Executive Summary
Innergex Renewable Energy Inc. operates as an independent renewable power producer.
Rewards
Risk Analysis
Dividend of 3.36% is not well covered by earnings or forecast to be in the next 3 years
+ 1 more risk
Snowflake Analysis
Reasonable growth potential second-rate dividend payer.
Similar Companies
Share Price & News
How has Innergex Renewable Energy's share price performed over time and what events caused price changes?
Latest Share Price and Events
Stable Share Price: INE has not had significant price volatility in the past 3 months.
Market Performance
7 Day Return
-4.3%
INE
-2.9%
CA Renewable Energy
-4.8%
CA Market
1 Year Return
41.7%
INE
34.3%
CA Renewable Energy
0.1%
CA Market
Return vs Industry: INE exceeded the Canadian Renewable Energy industry which returned 34.3% over the past year.
Return vs Market: INE exceeded the Canadian Market which returned 0.1% over the past year.
Shareholder returns
| INE | Industry | Market | |
|---|---|---|---|
| 7 Day | -4.3% | -2.9% | -4.8% |
| 30 Day | 11.2% | 7.3% | -3.2% |
| 90 Day | 21.7% | 17.4% | -1.0% |
| 1 Year | 48.4%41.7% | 40.4%34.3% | 3.3%0.1% |
| 3 Year | 66.6%44.2% | 54.6%33.9% | 12.9%2.7% |
| 5 Year | 124.7%75.7% | 93.4%51.1% | 29.2%10.3% |
Price Volatility Vs. Market
How volatile is Innergex Renewable Energy's share price compared to the market and industry in the last 5 years?
Simply Wall St News
1 week ago | Simply Wall St
Does This Valuation Of Innergex Renewable Energy Inc. (TSE:INE) Imply Investors Are Overpaying?3 weeks ago | Simply Wall St
Could Innergex Renewable Energy Inc.'s (TSE:INE) Investor Composition Influence The Stock Price?1 month ago | Simply Wall St
Is Innergex Renewable Energy (TSE:INE) A Risky Investment?Valuation
Is Innergex Renewable Energy undervalued compared to its fair value and its price relative to the market?
268.38x
Price to Earnings (PE) ratio
Share Price vs. Fair Value
Below Fair Value: INE (CA$20.84) is trading above our estimate of fair value (CA$17.56)
Significantly Below Fair Value: INE is trading above our estimate of fair value.
Price To Earnings Ratio
PE vs Industry: INE is poor value based on its PE Ratio (268.4x) compared to the Renewable Energy industry average (36.1x).
PE vs Market: INE is poor value based on its PE Ratio (268.4x) compared to the Canadian market (15.2x).
Price to Earnings Growth Ratio
PEG Ratio: INE is poor value based on its PEG Ratio (6.8x)
Price to Book Ratio
PB vs Industry: INE is overvalued based on its PB Ratio (5.6x) compared to the CA Renewable Energy industry average (2.5x).
Next Steps
Future Growth
How is Innergex Renewable Energy forecast to perform in the next 1 to 3 years based on estimates from 6 analysts?
39.5%
Forecasted annual earnings growth
Earnings and Revenue Growth Forecasts
Analyst Future Growth Forecasts
Earnings vs Savings Rate: INE's forecast earnings growth (39.5% per year) is above the savings rate (1.4%).
Earnings vs Market: INE's earnings (39.5% per year) are forecast to grow faster than the Canadian market (9.8% per year).
High Growth Earnings: earnings are expected to grow significantly over the next 3 years.
Revenue vs Market: INE's revenue (5.3% per year) is forecast to grow faster than the Canadian market (4.7% per year).
High Growth Revenue: INE's revenue (5.3% per year) is forecast to grow slower than 20% per year.
Earnings per Share Growth Forecasts
Future Return on Equity
Future ROE: INE's Return on Equity is forecast to be low in 3 years time (10.7%).
Next Steps
Past Performance
How has Innergex Renewable Energy performed over the past 5 years?
