TSX:CPX

Stock Analysis Report

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Market Cap

CA$4.8b

Last Updated

2021/06/24 01:54 UTC

Data Sources

Company Financials +

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

CPXIndustryMarket
7 Day1.0%-1.1%-0.9%
30 Day4.1%0.1%1.9%
90 Day15.4%-6.1%6.2%
1 Year59.4%49.6%40.2%35.6%40.5%36.1%
3 Year98.8%64.4%114.3%86.7%31.7%19.0%
5 Year200.2%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

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

TodayJun 24 2021Ex Dividend DateJun 29 2021Dividend Pay DateJul 30 202131 days from Ex DividendBuy in the next 5 days to receive the upcoming dividend

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

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2021/06/24 01:54
End of Day Share Price2021/06/23 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.