Innergex Renewable Energy (INE) AI Stock Analysis

• Market Cap: C$2.80B
• Dividend Yield: 2.61%
• Average Volume (3M): 617.63K
• Price to Earnings (P/E): 70.3
• Beta (1Y): 0.87
• Revenue Growth: 0.97%
• EPS Growth: N/A
• Country: CA
• Employees: 600
• Sector: Utilities
• Sector Strength: 75
• Industry: Renewable Utilities
• EPS (TTM): -0.07
• Shares Outstanding: 203,125,030
• 10 Day Avg. Volume: 454,321
• 30 Day Avg. Volume: 617,626
• 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: C$13.75
• Price Target Upside: -0.36% Downside
• Rating Consensus: Hold
• Number of Analyst Covering: 1

• Rating: 67 Neutral
• Price Target: C$15.00 ▲(8.70%Upside)

Innergex Renewable Energy's stock is positively impacted by recent corporate events, including a major acquisition, which suggests a strong future outlook. Technical indicators show bullish momentum, yet high P/E ratio suggests potential overvaluation, balancing the overall score.

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 Inc. operates as an independent renewable power producer in Canada, the United States, France, and Chile. It acquires, owns, develops, and operates hydroelectric facilities, and wind and solar farms, as well as energy storage facilities. The company operates through three segments: Hydroelectric Power Generation, Wind Power Generation, and Solar Power Generation. As of February 23, 2022, it owned and operated 80 facilities with a net installed capacity of 3,101 megawatts, which included 40 hydroelectric facilities, 33 watersheds, 32 wind farms, and 8 solar farms; and had interests in under development and prospective projects at various stages of development. Innergex Renewable Energy Inc. was founded in 1990 and is headquartered in Longueuil, Canada.

How the Company Makes Money

Innergex Renewable Energy generates revenue primarily 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 energy consumers, which provide stable and predictable cash flows. These agreements are crucial as they lock in prices for the electricity generated, reducing exposure to market volatility. Additionally, Innergex benefits from government incentives and subsidies related to renewable energy production, which can enhance profitability. The company's strategic partnerships and joint ventures also play a significant role in expanding its project pipeline and accessing new markets, further contributing to its revenue streams.

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
	EBIT
284.91M	273.53M	219.57M	301.20M	269.50M	236.73M
	EBITDA
702.97M	690.77M	531.32M	522.99M	486.78M	463.95M
	Net Income Common Stockholders
45.37M	15.89M	-98.45M	-91.11M	-185.39M	-29.11M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
97.97M	181.28M	159.24M	162.97M	166.27M	161.47M
	Total Assets
6.71B	9.44B	8.94B	8.60B	7.40B	7.15B
	Total Debt
4.71B	6.86B	6.56B	6.03B	5.08B	4.99B
	Net Debt
4.62B	6.68B	6.40B	5.86B	4.92B	4.83B
	Total Liabilities
5.80B	7.92B	7.73B	7.12B	6.04B	6.08B
	Stockholders Equity
599.59M	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: 13.80
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Negative

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 13.8 is above the 20-day moving average (MA) of 13.72, above the 50-day MA of 13.62, and above the 200-day MA of 10.56, indicating a bullish trend. The MACD of 0.06 indicates Positive momentum. The RSI at 69.79 is Neutral, neither overbought nor oversold. The STOCH value of 86.95 is Negative, 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	72 Outperform	$5.69B	21.84	6.08%	5.50%	-5.33%	―
INE	67 Neutral	C$2.80B	70.26	4.20%	2.61%	0.97%	―
Sector *	64 Neutral	$8.53B	10.36	4.25%	5.86%	4.06%	-12.76%
PIF	64 Neutral	C$248.90M	59.81	-4.70%	7.10%	-1.45%	-210.16%
BLX	62 Neutral	C$3.35B	304.49	0.67%	2.02%	-16.63%	-87.78%
AQN	56 Neutral	$6.04B	―	5.54%	4.75%	-4.74%	-213.24%
LCFS	46 Neutral	C$99.76M	―	-107.29%	―	97.32%	-2916.07%

Innergex Renewable Energy Corporate Events

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.

Innergex Gains Proxy Advisor Support for CDPQ Arrangement

Innergex Renewable Energy Inc. has received a positive recommendation from Glass Lewis, a leading independent proxy advisor, for its shareholders to vote in favor of a proposed arrangement with CDPQ. This endorsement, along with a similar recommendation from ISS, highlights the significant premium and value that shareholders stand to gain. The arrangement offers Innergex Common Shareholders $13.75 per share and Innergex Series A Preferred Shareholders $25.00 per share, plus additional dividends, marking a strategic move to enhance shareholder value.

ISS Endorses Innergex’s Arrangement with CDPQ, Highlighting Attractive Premium

Innergex Renewable Energy Inc. has announced that Institutional Shareholder Services Inc. (ISS), a leading independent proxy advisor, recommends shareholders vote in favor of the company’s arrangement with CDPQ. The arrangement offers a significant premium to shareholders, with a 58% increase over the closing price on February 24, 2025. ISS’s endorsement highlights the attractive cash offer and the potential risks of non-approval due to economic and political issues. The arrangement is part of a broader strategy to enhance shareholder value and strengthen Innergex’s market position in the renewable energy sector.

Innergex Advances in French Solar Market with New Projects

Innergex Renewable Energy Inc. has reached a significant milestone with the selection of two solar projects totaling 32 MW in Joux-la-Ville, France. These agrivoltaic projects, part of the Grenier des Essences portfolio, are Innergex’s first solar initiatives in France and highlight a collaborative effort with local farmers and officials. The projects aim to integrate renewable energy production with agricultural reconversion, promoting the growth of aromatic and medicinal plants. The electricity generated will be sold under a 20-year power purchase agreement, marking a promising step for Innergex’s future development activities in France.

Innergex Renewable Energy Proceeds with Going-Private Transaction with CDPQ

Innergex Renewable Energy Inc. has announced the filing of materials for its upcoming annual and special meeting of shareholders, where a significant going-private transaction with CDPQ will be considered. The arrangement involves CDPQ acquiring all outstanding common and preferred shares of Innergex, with the transaction being recommended by a special committee and the board of directors as fair and in the best interests of shareholders, excluding CDPQ and certain senior management members.

Innergex Launches Hale Kuawehi Solar and Battery Storage Project in Hawaii

Innergex Renewable Energy Inc. has announced the commercial operation of its Hale Kuawehi Solar and Battery Storage Project in Hawaii, which combines 30 MW of solar photovoltaic capacity with 30 MW/120 MWh of battery storage. This project, which sells electricity under a 25-year agreement with Hawaii Electric Light Company, marks a significant step in Hawaii’s transition to a carbon-free electric system and underscores Innergex’s dedication to sustainable energy solutions.