NasdaqGS:PEGI

Stock Analysis Report

Executive Summary

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


Snowflake Analysis

Slightly overvalued 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

Stable Share Price: PEGI has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

-0.1%

PEGI

-4.5%

US Renewable Energy

-2.8%

US Market


1 Year Return

22.8%

PEGI

-19.0%

US Renewable Energy

-15.9%

US Market

Return vs Industry: PEGI exceeded the US Renewable Energy industry which returned -20.9% over the past year.

Return vs Market: PEGI exceeded the US Market which returned -16.6% over the past year.


Shareholder returns

PEGIIndustryMarket
7 Day-0.1%-4.5%-2.8%
30 Day-3.0%-24.3%-18.8%
90 Day-1.7%-24.7%-24.0%
1 Year31.6%22.8%-16.3%-19.0%-14.2%-15.9%
3 Year65.9%31.4%18.2%5.7%9.9%2.8%
5 Year35.5%-6.4%-6.5%-28.5%27.2%13.3%

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

Below Fair Value: PEGI ($26.74) is trading below our estimate of fair value ($64.37)

Significantly Below Fair Value: 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

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 (3.1x) compared to the US Renewable Energy industry average (1.3x).


Next Steps

Future Growth

How is Pattern Energy Group forecast to perform in the next 1 to 3 years based on estimates from 6 analysts?

-20.5%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: PEGI is forecast to remain unprofitable over the next 3 years.

Earnings vs Market: PEGI is forecast to remain unprofitable over the next 3 years.

High Growth Earnings: PEGI is forecast to remain unprofitable over the next 3 years.

Revenue vs Market: PEGI's revenue (6.7% per year) is forecast to grow slower than the US market (7.5% per year).

High Growth Revenue: PEGI's revenue (6.7% 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 PEGI's Return on Equity is forecast to be high in 3 years time


Next Steps

Past Performance

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

23.5%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: PEGI is currently unprofitable.

Growing Profit Margin: PEGI is currently unprofitable.


Past Earnings Growth Analysis

Earnings Trend: PEGI is unprofitable, but has reduced losses over the past 5 years at a rate of 23.5% 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 (-19.9%).


Return on Equity

High ROE: PEGI has a negative Return on Equity (-4.14%), as it is currently unprofitable.


Next Steps

Financial Health

How is Pattern Energy Group's financial position?


Financial Position Analysis

Short Term Liabilities: PEGI's short term assets ($337.0M) do not cover its short term liabilities ($929.0M).

Long Term Liabilities: PEGI's short term assets ($337.0M) do not cover its long term liabilities ($3.7B).


Debt to Equity History and Analysis

Debt Level: PEGI's debt to equity ratio (132.2%) is considered high.

Reducing Debt: PEGI's debt to equity ratio has increased from 128.4% to 132.2% 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: PEGI has sufficient cash runway for more than a year based on its current free cash flow.

Forecast Cash Runway: Insufficient data to determine if PEGI has enough cash runway if its free cash flow continues to grow or shrink based on historical rates.


Next Steps

Dividend

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

6.31%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: PEGI's dividend (6.31%) is higher than the bottom 25% of dividend payers in the US market (2.06%).

High Dividend: PEGI's dividend (6.31%) is in the top 25% of dividend payers in the US market (5.59%)


Stability and Growth of Payments

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 (109.3% payout ratio).


Next Steps

Management

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

2.2yrs

Average management tenure


CEO

Mike Garland (68yo)

7.42s

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 ($USD2.09M) is below average for companies of similar size in the US market ($USD5.55M).

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


Leadership Team

NamePositionTenureCompensationOwnership
Michael Garland
CEO & Director7.42yrsUS$2.09m0.40% $10.4m
Michael Lyon
President0.92yrUS$1.24m0.19% $5.0m
Esben Pedersen
Chief Financial Officer0.92yrUS$1.24m0.16% $4.2m
Daniel Elkort
Executive VP6.58yrsUS$1.09m0.092% $2.4m
Hunter Armistead
President of Pattern Development & Executive VP of Business Development6.58yrsUS$1.35m0.21% $5.5m
John Martinez
Vice President of Operationno datano datano data
Richard Ostberg
Senior VP & Chief Accounting Officer0.92yrno data0.032% $839.1k
Sarah Webster
Vice President of Investor Relationsno datano datano data
Deborah McAdam
Vice President of Human Resources2.17yrsno datano data
Christopher Shugart
Senior Vice President of Corporate Operationsno datano data0.072% $1.9m

2.2yrs

Average Tenure

53yo

Average Age

Experienced Management: PEGI's management team is considered experienced (2.2 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Michael Garland
CEO & Director7.42yrsUS$2.09m0.40% $10.4m
Richard Goodman
Independent Director1.25yrsno datano data
Edmund John Browne
Independent Director6.42yrsUS$131.51k0.027% $707.5k
Alan Batkin
Independent Chairman of the Board6.42yrsUS$265.83k0.038% $1.0m
Douglas Hall
Independent Director6.42yrsUS$164.01k0.023% $604.6k
Patricia Newson
Independent Director6.42yrsUS$152.01k0.015% $389.2k
Mona Sutphen
Independent Director1.25yrsno data0.0048% $125.0k

6.4yrs

Average Tenure

69yo

Average Age

Experienced Board: PEGI's board of directors are considered experienced (6.4 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.


Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Top Shareholders

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$2.626b
  • Shares outstanding: 98.22m
  • 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. It operates in two segments, Operating Business and Development Business. The company holds interest in 28 renewable energy projects with an operating capacity of 4.4 gigawatts located in the United States, Canada, and Japan. It also develops and sells renewable energy projects focusing on wind, solar, storage, and transmission primarily in the United States, Canada, Japan, and Mexico. Pattern Energy Group Inc. sells electricity and renewable energy credits primarily to local utilities and local liquid independent system organizations markets. The company was founded in 2012 and is headquartered in San Francisco, California. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/03/17 03:02
End of Day Share Price2020/03/13 00:00
Earnings2019/12/31
Annual Earnings2019/12/31


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.