OTCPK:CPXW.F

Stock Analysis Report

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Executive Summary

Capital Power Corporation develops, acquires, owns, and operates power generation facilities in Canada and the United States.


Snowflake Analysis

Established dividend payer and fair value.


Similar Companies

Share Price & News

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


Latest Share Price and Events

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


Market Performance


7 Day Return

-0.2%

CPXW.F

0.3%

US Renewable Energy

1.0%

US Market


1 Year Return

-17.4%

CPXW.F

-5.0%

US Renewable Energy

4.1%

US Market

Return vs Industry: CPXW.F underperformed the US Renewable Energy industry which returned -5% over the past year.

Return vs Market: CPXW.F underperformed the US Market which returned 4.1% over the past year.


Shareholder returns

CPXW.FIndustryMarket
7 Day-0.2%0.3%1.0%
30 Day-0.9%6.5%5.4%
90 Day-34.9%-17.3%-5.7%
1 Year-11.9%-17.4%-1.9%-5.0%6.5%4.1%
3 Year16.8%-4.0%33.1%19.8%28.3%19.8%
5 Year34.7%-4.0%-1.7%-23.9%52.2%35.0%

Price Volatility Vs. Market

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


Simply Wall St News

No news available

Valuation

Is Capital 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: CPXW.F ($18.49) is trading below our estimate of fair value ($61.06)

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


Price To Earnings Ratio

PE vs Industry: CPXW.F is poor value based on its PE Ratio (199.2x) compared to the Renewable Energy industry average (22.3x).

PE vs Market: CPXW.F is poor value based on its PE Ratio (199.2x) compared to the US market (15.1x).


Price to Earnings Growth Ratio

PEG Ratio: CPXW.F is poor value based on its PEG Ratio (4.2x)


Price to Book Ratio

PB vs Industry: CPXW.F is good value based on its PB Ratio (1.3x) compared to the US Renewable Energy industry average (1.9x).


Next Steps

Future Growth

How is Capital Power forecast to perform in the next 1 to 3 years based on estimates from 9 analysts?

47.0%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: CPXW.F's forecast earnings growth (47% per year) is above the savings rate (2.2%).

Earnings vs Market: CPXW.F's earnings (47% per year) are forecast to grow faster than the US market (21.6% per year).

High Growth Earnings: earnings are expected to grow significantly over the next 3 years.

Revenue vs Market: CPXW.F's revenue (0.2% per year) is forecast to grow slower than the US market (8.9% per year).

High Growth Revenue: CPXW.F's revenue (0.2% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: CPXW.F's Return on Equity is forecast to be low in 3 years time (8.2%).


Next Steps

Past Performance

How has Capital Power performed over the past 5 years?

17.7%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: CPXW.F has a large one-off loss of CA$379.0M impacting its March 31 2020 financial results.

Growing Profit Margin: CPXW.F's current net profit margins (0.8%) are lower than last year (17.9%).


Past Earnings Growth Analysis

Earnings Trend: CPXW.F's earnings have grown by 17.7% per year over the past 5 years.

Accelerating Growth: CPXW.F's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: CPXW.F had negative earnings growth (-94.2%) over the past year, making it difficult to compare to the Renewable Energy industry average (20.6%).


Return on Equity

High ROE: CPXW.F's Return on Equity (1.9%) is considered low.


Next Steps

Financial Health

How is Capital Power's financial position?


Financial Position Analysis

Short Term Liabilities: CPXW.F's short term assets (CA$850.0M) do not cover its short term liabilities (CA$917.0M).

Long Term Liabilities: CPXW.F's short term assets (CA$850.0M) do not cover its long term liabilities (CA$4.8B).


Debt to Equity History and Analysis

Debt Level: CPXW.F's debt to equity ratio (113.7%) is considered high.

Reducing Debt: CPXW.F's debt to equity ratio has increased from 52.1% to 113.7% over the past 5 years.

Debt Coverage: CPXW.F's debt is not well covered by operating cash flow (17.7%).

Interest Coverage: CPXW.F's interest payments on its debt are well covered by EBIT (3.9x coverage).


Balance Sheet


Next Steps

Dividend

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

7.24%

Current Dividend Yield


Upcoming Dividend Payment


Dividend Yield vs Market

Notable Dividend: CPXW.F's dividend (7.24%) is higher than the bottom 25% of dividend payers in the US market (1.75%).

High Dividend: CPXW.F's dividend (7.24%) is in the top 25% of dividend payers in the US market (4.73%)


Stability and Growth of Payments

Stable Dividend: CPXW.F's dividends per share have been stable in the past 10 years.

