NasdaqGS:PEGI

Stock Analysis Report

Executive Summary

Pattern Energy Group Inc. operates as an integrated renewable energy company.

Snowflake

Fundamentals

Reasonable growth potential with mediocre balance sheet.


Similar Companies

Share Price & News

How has Pattern Energy Group's share price performed over time and what events caused price changes?


Latest Share Price and Events


Market Performance


7 Day Return

2.0%

PEGI

0.6%

US Renewable Energy

1.8%

US Market


1 Year Return

40.9%

PEGI

18.6%

US Renewable Energy

7.3%

US Market

Return vs Industry: PEGI exceeded the US Renewable Energy industry which returned 18.6% over the past year.

Return vs Market: PEGI exceeded the US Market which returned 7.3% over the past year.


Shareholder returns

PEGIIndustryMarket
7 Day2.0%0.6%1.8%
30 Day-2.7%1.0%-0.7%
90 Day13.3%9.7%0.06%
1 Year52.0%40.9%22.7%18.6%9.7%7.3%
3 Year48.2%16.8%63.5%39.9%46.3%36.9%
5 Year36.3%-5.6%28.3%-1.1%64.5%46.5%

Price Volatility Vs. Market

How volatile is Pattern Energy Group's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is Pattern Energy Group undervalued compared to its fair value and its price relative to the market?

>50%

Undervalued compared to fair value


Share Price vs. Fair Value

Undervalued: PEGI ($26.15) is trading below our estimate of fair value ($56.46)

Significantly Undervalued: PEGI is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: PEGI is unprofitable, so we can't compare its PE Ratio to the Renewable Energy industry average.

PE vs Market: PEGI is unprofitable, so we can't compare its PE Ratio to the US market.


Price to Earnings Growth Ratio

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


Price to Book Ratio

PB vs Industry: PEGI is overvalued based on its PB Ratio (2.9x) compared to the US Renewable Energy industry average (1.4x).


Next Steps

Future Growth

How is Pattern Energy Group forecast to perform in the next 1 to 3 years based on estimates from 11 analysts?

69.0%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: PEGI is forecast to become profitable over the next 3 years, which is considered faster growth than the savings rate (2.7%).

Earnings vs Market: PEGI is forecast to become profitable over the next 3 year, which is considered above average market growth.

High Growth Earnings: PEGI's loss is forecast to worsen by 0% next year.

Revenue vs Market: PEGI's revenue (7.6% per year) is forecast to grow faster than the US market (7.3% per year).

High Growth Revenue: PEGI's revenue (7.6% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

High Future ROE: PEGI is forecast to be unprofitable in 3 years.


Next Steps

Past Performance

How has Pattern Energy Group performed over the past 5 years?

49.0%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Earnings Trend: PEGI is unprofitable, but has reduced losses over the past 5 years at a rate of 49% per year.

Accelerating Growth: Unable to compare PEGI's earnings growth over the past year to its 5-year average as it is currently unprofitable

Earnings vs Industry: PEGI is unprofitable, making it difficult to compare its past year earnings growth to the Renewable Energy industry (33.9%).


Return on Equity

High ROE: PEGI has a negative Return on Equity (-6.67%), as it is currently unprofitable.


Return on Assets

ROA vs Industry: PEGI is currently unprofitable, so its Return on Assets is negative.


Return on Capital Employed

ROCE Improving: PEGI is currently unprofitable, so its Return on Capital Employed is negative.


Next Steps

Financial Health

How is Pattern Energy Group's financial position?


Financial Position Analysis

Short Term Liabilities: PEGI's short term assets ($240.0M) do not cover its short term liabilities ($672.0M)

Long Term Liabilities: PEGI's short term assets (240.0M) do not cover its long term liabilities (2.7B)


Debt to Equity History and Analysis

Debt Level: PEGI's debt to equity ratio (128.9%) is considered high

Reducing Debt: PEGI's debt to equity ratio has reduced from 140.4% to 128.9% over the past 5 years.


Balance Sheet

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

Debt Coverage by Assets: PEGI's debt is not covered by short term assets (assets are 0.1x debt).


Cash Runway Analysis

For companies that have on average been loss making in the past we assess whether they have at least 1 year of cash runway.

Stable Cash Runway: Whilst unprofitable PEGI has sufficient cash runway for more than 3 years if it maintains its current positive free cash flow level.

Forecast Cash Runway: PEGI is unprofitable but has sufficient cash runway for more than 3 years, due to free cash flow being positive and growing by 9.3% per year.


Next Steps

Dividend

What is Pattern Energy Group's current dividend yield, its reliability and sustainability?

6.33%

Current Dividend Yield


Dividend Yield vs Market

company6.3%marketbottom25%1.5%markettop25%3.7%industryaverage3.2%forecastin3Years6.4%

Current dividend yield vs market & industry


Stability and Growth of Payments

Notable Dividend: PEGI's dividend (6.46%) is higher than the bottom 25% of dividend payers in the US market (1.45%).

