ratio (24x) compared to the Canadian market (14.7x).
Price to Earnings Growth Ratio
PEG Ratio: CPX is poor value based on its PEG Ratio (2.9x)
Price to Book Ratio
PB vs Industry: CPX is good value based on its PB Ratio (2.2x) 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?
8.4%
Forecasted annual earnings growth
Earnings and Revenue Growth Forecasts
Analyst Future Growth Forecasts
Earnings vs Savings Rate: CPX's forecast earnings growth (8.4% per year) is above the savings rate (1.5%).
Earnings vs Market: CPX's earnings (8.4% per year) are forecast to grow slower than the Canadian market (14% per year).
High Growth Earnings: CPX's earnings are forecast to grow, but not significantly.
Revenue vs Market: CPX's revenue (3.1% per year) is forecast to grow slower than the Canadian market (5.6% per year).
High Growth Revenue: CPX's revenue (3.1% 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 (9.5%).
Past Performance
How has Capital Power performed over the past 5 years?
3.5%
Historical annual earnings growth
Earnings and Revenue History
Quality Earnings: CPX has high quality earnings.
Growing Profit Margin: CPX's current net profit margins (10.3%) are higher than last year (0.8%).
Past Earnings Growth Analysis
Earnings Trend: CPX's earnings have grown by 3.5% per year over the past 5 years.
Accelerating Growth: CPX's earnings growth over the past year (1207.1%) exceeds its 5-year average (3.5% per year).
Earnings vs Industry: CPX earnings growth over the past year (1207.1%) exceeded the Renewable Energy industry -0.8%.
Return on Equity
High ROE: CPX's Return on Equity (7.7%) is considered low.
Financial Health
How is Capital Power's financial position?
Financial Position Analysis
Short Term Liabilities: CPX's short term assets (CA$1.1B) do not cover its short term liabilities (CA$1.3B).
Long Term Liabilities: CPX's short term assets (CA$1.1B) do not cover its long term liabilities (CA$4.5B).
Debt to Equity History and Analysis
Debt Level: CPX's debt to equity ratio (113.1%) is considered high.
Reducing Debt: CPX's debt to equity ratio has increased from 56% to 113.1% over the past 5 years.
Debt Coverage: CPX's debt is well covered by operating cash flow (21%).
Interest Coverage: CPX's interest payments on its debt are not well covered by EBIT (2.8x coverage).
Balance Sheet
Dividend
What is Capital Power current dividend yield, its reliability and sustainability?
4.93%
Current Dividend Yield
Upcoming Dividend Payment
Dividend Yield vs Market
Notable Dividend: CPX's dividend (4.93%) is higher than the bottom 25% of dividend payers in the Canadian market (1.58%).
High Dividend: CPX's dividend (4.93%) is in the top 25% of dividend payers in the Canadian market (4.5%)
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 (116.5%), 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 (95% payout ratio).
Next Steps
Management
How experienced are the management team and are they aligned to shareholders interests?
0.9yrs
Average management tenure
CEO
Brian Vaasjo (65 yo)
11.92yrs
Tenure
CA$3,985,653
Compensation
Mr. Brian Tellef Vaasjo has been the Chief Executive Officer and President of Capital Power Corporation since July 2009 and has been its Director since May 5, 2009. Mr. Vaasjo has several years of industry...
CEO Compensation Analysis
Compensation vs Market: Brian's total compensation ($USD3.24M) is about average for companies of similar size in the Canadian market ($USD3.00M).
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 ( 0.9 years average tenure), which suggests a new team.
Board Members
Experienced Board: CPX's board of directors are considered experienced (4.2 years average tenure).
Ownership
Who are the major shareholders and have insiders been buying or selling?
Insider Trading Volume
Insider Buying: CPX insiders have bought and sold the same number of shares 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 9.5%.
Top Shareholders
Company Information
Capital Power Corporation's company bio, 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$4.784b
- Shares outstanding: 115.05m
- Website: https://www.capitalpower.com
Number of Employees
Location
- Capital Power Corporation
- 10423-101 Street NW
- Suite 1200
- Edmonton
- Alberta
- T5H 0E9
- Canada
Listings
Biography
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 lan...
Company Analysis and Financial Data Status
| Data | Last Updated (UTC time) |
|---|---|
| Company Analysis | 2021/06/24 01:54 |
| End of Day Share Price | 2021/06/23 00:00 |
| Earnings | 2021/03/31 |
| Annual Earnings | 2020/12/31 |
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.