Polaris Infrastructure (PIF) AI Stock Analysis

• Market Cap: C$239.10M
• Dividend Yield: 7.33%
• Average Volume (3M): 37.11K
• Price to Earnings (P/E): 58.6
• Beta (1Y): 0.90
• Revenue Growth: -2.08%
• EPS Growth: -75.32%
• Country: CA
• Employees: 205
• Sector: Utilities
• Sector Strength: 92
• Industry: Renewable Utilities
• EPS (TTM): 0.18
• Shares Outstanding: 21,065,742
• 10 Day Avg. Volume: 29,148
• 30 Day Avg. Volume: 37,108
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): 2.30
• Price to Cash Flow (P/CF): -5.50
• P/FCF Ratio: 0.00
• 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$21.00
• Price Target Upside: 87.67% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 2

Polaris Infrastructure's overall stock score of 62 reflects a balanced outlook. Strengths include efficient operations, strong cash flow, and strategic expansions, such as the acquisition of the Punta Lima Wind Farm. However, weaknesses in revenue growth, profitability, and technical indicators present challenges. Overvaluation risks are partially offset by a high dividend yield. The company's ability to address these areas will be crucial for future performance.

Polaris Infrastructure Business Overview & Revenue Model

Company Description

Polaris Infrastructure Inc. (PIF) is a Toronto-based renewable energy company focused primarily on the acquisition, development, and operation of renewable energy projects in Latin America. The company specializes in geothermal energy projects, with significant operations in Nicaragua. As a leader in sustainable energy solutions, Polaris Infrastructure is committed to delivering clean and reliable power while maintaining a strong focus on environmental and social responsibility.

How the Company Makes Money

Polaris Infrastructure generates revenue through the production and sale of electricity from its geothermal power plants. Its primary revenue stream comes from long-term power purchase agreements (PPAs) with local utilities and government entities, which provide a stable and predictable income. The company capitalizes on its expertise in geothermal energy to maintain high operational efficiency and maximize energy output. Additionally, Polaris Infrastructure may engage in strategic partnerships or acquisitions to expand its project portfolio and enhance its earning potential, although the specifics of such partnerships or acquisitions are not detailed.

Polaris Infrastructure Financial Statement Overview

Summary

Polaris Infrastructure presents a mixed financial picture. While operational efficiencies and cash flow management are commendable, challenges in revenue growth and profitability persist. The balance sheet remains stable but requires attention to equity management and return optimization. Overall, the company's financial health is solid but with areas that need strategic focus to ensure sustainable growth and profitability.

Income Statement

Polaris Infrastructure shows a fluctuating revenue pattern with a recent decline from the previous year, impacting the overall growth trajectory. However, the company maintains a healthy gross profit margin, indicating efficient cost management. The net profit margin has weakened due to decreased net income, affecting overall profitability. Despite these challenges, EBIT and EBITDA margins remain robust, reflecting strong operational efficiency.

Balance Sheet

The balance sheet reveals a moderate debt-to-equity ratio, indicating a balanced financial structure. However, the decline in stockholders' equity over the years poses a concern. Return on equity is relatively low, impacted by reduced net income, suggesting room for improvement in generating returns on shareholders' investments. The equity ratio indicates a stable capital structure, though there is potential risk if liabilities increase.

Cash Flow

Polaris Infrastructure's cash flow statements demonstrate solid operating cash flow, consistently covering net income, which underscores strong cash generation from operations. Free cash flow has shown growth, indicating improved liquidity and financial flexibility. The operating cash flow to net income ratio is strong, supporting the company's ability to convert earnings into cash effectively.

