Boralex Inc Cl A (BLX) AI Stock Analysis

• Market Cap: C$2.66B
• Dividend Yield: 2.54%
• Average Volume (3M): 378.54K
• Price to Earnings (P/E): 74.0
• Beta (1Y): 0.93
• Revenue Growth: -16.54%
• EPS Growth: -53.85%
• Country: CA
• Employees: 822
• Sector: Utilities
• Sector Strength: 92
• Industry: Renewable Utilities
• EPS (TTM): 0.35
• Shares Outstanding: 102,766,580
• 10 Day Avg. Volume: 348,022
• 30 Day Avg. Volume: 378,542
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): 3.63
• Price to Cash Flow (P/CF): 24.70
• P/FCF Ratio: 0.00
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: C$39.50
• Price Target Upside: 52.33% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 6

Boralex's overall performance is moderately strong, driven by robust revenue growth and strategic positioning. However, high leverage and valuation concerns, alongside mixed earnings call insights due to operational challenges, weigh on the score.

Positive Factors

Analyst Recommendation

Analyst's recommendation is Outperform as there is upside to growth expectations on new organic growth initiatives and asset quality is strong, with the majority of production contracted with creditworthy counter-parties.

Investment Tax Credits

The retroactive nature of the Canadian investment tax credits has boosted returns on select Canadian renewable projects and is providing BLX additional financial flexibility to fund future growth or reduce future equity need.

Negative Factors

Valuation Concerns

Despite an attractive valuation at approximately 9.5 times 2026 estimated EBITDA, there might be concerns when compared to renewable power peers valued between approximately 10 to 17 times.

Boralex Inc Cl A Business Overview & Revenue Model

Company Description

Boralex Inc. is a Canadian company that specializes in the development, construction, and operation of renewable energy power facilities. It primarily focuses on wind, hydroelectric, thermal, and solar power generation. Boralex operates across Canada, the United States, France, and the United Kingdom, contributing to the global transition towards sustainable energy solutions.

How the Company Makes Money

Boralex Inc. generates revenue primarily through the sale of electricity produced by its renewable energy facilities. The company's key revenue streams include long-term power purchase agreements (PPAs) with utilities and other large-scale energy consumers, which provide predictable cash flows. Additionally, Boralex benefits from government incentives and subsidies for renewable energy production in various jurisdictions. The company also engages in strategic partnerships and joint ventures to expand its project portfolio and enhance its operational efficiency, further contributing to its earnings.

Boralex Inc Cl A Financial Statement Overview

Summary

Boralex Inc shows solid revenue growth and strong operating performance, but there are concerns regarding profitability and high leverage. The balance sheet reflects a significant reliance on debt financing, which could impact financial flexibility. Cash flow management requires attention due to negative free cash flow, which could hinder growth and investment capabilities.

Income Statement

Boralex has demonstrated steady revenue growth over the years, with a 13.6% increase in 2023. The gross profit margin has been consistently high, reflecting efficient cost management. However, the net profit margin has seen a decline, indicative of rising expenses or lower cost efficiency in recent years. The EBIT and EBITDA margins remain strong, signaling robust operating performance.

Balance Sheet

The company's debt-to-equity ratio is relatively high, indicating significant leverage, which could pose risks during downturns. However, the equity ratio has improved over the years, suggesting better balance sheet stability. Return on equity is moderate, reflecting adequate profitability relative to shareholder investment.

Cash Flow

Operating cash flow is strong, but there has been negative free cash flow in the latest year, primarily due to high capital expenditures. The free cash flow to net income ratio indicates challenges in translating profits into free cash flow. The company's cash flow management needs improvement to ensure long-term sustainability.

