TSX:INE

Stock Analysis Report

Innergex Renewable Energy

Executive Summary

Innergex Renewable Energy Inc. operates as an independent renewable power producer.


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

INEIndustryMarket
7 Day-4.3%-2.9%-4.8%
30 Day11.2%7.3%-3.2%
90 Day21.7%17.4%-1.0%
1 Year48.4%41.7%40.4%34.3%3.3%0.1%
3 Year66.6%44.2%54.6%33.9%12.9%2.7%
5 Year124.7%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

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

company3.4%marketbottom25%2.0%markettop25%5.8%industryaverage3.8%forecastin3Years3.5%

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

NamePositionTenureCompensationOwnership
Michel Letellier
President12.3yrsCA$1.44m0.45% CA$16.4m
Jean-François Neault
Chief Financial Officer1.3yrsCA$260.12k0.0016% CA$59.3k
Jean Trudel
Chief Investment Officer & Head of Development5.1yrsCA$630.52k0.16% CA$6.0m
Peter Grover
Senior Vice President of Wind & Solar Energy9.1yrsCA$523.55k0.098% CA$3.6m
Yves Baribeault
Vice President of Legal Affairs5.1yrsno data0.0061% CA$225.8k
Karine Vachon
Director – Communications0yrsno datano data
Anne Cliche
Vice-President of Human Resources5.1yrsno data0.023% CA$838.2k
Renaud De Batz de Trenquelléon
Senior Vice President of Latin America5.1yrsCA$486.47k0.091% CA$3.4m
Richard Blanchet
Senior Vice President of Hydro & Special Projects9.1yrsCA$352.87k0.18% CA$6.5m
Nathalie Théberge
VP of Corporate Legal Affairs & Corporate Secretary10.1yrsno data0.0057% CA$208.5k

5.1yrs

Average Tenure

Experienced Management: INE's management team is seasoned and experienced (5.1 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Michel Letellier
President12.3yrsCA$1.44m0.45% CA$16.4m
Monique Mercier
Independent Director4.3yrsCA$86.00k0.0046% CA$168.7k
Ross Beaty
Independent Director2yrsCA$64.60k3.84% CA$141.6m
Richard Gagnon
Independent Director2.8yrsCA$109.50k0.0021% CA$77.3k
M. Daniel Lafrance
Independent Vice-Chairman of the Board0yrsCA$112.00k0.026% CA$973.4k
Ouma Sananikone
Independent Director1yrsno datano data
Jean La Couture
Independent Chairman9.9yrsCA$177.50k0.029% CA$1.1m
Dalton James McGuinty
Independent Director4.8yrsCA$80.00kno data
Nathalie Francisci
Independent Director2.8yrsCA$92.00k0.0056% 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

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
3IXDB (Deutsche Boerse AG)YesCommon SharesDEEURMar 2010
INETSX (The Toronto Stock Exchange)YesCommon SharesCACADMar 2010
INGX.FOTCPK (Pink Sheets LLC)YesCommon SharesUSUSDMar 2010
INE.PRATSX (The Toronto Stock Exchange)CV PFD SER ACACADSep 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

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/02/27 00:39
End of Day Share Price2020/02/26 00:00
Earnings2019/09/30
Annual Earnings2018/12/31


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.