Innergex Renewable Energy (INE) AI Stock Analysis

• Market Cap: C$2.74B
• Dividend Yield: 2.67%
• Average Volume (3M): 1.29M
• Price to Earnings (P/E): 265.9
• Beta (1Y): 0.91
• Revenue Growth: 2.60%
• EPS Growth: N/A
• Country: CA
• Employees: 600
• Sector: Utilities
• Sector Strength: 87
• Industry: Renewable Utilities
• EPS (TTM): 0.05
• Shares Outstanding: 203,125,030
• 10 Day Avg. Volume: 1,166,695
• 30 Day Avg. Volume: 1,286,526
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): 2.63
• Price to Cash Flow (P/CF): 6.30
• P/FCF Ratio: 7.60
• 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$12.19
• Price Target Upside: -9.57% Downside
• Rating Consensus: Hold
• Number of Analyst Covering: 8

Innergex Renewable Energy's strengths lie in its operational efficiency, technical momentum, and strategic corporate developments like the CDPQ acquisition. However, high debt levels, inconsistent profitability, and overvaluation pose risks. The positive earnings call and corporate events provide confidence, but financial stability remains crucial for sustained growth.

Positive Factors

Financial Outlook

Analyst maintains an Outperform rating due to the ~25% potential total return to the unchanged $11 target, suggesting a promising financial outlook.

Growth Opportunities

Premium hydro assets and improved balance sheet flexibility from the recent dividend reset open up new growth opportunities for the company.

Renewable Energy Projects

There are 882MW of renewable projects in advanced stages, with 570MW already having secured contracts, indicating strong future growth potential.

Negative Factors

Contractual Dependence

The reliance on a 25-year inflation indexed PPA for the Portneuf hydro facility refinancing could expose the company to long-term contractual risks.

Market Performance

Shares have experienced significant underperformance during a sell-off in the renewables sector, which may raise concerns among investors.

Project Risks

The Boswell Springs project, still under construction, faces a deadline for commissioning by Q4/24, which could pose risks if delays occur.

Innergex Renewable Energy Business Overview & Revenue Model

Company Description

Innergex Renewable Energy Inc. operates as an independent renewable power producer in Canada, the United States, France, and Chile. It acquires, owns, develops, and operates hydroelectric facilities, and wind and solar farms, as well as energy storage facilities. The company operates through three segments: Hydroelectric Power Generation, Wind Power Generation, and Solar Power Generation. As of February 23, 2022, it owned and operated 80 facilities with a net installed capacity of 3,101 megawatts, which included 40 hydroelectric facilities, 33 watersheds, 32 wind farms, and 8 solar farms; and had interests in under development and prospective projects at various stages of development. Innergex Renewable Energy Inc. was founded in 1990 and is headquartered in Longueuil, Canada.

How the Company Makes Money

Innergex Renewable Energy generates revenue primarily through the sale of electricity produced by its renewable energy facilities. The company enters into long-term power purchase agreements (PPAs) with utilities and large industrial or commercial entities, ensuring stable and predictable cash flows. These agreements often include fixed price terms, which hedge against market price volatility. Additionally, Innergex benefits from government incentives and renewable energy credits in various regions, which further contribute to its revenue. The company may also engage in strategic partnerships and joint ventures to expand its asset base and leverage shared resources, thereby enhancing its earning potential.

Innergex Renewable Energy Financial Statement Overview

Summary

Innergex Renewable Energy presents a mixed financial profile. The company demonstrates operational efficiency and potential for revenue growth, but is challenged by high debt levels and inconsistent profitability. Addressing leverage and achieving stable profitability are key for strengthening the financial position.

Income Statement

Innergex Renewable Energy has shown a mixed income performance. While there is a notable improvement in EBIT and EBITDA margins, the net profit margin remains a challenge due to net losses in previous years and a slight profit in the most recent year. Revenue has seen fluctuations, with a decline in 2024 compared to 2023, but a general upward trend over the years. Gross profit margin is strong, indicating efficient cost management.

Balance Sheet

The company exhibits a high debt-to-equity ratio, indicative of significant leverage, which poses a financial risk. However, the equity ratio has improved slightly over time. Return on equity is positive in the latest period after years of losses, suggesting potential for improved shareholder value if the trend continues.

Cash Flow

Cash flow management shows some areas of concern, with negative free cash flow in most recent years, pointing to potential liquidity challenges. However, operating cash flow remains positive and stable, indicating the company's ability to generate cash from its core operations.

Breakdown
Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement		Total Revenue
952.45M	1.04B	870.49M	747.21M	613.21M
	Gross Profit
1.05B	781.62M	326.67M	342.46M	481.76M
	EBIT
273.53M	219.57M	301.20M	269.50M	236.73M
	EBITDA
690.77M	531.32M	522.99M	486.78M	463.95M
	Net Income Common Stockholders
15.89M	-98.45M	-91.11M	-185.39M	-29.11M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
181.28M	159.24M	162.97M	166.27M	161.47M
	Total Assets
9.44B	8.94B	8.60B	7.40B	7.15B
	Total Debt
6.86B	6.56B	6.03B	5.08B	4.99B
	Net Debt
6.68B	6.40B	5.86B	4.92B	4.83B
	Total Liabilities
7.92B	7.73B	7.12B	6.04B	6.08B
	Stockholders Equity
1.13B	1.09B	1.32B	1.09B	1.01B
Cash Flow		Free Cash Flow
-144.03M	-389.35M	278.91M	14.88M	-283.49M
	Operating Cash Flow
292.17M	297.85M	430.24M	265.50M	235.11M
	Investing Cash Flow
-438.22M	-633.71M	-635.77M	-667.05M	-725.61M
	Financing Cash Flow
161.77M	333.28M	133.15M	414.08M	492.48M

Innergex Renewable Energy Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 13.48
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Negative
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For TSE:INE, the sentiment is Positive. The current price of 13.48 is above the 20-day moving average (MA) of 13.48, above the 50-day MA of 11.53, and above the 200-day MA of 9.63, indicating a bullish trend. The MACD of 0.41 indicates Positive momentum. The RSI at 76.43 is Negative, neither overbought nor oversold. The STOCH value of 51.48 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for TSE:INE.

