Capital Power Corporation
Capital Power Corporation Fundamental Analysis
Capital Power Corporation (CPX.TO) shows weak financial fundamentals with a PE ratio of 426.89, profit margin of 0.66%, and ROE of 0.49%. The company generates $3.6B in annual revenue with strong year-over-year growth of 12.58%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 24.1/100 based on profitability, valuation, growth, and balance sheet metrics. The F grade reflects weak fundamentals and significant financial concerns.
Fundamental Health Score
We analyze CPX.TO's fundamental strength across five key dimensions:
Efficiency Score
WeakCPX.TO struggles to generate sufficient returns from assets.
Valuation Score
ModerateCPX.TO shows balanced valuation metrics.
Growth Score
ModerateCPX.TO shows steady but slowing expansion.
Financial Health Score
WeakCPX.TO carries high financial risk with limited liquidity.
Profitability Score
ModerateCPX.TO maintains healthy but balanced margins.
Key Financial Metrics
Is CPX.TO Expensive or Cheap?
P/E Ratio
CPX.TO trades at 426.89 times earnings. This suggests a premium valuation.
PEG Ratio
When adjusting for growth, CPX.TO's PEG of -4.22 indicates potential undervaluation.
Price to Book
The market values Capital Power Corporation at 2.13 times its book value. This may indicate undervaluation.
EV/EBITDA
Enterprise value stands at 5.45 times EBITDA. This is generally considered low.
How Well Does CPX.TO Make Money?
Net Profit Margin
For every $100 in sales, Capital Power Corporation keeps $0.66 as profit after all expenses.
Operating Margin
Core operations generate -10.96 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $0.49 in profit for every $100 of shareholder equity.
ROA
Capital Power Corporation generates $0.15 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
Capital Power Corporation generates strong operating cash flow of $1.02B, reflecting robust business health.
Free Cash Flow
Capital Power Corporation produces free cash flow of $179.15M, offering steady but limited capital for shareholder returns and expansion.
FCF Per Share
Each share generates $1.15 in free cash annually.
FCF Yield
CPX.TO converts 1.73% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
426.89
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
-4.22
vs 25 benchmark
P/B Ratio
Price to book value ratio
2.13
vs 25 benchmark
P/S Ratio
Price to sales ratio
2.83
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
1.46
vs 25 benchmark
Current Ratio
Current assets to current liabilities
0.69
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.005
vs 25 benchmark
ROA
Return on assets percentage
0.002
vs 25 benchmark
ROCE
Return on capital employed
-0.03
vs 25 benchmark
How CPX.TO Stacks Against Its Sector Peers
| Metric | CPX.TO Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 426.89 | 20.39 | Worse (Expensive) |
| ROE | 0.49% | 911.00% | Weak |
| Net Margin | 0.66% | 735.00% | Weak |
| Debt/Equity | 1.46 | 1.46 | Neutral |
| Current Ratio | 0.69 | 1.30 | Weak Liquidity |
| ROA | 0.15% | 934.00% | Weak |
CPX.TO outperforms its industry in 0 out of 6 key metrics, but lagging in P/E Ratio.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews Capital Power Corporation's 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
22.40%
Industry Style: Defensive, Dividend, Income
High GrowthEPS CAGR
-17.66%
Industry Style: Defensive, Dividend, Income
DecliningFCF CAGR
9.18%
Industry Style: Defensive, Dividend, Income
Growing