Breakdown
Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement		Total Revenue
853.00M	1.02B	836.00M	691.00M	633.00M
	Gross Profit
853.00M	642.00M	578.00M	538.00M	482.00M
	EBIT
226.00M	226.00M	112.00M	182.00M	172.00M
	EBITDA
534.00M	517.00M	406.00M	472.00M	391.00M
	Net Income Common Stockholders
36.00M	78.00M	8.00M	26.00M	55.00M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
592.00M	478.00M	361.00M	259.00M	275.00M
	Total Assets
7.60B	6.57B	6.54B	5.75B	5.31B
	Total Debt
4.30B	3.62B	3.61B	3.91B	3.77B
	Net Debt
3.71B	3.14B	3.25B	3.65B	3.50B
	Total Liabilities
5.58B	4.55B	4.51B	4.54B	4.32B
	Stockholders Equity
1.60B	1.63B	1.68B	1.00B	989.00M
Cash Flow		Free Cash Flow
-237.00M	216.00M	257.00M	166.00M	206.00M
	Operating Cash Flow
215.00M	496.00M	513.00M	345.00M	362.00M
	Investing Cash Flow
-578.00M	-268.00M	-684.00M	-433.00M	-247.00M
	Financing Cash Flow
479.00M	-109.00M	261.00M	75.00M	-413.00M

Boralex Inc Cl A Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 25.93
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For TSE:BLX, the sentiment is Negative. The current price of 25.93 is below the 20-day moving average (MA) of 28.94, below the 50-day MA of 27.55, and below the 200-day MA of 30.89, indicating a bearish trend. The MACD of 0.29 indicates Positive momentum. The RSI at 46.26 is Neutral, neither overbought nor oversold. The STOCH value of 20.34 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for TSE:BLX.

Boralex Inc Cl A Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
NPI	73 Outperform	$4.84B	17.98	6.48%	6.61%	5.08%	―
INE	70 Outperform	C$2.73B	265.29	1.44%	2.68%	2.60%	―
CPX	69 Neutral	C$6.17B	8.59	18.00%	5.80%	-26.31%	-14.85%
Sector *	65 Neutral	$11.67B	15.52	6.23%	4.52%	5.50%	-9.06%
BLX	64 Neutral	C$2.66B	74.02	2.23%	2.54%	-16.54%	-53.85%
VNP	60 Neutral	C$480.83M	23.96	10.84%	―	21.14%	-3.80%
AQN	51 Neutral	$5.29B	―	1.65%	7.19%	-6.72%	-6766.85%

Boralex Inc Cl A Corporate Events

Boralex Reports $74 Million Earnings Amidst Project Expansion and Financing Milestones

Boralex Inc. reported net earnings of $74 million for fiscal 2024, despite facing challenges from adverse wind and hydropower conditions that impacted production and financial results. The company continues to advance its large-scale projects in Québec, Ontario, and the United Kingdom, with a significant portfolio of projects under development totaling 8,005 MW. Boralex secured nearly $1.2 billion in financing in 2024, marking a record achievement, and is progressing on several key projects, including the Limekiln wind farm in the UK and the Apuiat wind farm in Quebec.

Boralex Declares Quarterly Dividend Amidst Renewable Growth

Boralex Inc. announced a quarterly dividend of $0.165 per common share, to be paid on March 17, 2025, to shareholders of record as of February 28, 2025. This declaration reflects Boralex’s ongoing commitment to providing value to its investors while supporting its strategic focus on renewable energy growth, enhancing its position as a leader in the renewable energy sector.

Boralex Secures $172 Million for Tilbury Battery Project

Boralex Inc. and Walpole Island First Nation have closed a $172 million financing deal for the 80 MW Tilbury Battery Storage project in Ontario. This financing, supported by a syndicate of major banks, underscores the project’s potential and Boralex’s commitment to sustainable energy solutions. The deal includes a construction loan, a bridge loan for tax credits, and a letter of credit facility, aiming to optimize Boralex’s capital structure while reinforcing confidence in the project’s promising future.

Boralex and Walpole Island First Nation Secure $172 Million for Tilbury Battery Project

Boralex Inc. and the Walpole Island First Nation have successfully secured $172 million in financing for the Tilbury Battery Storage project in Ontario, marking a significant milestone in their sustainable energy efforts. This financing, supported by major Canadian banks, underscores Boralex’s financial robustness and the project’s promise, with commercial operations expected to begin in late 2025.