Innergex Renewable Energy Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
BEPC	70 Outperform	$8.95B	30.53	6.15%	5.45%	-8.26%	―
CPX	69 Neutral	C$6.38B	8.87	18.00%	5.62%	-26.31%	-14.85%
INE	68 Neutral	C$2.74B	265.88	1.44%	2.67%	2.60%	―
Sector *	65 Neutral	$11.90B	15.77	6.20%	4.52%	5.53%	-8.93%
BLX	64 Neutral	C$2.92B	81.22	2.23%	2.32%	-16.54%	-53.85%

Innergex Renewable Energy Corporate Events

ISS Endorses Innergex’s Arrangement with CDPQ, Highlighting Attractive Premium

Innergex Renewable Energy Inc. has announced that Institutional Shareholder Services Inc. (ISS), a leading independent proxy advisor, recommends shareholders vote in favor of the company’s arrangement with CDPQ. The arrangement offers a significant premium to shareholders, with a 58% increase over the closing price on February 24, 2025. ISS’s endorsement highlights the attractive cash offer and the potential risks of non-approval due to economic and political issues. The arrangement is part of a broader strategy to enhance shareholder value and strengthen Innergex’s market position in the renewable energy sector.

Spark’s Take on TSE:INE Stock

According to Spark, TipRanks’ AI Analyst, TSE:INE is a Outperform.

Innergex Renewable Energy shows a balanced outlook with strong technical momentum and positive corporate developments, including a significant acquisition deal. However, financial concerns such as high leverage and a lofty valuation present risks. The company’s positive earnings call and strategic project completions bolster confidence, but consistent profitability remains crucial for long-term stability.

To see Spark’s full report on TSE:INE stock, click here.

Innergex Advances in French Solar Market with New Projects

Innergex Renewable Energy Inc. has reached a significant milestone with the selection of two solar projects totaling 32 MW in Joux-la-Ville, France. These agrivoltaic projects, part of the Grenier des Essences portfolio, are Innergex’s first solar initiatives in France and highlight a collaborative effort with local farmers and officials. The projects aim to integrate renewable energy production with agricultural reconversion, promoting the growth of aromatic and medicinal plants. The electricity generated will be sold under a 20-year power purchase agreement, marking a promising step for Innergex’s future development activities in France.

Innergex Renewable Energy Proceeds with Going-Private Transaction with CDPQ

Innergex Renewable Energy Inc. has announced the filing of materials for its upcoming annual and special meeting of shareholders, where a significant going-private transaction with CDPQ will be considered. The arrangement involves CDPQ acquiring all outstanding common and preferred shares of Innergex, with the transaction being recommended by a special committee and the board of directors as fair and in the best interests of shareholders, excluding CDPQ and certain senior management members.

Innergex Launches Hale Kuawehi Solar and Battery Storage Project in Hawaii

Innergex Renewable Energy Inc. has announced the commercial operation of its Hale Kuawehi Solar and Battery Storage Project in Hawaii, which combines 30 MW of solar photovoltaic capacity with 30 MW/120 MWh of battery storage. This project, which sells electricity under a 25-year agreement with Hawaii Electric Light Company, marks a significant step in Hawaii’s transition to a carbon-free electric system and underscores Innergex’s dedication to sustainable energy solutions.

Innergex to be Acquired by CDPQ in $10 Billion Deal

Innergex Renewable Energy has entered into a definitive agreement to be acquired by CDPQ for $13.75 per share, representing a significant premium over its current share price. This transaction, valued at $10 billion, aims to establish a leading renewable power entity in Québec, with Hydro-Québec supporting the deal by agreeing to vote in favor. The acquisition is expected to provide liquidity and value certainty to shareholders and is anticipated to close by the fourth quarter of 2025, pending necessary approvals.

Innergex Renewable Energy Secures Strong Growth and Financial Success in 2024

Innergex Renewable Energy reported its fourth quarter and fiscal year 2024 results, highlighting significant achievements in strategic growth and financial performance. The company secured 560 MW in BC Hydro’s power call in British Columbia and successfully launched the Boswell Springs wind farm in Wyoming. These developments, combined with substantial financial backing and meeting its 2024 financial guidance, reinforce Innergex’s leadership in renewable energy and set the stage for continued expansion, particularly in Canada.

Innergex Secures Final Funding for Boswell Springs Wind Farm

Innergex Renewable Energy Inc. has achieved a significant milestone by securing the final tax equity investment for the Boswell Springs wind farm in Wyoming, which began full commercial operations at the end of 2024. This US$338.3 million investment has been used to repay the tax equity bridge loan and facilitated the repayment and term-conversion of the construction loan, thereby strengthening the company’s capital structure and ensuring long-term financial stability for the facility.

Innergex Expands French Wind Portfolio with New Acquisition

Innergex Renewable Energy Inc. has announced the addition of the 13 MW La Cense wind project in France to its development portfolio, marking its first acquisition since a minority share sale to Crédit Agricole Assurances and Crédit Agricole Centre-Est. With an expected commissioning in 2026, the project will be managed by Innergex France, aiming to leverage operational efficiencies with nearby facilities and secure stable long-term revenues through a 20-year power purchase agreement with EDF. This strategic move strengthens Innergex’s commitment to advancing renewable energy in France and enhances its portfolio synergies.