Innergex Renewable Energy (INE) AI Stock Analysis

• Market Cap: $2.79B
• Dividend Yield: 2.62%
• Average Volume (3M): 575.01K
• Price to Earnings (P/E): 70.0
• Beta (1Y): 0.90
• Revenue Growth: 0.97%
• EPS Growth: N/A
• Country: CA
• Employees: 600
• Sector: Utilities
• Sector Strength: 80
• Industry: Renewable Utilities
• EPS (TTM): -0.07
• Shares Outstanding: 136,667,000
• 10 Day Avg. Volume: 739,549
• 30 Day Avg. Volume: 575,011
• PEG Ratio: 0.29
• Price to Book (P/B): 2.53
• Price to Sales (P/S): 0.00
• P/FCF Ratio: -18.54
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: $13.75
• Price Target Upside: 0.07% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 1

• Rating: 72 Outperform
• Price Target: $15.50 ▲(12.81%Upside)

The overall score is driven by strong corporate events and solid technical analysis. However, high debt levels and valuation concerns weigh on the financial performance score. The stock's positive momentum is reinforced by strategic corporate actions.

Positive Factors

Financial Outlook

Analyst maintains an Outperform rating due to the ~25% potential total return to the unchanged $11 target, suggesting a promising financial outlook.

Growth Opportunities

Premium hydro assets and improved balance sheet flexibility from the recent dividend reset open up new growth opportunities for the company.

Renewable Energy Projects

There are 882MW of renewable projects in advanced stages, with 570MW already having secured contracts, indicating strong future growth potential.

Negative Factors

Contractual Dependence

The reliance on a 25-year inflation indexed PPA for the Portneuf hydro facility refinancing could expose the company to long-term contractual risks.

Market Performance

Shares have experienced significant underperformance during a sell-off in the renewables sector, which may raise concerns among investors.

Project Risks

The Boswell Springs project, still under construction, faces a deadline for commissioning by Q4/24, which could pose risks if delays occur.

Innergex Renewable Energy Business Overview & Revenue Model

Company Description

Innergex Renewable Energy (INE) is a Canadian independent renewable power producer, primarily engaged in the development, ownership, and operation of renewable energy facilities across North America, South America, and Europe. The company focuses on three main sectors: hydroelectric, wind, and solar power. Innergex is committed to producing sustainable energy solutions and contributes to the global transition towards a low-carbon economy.

How the Company Makes Money

Innergex Renewable Energy generates revenue predominantly through the sale of electricity produced by its renewable energy facilities. The company enters into long-term power purchase agreements (PPAs) with utilities and other large-scale energy purchasers, ensuring a steady and predictable income stream. Additionally, Innergex participates in government incentive programs and renewable energy credit markets, further enhancing its revenue potential. Significant partnerships, such as joint ventures with other energy companies and collaborations with local governments, also play a crucial role in expanding its operational capacity and reach, thereby contributing to its earnings.

Innergex Renewable Energy Financial Statement Overview

Summary

Innergex Renewable Energy demonstrates growth in revenues and operational efficiency, with stable EBIT and EBITDA margins. However, the high debt levels and negative Free Cash Flow indicate potential financial risk, particularly in managing capital expenditures and liquidity.

Income Statement

Innergex Renewable Energy's income statement shows a positive trend in revenue growth with Total Revenue increasing from previous periods, notable in the TTM (Trailing-Twelve-Months) data. The Gross Profit Margin is healthy, indicating efficient production processes. However, the company has experienced fluctuating Net Income, impacting the Net Profit Margin. EBITDA and EBIT margins are stable, reflecting operational efficiency.

Balance Sheet

The balance sheet shows a high Debt-to-Equity Ratio, which could be a risk factor due to high leverage. The Return on Equity is improving, suggesting better utilization of equity. However, the Equity Ratio indicates a lower proportion of equity financing, which might expose the company to financial risk if liabilities increase.

Cash Flow

The cash flow statement indicates a stable Operating Cash Flow, but Free Cash Flow has been negative, suggesting high capital expenditures. The Operating Cash Flow to Net Income Ratio is strong, showing good cash generation relative to net income. However, the Free Cash Flow to Net Income Ratio highlights potential liquidity challenges.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	995.52M	952.45M	1.04B	870.49M	747.21M	613.21M
Gross Profit	1.10B	1.05B	781.62M	326.67M	342.46M	481.76M
EBITDA	702.97M	690.77M	531.32M	522.99M	486.78M	463.95M
Net Income	45.37M	15.89M	-98.45M	-91.11M	-185.39M	-29.11M
Balance Sheet
Total Assets	9.56B	9.44B	8.94B	8.60B	7.40B	7.15B
Cash, Cash Equivalents and Short-Term Investments	180.61M	181.28M	159.24M	162.97M	166.27M	161.47M
Total Debt	6.65B	6.86B	6.56B	6.03B	5.08B	4.99B
Total Liabilities	8.08B	7.92B	7.73B	7.12B	6.04B	6.08B
Stockholders Equity	1.10B	1.13B	1.09B	1.32B	1.09B	1.01B
Cash Flow
Free Cash Flow	-150.41M	-144.03M	-389.35M	278.91M	14.88M	-283.49M
Operating Cash Flow	279.02M	292.17M	297.85M	430.24M	265.50M	235.11M
Investing Cash Flow	-716.16M	-438.22M	-633.71M	-635.77M	-667.05M	-725.61M
Financing Cash Flow	192.21M	161.77M	333.28M	133.15M	414.08M	492.48M

Innergex Renewable Energy Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 13.74
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For TSE:INE, the sentiment is Positive. The current price of 13.74 is above the 20-day moving average (MA) of 13.72, above the 50-day MA of 13.66, and above the 200-day MA of 10.97, indicating a bullish trend. The MACD of 0.02 indicates Positive momentum. The RSI at 62.52 is Neutral, neither overbought nor oversold. The STOCH value of 66.67 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for TSE:INE.

