Review of Capital Power

DEC 07, 2023 - CPX’s third quarter was solid displaying growth in EPS, revenue, and EBITDA. Full year guidance is expecting adjusted EBITDA and adjusted funds from operations (AFFO) to come in just below the midpoint of guidance. CPX has a cheap valuation due to weak EPS and revenue growth projections for the next two years. CPX recently completed two acquisitions that were fully accretive for $1.1 billion, which will help better position CPX for the long run. The valuation is attractive, but it is important to note that CPX will be more of a longterm play with a weak short-term outlook. We have maintained our rating at a B+ due to this outlook.

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Q: Thank you for your ranking of Canadian utilities last week-our investment club had a lengthy discussion yesterday afternoon over the rankings. I found it difficult to defend BIP.UN as first pick with 6:1 debt, meagre/erratic EPS, and growing share dilution vs CPX having similar posted growth rates, 1.5:1 debt, decent EPS and slower share dilution. Any assistance and clarification on this greatly appreciated. Thank you

Read Answer Asked by Delbert on April 16, 2024

Q: Hello,

Thank you for all you do.

For a 5-10 yr hold, could you rank the above on total shareholder return vs risk (I am thinking debt exposure/interest rate risk), but there may be others.

Thank you

Read Answer Asked by Delbert on April 12, 2024

Q: A lot of market commentators are observing that there is potentially a correction ahead. Ordinarily I would follow your long standing thought to not try to time the market and I would simply stay the course. But one income oriented account I am concerned with has a priority of capital preservation. These 7 named stocks make up about 1/2 of the holdings. Can you please provide your quick assessment whether they are reasonably safe in the event of a downturn. If not and they are more exposed to a decline, would trimming be sufficient or are there some other names to migrate to protect the account assets?

Many thanks for your excellent service

Read Answer Asked by Leonard on April 09, 2024