Growing Dividend: CPXW.F's dividend payments have increased over the past 10 years.


Current Payout to Shareholders

Dividend Coverage: With its high payout ratio (1418.2%), CPXW.F's dividend payments are not well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: CPXW.F's dividends in 3 years are forecast to be covered by earnings (84% payout ratio).


Next Steps

Management

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

6.3yrs

Average management tenure


CEO

Brian Vaasjo (64yo)

10.83yrs

Tenure

CA$3,449,469

Compensation

Mr. Brian Tellef Vaasjo serves the President, Chief Executive Officer and Director of Capital Power Corporation. He possesses over 35 years of industry experience, which includes time as Executive Vice Pre ...


CEO Compensation Analysis

Compensation vs Market: Brian's total compensation ($USD2.47M) is below average for companies of similar size in the US market ($USD4.91M).

Compensation vs Earnings: Brian's compensation has been consistent with company performance over the past year.


Leadership Team

NamePositionTenureCompensationOwnership
Brian Vaasjo
President10.83yrsCA$3.45m0.12% CA$2.4m
Bryan DeNeve
Senior VP of Finance & CFO5yrsCA$1.48m0.035% CA$692.3k
Darcy Trufyn
Senior Vice President of Operations7.5yrsCA$1.33m0.062% CA$1.2m
Burness Chisholm
Senior VP and Chief Legal & Sustainability Officer7.5yrsCA$1.39m0.021% CA$422.7k
Mark A. Zimmerman
Senior Vice President of Corporate Development & Commercial Services4.5yrsCA$1.35m0.011% CA$218.4k
Randy Mah
Senior Manager of Investor Relationsno datano datano data
Jacquelyn Pylypiuk
Vice President of Human Resources5.08yrsCA$332.95k0.0061% CA$122.2k
Colleen Legge
Corporate Secretaryno datano datano data

6.3yrs

Average Tenure

55.5yo

Average Age

Experienced Management: CPXW.F's management team is seasoned and experienced (6.3 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Brian Vaasjo
President10.83yrsCA$3.45m0.12% CA$2.4m
Katharine Stevenson
Independent Director3.08yrsCA$183.83k0.0076% CA$151.6k
Donald Lowry
Independent Chairman of the Board10.83yrsCA$331.00k0.010% CA$208.6k
Robert Phillips
Independent Director1.08yrsCA$115.33k0.0024% CA$47.4k
Jane Peverett
Independent Director1.17yrsCA$141.50kno data
Brian Trent
Independent Director3.08yrsCA$237.52kno data
Doyle Beneby
Independent Director8.08yrsCA$233.84kno data
Kelly Huntington
Independent Director4.92yrsCA$227.86kno data
Jill Gardiner
Independent Director5yrsCA$188.50k0.0077% CA$154.4k

4.9yrs

Average Tenure

61yo

Average Age

Experienced Board: CPXW.F's board of directors are considered experienced (4.9 years average tenure).


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: CPXW.F 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 2.8%.


Top Shareholders

Company Information

Capital Power Corporation's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Capital Power Corporation
  • Ticker: CPXW.F
  • Exchange: OTCPK
  • Founded: 1891
  • Industry: Independent Power Producers and Energy Traders
  • Sector: Utilities
  • Market Cap: CA$2.785b
  • Listing Market Cap: CA$1.993b
  • Shares outstanding: 105.06m
  • Website: https://www.capitalpower.com

Number of Employees


Location

  • Capital Power Corporation
  • 10423-101 Street NW
  • Suite 1200
  • Edmonton
  • Alberta
  • T5H 0E9
  • Canada

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
CPXTSX (The Toronto Stock Exchange)YesCommon SharesCACADJun 2009
2CPDB (Deutsche Boerse AG)YesCommon SharesDEEURJun 2009
CPXW.FOTCPK (Pink Sheets LLC)YesCommon SharesUSUSDJun 2009
CPX.PRGTSX (The Toronto Stock Exchange)PFD SHS SER 7CACADOct 2016
CPX.PRITSX (The Toronto Stock Exchange)PFD SHS SER 9CACADAug 2017
CPX.PRKTSX (The Toronto Stock Exchange)CUM PFD SER 11CACADMay 2019

Biography

Capital Power Corporation develops, acquires, owns, and operates power generation facilities in Canada and the United States. The company generates electricity from various energy sources, including natural and landfill gas, coal, wind, waste heat, solid fuels, and solar. It owns approximately 6,200 megawatts of power generation capacity. The company was founded in 1891 and is headquartered in Edmonton, Canada. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/05/26 03:37
End of Day Share Price2020/05/22 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.