Innergex Renewable Energy Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
NPI	73 Outperform	$5.92B	22.73	6.08%	5.43%	-5.33%	―
INE	72 Outperform	$2.79B	69.96	4.20%	2.62%	0.97%	―
Sector *	72 Outperform	€12.98B	45.98	11.98%	4.61%	0.14%	7.58%
PIF	62 Neutral	C$261.45M	59.81	-4.34%	6.73%	4.98%	-244.98%
BLX	56 Neutral	C$3.24B	294.58	0.67%	2.10%	-16.63%	-87.78%
AQN	56 Neutral	C$6.27B	―	5.54%	4.45%	-4.74%	-213.24%
LCFS	50 Neutral	C$94.67M	―	-107.29%	―	97.32%	-2916.07%

Innergex Renewable Energy Corporate Events

Innergex Completes Acquisition by La Caisse, Plans Delisting

Innergex Renewable Energy Inc. has completed its acquisition by La Caisse, with La Caisse acquiring all common and preferred shares of Innergex. This acquisition, structured as a plan of arrangement, involves La Caisse syndicating 20% of its invested capital to like-minded investors, and certain senior management members reinvesting in the privatized company. The acquisition is expected to result in the delisting of Innergex’s shares and debentures from the Toronto Stock Exchange, and the company has applied to cease being a reporting issuer in Canada.

The most recent analyst rating on (TSE:INE) stock is a Hold with a C$11.00 price target. To see the full list of analyst forecasts on Innergex Renewable Energy stock, see the TSE:INE Stock Forecast page.

Innergex Secures Regulatory Approval for Acquisition by La Caisse

Innergex Renewable Energy Inc. has received all necessary regulatory approvals for its acquisition by La Caisse, expected to close around July 21, 2025. The company will terminate its dividend reinvestment plan in connection with this arrangement. The acquisition, approved by shareholders and the Superior Court of Québec, is anticipated to impact Innergex’s operations by potentially enhancing its market positioning and providing benefits to shareholders.

The most recent analyst rating on (TSE:INE) stock is a Hold with a C$11.00 price target. To see the full list of analyst forecasts on Innergex Renewable Energy stock, see the TSE:INE Stock Forecast page.

Innergex to Repay Convertible Debentures at Maturity

Innergex Renewable Energy Inc. announced its plan to repay in full its 4.75% convertible unsecured subordinated debentures upon their maturity on June 30, 2025. The repayment will be executed using approximately $151.5 million drawn from its revolving credit facility, and the debentures will be delisted from the Toronto Stock Exchange. This move is part of Innergex’s ongoing strategy to manage its financial obligations and strengthen its position in the renewable energy sector.

The most recent analyst rating on (TSE:INE) stock is a Hold with a C$11.00 price target. To see the full list of analyst forecasts on Innergex Renewable Energy stock, see the TSE:INE Stock Forecast page.

Innergex to Redeem 4.75% Convertible Debentures

Innergex Renewable Energy Inc. announced its plan to fully redeem its 4.75% convertible unsecured subordinated debentures due June 30, 2025. The redemption will be executed on the same date, with the company drawing approximately $151.5 million from its revolving credit facility to fund the redemption. This move will result in the debentures being delisted from the Toronto Stock Exchange, potentially impacting the company’s financial structure and market positioning.

The most recent analyst rating on (TSE:INE) stock is a Hold with a C$11.00 price target. To see the full list of analyst forecasts on Innergex Renewable Energy stock, see the TSE:INE Stock Forecast page.

Innergex and MMBC Secure Financing for Mesgi’g Ugju’s’n 2 Wind Project

Innergex Renewable Energy Inc. and Mi’gmawei Mawiomi Business Corporation (MMBC) have secured financing for the 102 MW Mesgi’g Ugju’s’n 2 Wind Project, a significant step in their collaboration with Mi’gmaq communities in Quebec. The project, which is an extension of an existing wind facility, highlights the potential of Indigenous-led clean energy initiatives and is expected to enhance regional economic impact and sustainability. Upon completion in 2026, the project will operate under a 30-year power purchase agreement with Hydro-Québec, demonstrating innovative financial structuring and strong partnerships with key financial institutions.

The most recent analyst rating on (TSE:INE) stock is a Hold with a C$11.00 price target. To see the full list of analyst forecasts on Innergex Renewable Energy stock, see the TSE:INE Stock Forecast page.

Innergex to be Acquired by CDPQ Amid Strong Q1 Results

Innergex Renewable Energy Inc. has announced a definitive agreement to be acquired by CDPQ for $13.75 per common share, a move approved by an overwhelming majority of its shareholders. The company also reported a 7% increase in Adjusted EBITDA Proportionate for Q1 2025, reaching $181.9 million, and highlighted the commercial operation of its Hale Kuawehi solar facility in Hawaii. This acquisition is expected to take Innergex private by Q4 2025, potentially strengthening its market position and operational capabilities in the renewable energy sector.

Innergex Shareholders Approve CDPQ Acquisition

Innergex Renewable Energy announced that its shareholders have approved a statutory plan of arrangement for CDPQ to acquire all outstanding common and preferred shares, with the transaction expected to complete by Q4 2025, pending regulatory approvals. Additionally, all nominees for the board of directors were elected, and the company plans to release its financial results for Q1 2025 on May 7, 2025, without a conference call due to the acquisition.