Boralex Inc

Sound bite for Twitter is: Dividend Paying Utility. Debt Ratios need improving and the company has too much debt. The current dividend yield is moderate with dividend growth non-existent. See my spreadsheet on Boralex Inc.

Is it a good company at a reasonable price? This stock has been pretty well for its shareholders in the past. Personally, I like dividend growth companies and this company is not growing its dividends. They did not have good year in 2024, but analysts expect better results this year and over the next few years. My testing is showing that the stock price is probably reasonable.

I do not own this stock of Boralex Inc (TSX-BLX, OTC-BRLXF). This stock is on the Money Sense Dividend list (2022, 2023) and the Maple Money Dividend List (2020).

When I was updating my spreadsheet, I noticed that the company has a lot of debt. This stock has also not raised the dividends for the last 6 years. The Return on Equity (ROE), when they make a profit, is very low. In 2024 it was just 2.25%. I want at least 8%, but a lot of analysts think it should be at least at 10%.

If you had invested in this company in December 2014, for $1,002.30 you would have bought 51 shares at $12.85 per share. In December 2024, after 10 years you would have received $488.36 in dividends. The stock would be worth $2,239.38. Your total return would have been $2,727.74. This would be a total return of 11.85% per year with 8.37% from capital gain and 3.48% from dividends.

Cost	Tot. Cost	Shares	Years	Dividends	Stock Val	Tot Ret
$12.85	$1,002.30	78	10	$488.36	$2,239.38	$2,727.74

The current dividend yield is moderate with dividend growth non-existent. The current dividend yield is moderate (2% to 4% ranges) at 2.34%. The 5 year median dividend yield is low (below 2%) at 1.92%. The 10 year median dividend yield is moderate at 2.50%. The historical median dividend yield is 0.00% because of so many years of no dividends. The dividends have been flat for the past 6 years. The last dividend increase was in 2016 and it was for 4.6%. Analysts think that they high raise the dividends within the next 3 years.

The Dividend Payout Ratios (DPR) need improving. The DPR for 2024 for Earnings per Share (EPS) is far too high at 189% with 5 year coverage far too high at 156%. Analysts expect this to improve over the next 3 years. The DPR for 2024 for Adjusted Earnings per Share (AEPS) is good at 43% with 5 year coverage at 43%. The DPR for 2024 for Cash Flow per Share (CFPS) is non-calculable due to a negative cash flow with 5 year coverage good at 19%. The DPR for 2024 for Free Cash Flow (FCF) is good at 43% with 5 year coverage a bit high at 53%. There is no consensus on what FCF is with 2024 FCF ranging from $17M to a negative $183M.

Item	Cur	5 Years
EPS	188.57%	155.66%
AFFO	42.86%	43.43%
CFPS	0.00%	19.38%
FCF	43.22%	52.54%

Debt Ratios need improving and the company has too much debt. The Long Term Debt/Market Cap Ratio for 2024 is high at 1.23 and currently at 1.30. However, we need also to look at the Long Term Debt/Covering Assets Ratio for 2024 which is fine at 0.85 and currently at 0.90 because this is a more important ratio for a Utility. The Liquidity Ratio for 2024 is too low at 0.96 and 1.08 currently. If you added in Cash Flow after dividends, the ratios are still low at 1.18 and currently fine at 1.74. The Debt Ratio for 2024 is low at 1.36 and 1.36 currently. I prefer this ratio to be 1.50 or high. The Leverage and Debt/Equity Ratios for 2024 are too high at 4.75 and 3.48 and currently at 4.81 and 3.53.

Type	Year End	Ratio Curr
Lg Term R	1.23	1.30
Lg Term A	0.85	0.90
Intang/GW	0.41	0.40
Liquidity	0.96	1.08
Liq. + CF	1.18	1.74
Debt Ratio	1.36	1.36
Leverage	4.75	4.81
D/E Ratio	3.48	3.53

The Total Return per year is shown below for years of 5 to 34 to the end of 2024. Under the Capital Gain column is the portion of the Total Return attributable to capital gains. Under the Dividend column is the portion of the Total Return attributable to dividends. See chart below.

From	Years	Div. Gth	Tot Ret	Cap Gain	Div.
2019	5	0.00%	5.79%	3.26%	2.54%
2014	10	2.41%	11.85%	8.37%	3.48%
2009	15	0.00%	9.86%	7.50%	2.36%
2004	20	0.00%	10.79%	8.87%	1.93%
1999	25	0.00%	10.15%	8.66%	1.49%
1994	30	4.00%	8.38%	7.07%	1.31%
1990	34		17.11%	14.36%	2.75%

The 5-year low, median, and high median Price/Earnings per Share Ratios are 24.25, 46.54 and 58.50. The corresponding 10 year ratios are negative and so unusable. The corresponding historical ratios are 7.70, 10.84 and 13.98. The current P/E Ratio is 38.14 based on a stock price of $28.22 and EPS estimate for 2025 of $0.74. This is a rather high ratio and compared to the historical ones, it above the high median ratio. This stock price testing suggests that the stock price is relatively expensive. The historical P/E Ratios make sense for a Utility stock.

