Innergex Renewable Energy Inc., an independent renewable power producer, is a publicly traded company listed on the Toronto Stock Exchange. As of early 2021, the company had a market capitalization of $4.8 billion CAD, making it one of the largest renewable power producers in the world. As climate change continues to be a major concern for many countries around the world, renewable energy sources such as solar and wind power are becoming more attractive investments. As Innergex continues to expand their operations, many investors are wondering what the future holds for Innergex and their share price.
Revenue Outlook
Innergex’s revenue has steadily increased over the past few years, growing from $848 million in 2017 to $1.14 billion in 2020. The majority of their revenue comes from the sale of electricity generated by their hydroelectric, wind, and solar facilities, as well as from management fee income. In 2021, the company expects to generate $1.44 billion in revenue and $202 million in EBITDA. This is an impressive feat, especially in light of the COVID-19 pandemic.
Innergex’s growth is expected to continue in the coming years, as the company is investing in new projects in the United States, Europe, and Latin America. In addition, the company recently announced a joint venture with Brookfield Renewable Partners, a leading global renewable power company. This joint venture is expected to result in the construction of new wind and solar projects, which will drive additional revenue for Innergex.
Balance Sheet Strength
Innergex has a strong balance sheet, with no debt and a substantial cash position. As of the end of 2020, the company had $1.6 billion in cash and $239 million in equity. This gives the company a net cash position of $1.36 billion, which is well above the industry average. This strong balance sheet gives the company the flexibility to invest in new projects and continue to grow without requiring additional financing.
In addition, Innergex’s financial profile is expected to remain strong in the coming years. The company has a solid track record of generating cash from operations and has a strong backlog of projects in development. This gives the company the ability to generate revenue and cash flow that can be reinvested in new projects, which will drive further revenue growth.
Share Price Forecast for 2023
Innergex’s share price has been volatile in recent years, with the stock falling from a high of $19.80 in early 2019 to a low of $7.20 in late 2020. Since then, the share price has been steadily increasing, with the stock currently trading at around $13.50. Looking ahead to 2023, analysts expect the share price to continue to increase, with the consensus price target at $17.50.
The primary drivers of the share price are expected to be the company’s continued revenue growth and its ability to generate cash flow. As Innergex continues to invest in new projects, the company will be able to drive revenue growth, which should result in an increase in the share price. In addition, the company’s strong balance sheet will allow them to generate cash flow, which can be reinvested in new projects or used to pay dividends to shareholders.
Conclusion
Innergex Renewable Energy Inc. is a leading renewable power producer with a strong balance sheet and a bright future. The company’s revenue is expected to continue to grow in the coming years, driven by new projects and investments. In addition, the company’s strong balance sheet will enable them to generate cash flow, which can be reinvested in new projects or used to pay dividends to shareholders. As such, analysts expect the share price to increase in 2023, with a consensus price target of $17.50.