61.2%
Historical annual earnings growth
Earnings and Revenue History
Quality Earnings: INE has a large one-off loss of CA$9.3M impacting its September 30 2019 financial results.
Growing Profit Margin: INE's current net profit margins (1.6%) are lower than last year (3.2%).
Past Earnings Growth Analysis
Earnings Trend: INE has become profitable over the past 5 years, growing earnings by 61.2% per year.
Accelerating Growth: INE's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.
Earnings vs Industry: INE had negative earnings growth (-28.4%) over the past year, making it difficult to compare to the Renewable Energy industry average (-28.4%).
Return on Equity
High ROE: INE's Return on Equity (1.2%) is considered low.
Return on Assets
Return on Capital Employed
Next Steps
Financial Health
How is Innergex Renewable Energy's financial position?
Financial Position Analysis
Short Term Liabilities: INE's short term assets (CA$331.8M) do not cover its short term liabilities (CA$591.8M).
Long Term Liabilities: INE's short term assets (CA$331.8M) do not cover its long term liabilities (CA$4.8B).
Debt to Equity History and Analysis
Debt Level: INE's debt to equity ratio (414.5%) is considered high.
Reducing Debt: INE's debt to equity ratio has increased from 283.3% to 414.5% over the past 5 years.
Debt Coverage: INE's debt is not well covered by operating cash flow (4.7%).
Interest Coverage: INE's interest payments on its debt are not well covered by EBIT (1.1x coverage).
Balance Sheet
Inventory Level: INE has a high level of physical assets or inventory.
Debt Coverage by Assets: INE's debt is not covered by short term assets (assets are 0.1x debt).
Next Steps
Dividend
What is Innergex Renewable Energy's current dividend yield, its reliability and sustainability?
3.36%
Current Dividend Yield
Dividend Yield vs Market
Current dividend yield vs market & industry
Notable Dividend: INE's dividend (3.36%) is higher than the bottom 25% of dividend payers in the Canadian market (2.03%).
High Dividend: INE's dividend (3.36%) is low compared to the top 25% of dividend payers in the Canadian market (5.81%).
Stability and Growth of Payments
Stable Dividend: INE's dividends per share have been stable in the past 10 years.
Growing Dividend: INE's dividend payments have increased over the past 10 years.
Current Payout to Shareholders
Dividend Coverage: With its high payout ratio (895%), INE's dividend payments are not well covered by earnings.
Future Payout to Shareholders
Future Dividend Coverage: INE's dividends in 3 years are not forecast to be well covered by earnings (208.7% payout ratio).
Next Steps
Management
How experienced are the management team and are they aligned to shareholders interests?
5.1yrs
Average management tenure
CEO
Michel Letellier (54yo)
12.3yrs
Tenure
CA$1,439,532
Compensation
Mr. Michel Letellier, MBA, has been the Chief Executive Officer and President of Innergex Renewable Energy Inc. since October 25, 2007. Mr. Letellier is responsible for providing strategic leadership and o ...
CEO Compensation Analysis
Compensation vs Market: Michel's total compensation ($USD1.08M) is below average for companies of similar size in the Canadian market ($USD2.84M).
Compensation vs Earnings: Michel's compensation has been consistent with company performance over the past year.
Leadership Team
| Name | Position | Tenure | Compensation | Ownership |
|---|---|---|---|---|
| President | 12.3yrs | CA$1.44m | 0.45% CA$16.4m | |
| Chief Financial Officer | 1.3yrs | CA$260.12k | 0.0016% CA$59.3k | |
| Chief Investment Officer & Head of Development | 5.1yrs | CA$630.52k | 0.16% CA$6.0m | |
| Senior Vice President of Wind & Solar Energy | 9.1yrs | CA$523.55k | 0.098% CA$3.6m | |
| Vice President of Legal Affairs | 5.1yrs | no data | 0.0061% CA$225.8k | |
| Director – Communications | 0yrs | no data | no data | |
| Vice-President of Human Resources | 5.1yrs | no data | 0.023% CA$838.2k | |
| Senior Vice President of Latin America | 5.1yrs | CA$486.47k | 0.091% CA$3.4m | |
| Senior Vice President of Hydro & Special Projects | 9.1yrs | CA$352.87k | 0.18% CA$6.5m | |
| VP of Corporate Legal Affairs & Corporate Secretary | 10.1yrs | no data | 0.0057% CA$208.5k |
5.1yrs
Average Tenure
Experienced Management: INE's management team is seasoned and experienced (5.1 years average tenure).
