TSX:PIF

Stock Analysis Report

Polaris Infrastructure

Executive Summary

Polaris Infrastructure Inc., a renewable energy company, acquires, explores, develops, and operates renewable energy projects in Latin America.

Snowflake

Fundamentals

Good value with reasonable growth potential.


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 has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

-1.4%

PIF

0.9%

CA Renewable Energy

0.2%

CA Market


1 Year Return

17.7%

PIF

25.8%

CA Renewable Energy

7.4%

CA Market

Return vs Industry: PIF underperformed the Canadian Renewable Energy industry which returned 25.8% over the past year.

Return vs Market: PIF exceeded the Canadian Market which returned 7.4% over the past year.


Shareholder returns

PIFIndustryMarket
7 Day-1.4%0.9%0.2%
30 Day-6.7%6.1%2.9%
90 Day-9.8%9.2%4.1%
1 Year25.6%17.7%32.1%25.8%11.0%7.4%
3 Year-12.6%-25.4%46.8%26.8%16.6%6.0%
5 Year-25.0%-38.2%62.9%26.4%28.4%9.6%

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$12.36) is trading below our estimate of fair value (CA$43.19)

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


Price To Earnings Ratio

PE vs Industry: PIF is poor value based on its PE Ratio (54.2x) compared to the Renewable Energy industry average (17.4x).

PE vs Market: PIF is poor value based on its PE Ratio (54.2x) compared to the Canadian market (14.4x).


Price to Earnings Growth Ratio

PEG Ratio: PIF is good value based on its PEG Ratio (0.3x)


Price to Book Ratio

PB vs Industry: PIF is good value based on its PB Ratio (0.7x) compared to the CA Renewable Energy industry average (1.7x).


Next Steps

Future Growth

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

174.1%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: PIF's forecast earnings growth (174.1% per year) is above the savings rate (1.9%).

Earnings vs Market: PIF's earnings (174.1% per year) are forecast to grow faster than the Canadian market (10% per year).

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

Revenue vs Market: PIF's revenue (6.1% per year) is forecast to grow faster than the Canadian market (4.7% per year).

High Growth Revenue: PIF's revenue (6.1% 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


Next Steps

Past Performance

How has Polaris Infrastructure performed over the past 5 years?

65.3%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: PIF has large one-off items impacting its financial results.

Growing Profit Margin: PIF's current net profit margins (3.9%) are lower than last year (13.9%).


Past Earnings Growth Analysis

Earnings Trend: PIF has become profitable over the past 5 years, growing earnings by 65.3% per year.

Accelerating Growth: PIF's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: PIF had negative earnings growth (-69.5%) over the past year, making it difficult to compare to the Renewable Energy industry average (-28.4%).


Return on Equity

High ROE: PIF's Return on Equity (0.6%) is considered low.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is Polaris Infrastructure's financial position?


Financial Position Analysis

Short Term Liabilities: PIF's short term assets ($55.9M) exceeds its short term liabilities ($30.6M)

Long Term Liabilities: PIF's short term assets ($55.9M) do not cover its long term liabilities (235.4M)


Debt to Equity History and Analysis

Debt Level: PIF's debt to equity ratio (95.9%) is considered high.

Reducing Debt: PIF's debt to equity ratio has reduced from 168% to 95.9% over the past 5 years.

Debt Coverage: PIF's debt is well covered by operating cash flow (21.3%).

Interest Coverage: PIF's interest payments on its debt are not well covered by EBIT (2.1x coverage).


Balance Sheet

Inventory Level: PIF has a high level of physical assets or inventory.

Debt Coverage by Assets: PIF's debt is not covered by short term assets (assets are 0.3x debt).


Next Steps

Dividend

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

6.46%

Current Dividend Yield


Dividend Yield vs Market

company6.5%marketbottom25%2.0%markettop25%5.7%industryaverage4.5%forecastin3Years6.6%

Current dividend yield vs market & industry

Notable Dividend: PIF's dividend (6.46%) is higher than the bottom 25% of dividend payers in the Canadian market (2%).

High Dividend: PIF's dividend (6.46%) is in the top 25% of dividend payers in the Canadian market (5.73%)


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 4 years.


Current Payout to Shareholders

Dividend Coverage: With its high payout ratio (350.5%), PIF's dividend payments are not well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: PIF's dividends in 3 years are forecast to be well covered by earnings (36.9% payout ratio).


Next Steps

Management

What is the CEO of Polaris Infrastructure's salary, the management and board of directors tenure and is there insider trading?

4.4yrs

Average management tenure


CEO

Marc Murnaghan (47yo)

4.5yrs

Tenure

US$496,436

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 over 20 years of experience ...


CEO Compensation Analysis

Compensation vs Market: Marc's total compensation ($USD496.44K) is above average for companies of similar size in the Canadian market ($USD135.24K).

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


Management Age and Tenure

4.4yrs

Average Tenure

Experienced Management: PIF's management team is considered experienced (4.4 years average tenure).


Board Age and Tenure

4.5yrs

Average Tenure

57yo

Average Age

Experienced Board: PIF's board of directors are considered experienced (4.5 years average tenure).


Insider Trading

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

BuyUS$99,41002 Apr 19
Jorge Bernhard
EntityIndividual
Role
Chairman of the Board
Chairman & Lead Independent Director
Shares8,700
Max PriceUS$11.45
BuyUS$86,51211 Mar 19
Jorge Bernhard
EntityIndividual
Role
Chairman of the Board
Chairman & Lead Independent Director
Shares8,000
Max PriceUS$10.85

Ownership Breakdown

Dilution of Shares: Shareholders have been diluted in the past year, with total shares outstanding growing by 4%.


Management Team

  • Taylor Carter

    Consultant

    • Tenure: 4.4yrs
    • Compensation: US$489.07k
  • Marc Murnaghan (47yo)

    CEO & Director

    • Tenure: 4.5yrs
    • Compensation: US$496.44k
  • Anton Jelic

    Chief Financial Officer

    • Tenure: 0.9yrs
    • Compensation: US$197.62k

Board Members

  • Jorge Bernhard (64yo)

    Chairman & Lead Independent Director

    • Tenure: 3.4yrs
    • Compensation: US$65.00k
  • Jaime Guillen (57yo)

    Independent Director

    • Tenure: 4.5yrs
    • Compensation: US$50.00k
  • Jim Lawless (68yo)

    Independent Director

    • Tenure: 8.7yrs
    • Compensation: US$45.00k
  • Marc Murnaghan (47yo)

    CEO & Director

    • Tenure: 4.5yrs
    • Compensation: US$496.44k
  • Marcela de Vásquez (56yo)

    Independent Director

    • Tenure: 0.4yrs

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$194.130m
  • Shares outstanding: 15.71m
  • Website: https://www.polarisinfrastructure.com

Number of Employees


Location

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

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
PIFTSX (The Toronto Stock Exchange)YesCommon SharesCACADOct 2009
G8O2DB (Deutsche Boerse AG)YesCommon SharesDEEUROct 2009
RAMP.FOTCPK (Pink Sheets LLC)YesCommon SharesUSUSDOct 2009

Biography

Polaris Infrastructure Inc., a renewable energy company, acquires, explores, develops, and operates renewable energy projects in Latin America. The company, through its subsidiaries, owns and operates the  ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/11/21 00:09
End of Day Share Price2019/11/20 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.