Breakdown
Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement		Total Revenue
75.77M	78.52M	62.60M	59.52M	74.72M
	Gross Profit
32.81M	67.29M	25.19M	22.75M	38.77M
	EBIT
19.45M	28.04M	17.61M	15.92M	37.87M
	EBITDA
49.84M	56.99M	45.24M	45.69M	78.59M
	Net Income Common Stockholders
2.99M	11.74M	2.50M	501.00K	28.84M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
213.31M	40.05M	35.33M	97.93M	60.06M
	Total Assets
662.11M	519.40M	535.10M	502.70M	491.12M
	Total Debt
317.70M	175.12M	187.33M	170.99M	189.99M
	Net Debt
104.39M	135.07M	152.00M	73.06M	129.93M
	Total Liabilities
402.58M	249.47M	264.89M	241.88M	264.35M
	Stockholders Equity
259.75M	269.34M	269.68M	262.76M	228.75M
Cash Flow		Free Cash Flow
31.69M	32.57M	1.02M	32.72M	33.42M
	Operating Cash Flow
35.05M	43.96M	33.51M	41.13M	40.31M
	Investing Cash Flow
-3.31M	-11.38M	-65.99M	-10.15M	-2.85M
	Financing Cash Flow
141.51M	-27.71M	-30.13M	6.89M	-9.99M

Polaris Infrastructure Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 11.19
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For TSE:PIF, the sentiment is Negative. The current price of 11.19 is below the 20-day moving average (MA) of 11.85, below the 50-day MA of 12.12, and below the 200-day MA of 12.22, indicating a bearish trend. The MACD of -0.11 indicates Positive momentum. The RSI at 43.36 is Neutral, neither overbought nor oversold. The STOCH value of 17.09 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for TSE:PIF.

Polaris Infrastructure Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
NPI	73 Outperform	$4.84B	17.98	6.48%	6.61%	5.08%	―
INE	70 Outperform	C$2.73B	265.29	1.44%	2.68%	2.60%	―
BEPC	70 Outperform	$8.68B	29.60	6.15%	5.62%	-8.26%	―
Sector *	65 Neutral	$11.66B	15.54	6.23%	4.52%	5.50%	-9.06%
BLX	64 Neutral	C$2.66B	74.02	2.23%	2.54%	-16.54%	-53.85%
PIF	62 Neutral	C$239.10M	58.63	1.08%	7.33%	-2.08%	-75.32%
AQN	51 Neutral	$5.29B	―	1.65%	7.19%	-6.72%	-6766.85%

Polaris Infrastructure Corporate Events

Polaris Renewable Energy Schedules Q1 2025 Earnings Call

Polaris Renewable Energy Inc. has announced its Q1 2025 Earnings Conference Call and Webcast scheduled for May 1, 2025. This event will provide insights into the company’s financial performance and strategic direction, potentially impacting its operations and positioning in the renewable energy sector.

Polaris Renewable Energy Expands with Puerto Rico Wind Farm Acquisition

Polaris Renewable Energy Inc. has completed the acquisition of Punta Lima Wind Farm LLC in Puerto Rico, marking a strategic expansion into wind energy. The acquisition, structured through a tax-equity agreement with Santander Bank, positions Polaris as the manager and operator of the 26 MW wind farm, with a 20-year power purchase agreement in place. This move is expected to provide attractive returns and growth opportunities, including potential energy storage solutions and further strategic developments on the island.

Polaris Renewable Energy Reports 2024 Results and Strategic Developments

Polaris Renewable Energy reported a slight increase in energy production for the fourth quarter of 2024, despite an annual decline due to lower production from its geothermal facility in Nicaragua. The company also closed a significant $175 million green bond placement to refinance debt and invest in renewable assets. Notably, Polaris completed a solar panel optimization project in the Dominican Republic and signed an agreement for a wind farm project in Puerto Rico, indicating strategic efforts to enhance operational efficiency and expand its renewable energy portfolio.

Polaris Renewable Energy Declares Q1 Dividend, Reinforces Financial Stability

Polaris Renewable Energy Inc. has announced a quarterly dividend of US$0.15 per common share, demonstrating their commitment to returning value to shareholders. This decision underscores the company’s stable financial performance and dedication to maintaining a consistent dividend policy, which could positively influence investor confidence and support its strategic positioning in the renewable energy sector.

Polaris Renewable Energy Schedules 2024 Financial Results Announcement

Polaris Renewable Energy announced that it will release its Q4 and annual 2024 financial results on February 20, 2025, during an earnings conference call and webcast. This event will provide stakeholders with insights into the company’s financial performance over the past year, potentially impacting its market position and future strategic endeavors.