NasdaqGS:TERP

Stock Analysis Report

Executive Summary

TerraForm Power, Inc., together with its subsidiaries, owns and operates clean power generation assets.

Snowflake

Fundamentals

Mediocre balance sheet with moderate growth potential.


Similar Companies

Share Price & News

How has TerraForm Power's share price performed over time and what events caused price changes?


Latest Share Price and Events


Market Performance


7 Day Return

1.2%

TERP

1.3%

US Renewable Energy

0.5%

US Market


1 Year Return

53.8%

TERP

18.4%

US Renewable Energy

6.8%

US Market

Return vs Industry: TERP exceeded the US Renewable Energy industry which returned 18.4% over the past year.

Return vs Market: TERP exceeded the US Market which returned 6.8% over the past year.


Shareholder returns

TERPIndustryMarket
7 Day1.2%1.3%0.5%
30 Day-2.9%1.0%-0.8%
90 Day15.4%11.2%-0.9%
1 Year62.9%53.8%22.4%18.4%9.2%6.8%
3 Year71.7%28.3%65.8%41.9%45.6%36.2%
5 Year-6.0%-35.5%29.9%0.2%63.2%45.4%

Price Volatility Vs. Market

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


Simply Wall St News

Valuation

Is TerraForm Power 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: TERP ($17.06) is trading below our estimate of fair value ($41.93)

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


Price To Earnings Ratio

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

PE vs Market: TERP 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 TERP's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: TERP is overvalued based on its PB Ratio (1.8x) compared to the US Renewable Energy industry average (1.4x).


Next Steps

Future Growth

How is TerraForm Power forecast to perform in the next 1 to 3 years based on estimates from 7 analysts?

53.8%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

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

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

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

Revenue vs Market: TERP's revenue (4.1% per year) is forecast to grow slower than the US market (7.2% per year).

High Growth Revenue: TERP's revenue (4.1% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: TERP's Return on Equity is forecast to be low in 3 years time (2.6%).


Next Steps

Past Performance

How has TerraForm Power performed over the past 5 years?

-15.1%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Earnings Trend: TERP is unprofitable, and losses have increased over the past 5 years at a rate of -15.1% per year.

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

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


Return on Equity

High ROE: TERP has a negative Return on Equity (-3.93%), as it is currently unprofitable.


Return on Assets

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


Return on Capital Employed

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


Next Steps

Financial Health

How is TerraForm Power's financial position?


Financial Position Analysis

Short Term Liabilities: TERP's short term assets ($471.9M) do not cover its short term liabilities ($722.2M)

Long Term Liabilities: TERP's short term assets (471.9M) do not cover its long term liabilities (6.0B)


Debt to Equity History and Analysis

Debt Level: TERP's debt to equity ratio (215.3%) is considered high

Reducing Debt: TERP's debt to equity ratio has reduced from 317.4% to 215.3% over the past 5 years.


Balance Sheet

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

Debt Coverage by Assets: TERP'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 TERP has sufficient cash runway for more than 3 years if it maintains its current positive free cash flow level.

Forecast Cash Runway: TERP is unprofitable but has sufficient cash runway for more than 3 years, due to free cash flow being positive and growing by 48.6% per year.


Next Steps

Dividend

What is TerraForm Power's current dividend yield, its reliability and sustainability?

4.72%

Current Dividend Yield


Dividend Yield vs Market

company4.7%marketbottom25%1.4%markettop25%3.7%industryaverage3.2%forecastin3Years5.1%

Current dividend yield vs market & industry


Stability and Growth of Payments

Notable Dividend: TERP's dividend (4.72%) is higher than the bottom 25% of dividend payers in the US market (1.45%).

High Dividend: TERP's dividend (4.72%) is in the top 25% of dividend payers in the US market (3.73%)

Stable Dividend: TERP has been paying a dividend for less than 10 years and during this time payments have been volatile.

Growing Dividend: TERP has only been paying a dividend for 5 years, and since then payments have fallen.


Current Payout to Shareholders

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


Future Payout to Shareholders

Future Dividend Coverage: TERP is forecast to pay a dividend in 3 years whilst incurring a loss, therefore the dividend is not forecast to be well covered.


Next Steps

Management

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

1.6yrs

Average management tenure


CEO

John Stinebaugh (52yo)

2yrs

Tenure

0

Mr. John Marcus Stinebaugh, CFA serves as a Managing Partner of Infrastructure at Brookfield Asset Management Inc. He has been the Chief Executive Officer of TerraForm Power, Inc. since October 16, 2017. M ...


Management Age and Tenure

1.6yrs

Average Tenure

46.5yo

Average Age

Experienced Management: TERP's management team is not considered experienced ( 1.6 years average tenure), which suggests a new team.


Board Age and Tenure

2.0yrs

Average Tenure

52yo

Average Age

Experienced Board: TERP's board of directors are not considered experienced ( 2 years average tenure), which suggests a new board.


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$49,999,99010 Oct 19
Brookfield Asset Management Inc.
EntityCompany
Shares2,981,514
Max PriceUS$16.77
BuyUS$26,87017 May 19
Christian Fong
EntityIndividual
Role
Member of the Board of Directors
Independent Director
Shares2,000
Max PriceUS$13.43

Ownership Breakdown


Management Team

  • John Stinebaugh (52yo)

    Chief Executive Officer

    • Tenure: 2yrs
  • Valerie Hannah (52yo)

    Chief Operating Officer

    • Tenure: 2yrs
    • Compensation: US$656.23k
  • Chad Reed

    Head of Investor Relations

    • Tenure: 0yrs
  • William Fyfe (37yo)

    General Counsel & Secretary

    • Tenure: 1.2yrs
  • Michael Tebbutt (41yo)

    CFO & Chief Accounting Officer

    • Tenure: 0.9yrs

Board Members

  • Harry Goldgut (63yo)

    Director

    • Tenure: 2yrs
  • Sachin Shah (42yo)

    Director

    • Tenure: 2yrs
  • Brian Lawson (60yo)

    Chairman of the Board

    • Tenure: 2yrs
  • Richard Legault (60yo)

    Director

    • Tenure: 2yrs
  • Carolyn Burke (52yo)

    Independent Director

    • Tenure: 1.4yrs
    • Compensation: US$112.50k
  • Mac McFarland (50yo)

    Independent Director

    • Tenure: 2yrs
    • Compensation: US$56.25k
  • Christian Fong (42yo)

    Independent Director

    • Tenure: 2.7yrs
    • Compensation: US$170.00k

Company Information

TerraForm Power, Inc.'s company bio, employee growth, exchange listings and data sources


Key Information

  • Name: TerraForm Power, Inc.
  • Ticker: TERP
  • Exchange: NasdaqGS
  • Founded: 2014
  • Industry: Renewable Electricity
  • Sector: Utilities
  • Market Cap: US$3.872b
  • Shares outstanding: 227.04m
  • Website: https://www.terraformpower.com

Number of Employees


Location

  • TerraForm Power, Inc.
  • 200 Liberty Street
  • 14th Floor
  • New York
  • New York
  • 10281
  • United States

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
TERPNasdaqGS (Nasdaq Global Select)YesClass A Common StockUSUSDJul 2014
2T41DB (Deutsche Boerse AG)YesClass A Common StockDEEURJul 2014

Biography

TerraForm Power, Inc., together with its subsidiaries, owns and operates clean power generation assets. The company operates through three segments: Solar, Wind, and Regulated Solar and Wind. As of Decembe ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/10/21 00:43
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.