Capital Power Corp Net Income surged on 95.7% in 2015 and EBITDA Margin increased on 3.5 pp from 33.6% to 37.1%
18.02.2016 • About Capital Power Corp (
$CPX) • By InTwits
Capital Power Corp reported 2015 financial results today. Overall the company's long term financial model is characterised by the following facts:
- Capital Power Corp has high CAPEX intensity: 5 year average CAPEX/Revenue was 34.2%. At the same time it's in pair with industry average of 44.0%.
- CAPEX is quite volatile: 140 in 2015, 220 in 2014, 943 in 2013, 598 in 2012, 493 in 2011
- The company has potentially unprofitable business model: ROIC is at 5.1%
Below you can find a comprehensive analysis of the key data driving the company's performance and stock price.
Capital Power Corp ($CPX) key annual financial indicators
| mln. CAD | 2011 | 2012 | 2013 | 2014 | 2015 | 2015/2014 |
|---|
P&L
|
|---|
| Revenue | 1,770 | 1,296 | 1,393 | 1,228 | 1,241 | 1.1% |
| Gross Profit | 866 | 763 | 833 | 717 | 762 | 6.3% |
| SG&A | 56 | 81 | 88 | 88 | 85 | -3.4% |
| EBITDA | 429 | 367 | 497 | 413 | 461 | 11.6% |
| Net Income | 77 | 62 | 175 | 46 | 90 | 95.7% |
Balance Sheet
|
|---|
| Cash | 73 | 53 | 100 | 71 | 80 | 12.7% |
| Short Term Debt | 28 | 19 | 346 | 599 | 340 | -43.2% |
| Long Term Debt | 1,452 | 1,640 | 1,181 | 987 | 1,297 | 31.4% |
Cash flow
|
|---|
| Capex | 493 | 598 | 943 | 220 | 140 | -36.4% |
Ratios
|
|---|
| Revenue growth | 0.5% | -26.8% | 7.5% | -11.8% | 1.1% | |
| EBITDA growth | 21.9% | -14.5% | 35.4% | -16.9% | 11.6% | |
| Gross Margin | 48.9% | 58.9% | 59.8% | 58.4% | 61.4% | 3.0% |
| EBITDA Margin | 24.2% | 28.3% | 35.7% | 33.6% | 37.1% | 3.5% |
| Net Income Margin | 4.4% | 4.8% | 12.6% | 3.7% | 7.3% | 3.5% |
| SG&A, % of revenue | 3.2% | 6.3% | 6.3% | 7.2% | 6.8% | -0.3% |
| CAPEX, % of revenue | 27.9% | 46.1% | 67.7% | 17.9% | 11.3% | -6.6% |
| ROIC | 4.6% | 3.4% | 6.1% | 4.7% | 5.1% | 0.4% |
| ROE | 6.0% | 3.5% | 8.6% | 1.2% | 3.1% | 2.0% |
| Net Debt/EBITDA | 3.3x | 4.4x | 2.9x | 3.7x | 3.4x | -0.3x |
Revenue and profitability
Capital Power Corp's Revenue increased slightly on 1.1% in 2015. Revenue decline was accompanies by EBITDA margin decline. EBITDA Margin decreased on 3.8 pp from 6.3% to 2.5% in 2015.
Gross Margin increased on 3.0 pp from 58.4% to 61.4% in 2015. SG&A as a % of Revenue showed almost no change in 2015.
Net Income marign increased on 3.5 pp from 3.7% to 7.3% in 2015.
Capital expenditures (CAPEX) and working capital investments
In 2015 the company had CAPEX/Revenue of 11.3%. CAPEX/Revenue dropped on 34.9 pp from 46.1% in 2012 to 11.3% in 2015. It's average level of CAPEX/Revenue for the last three years was 32.3%.
Return on investment
The company operates at low ROIC (5.10%) and ROE (3.14%). ROIC showed almost no change in 2015. ROE increased slightly on 2.0 pp from 1.2% to 3.1% in 2015.
Leverage (Debt)
Company's Net Debt / EBITDA is 3.4x and Debt / EBITDA is 3.6x. Net Debt / EBITDA dropped on 0.3x from 3.7x to 3.4x in 2015. Debt increased on 3.2% in 2015 while cash surged on 12.7% in 2015.
Management team
Brian Tellef Vaasjo is a Capital Power Corp's CEO. Brian Tellef Vaasjo is a founder and has spent 9 years at the company. Bryan Deneve is a Capital Power Corp's CFO. Bryan Deneve has spent 3 years at the company.
Appendix 1: Peers in Utilities
Below you can find Capital Power Corp benchmarking vs. other companies in Utilities industry. It's shown for the period of 5 years for the key financial metrics. Each table has median value for all the companies in the industry together with individual financial data of the top-5 companies in the industry by particular financial metric.
