Q: Hello Peter,
What do you think of Polaris? Also, can you please confirm its growth and fifth yield.?
What do you think of Polaris? Also, can you please confirm its growth and fifth yield.?
5i Research Answer:
We recently posted quarterly comments on PIF. For the quarter, PIF grew at 2.5%, while in fiscal year 2023, the company grew at 25.4%. Yield is just under 4.5%. The company benefits from positive long-term trends of electrification in the long run. It did see declining production in the most recent quarter and it is not cheap at 20x forward earnings. There are operational risks as well with majority of revenue derived from one plant and having those operations located in Nicaragua (political instability). We think it is an OK company, but renewables have struggled of late and PIF has added company specific risks.