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  5. CPX: What do you think of their latest quarter cpx [Capital Power Corporation]
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Investment Q&A

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Q: What do you think of their latest quarter

Asked by don on February 28, 2022
5i Research Answer:

EPS of $0.47 missed estimates of $0.6316 and revenues of $672M beat estimates of $553.99M. This is one of many previous earnings misses in CPX's history, and while the company is still profitable, it is not a trend that we like to see. The company extended its 5% annual dividend growth guidance to 2025 and noted its strong progress towards removing all coal-based operations. Revenues decreased by ~2% for the year and net income decreased from $136.0M in 2020 to $98.0M in 2021. Gross profit margins slipped for the year compared to the previous year, and as a result net income declined as well. The company has a strong balance sheet and pays a good dividend of 5.6%. While the company did not experience explosive growth or profitability, it made good progress on its initiatives, and as a stable utilities play with a good dividend yield, we think that we would be OK with owning some here.