Polaris Infrastructure (PIF) AI Stock Analysis

• Market Cap: C$265.76M
• Dividend Yield: 7.13%
• Average Volume (3M): 52.49K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.85
• Revenue Growth: 8.26%
• EPS Growth: -267.17%
• Country: CA
• Employees: 205
• Sector: Utilities
• Sector Strength: 65
• Industry: Renewable Utilities
• EPS (TTM): -0.03
• Shares Outstanding: 20,992,033
• 10 Day Avg. Volume: 37,569
• 30 Day Avg. Volume: 52,494
• PEG Ratio: -0.88
• Price to Book (P/B): 0.76
• Price to Sales (P/S): 2.61
• P/FCF Ratio: 6.24
• 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: N/A
• Price Target Upside: N/A
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 51 Neutral
• Price Target: C$12.00 ▲(1.87% Upside)

Polaris Infrastructure's overall score reflects a mix of stable cash flows and improved debt management, countered by profitability challenges and bearish technical indicators. The positive earnings call sentiment and attractive dividend yield provide some support, but the stock faces valuation and technical headwinds.

Positive Factors

Improved Leverage Management

Better leverage management enhances financial stability and reduces risk, allowing for more strategic investments and growth opportunities.

Successful Acquisition Integration

Effective integration of acquisitions like Punta Lima boosts operational capacity and supports strategic growth, strengthening the business model.

Revenue Growth

The revenue growth indicates successful expansion and demand for renewable energy, enhancing long-term revenue stability and market position.

Negative Factors

Increased Financing Activities

Increased cash used for financing activities may strain cash reserves, affecting liquidity and limiting investment in growth initiatives.

Production Declines in Nicaragua

Declining production in key regions like Nicaragua due to maintenance issues could impact revenue and operational efficiency if not addressed.

Profitability Challenges

Negative profit margins indicate operational inefficiencies and profitability issues, which could hinder long-term financial health and investor confidence.

Polaris Infrastructure Business Overview & Revenue Model

Company Description

Polaris Infrastructure Inc. (PIF) is a Canadian-based renewable energy company that focuses on the development, operation, and acquisition of renewable energy projects, primarily in the geothermal sector. The company operates several geothermal power plants in countries such as Nicaragua and the United States, providing sustainable energy solutions. With a commitment to reducing carbon emissions and promoting environmental sustainability, PIF plays a vital role in the global transition towards renewable energy.

How the Company Makes Money

Polaris Infrastructure generates revenue primarily through the sale of electricity produced by its geothermal power plants. The company enters into long-term power purchase agreements (PPAs) with utilities and other energy buyers, ensuring stable cash flows from its operations. Additionally, PIF may generate income through the sale of renewable energy credits (RECs), which can provide an additional revenue stream. The company's strategic focus on developing and acquiring geothermal projects allows for potential expansion and increased earnings. Key partnerships with local governments and energy companies can also enhance its market position and lead to further opportunities for growth.

Polaris Infrastructure Financial Statement Overview

Summary

Polaris Infrastructure shows stable cash flows and improved leverage but faces profitability challenges with negative net income and declining EBIT margins. The balance sheet indicates better debt management, yet the negative return on equity highlights the need for enhanced profitability.

Income Statement

Polaris Infrastructure shows a mixed performance in its income statement. The TTM data indicates a gross profit margin of 43.74%, which is stable compared to previous periods. However, the net profit margin has turned negative at -13.50%, indicating profitability challenges. Revenue growth is modest at 3.90% TTM, but the EBIT margin has decreased to 17.30%, reflecting operational efficiency issues. The EBITDA margin remains strong at 55.30%, suggesting good cash flow generation from operations.

Balance Sheet

The balance sheet reveals a moderate financial position. The debt-to-equity ratio has improved to 0.90 TTM from 1.22, indicating better leverage management. However, the return on equity is negative at -4.16%, reflecting recent losses. The equity ratio is stable, suggesting a balanced asset structure. Overall, the company is managing its debt better but needs to improve profitability to enhance shareholder returns.

