Capital Power

L'entreprise

Capital Power is an independent power producer (IPP) headquartered in Alberta, owning natural gas, wind and solar generation across Canada and the U.S.

Unlike the regulated utilities in this group, a meaningful portion of its output is merchant, exposed to the Alberta power market, alongside contracted assets.

Trailing-twelve-month revenue reached ~C$4.15B (period ended Jun 30, 2026), up ~30% year over year as acquisitions and higher volumes flowed through.

Les avantages concurrentiels

Scale and operating expertise in gas and renewable generation, plus a growing contracted asset base, provide some cash-flow stability.

Long-term power purchase agreements on part of the fleet dampen commodity volatility.

However, merchant exposure means the moat is narrower and more cyclical than a regulated wires business.

Aperçu financier

Période déclarée la plus récente : Q2 FY2026 (TTM ended Jun 30, 2026); FY2025 ended Dec 31, 2025. Les chiffres reflètent la date de révision — confirmez les chiffres actuels avant d'agir.

Rendement du flux de trésorerie disponible et croissance durable

Rendement du flux de trésorerie disponible : ≈2.2% (est.)FCF yield ≈ 2.2%: TTM free cash flow of ~C$225M (operating cash flow ~C$1.1B minus ~C$910M capex) on a ~C$10.4B market cap. Positive and improving, but thinner than the ~4.2% dividend yield it must support.

Free cash flow was positive at ~C$225M TTM (up sharply year over year) as operating cash flow of ~C$1.1B outpaced ~C$910M of capex.

Growth has come largely through acquisitions of gas and renewable generation, which lifts cash flow but adds integration and leverage considerations.

Sustainable growth depends on Alberta power prices, contract renewals and disciplined M&A rather than regulated rate-base certainty.

Voir le classement complet du rendement du flux de trésorerie disponible →

Valorisation et points à surveiller

At ~C$67.32 the market cap is ~C$10.4B; the reported trailing PE (~122x) is distorted by depressed GAAP net income and is not a useful gauge.

Cash-flow metrics are more meaningful: ~C$1.1B operating cash flow and ~C$225M free cash flow give a far more grounded valuation picture.

The ~4.2% dividend yield is the highest among these utilities and central to the investment case.

Dividende

Annualized dividend of ~C$2.82 per share, a yield of roughly 4.2%. The payout looks unsustainable versus GAAP EPS of C$0.53, but Capital Power targets its payout against adjusted funds from operations (AFFO), not net income; against ~C$225M of trailing free cash flow the dividend is more supported than the GAAP figures imply, though coverage is tighter than the regulated peers.

Risques et scénario baissier

• Merchant exposure to volatile Alberta power prices makes cash flows more cyclical than regulated utilities.
• Carbon pricing and decarbonization policy directly affect its gas-heavy fleet economics.
• Acquisition-led growth raises leverage and execution risk.
• A high dividend against thin GAAP earnings means investors must rely on AFFO/FCF coverage holding up.

Faits récents

Trailing results showed revenue up ~30% year over year on acquisitions and higher volumes, while GAAP net income remained depressed.

Free cash flow more than doubled year over year to ~C$225M.

The dividend was maintained at an annualized ~C$2.82, a ~4.2% yield.

Verdict

Capital Power offers the highest yield in this utility group (~4.2%) and real free-cash generation, but it is an IPP, not a regulated utility — merchant Alberta power exposure, carbon-policy risk and acquisition-driven leverage make its cash flows more cyclical and its dividend coverage tighter. It suits income investors who understand they are taking on power-price and policy risk in exchange for the higher yield. CoinCompass publishes analysis, not advice.