Top companies by Revenue growth, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Algonquin Power & Utilities Corp ($AQN) | 50.1% | 28.8% | 93.6% | 39.4% | |
| Northland Power Inc ($NPI) | 14.0% | 1.5% | 54.1% | 36.4% | |
| Fortis Inc/Canada ($FTS) | | -2.2% | 10.8% | 33.5% | 25.1% |
| Emera Inc ($EMA) | | -0.3% | 8.3% | 31.8% | -5.1% |
| Just Energy Group Inc ($JE) | | -10.1% | 13.4% | 17.4% | 10.2% |
| |
|---|
| Median (14 companies) | 14.2% | 0.9% | 11.1% | 13.3% | -9.3% |
|---|
| Capital Power Corp ($CPX) | | -26.8% | 7.5% | -11.8% | 1.1% |
Top companies by Gross margin, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Atco Ltd/Canada ($ACO.X) | 82.3% | 85.6% | 85.1% | 82.3% | |
| Canadian Utilities Ltd ($CU) | 76.5% | 81.0% | 80.8% | 77.7% | |
| Northland Power Inc ($NPI) | 47.7% | 52.5% | 63.7% | 61.8% | |
| Fortis Inc/Canada ($FTS) | 31.9% | 34.6% | 34.4% | 59.3% | 61.7% |
| TransAlta Corp ($TA) | 64.4% | 65.9% | 58.6% | 58.4% | 55.5% |
| |
|---|
| Median (13 companies) | 35.9% | 33.7% | 35.1% | 36.1% | 46.3% |
|---|
| Capital Power Corp ($CPX) | 48.9% | 58.9% | 59.8% | 58.4% | 61.4% |
Top companies by EBITDA margin, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Boralex Inc ($BLX) | 51.8% | 52.8% | 58.4% | 55.9% | |
| Northland Power Inc ($NPI) | 48.1% | 54.2% | 52.4% | 51.2% | |
| US Geothermal Inc ($GTH) | -84.0% | -129.5% | 52.9% | 49.6% | |
| Canadian Utilities Ltd ($CU) | 42.9% | 45.9% | 45.7% | 47.4% | |
| Atco Ltd/Canada ($ACO.X) | 36.7% | 39.8% | 41.0% | 41.4% | |
| |
|---|
| Median (14 companies) | 31.5% | 29.2% | 33.2% | 32.7% | 29.1% |
|---|
| Capital Power Corp ($CPX) | 24.2% | 28.3% | 35.7% | 33.6% | 37.1% |
Top companies by CAPEX/Revenue, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Northland Power Inc ($NPI) | 101.7% | 84.0% | 60.2% | 238.7% | |
| Boralex Inc ($BLX) | 17.7% | 5.6% | 62.5% | 85.9% | |
| Canadian Utilities Ltd ($CU) | 43.7% | 70.7% | 66.4% | 58.5% | |
| Atco Ltd/Canada ($ACO.X) | 36.2% | 58.8% | 54.2% | 48.3% | |
| Algonquin Power & Utilities Corp ($AQN) | 22.4% | 21.7% | 23.5% | 45.9% | |
| |
|---|
| Median (14 companies) | 22.7% | 26.5% | 24.0% | 21.2% | 24.5% |
|---|
| Capital Power Corp ($CPX) | 27.9% | 46.1% | 67.7% | 17.9% | 11.3% |
Top companies by ROIC, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Keyera Corp ($KEY) | 13.1% | 13.8% | 12.7% | 14.3% | 12.6% |
| Just Energy Group Inc ($JE) | 146.5% | 18.6% | 6.0% | 10.6% | 17.9% |
| Atco Ltd/Canada ($ACO.X) | 11.6% | 10.8% | 10.5% | 9.6% | |
| Canadian Utilities Ltd ($CU) | 10.9% | 10.0% | 9.4% | 9.2% | |
| Emera Inc ($EMA) | 6.1% | 5.8% | 5.9% | 8.4% | 5.6% |
| |
|---|
| Median (14 companies) | 6.7% | 5.8% | 6.0% | 5.8% | 5.9% |
|---|
| Capital Power Corp ($CPX) | 4.6% | 3.4% | 6.1% | 4.7% | 5.1% |
Top companies by Net Debt / EBITDA
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Atlantic Power Corp ($ATP) | 44.8x | 12.6x | 13.0x | 22.4x | |
| Boralex Inc ($BLX) | 5.9x | 6.6x | 7.6x | 12.1x | |
| Northland Power Inc ($NPI) | 5.9x | 6.4x | 5.8x | 6.9x | |
| Fortis Inc/Canada ($FTS) | 5.3x | 5.0x | 5.6x | 6.7x | 5.3x |
| Just Energy Group Inc ($JE) | 2.5x | 4.3x | 7.4x | 6.4x | 3.9x |
| |
|---|
| Median (14 companies) | 4.5x | 5.0x | 5.6x | 4.8x | 4.4x |
|---|
| Capital Power Corp ($CPX) | 3.3x | 4.4x | 2.9x | 3.7x | 3.4x |
