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Polaris Infrastructure

Market Cap

CA$336.5m

Last Updated

2021/09/19 22:09 UTC

Data Sources

Company Financials +

Executive Summary

Polaris Infrastructure Inc. acquires, develops, and operates renewable energy projects in Latin America. More Details


Snowflake Analysis

Good value with acceptable track record.


Similar Companies

Share Price & News

How has Polaris Infrastructure's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: PIF is less volatile than 75% of Canadian stocks over the past 3 months, typically moving +/- 4% a week.

Volatility Over Time: PIF's weekly volatility (4%) has been stable over the past year.


Market Performance


7 Day Return

-1.8%

PIF

-0.8%

CA Renewable Energy

-0.6%

CA Market


1 Year Return

24.8%

PIF

19.2%

CA Renewable Energy

28.9%

CA Market

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

Return vs Market: PIF underperformed the Canadian Market which returned 28.9% over the past year.


Shareholder returns

PIFIndustryMarket
7 Day-1.8%-0.8%-0.6%
30 Day-3.3%-0.3%1.3%
90 Day-4.7%4.0%1.4%
1 Year30.3%24.8%22.9%19.2%32.8%28.9%
3 Year62.5%37.1%123.7%95.6%32.4%19.9%
5 Year22.2%-5.3%140.1%89.0%52.2%29.7%

Long-Term Price Volatility Vs. Market

How volatile is Polaris Infrastructure's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is Polaris Infrastructure 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: PIF (CA$17.32) is trading below our estimate of fair value (CA$49.68)

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


Price To Earnings Ratio

PE vs Industry: PIF's PE Ratio (10.7x) is in line with the Canadian Renewable Energy industry average.

PE vs Market: PIF is good value based on its PE Ratio (10.7x) compared to the Canadian market (12.8x).


Price to Earnings Growth Ratio

PEG Ratio: Insufficient data to calculate PIF's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: PIF is good value based on its PB Ratio (1x) compared to the CA Renewable Energy industry average (2.4x).


Future Growth

How is Polaris Infrastructure forecast to perform in the next 1 to 3 years based on estimates from 4 analysts?

4.2%

Forecasted annual revenue growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: Insufficient data to determine if PIF's forecast earnings growth is above the savings rate (1.5%).

Earnings vs Market: Insufficient data to determine if PIF's earnings are forecast to grow faster than the Canadian market

High Growth Earnings: Insufficient data to determine if earnings are expected to grow significantly over the next 3 years.

Revenue vs Market: PIF's revenue (4.2% per year) is forecast to grow slower than the Canadian market (6.2% per year).

High Growth Revenue: PIF's revenue (4.2% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: Insufficient data to determine if PIF's Return on Equity is forecast to be high in 3 years time


Past Performance

How has Polaris Infrastructure performed over the past 5 years?

61.6%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: PIF has a large one-off gain of $32.6M impacting its June 30 2021 financial results.

Growing Profit Margin: PIF's current net profit margins (37.9%) are higher than last year (28.7%).


Past Earnings Growth Analysis

Earnings Trend: PIF has become profitable over the past 5 years, growing earnings by 61.6% per year.

Accelerating Growth: PIF's earnings growth over the past year (15.6%) is below its 5-year average (61.6% per year).

Earnings vs Industry: PIF earnings growth over the past year (15.6%) exceeded the Renewable Energy industry -25.1%.


Return on Equity

High ROE: PIF's Return on Equity (9.4%) is considered low.


Financial Health

How is Polaris Infrastructure's financial position?


Financial Position Analysis

Short Term Liabilities: PIF's short term assets ($114.7M) exceed its short term liabilities ($31.5M).

Long Term Liabilities: PIF's short term assets ($114.7M) do not cover its long term liabilities ($218.1M).


Debt to Equity History and Analysis

Debt Level: PIF's debt to equity ratio (67.2%) is considered high.

Reducing Debt: PIF's debt to equity ratio has reduced from 90.1% to 67.2% over the past 5 years.

Debt Coverage: PIF's debt is well covered by operating cash flow (26%).

Interest Coverage: PIF's interest payments on its debt are not well covered by EBIT (1.4x coverage).


Balance Sheet


Dividend

What is Polaris Infrastructure current dividend yield, its reliability and sustainability?

4.42%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: PIF's dividend (4.42%) is higher than the bottom 25% of dividend payers in the Canadian market (1.64%).

High Dividend: PIF's dividend (4.42%) is low compared to the top 25% of dividend payers in the Canadian market (4.51%).


Stability and Growth of Payments

Stable Dividend: Whilst dividend payments have been stable, PIF has been paying a dividend for less than 10 years.

Growing Dividend: PIF's dividend payments have increased, but the company has only paid a dividend for 6 years.


Current Payout to Shareholders

Dividend Coverage: With its reasonably low payout ratio (41%), PIF's dividend payments are well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: PIF's dividends in 3 years are forecast to be covered by earnings (72.7% payout ratio).


Next Steps

Management

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

2.3yrs

Average board tenure


CEO

Marc Murnaghan (49 yo)

6.33yrs

Tenure

US$479,968

Compensation

Mr. Marc Murnaghan has been the Chief Executive Officer of Polaris Infrastructure Inc. since May 13, 2015. Mr. Murnaghan is a Partner of Harrington Global Inc. Mr. Murnaghan has experience in the investmen...


CEO Compensation Analysis

Compensation vs Market: Marc's total compensation ($USD479.97K) is about average for companies of similar size in the Canadian market ($USD510.52K).

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


Board Members

Experienced Board: PIF's board of directors are not considered experienced ( 2.3 years average tenure), which suggests a new board.


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.


Ownership Breakdown

Dilution of Shares: Shareholders have been diluted in the past year, with total shares outstanding growing by 23.7%.


Top Shareholders

Company Information

Polaris Infrastructure Inc.'s company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Polaris Infrastructure Inc.
  • Ticker: PIF
  • Exchange: TSX
  • Founded: 1984
  • Industry: Renewable Electricity
  • Sector: Utilities
  • Market Cap: CA$336.493m
  • Shares outstanding: 19.43m
  • Website: https://www.polarisinfrastructure.com

Number of Employees


Location

  • Polaris Infrastructure Inc.
  • 7 St. Thomas Street
  • Suite 309
  • Toronto
  • Ontario
  • M5S 2B7
  • Canada

Listings


Biography

Polaris Infrastructure Inc. acquires, develops, and operates renewable energy projects in Latin America. The company, through its subsidiaries, owns and operates the San Jacinto project, a 72 megawatt (MW)...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2021/09/19 22:09
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.