# CAPITAL POWER CORPORATION (CPX.TO) fundamentals

Data as of 2026-09-08. TSX, Canada. Sector: Utilities / Independent Power and Renewable Electricity Producers. Price C$63.03, market value C$9.9 billion.

## Valuation
- **P/E (trailing): 110.6×** (5-yr avg 41.7×, 3-yr avg 27.4×). CAPITAL POWER CORPORATION trades at 110.6× trailing earnings, well above its own five-year average of 41.7×: investors are paying up relative to the company's past. The Utilities median in the September 2026 study was 21.2×. Forward P/E is 21.9×, lower than trailing, so analysts expect earnings to grow.
- **Price / sales: 2.7×**. Each dollar of revenue is priced at 2.7×.
- **Price / book: 2.3×**. The shares trade at 2.3× book value; book value is a meaningful part of the valuation.
- **EV / EBITDA: 14.8×**. Enterprise value is 14.8× operating earnings before depreciation, the multiple that ignores how the company is financed.
- **Free-cash-flow yield: 2.0%** (5-yr avg 2.5%). Free cash flow equals 2.0% of the market value, below its five-year average of 2.5%, so the shares are pricier on cash than usual.
- **Earnings yield: 0.9%**. The inverse of the P/E: 0.9% of the price is earned each year.

## Profitability
- **Gross margin: 5.0%**. CAPITAL POWER CORPORATION keeps 5.0% of revenue after the direct cost of what it sells, a thin margin typical of retail, distribution and commodity businesses.
- **Operating margin: -10.1%**. Operating margin is negative: the business loses money before interest and tax.
- **Net margin: 4.8%**. 4.8% of each dollar of sales reaches the bottom line.
- **Return on equity: 3.3%**. 3.3% on shareholders' equity is weak; the business earns little on the capital its owners have in it.
- **Return on invested capital: -3.2%**. Return on all capital, debt included, is -3.2%: close to or below the cost of capital, so growth may not create value.
- **Return on assets: 0.7%**. Each dollar of assets produces 0.7% of profit.

## Growth
- **Revenue growth (1 yr): 12.6%** (3-yr -9.6%/yr, 5-yr 11.8%/yr). Revenue grew 12.6% over the last year, against 11.8% a year compounded over five years.
- **EPS growth (1 yr): -82.9%** (3-yr 1.4%/yr, 5-yr 2.6%/yr). Earnings per share fell 82.9%, slower than revenue, so margins compressed.
- **Free-cash-flow growth (3 yr): -39.9%/yr**. Free cash flow has compounded at -39.9% a year over three years, lagging earnings: check whether profits are turning into cash.

## Financial health
- **Debt to equity: 1.42**. Debt is 1.42 times equity, a leveraged balance sheet, which is normal for utilities.
- **Net debt / EBITDA: 6.0×**. It would take 6.0 years of operating earnings to repay net borrowings, above the 3× level most lenders treat as comfortable.
- **Interest coverage: -1.0×**. Operating profit covers interest only -1.0×: fragile.
- **Current ratio: 0.94** (quick 0.75). Current liabilities exceed current assets, so the company depends on ongoing cash generation or refinancing to pay the next year's bills.
- **Altman Z-score: 1.16**. A Z-score of 1.16 is in the distress zone, a signal to examine the balance sheet closely.
- **Piotroski F-score: 3/9**. 3 of 9 checks pass: weak or deteriorating financials.

## Dividends
- **Dividend yield: 4.41%** (C$2.76 per share, trailing). CAPITAL POWER CORPORATION yields 4.41%, an income-level yield.
- **Payout ratio: 211%** (184% of free cash flow). The dividend exceeds earnings (211% payout), which is rarely sustainable outside REITs and one-off years.
- **Consecutive years of increases: 17**. 17 straight years of increases, a record that survived at least one recession.
- **Dividend growth (5 yr): 6.2%/yr** (1-yr 6.0%). The dividend has grown 6.2% a year over five years.

## Analyst view
- **Analyst consensus: buy** (13 analysts). 13 analysts cover CAPITAL POWER CORPORATION; the consensus is buy, with an average price target of C$77.92 (+24% from the current price). Analyst opinion is shown for context; it is not part of the Fundamental Score.

## Price and momentum
- **Total return (1 yr): 15.2%** (YTD 9.8%, 3-mo -8.8%). The shares are up 15.2% over twelve months including dividends.
- **From 52-week high: -18.2%** (11.6% above the low). Trading 18% below its 52-week high.
- **200-day average: below**. The price sits below its 200-day moving average, the usual definition of a downtrend.
- **RSI (14-day): 36**. An RSI of 36 is neutral.
- **Beta (1 yr): 0.83** (volatility 29%). Beta of 0.83 against the S&P/TSX Composite: the shares move roughly with the market.

Live score and charts: https://foliofundamentals.com/analyzer?s=CPX.TO · Page: https://foliofundamentals.com/stocks/cpx.to

Not investment advice.