NasdaqGS:PEGI

Stock Analysis Report

Executive Summary

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

Snowflake

Fundamentals

Reasonable growth potential unattractive dividend payer.


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

0.04%

NasdaqGS:PEGI

2.5%

US Renewable Energy

0.8%

US Market


1 Year Return

34.4%

NasdaqGS:PEGI

16.6%

US Renewable Energy

1.9%

US Market

PEGI outperformed the Renewable Energy industry which returned 15.6% over the past year.

PEGI outperformed the Market in United States of America which returned 2.1% over the past year.


Share holder returns

PEGIIndustryMarket
7 Day0.04%2.5%0.8%
30 Day3.9%6.2%3.4%
90 Day16.6%7.1%2.1%
1 Year45.9%34.4%20.6%16.6%4.2%1.9%
3 Year46.7%15.4%43.5%22.9%46.7%37.2%
5 Year28.6%-10.5%19.3%-8.1%62.3%44.5%

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 based on future cash flows and its price relative to the stock market?

37%

Discount to future cash flow value


Intrinsic Value Based on Future Cash Flows

Pattern Energy Group's share price is below the future cash flow value, and at a moderate discount (> 20%).

Pattern Energy Group's share price is below the future cash flow value, but not at a substantial discount (< 40%).


Price Based on Earnings

Pattern Energy Group is loss making, we can't compare its value to the US Renewable Energy industry average.

Pattern Energy Group is loss making, we can't compare the value of its earnings to the United States of America market.


Price Based on Expected Growth

Unable to calculate PEG ratio for Pattern Energy Group, we can't assess if its growth is good value.


Price Based on Value of Assets

Pattern Energy Group is overvalued based on assets compared to the US Renewable Energy industry average.


Next Steps

Future Growth

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

86.2%

Forecasted annual earnings growth


Earnings and Revenue Growth Estimates


Future Annual Growth Analysis

Pattern Energy Group's revenue is expected to grow by 7.8% yearly, however this is not considered high growth (20% yearly).

Pattern Energy Group's earnings are expected to grow significantly at over 20% yearly.

Pattern Energy Group's revenue growth is expected to exceed the United States of America market average.

Pattern Energy Group's earnings growth is expected to exceed the United States of America market average.

Pattern Energy Group's earnings growth is expected to exceed the low risk savings rate of 2.7%.


Earnings per Share Growth Estimates


Future Return on Equity

Unable to establish if Pattern Energy Group will efficiently use shareholders’ funds in the future (Return on Equity greater than 20%) as it is not expected to be profitable.


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

Pattern Energy Group does not make a profit even though their year on year earnings growth rate was positive over the past 5 years.

Unable to compare Pattern Energy Group's 1-year earnings growth to the 5-year average as it is not currently profitable.

Unable to compare Pattern Energy Group's 1-year growth to the North America Renewable Energy industry average as it is not currently profitable.


Return on Equity

It is difficult to establish if Pattern Energy Group has efficiently used shareholders’ funds last year (Return on Equity greater than 20%) as it is loss-making.


Return on Assets

Pattern Energy Group used its assets less efficiently than the US Renewable Energy industry average last year based on Return on Assets.


Return on Capital Employed

It is difficult to establish if Pattern Energy Group improved its use of capital last year versus 3 years ago (Return on Capital Employed) as it is currently loss-making.


Next Steps

Financial Health

How is Pattern Energy Group's financial position?


Financial Position Analysis

Pattern Energy Group's short term (1 year) commitments are greater than its holdings of cash and other short term assets.

Pattern Energy Group's long term commitments exceed its cash and other short term assets.


Debt to Equity History and Analysis

Pattern Energy Group's level of debt (128.9%) compared to net worth is high (greater than 40%).

The level of debt compared to net worth has been reduced over the past 5 years (140.4% vs 128.9% today).

Debt is not well covered by operating cash flow (9.1%, less than 20% of total debt).

Unable to confirm if the interest payments on Pattern Energy Group's debt are well covered by earnings due to lack of past financial data.


Balance Sheet

High level of physical assets or inventory.

Debt is not covered by short term assets, assets are 0.1x debt.


Next Steps

Dividend

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

6.20%

Expected Dividend Yield


Upcoming Dividend Payment

Purchase Pattern Energy Group before the 'Buy Limit' to receive their next dividend payment.


Dividend Yield and Payments Analysis

Pattern Energy Group's pays a higher dividend yield than the bottom 25% of dividend payers in United States of America (1.43%).

Pattern Energy Group's dividend is above the markets top 25% of dividend payers in United States of America (3.67%).

Whilst dividend payments have been stable, Pattern Energy Group has been paying a dividend for less than 10 years.

Dividend payments have increased, but Pattern Energy Group only paid a dividend in the past 6 years.


Current Payout to Shareholders

The company is paying a dividend however it is incurring a loss.


Future Payout to Shareholders

Dividends after 3 years are not well covered by earnings (0.1x coverage).


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?

3.1yrs

Average management tenure


CEO

Mike Garland (68yo)

6.9yrs

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

Mike's remuneration is lower than average for companies of similar size in United States of America.

Mike's compensation has increased whilst company is loss making.


Management Age and Tenure

3.1yrs

Average Tenure

53.5yo

Average Age

The tenure for the Pattern Energy Group management team is about average.


Board Age and Tenure

5.9yrs

Average Tenure

69yo

Average Age

The tenure for the Pattern Energy Group board of directors is about average.


Insider Trading

No 3 month open market individual insider trading information.


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: 0.4yrs
  • Mike Garland (68yo)

    CEO & Director

    • Tenure: 6.9yrs
    • Compensation: US$2.09m
  • Debbie McAdam

    Vice President of Human Resources

    • Tenure: 1.7yrs
  • Kevin Devlin (54yo)

    Senior Vice President of Project Operations

    • Tenure: 3.1yrs
  • Hunter Armistead (50yo)

    President of Pattern Development & Executive VP of Business Development

    • Tenure: 6.1yrs
    • Compensation: US$1.35m
  • Daniel Elkort (61yo)

    Executive VP

    • Tenure: 6.1yrs
    • Compensation: US$1.09m
  • Esben Pedersen (46yo)

    Chief Financial Officer

    • Tenure: 0.4yrs
    • Compensation: US$1.24m
  • Michael Lyon (60yo)

    President

    • Tenure: 0.4yrs
    • Compensation: US$1.24m
  • Christopher Shugart (47yo)

    • Tenure: 6.1yrs
  • 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: 5.9yrs
    • Compensation: US$131.51k
  • Alan Batkin (74yo)

    Chairman of the Board

    • Tenure: 5.9yrs
    • Compensation: US$265.83k
  • Doug Hall (69yo)

    Director

    • Tenure: 5.9yrs
    • Compensation: US$164.01k
  • Patricia Newson (62yo)

    Director

    • Tenure: 5.9yrs
    • Compensation: US$152.01k
  • Mike Garland (68yo)

    CEO & Director

    • Tenure: 6.9yrs
    • 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$2.701b
  • 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 Analysis2019/09/18 00:21
End of Day Share Price2019/09/17 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.