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Northland Power Inc. (NPI)
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Innergex Renewable Energy Inc. (INE)
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Polaris Renewable Energy Inc. (PIF)
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Boralex Inc. Class A Shares (BLX)
Q: hi,
I own these as a basket of these smaller renewable stocks ( I own other larger names including Brookfield renew. as well ). the share price of these is struggling. what are your current thoughts on the balance sheets, growth prospects etc. If possible could you rate as a buy, hold,sell, and flag any that are in significant financial difficulty. my feelings are to just hold them all, perhaps a few get takeover offers, and prices move up when rates go down?
cheers, chris
I own these as a basket of these smaller renewable stocks ( I own other larger names including Brookfield renew. as well ). the share price of these is struggling. what are your current thoughts on the balance sheets, growth prospects etc. If possible could you rate as a buy, hold,sell, and flag any that are in significant financial difficulty. my feelings are to just hold them all, perhaps a few get takeover offers, and prices move up when rates go down?
cheers, chris
5i Research Answer:
Shares 'should' do better if interest rates pivot, and valuations for the most part are decent. We could see takeovers as confidence returns. As a 'basket' of smaller names, we would be comfortable here. BLX we would see as a BUY with about 7% growth expected. Debt is high at 5X cash flow (net). INE expects faster growth (much) but debt is 20X cash flow. Investors are worried about the dividend with an 8% yield. EPS is also much lower than prior years despite new growth. We would see it as weak hold. NPI growth is expected to rebound this year to the tune of 30%+. Debt is 7X cash flow and we would see it as a hold. PIF's small size adds risks. Debt is OK at 3X cash flow. EPS is expected to be flat this year.