CLP Holdings (CLPHY) AI Stock Analysis

• Market Cap: $23.23B
• Dividend Yield: 4.16%
• Average Volume (3M): 2.11K
• Price to Earnings (P/E): 15.9
• Beta (1Y): 0.06
• Revenue Growth: 2.41%
• EPS Growth: 51.83%
• Country: US
• Employees: 7,069
• Sector: Utilities
• Sector Strength: 65
• Industry: Regulated Electric
• EPS (TTM): N/A
• Shares Outstanding: 2,526,450,700
• 10 Day Avg. Volume: 0
• 30 Day Avg. Volume: 2,108
• PEG Ratio: 0.18
• Price to Book (P/B): 1.56
• Price to Sales (P/S): 1.79
• P/FCF Ratio: 23.77
• Enterprise Value/Market Cap: 10.04
• Enterprise Value/Revenue: 2.60
• Enterprise Value/Gross Profit: 8.08
• Enterprise Value/Ebitda: 9.44
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 71 Outperform
• Price Target: $9.50 ▲(4.40% Upside)

CLP Holdings demonstrates strong financial performance with solid revenue growth and profitability, supported by positive technical indicators. The valuation is fair, with a decent dividend yield. The absence of earnings call data and corporate events does not impact the score.

Positive Factors

Strong Core Business in Hong Kong

The reliable operations and investments in Hong Kong ensure a stable revenue stream, demonstrating the company's strong market position and operational efficiency in a key region.

Strategic Partnerships and Energy Transition

Strategic partnerships enhance CLP's capabilities in energy transition, aligning with global trends and positioning the company for long-term growth in renewable energy.

Investment in Renewable and Flexible Capacity

Investments in renewable and flexible capacity support CLP's commitment to sustainability, ensuring future revenue growth and compliance with decarbonization initiatives.

Negative Factors

Decreased Earnings

The decline in earnings indicates potential challenges in maintaining profitability, which could impact financial stability and investor confidence if not addressed.

Market Challenges in China and Australia

Challenges in key markets like China and Australia could hinder growth and profitability, requiring strategic adjustments to navigate competitive and regulatory landscapes.

Lower Renewable Earnings in China

Decreased renewable earnings in China highlight the volatility and risks associated with renewable energy investments, potentially affecting long-term revenue stability.

CLP Holdings Business Overview & Revenue Model

Company Description

CLP Holdings Limited, an investment holding company, engages in the generation, transmission, and distribution of electricity in Hong Kong, Mainland China, India, Southeast Asia, Taiwan, and Australia. The company generates electricity through coal, gas, nuclear, and renewable resources, such as wind, hydro, and solar. It serves 5.15 million retail customers in Hong Kong and Australia. The company is also involved in the provision of pumped storage services, and energy and infrastructure solutions; property investment activities; and retail of electricity and gas. It has generating capacity of 20,018 equity megawatts; and 16,834 kilometers of transmission and high voltage distribution lines. CLP Holdings Limited was founded in 1901 and is based in Hung Hom, Hong Kong.

How the Company Makes Money

CLP Holdings generates revenue through several key streams. The primary source is the sale of electricity to residential, commercial, and industrial customers in Hong Kong and other markets where it operates. The company also earns revenue from its investments in renewable energy projects, which not only provide power but may also benefit from government incentives and subsidies aimed at promoting sustainable energy. Additionally, CLP Holdings has strategic partnerships with local and international entities, enabling joint ventures in energy projects and facilitating access to broader markets. The company’s diversified energy portfolio, which includes both traditional and renewable sources, allows it to adapt to changing regulatory environments and consumer demands, further stabilizing its revenue base.

CLP Holdings Financial Statement Overview

Summary

CLP Holdings has shown solid revenue growth and improved profitability with a gross profit margin of 32.25% and a net profit margin of 13.06%. The balance sheet reflects a moderate debt-to-equity ratio of 0.63 and a return on equity of 11.41%. Cash flow is robust, but there is volatility in free cash flow, which poses a risk.

Income Statement

CLP Holdings has shown a solid revenue growth rate of 4.36% from 2023 to 2024, which is a positive indicator. The gross profit margin improved to 32.25% in 2024, indicating efficient cost management. EBIT and EBITDA margins have also improved to 16.38% and 29.42%, respectively, reflecting stronger operating performance. The net profit margin increased to 13.06%, showing enhanced profitability. However, the volatility in these metrics over the years, especially the sharp fluctuations in net income, suggests a need for more stability.

Balance Sheet

The debt-to-equity ratio stands at 0.63 in 2024, indicating a moderate level of leverage. Return on equity improved to 11.41%, highlighting efficient use of equity to generate profits. The equity ratio of 44.52% suggests a balanced capital structure. Nonetheless, the overall liabilities have been increasing, which could pose a risk if not managed effectively.

Cash Flow

Operating cash flow is robust at 23,140 million in 2024, and the free cash flow has shown positive growth after a dip in previous years. The operating cash flow to net income ratio is strong, indicating good cash generation relative to net income. However, the free cash flow to net income ratio has fluctuated significantly, signaling potential volatility in cash flows.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	89.73B	90.96B	87.17B	100.66B	83.96B	79.59B
Gross Profit	28.89B	29.33B	28.53B	18.86B	26.63B	28.04B
EBITDA	24.72B	26.76B	21.07B	12.18B	22.13B	25.60B
Net Income	11.64B	11.88B	6.79B	1.06B	8.63B	11.59B
Balance Sheet
Total Assets	240.48B	233.71B	229.05B	236.03B	239.81B	234.23B
Cash, Cash Equivalents and Short-Term Investments	3.02B	4.98B	5.19B	11.56B	11.95B	13.91B
Total Debt	65.56B	65.30B	57.72B	59.45B	58.43B	54.57B
Total Liabilities	124.83B	123.59B	116.67B	120.33B	113.10B	108.26B
Stockholders Equity	109.66B	104.06B	106.22B	109.39B	116.92B	116.09B
Cash Flow
Free Cash Flow	5.17B	6.84B	10.39B	-2.90B	4.50B	11.01B
Operating Cash Flow	22.02B	23.14B	23.57B	12.73B	18.08B	22.37B
Investing Cash Flow	-14.32B	-16.22B	-9.47B	-15.38B	-11.82B	-10.08B
Financing Cash Flow	-7.77B	-7.04B	-13.14B	-987.00M	-8.48B	-10.21B

CLP Holdings Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 9.10
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Negative
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For CLPHY, the sentiment is Positive. The current price of 9.1 is above the 20-day moving average (MA) of 8.98, above the 50-day MA of 8.81, and above the 200-day MA of 8.42, indicating a bullish trend. The MACD of 0.11 indicates Negative momentum. The RSI at 72.19 is Negative, neither overbought nor oversold. The STOCH value of 97.44 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for CLPHY.

CLP Holdings Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
CLPHY	71 Outperform	$23.23B	15.85	10.96%	4.16%	2.41%	51.83%
CMS	67 Neutral	$21.58B	20.47	12.34%	3.10%	10.96%	-0.77%
FE	67 Neutral	$26.66B	20.05	10.54%	3.94%	7.64%	48.61%
ES	66 Neutral	$26.24B	19.22	8.65%	4.54%	13.12%	―
PPL	66 Neutral	$25.74B	23.80	7.65%	3.13%	8.42%	32.48%
Sector *	66 Neutral	$17.65B	18.10	5.60%	3.62%	6.62%	11.55%
DTE	65 Neutral	$27.82B	20.07	11.64%	3.45%	19.42%	-9.68%