Board Members
| Name | Position | Tenure | Compensation | Ownership |
|---|---|---|---|---|
| President | 12.3yrs | CA$1.44m | 0.45% CA$16.4m | |
| Independent Director | 4.3yrs | CA$86.00k | 0.0046% CA$168.7k | |
| Independent Director | 2yrs | CA$64.60k | 3.84% CA$141.6m | |
| Independent Director | 2.8yrs | CA$109.50k | 0.0021% CA$77.3k | |
| Independent Vice-Chairman of the Board | 0yrs | CA$112.00k | 0.026% CA$973.4k | |
| Independent Director | 1yrs | no data | no data | |
| Independent Chairman | 9.9yrs | CA$177.50k | 0.029% CA$1.1m | |
| Independent Director | 4.8yrs | CA$80.00k | no data | |
| Independent Director | 2.8yrs | CA$92.00k | 0.0056% CA$206.2k |
3.5yrs
Average Tenure
62yo
Average Age
Experienced Board: INE's board of directors are considered experienced (3.5 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 7.1%.
Top Shareholders
Company Information
Innergex Renewable Energy Inc.'s company bio, employee growth, exchange listings and data sources
Key Information
- Name: Innergex Renewable Energy Inc.
- Ticker: INE
- Exchange: TSX
- Founded: 1990
- Industry: Renewable Electricity
- Sector: Utilities
- Market Cap: CA$3.683b
- Shares outstanding: 174.05m
- Website: https://www.innergex.com
Number of Employees
Location
- Innergex Renewable Energy Inc.
- 1225 Saint-Charles Street West
- 10th Floor
- Longueuil
- Quebec
- J4K 0B9
- Canada
Listings
| Ticker | Exchange | Primary Security | Security Type | Country | Currency | Listed on |
|---|---|---|---|---|---|---|
| 3IX | DB (Deutsche Boerse AG) | Yes | Common Shares | DE | EUR | Mar 2010 |
| INE | TSX (The Toronto Stock Exchange) | Yes | Common Shares | CA | CAD | Mar 2010 |
| INGX.F | OTCPK (Pink Sheets LLC) | Yes | Common Shares | US | USD | Mar 2010 |
| INE.PRA | TSX (The Toronto Stock Exchange) | CV PFD SER A | CA | CAD | Sep 2010 |
Biography
Innergex Renewable Energy Inc. operates as an independent renewable power producer. It develops, owns, and operates run-of-river hydroelectric facilities, wind farms, solar photovoltaic farms, and geothermal power facilities. The company operates through five segments: Hydroelectric Generation, Wind Power Generation, Solar Power Generation, Geothermal Generation, and Site Development. As of February May 27, 2019, it had interests in 66 operating facilities with a net installed capacity of 1,988 megawatt (MW), including 37 hydroelectric facilities, 25 wind farms, and 4 solar farms, as well as 7 development projects with net installed capacity of 870 MW and prospective projects with gross installed capacity of 7,767 MW. The company has operations in Quebec, Ontario, and British Columbia, Canada; and the United States, Chile, France, and Iceland. Innergex Renewable Energy Inc. was founded in 1990 and is headquartered in Longueuil, Canada.
Company Analysis and Financial Data Status
| Data | Last Updated (UTC time) |
|---|---|
| Company Analysis | 2020/02/27 00:39 |
| End of Day Share Price | 2020/02/26 00:00 |
| Earnings | 2019/09/30 |
| Annual Earnings | 2018/12/31 |
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.