Boralex, Inc. (BLX) Stock Recommendation | Score, Valuation, Technicals & Financial Trend

Score

Click here to find our call on this stock

Strong Sell

Sell

Hold

Buy

Strong Buy

Comparison

Company

Score

Quality

Valuation

Financial

Technical

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Boralex, Inc.

TransAlta Renewables, Inc.

Why is Boralex, Inc. ?

Weak Long Term Fundamental Strength with an average Return on Capital Employed (ROCE) of 4.45%

High Debt Company with a Debt to Equity ratio (avg) at times

With a fall in Net Sales of -16.88%, the company declared Very Negative results in Jun 25

The company has declared negative results for the last 3 consecutive quarters
The company has declared negative results in Jun 24 after 3 consecutive negative quarters
NET PROFIT(HY) At CAD 24.25 MM has Grown at -63.26%
OPERATING CASH FLOW(Y) Lowest at CAD 126 MM
PRE-TAX PROFIT(Q) At CAD -5 MM has Fallen at -132.26%

Risky -

The stock is trading risky as compared to its average historical valuations
Over the past year, while the stock has generated a return of -21.33%, its profits have fallen by -52.1%

Consistent Underperformance against the benchmark over the last 3 years

Along with generating -21.33% returns in the last 1 year, the stock has also underperformed S&P/TSX 60 in each of the last 3 annual periods

Real-Time Research Report

Verdict Report

How much should you sell?

All quantity irrespective of whether you are making profits or losses

(If sector exposure > 30%, please use optimiser tool to see which are the best stocks to hold in Power)

When to re-enter? - We will constantly monitor the company and review our call based on new data

Is Boralex, Inc. for you?

Medium Risk, High Return

Absolute

Risk Adjusted

Volatility

Boralex, Inc.

-4.53%

2.50

27.38%

S&P/TSX 60

21.87%

1.54

14.62%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

6.08%

EBIT Growth (5y)

1.53%

EBIT to Interest (avg)

1.59

Debt to EBITDA (avg)

6.51

Net Debt to Equity (avg)

2.25

Sales to Capital Employed (avg)

0.17

Tax Ratio

100.00%

Dividend Payout Ratio

969.16%

Pledged Shares

Institutional Holding

0.05%

ROCE (avg)

4.45%

ROE (avg)

5.95%

Valuation

Valuation Scorecard

Valuation grade scale :

Very Risky, Risky, Very Expensive, Expensive, Fair, Attractive, Very Attractive

Valuation Key Factors

Factor

Value

P/E Ratio

Industry P/E

Price to Book Value

1.92

EV to EBIT

36.39

EV to EBITDA

13.57

EV to Capital Employed

1.26

EV to Sales

8.19

PEG Ratio

Dividend Yield

ROCE (Latest)

3.45%

ROE (Latest)

3.01%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Mildly Bullish

Bearish

RSI

No Signal

Bollinger Bands

Bullish

Mildly Bearish

Moving Averages

Mildly Bearish (Daily)

KST

Bullish

Bearish

Dow Theory

Mildly Bullish

OBV

No Trend

Technical Indicator Scale: Bearish, Mildly Bearish, Sideways, Mildly Bullish, Bullish Turned

Technical Movement

Analyse All Technical Factors

Financial Trend

Financial Trend Scorecard

Financial Trend scale:

Very Negative, Negative, Flat, Positive, Very Positive, Outstanding

3What is working for the Company

NET PROFIT(HY)

Higher at CAD -36 MM

-33What is not working for the Company

NET PROFIT(Q)

At CAD -27 MM has Fallen at -51.23%

ROCE(HY)

Lowest at -1.47%

INTEREST COVERAGE RATIO(Q)

Lowest at 190.48

RAW MATERIAL COST(Y)

Grown by 13.8% (YoY

DEBT-EQUITY RATIO (HY)

Highest at 280.35 %

NET SALES(Q)

Lowest at CAD 157 MM

INTEREST(Q)

Highest at CAD 42 MM

PRE-TAX PROFIT(Q)

Lowest at CAD -45 MM

EPS(Q)

Lowest at CAD -0.26

Here's what is working for Boralex, Inc.

Depreciation

Highest at CAD 82 MM

in the last five periods

MOJO Watch

The expenditure on assets done by the company may have gone into operation

Depreciation (CAD MM)

Here's what is not working for Boralex, Inc.

Net Sales

At CAD 157 MM has Fallen at -24.34%

over average net sales of the previous four periods of CAD 207.5 MM

MOJO Watch

Near term sales trend is extremely negative

Net Sales (CAD MM)

Pre-Tax Profit

At CAD -45 MM has Fallen at -446.15%

over average net sales of the previous four periods of CAD 13 MM

MOJO Watch

Near term Pre-Tax Profit trend is very negative

Pre-Tax Profit (CAD MM)

Net Profit

At CAD -27 MM has Fallen at -51.23%

over average net sales of the previous four periods of CAD -17.85 MM

MOJO Watch

Near term Net Profit trend is very negative

Net Profit (CAD MM)

Interest Coverage Ratio

Lowest at 190.48

in the last five periods

MOJO Watch

The company's ability to manage interest payments is deteriorating

Operating Profit to Interest

Net Sales

Lowest at CAD 157 MM

in the last five periods

MOJO Watch

Near term sales trend is negative

Net Sales (CAD MM)

Interest

Highest at CAD 42 MM

in the last five periods and Increased by 7.69% (QoQ)

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (CAD MM)

Pre-Tax Profit

Lowest at CAD -45 MM

in the last five periods

MOJO Watch

Near term Pre-Tax Profit trend is negative

Pre-Tax Profit (CAD MM)

EPS

Lowest at CAD -0.26

in the last five periods

MOJO Watch

Declining profitability; company has created lower earnings for shareholders

EPS (CAD)

Debt-Equity Ratio

Highest at 280.35 %

in the last five Semi-Annual periods

MOJO Watch

The company is borrowing more to fund its operations; it's liquidity situation may be stressed

Debt-Equity Ratio

Raw Material Cost

Grown by 13.8% (YoY)

MOJO Watch

The company's ability to pass on the cost of raw materials to customers has deteriorated; this may lead to a fall in profit margin

Raw Material Cost as a percentage of Sales