I have Adjusted Funds from Operations (AFFO) data. The 5-year low, median, and high median Price/ Adjusted Funds from Operations Ratios are 17.14, 20.58 and 31.40. The corresponding 10 year ratios are 17.85, 21.45 and 27.88. The corresponding historical ratios are 13.83, 20.05 and 24.18. The current P/AFFO Ratio is 15.34 based on a stock price of $28.22 and AFFO estimate for 2025 of $1.84. This ratio is between the low and median ratios of the 10 year median ratios. This stock price testing suggests that the stock price is relatively reasonable and below the median.

I get a Graham Price of $15.96. The 10-year low, median, and high median Price/Graham Price Ratios are 2.29, 2.78 and 3.30. The current ratio is 1.77 based on a stock price of $28.22. The current ratio is between the low and median ratios of the 10 year median ratios. This stock price testing suggests that the stock price is relatively reasonable and below the median. You should be cautious of this test because of so many recent years of earnings losses.

I get a 10-year median Price/Book Value per Share Ratio of 2.30. The current ratio is 1.84 based on a Book Value of $1,573M, Book Value per Share of $15.30 and a stock price of $28.22. The current ratio is 19.7% below the 10 year median ratio. This stock price testing suggests that the stock price is relatively reasonable and below the median.

I get a 10-year median Price/Cash Flow per Share Ratio of 8.84. The current ratio is 6.86 based on Cash Flow per Share estimate for 2025 of $4.12, Cash Flow of $423M and a stock price of $28.22. The current ratio is 22% below the 10 year median ratio. This stock price testing suggests that the stock price is relatively cheap.

I get an historical median dividend yield of 0%. This is because they started dividends then had a long pause. I get an historical median dividend yield of 2.50%. The current dividend yield is 2.34% based on dividends of 0.66 and a stock price of $28.22. The current dividend is 6% below the 10 year median dividends. This stock price testing suggests that the stock price is relatively reasonable but above the median. This is not a good test because dividends are flat. But, when they cannot increase the dividends, that is a problem in itself.

The 10-year median Price/Sales (Revenue) Ratio is 3.74. The current P/S Ratio is 3.26 based Revenue estimate for 2025 of $891M, Revenue per Share of $8.66 and a stock price of $28.22. The current ratio is 13% below the 10 year median ratio. This stock price testing suggests that the stock price is relatively reasonable and below the median.

Results of stock price testing is that the stock price is that the stock price is probably reasonable. The P/S Ratio test says this, as does some other tests. This is not a dividend growth stock and that is a problem.

When I look at analysts’ recommendations, I find Strong Buy (4), Buy (3) and Hold (3). The consensus is a Buy. The 12 month stock price is $38.10 with a high of $45.00 and a low of $33.00. The 12 month stock price of $38.10 implies a total return of 37.35% with 35.01% from capital gains and 2.34% from dividends based on a current stock price of $28.22.

There are only two entries on Stock Chase for this year. One is a partial buy and the other a Past Top Pick. One says you should nibble at the edges and the other says it is trading on historically low valuations. Amy Legate-Wolfe on Motley Fool says this utility is good for the long term. Christopher Liew on Motley Fool thought that Secure Energy Services was a better stock to buy. The company put out a Press Release for the year ending in 2024. The company put out a Press Release about their second quarter of 2025 results.

Simply Wall Street via Yahoo Finance reviews this stock. Simply Wall Street has two warnings out on this stock of interest payments are not well covered by earnings; and dividend of 2.36% is not well covered by earnings or free cash flows.

Boralex is a power producer whose core business is dedicated to the development and operation of renewable energy power stations in Canada, France, the United States, and the United Kingdom. Boralex owns power generation assets across four technologies: wind, solar, hydroelectric, and thermal. Substantially all of its operating assets are subject to indexed fixed-price energy sales contracts. Its web site is here Boralex Inc.

The last stock I wrote about was about was Capital Power Corp (TSX-CPX, OTC-CPRHF) ... learn more. The next stock I will write about will be High Liner Foods (TSX-HLF, OTC-HLNFF) ... learn more on Monday, September 8, 2025 around 5 pm.

This blog is meant for educational purposes only and is not to provide investment advice. I am not a licensed professional investment advisor. Before making any investment decision, you should always do your own research or consult an investment professional. I do research for my own edification and I am willing to share. I write what I think and I may or may not be correct.

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