High Dividend: PEGI's dividend (6.46%) is in the top 25% of dividend payers in the US market (3.72%)

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

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


Current Payout to Shareholders

Dividend Coverage: PEGI is paying a dividend but the company is unprofitable.


Future Payout to Shareholders

Future Dividend Coverage: PEGI's dividends in 3 years are not forecast to be well covered by earnings (825.6% payout ratio).


Next Steps

Management

What is the CEO of Pattern Energy Group's salary, the management and board of directors tenure and is there insider trading?

3.2yrs

Average management tenure


CEO

Mike Garland (68yo)

7yrs

Tenure

US$2,087,492

Compensation

Mr. Michael M. Garland, also known as Mike, serves as the Chief Executive Officer at Pattern Energy Group LP and Pattern Renewable Holdings Canada ULC. Mr. Garland has been President of Pattern Renewable H ...


CEO Compensation Analysis

Compensation vs. Market: Mike's total compensation ($USD2.09M) is below average for companies of similar size in the US market ($USD5.11M).

Compensation vs Earnings: Mike's compensation has increased whilst the company is unprofitable.


Management Age and Tenure

3.2yrs

Average Tenure

53.5yo

Average Age

Experienced Management: PEGI's management team is considered experienced (3.2 years average tenure).


Board Age and Tenure

6.0yrs

Average Tenure

69yo

Average Age

Experienced Board: PEGI's board of directors are considered experienced (6 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

SellUS$62,18918 Mar 19
Kevin Devlin
EntityIndividual
Role
Senior Key Executive
Senior Vice President of Project Operations
Shares2,943
Max PriceUS$21.13

Ownership Breakdown


Management Team

  • Richard Ostberg (53yo)

    Senior VP & Chief Accounting Officer

    • Tenure: 0.5yrs
  • Mike Garland (68yo)

    CEO & Director

    • Tenure: 7yrs
    • Compensation: US$2.09m
  • Debbie McAdam

    Vice President of Human Resources

    • Tenure: 1.8yrs
  • Kevin Devlin (54yo)

    Senior Vice President of Project Operations

    • Tenure: 3.2yrs
  • Hunter Armistead (50yo)

    President of Pattern Development & Executive VP of Business Development

    • Tenure: 6.2yrs
    • Compensation: US$1.35m
  • Daniel Elkort (61yo)

    Executive VP

    • Tenure: 6.2yrs
    • Compensation: US$1.09m
  • Esben Pedersen (46yo)

    Chief Financial Officer

    • Tenure: 0.5yrs
    • Compensation: US$1.24m
  • Michael Lyon (60yo)

    President

    • Tenure: 0.5yrs
    • Compensation: US$1.24m
  • Christopher Shugart (47yo)

    • Tenure: 6.2yrs
  • Sarah Webster

    Vice President of Investor Relations & Government Relations

    • Tenure: 0yrs

Board Members

  • Richard Goodman (71yo)

    Director

    • Tenure: 0.8yrs
  • Lord Browne of Madingley Browne (71yo)

    Director

    • Tenure: 6yrs
    • Compensation: US$131.51k
  • Alan Batkin (74yo)

    Chairman of the Board

    • Tenure: 6yrs
    • Compensation: US$265.83k
  • Doug Hall (69yo)

    Director

    • Tenure: 6yrs
    • Compensation: US$164.01k
  • Patricia Newson (62yo)

    Director

    • Tenure: 6yrs
    • Compensation: US$152.01k
  • Mike Garland (68yo)

    CEO & Director

    • Tenure: 7yrs
    • Compensation: US$2.09m
  • Mona Sutphen (51yo)

    Director

    • Tenure: 0.8yrs

Company Information

Pattern Energy Group Inc.'s company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Pattern Energy Group Inc.
  • Ticker: PEGI
  • Exchange: NasdaqGS
  • Founded: 2012
  • Industry: Renewable Electricity
  • Sector: Utilities
  • Market Cap: US$2.620b
  • Shares outstanding: 98.24m
  • Website: https://www.patternenergy.com

Number of Employees


Location

  • Pattern Energy Group Inc.
  • 1088 Sansome Street
  • San Francisco
  • California
  • 94111
  • United States

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
PEGINasdaqGS (Nasdaq Global Select)YesClass A Common StockUSUSDSep 2013
PEGITSX (The Toronto Stock Exchange)YesClass A Common StockCACADSep 2013
P92ADB (Deutsche Boerse AG)YesClass A Common StockDEEURSep 2013

Biography

Pattern Energy Group Inc. operates as an integrated renewable energy company. The company operates in two segments, Operating Business and Development Business. The Operating Business segment holds interes ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/10/19 00:22
End of Day Share Price2019/10/18 00:00
Earnings2019/06/30
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.