Cash Flow

Cash flow analysis shows resilience despite challenges. The operating cash flow to net income ratio is strong at 1.34 TTM, indicating robust cash generation relative to earnings. Free cash flow to net income is also high at 0.95, suggesting efficient cash utilization. However, free cash flow growth is negative at -8.56%, highlighting potential cash flow constraints. The company maintains a solid cash flow position, but growth is a concern.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	78.37M	75.77M	78.52M	62.60M	59.52M	74.72M
Gross Profit	34.28M	32.81M	35.92M	25.19M	22.75M	38.77M
EBITDA	43.34M	49.84M	54.64M	40.90M	45.69M	78.59M
Net Income	-10.58M	2.99M	11.74M	2.50M	501.00K	28.84M
Balance Sheet
Total Assets	549.59M	662.11M	519.40M	535.10M	502.70M	491.12M
Cash, Cash Equivalents and Short-Term Investments	86.09M	213.31M	40.05M	35.33M	97.93M	60.06M
Total Debt	220.22M	317.70M	175.12M	187.33M	170.99M	189.99M
Total Liabilities	304.85M	402.58M	249.47M	264.89M	241.88M	264.35M
Stockholders Equity	244.86M	259.75M	269.34M	269.68M	262.76M	228.75M
Cash Flow
Free Cash Flow	32.89M	31.69M	32.57M	1.02M	32.72M	33.42M
Operating Cash Flow	34.60M	35.05M	43.96M	33.51M	41.13M	40.31M
Investing Cash Flow	-16.27M	-3.31M	-11.38M	-65.99M	-10.15M	-2.85M
Financing Cash Flow	27.19M	141.51M	-27.71M	-30.13M	6.89M	-9.99M

Polaris Infrastructure Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 11.78
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

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 11.78 is below the 20-day moving average (MA) of 11.96, below the 50-day MA of 12.80, and below the 200-day MA of 11.99, indicating a bearish trend. The MACD of -0.25 indicates Negative momentum. The RSI at 34.83 is Neutral, neither overbought nor oversold. The STOCH value of 34.41 is Neutral, 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
INE	72 Outperform	―	―	―	―	0.97%	―
Sector *	66 Neutral	$17.65B	18.10	5.60%	3.62%	6.62%	11.55%
NPI	60 Neutral	$4.51B	―	-7.06%	6.97%	-4.86%	-86.64%
AQN	54 Neutral	$6.24B	―	2.04%	4.57%	-4.72%	96.98%
BLX	52 Neutral	C$2.89B	-288.59	-1.47%	2.75%	-11.91%	-132.41%
PIF	51 Neutral	C$265.76M	-16.40	-4.69%	7.13%	8.26%	-267.17%
GRB	35 Underperform	C$15.44M	-2.83	-99.46%	―	―	-37.48%

Polaris Infrastructure Corporate Events

Polaris Renewable Energy Reports Q3 2025 Growth and Advances in Puerto Rico Project

Polaris Renewable Energy Inc. reported a 7% increase in energy production for Q3 2025, primarily due to the acquisition of a wind farm in Puerto Rico and favorable hydrological conditions in Peru. Despite a slight decline in net earnings, the company maintained strong revenue growth and cash flow, while advancing its Battery Energy Storage System project in Puerto Rico, expected to enhance its service offerings and revenue streams by 2026.

Polaris Renewable Energy Declares Quarterly Dividend, Signals Stability and Growth

Polaris Renewable Energy Inc. has announced a quarterly dividend of US$0.15 per common share, payable on November 21st to shareholders of record as of November 10th. This move underscores the company’s commitment to providing consistent returns to its shareholders and reflects its stable financial performance. The board is open to evaluating further dividend increases, indicating potential future growth and shareholder value enhancement.

Polaris Renewable Energy Secures New Credit Facility and Announces Executive Changes

Polaris Renewable Energy Inc. has secured a US$3.5 million working capital and a US$10 million letter of credit facility with the Canadian Imperial Bank of Commerce and the Export Development Corp. This facility aims to enhance the company’s liquidity as it expands its operations in Latin America and the Caribbean. Additionally, Polaris announced executive changes with Anton Jelic transitioning to Chief Administrative Officer and Alba Seisdedos Ballesteros becoming the new Chief Financial Officer, reflecting the company’s growth and strategic focus on strengthening its governance and financial operations.