Boralex Inc. (TSE:BLX) is a Canadian renewable energy corporation that focuses on building and operating power facilities for energy sources like wind, hydroelectric, thermal, and solar. The company is relatively new compared to some of its industry peers as Boralex was founded in 1990, when three separate companies merged into one entity. While a majority of Boralex’s business operations remains within Canada, the company also has also penetrated international markets like the U.S., the United Kingdom, and France. With over 120 different energy facilities scattered across those four countries, Boralex has a total capacity of 2,455 MW at the end of 2020. Learn More
Final Verdict for Boralex:
Boralex is trading at a price to sales of only 5, which is fairly standard for the renewable energy industry. It seems as though the euphoria of the renewable energy surge in early January inflated the stock’s valuation to the point where it has now corrected itself. The strength of its balance sheet is slightly concerning, as with many capital heavy businesses, Boralex is highly levered to debt. Boralex is committed to its shareholders though and has steadily increased its dividend with the ultimate goal of a 40-60% dividend payout ratio. That’s a great sign for investors that the company is financially stable and feels confident in their cash flow moving forward. Investing in Boralex is an excellent way of getting exposure to both North America and Europe, two of the fastest accelerating renewable energy markets in the world.