Capital Power Corp. (CPX) 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

Algonquin Power & Utilities Corp.

Emera, Inc.

Fortis, Inc.

Hydro One Ltd.

Northland Power, Inc.

ATCO Ltd.

TransAlta Corp.

Brookfield Renewable Partners LP

Capital Power Corp.

Boralex, Inc.

TransAlta Renewables, Inc.

Why is Capital Power Corp. ?

High Debt company with Weak Long Term Fundamental Strength

The company has declared Negative results for the last 9 consecutive quarters

INTEREST(HY) At CAD 187 MM has Grown at 38.52%
PRE-TAX PROFIT(Q) At CAD -52 MM has Fallen at -163.29%
NET PROFIT(Q) At CAD -44 MM has Fallen at -833.33%

With ROE of 0.50%, it has a very attractive valuation with a 2.42 Price to Book Value

The stock is trading at a fair value compared to its peers' average historical valuations
Over the past year, while the stock has generated a return of 8.59%, its profits have fallen by -94.4%

Underperformed the market in the last 1 year

The stock has generated a return of 8.59% in the last 1 year, much lower than market (S&P/TSX 60) returns of 28.13%

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 Capital Power Corp. for you?

Medium Risk, High Return

Absolute

Risk Adjusted

Volatility

Capital Power Corp.

9.66%

5.69

30.22%

S&P/TSX 60

28.13%

2.33

12.07%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

11.59%

EBIT Growth (5y)

-195.45%

EBIT to Interest (avg)

2.20

Debt to EBITDA (avg)

10.08

Net Debt to Equity (avg)

0.92

Sales to Capital Employed (avg)

0.34

Tax Ratio

51.90%

Dividend Payout Ratio

306.14%

Pledged Shares

Institutional Holding

0.00%

ROCE (avg)

7.15%

ROE (avg)

10.09%

Valuation

Valuation Scorecard

Valuation grade scale :

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

Valuation Key Factors

Factor

Value

P/E Ratio

485

Industry P/E

Price to Book Value

2.42

EV to EBIT

-46.24

EV to EBITDA

78.46

EV to Capital Employed

1.59

EV to Sales

5.07

PEG Ratio

Dividend Yield

ROCE (Latest)

-3.45%

ROE (Latest)

0.50%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Mildly Bearish

Bullish

RSI

No Signal

Bollinger Bands

Mildly Bearish

Bullish

Moving Averages

Mildly Bullish (Daily)

KST

Mildly Bearish

Dow Theory

No Trend

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

9What is working for the Company

OPERATING CASH FLOW(Y)

Highest at CAD 1,096 MM

INVENTORY TURNOVER RATIO(HY)

Highest at 14.86 times

DIVIDEND PER SHARE(HY)

Highest at CAD 4.81

RAW MATERIAL COST(Y)

Fallen by -9.57% (YoY

OPERATING PROFIT MARGIN(Q)

Highest at 35.65 %

-26What is not working for the Company

INTEREST(HY)

At CAD 187 MM has Grown at 38.52%

PRE-TAX PROFIT(Q)

At CAD -52 MM has Fallen at -163.29%

NET PROFIT(Q)

At CAD -44 MM has Fallen at -833.33%

ROCE(HY)

Lowest at 2.33%

NET SALES(Q)

At CAD 718 MM has Fallen at -20.73%

CASH AND EQV(HY)

Lowest at CAD 292 MM

DEBT-EQUITY RATIO (HY)

Highest at 147.42 %

Here's what is working for Capital Power Corp.

Operating Cash Flow

Highest at CAD 1,096 MM and Grown

In each year in the last three years

MOJO Watch

The company has generated higher cash revenues from business operations

Operating Cash Flows (CAD MM)

Inventory Turnover Ratio

Highest at 14.86 times and Grown

In each half year in the last five Semi-Annual periods

MOJO Watch

Company has been able to sell its inventory faster

Inventory Turnover Ratio

Dividend per share

Highest at CAD 4.81 and Grown

In each year in the last five years

MOJO Watch

Company is distributing higher dividend from profits generated

DPS (CAD)

Operating Profit Margin

Highest at 35.65 %

in the last five periods

MOJO Watch

Company's profit margin has improved

Operating Profit to Sales

Raw Material Cost

Fallen by -9.57% (YoY)

MOJO Watch

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

Raw Material Cost as a percentage of Sales

Depreciation

Highest at CAD 189 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 Capital Power Corp.

Pre-Tax Profit

At CAD -52 MM has Fallen at -163.29%

over average net sales of the previous four periods of CAD -19.75 MM

MOJO Watch

Near term Pre-Tax Profit trend is very negative

Pre-Tax Profit (CAD MM)

Net Profit

At CAD -44 MM has Fallen at -833.33%

over average net sales of the previous four periods of CAD 6 MM

MOJO Watch

Near term Net Profit trend is very negative

Net Profit (CAD MM)

Interest

At CAD 187 MM has Grown at 38.52%

over previous Semi-Annual period

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (CAD MM)

Net Sales

At CAD 718 MM has Fallen at -20.73%

over average net sales of the previous four periods of CAD 905.75 MM

MOJO Watch

Near term sales trend is very negative

Net Sales (CAD MM)

Cash and Eqv

Lowest at CAD 292 MM

in the last six Semi-Annual periods

MOJO Watch

Short Term liquidity is deteriorating

Cash and Cash Equivalents

Debt-Equity Ratio

Highest at 147.42 %

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