NasdaqGS:TERP

Stock Analysis Report

NOT FOR DISTRIBUTION
Header cover image

Executive Summary

TerraForm Power, Inc., together with its subsidiaries, acquires, owns, and operates solar and wind power generation assets.


Snowflake Analysis

Moderate growth potential and slightly overvalued.


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

Stable Share Price: TERP's share price has been volatile over the past 3 months.


Market Performance


7 Day Return

0.6%

TERP

0%

US Renewable Energy

0%

US Market


1 Year Return

37.1%

TERP

0%

US Renewable Energy

0%

US Market

Return vs Industry: TERP exceeded the US Renewable Energy industry which returned -1.7% over the past year.

Return vs Market: TERP exceeded the US Market which returned 8.5% over the past year.


Shareholder returns

TERPIndustryMarket
7 Day0.6%0%0%
30 Day13.3%0%0%
90 Day-6.9%0%0%
1 Year44.0%37.1%0%0%0%0%
3 Year120.7%58.9%0%0%0%0%
5 Year-24.7%-49.2%0%0%0%0%

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 ($18.58) is trading below our estimate of fair value ($42.83)

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 (2.2x) compared to the US Renewable Energy industry average (1.8x).


Next Steps

Future Growth

How is TerraForm Power forecast to perform in the next 1 to 3 years based on estimates from 5 analysts?

72.9%

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 (2.2%).

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

High Growth Earnings: TERP's is expected to become profitable in the next 3 years.

Revenue vs Market: TERP's revenue (4.7% per year) is forecast to grow slower than the US market (8.9% per year).

High Growth Revenue: TERP's revenue (4.7% 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 TERP's Return on Equity is forecast to be high in 3 years time


Next Steps

Past Performance

How has TerraForm Power performed over the past 5 years?

-9.7%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: TERP is currently unprofitable.

Growing Profit Margin: TERP is currently unprofitable.


Past Earnings Growth Analysis

Earnings Trend: TERP is unprofitable, and losses have increased over the past 5 years at a rate of -9.7% 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 (20.6%).


Return on Equity

High ROE: TERP has a negative Return on Equity (-9.66%), as it is currently unprofitable.


Next Steps

Financial Health

How is TerraForm Power's financial position?


Financial Position Analysis

Short Term Liabilities: TERP's short term assets ($594.4M) do not cover its short term liabilities ($740.9M).

Long Term Liabilities: TERP's short term assets ($594.4M) do not cover its long term liabilities ($7.4B).


Debt to Equity History and Analysis

Debt Level: TERP's debt to equity ratio (273.9%) is considered high.

Reducing Debt: TERP's debt to equity ratio has increased from 113.3% to 273.9% over the past 5 years.


Balance Sheet


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 54.5% per year.


Next Steps

Dividend

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

4.34%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: TERP's dividend (4.34%) is higher than the bottom 25% of dividend payers in the US market (1.67%).

High Dividend: TERP's dividend (4.34%) is low compared to the top 25% of dividend payers in the US market (4.48%).


Stability and Growth of Payments

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 6 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: Insufficient data to determine if a dividend will be paid in 3 years and that it will be covered by earnings.


Next Steps

Management

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

1.7yrs

Average management tenure


CEO

John Stinebaugh (52yo)

2.67yrs

Tenure

Mr. John Marcus Stinebaugh, CFA serves as Managing Partner of Infrastructure at Brookfield Infrastructure Corporation. He serves as a Managing Partner of Infrastructure at Brookfield Asset Management Inc.  ...


Leadership Team

NamePositionTenureCompensationOwnership
John Stinebaugh
Chief Executive Officer2.67yrsno data0.0036% $150.6k
Michael Tebbutt
CFO & Chief Accounting Officer1.58yrsno datano data
Kimball Osmars
Chief Operating Officer0.25yrno data0.0016% $66.9k
Sherif El-Azzazi
Head of Investor Relationsno datano datano data
William Fyfe
General Counsel & Secretary1.83yrsno datano data

1.7yrs

Average Tenure

46.5yo

Average Age

Experienced Management: TERP's management team is not considered experienced ( 1.7 years average tenure), which suggests a new team.


Board Members

NamePositionTenureCompensationOwnership
Harry Goldgut
Director2.67yrsno datano data
Sachin Shah
Director2.67yrsno datano data
Brian Lawson
Chairman of the Board2.67yrsno datano data
Richard Legault
Director2.67yrsno datano data
Carolyn Burke
Independent Director2.08yrsUS$150.00kno data
Mark McFarland
Independent Director2.67yrsUS$170.00kno data
Christian Fong
Independent Director3.33yrsUS$170.00k0.00088% $37.0k

2.7yrs

Average Tenure

52yo

Average Age

Experienced Board: TERP's board of directors are not considered experienced ( 2.7 years average tenure), which suggests a new board.


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.


Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: Shareholders have been diluted in the past year, with total shares outstanding growing by 8.3%.


Top Shareholders

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$4.207b
  • Shares outstanding: 226.52m
  • 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, acquires, owns, and operates solar and wind power generation assets. The company operates through three segments: Solar, Wind, and Regulated Solar and Wind. As of December 31, 2019, its portfolio consisted of solar and wind projects located in the United States, Canada, Spain, Chile, Portugal, the United Kingdom, and Uruguay with a combined nameplate capacity of 4,100 megawatts. The company was formerly known as SunEdison Yieldco, Inc. and changed its name to TerraForm Power, Inc. in May 2014. TerraForm Power, Inc. was founded in 2014 and is headquartered in New York, New York. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/06/03 14:04
End of Day Share Price2020/06/02 00:00
Earnings2020/03/31
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.