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Valuation is very high. 16 times debt to cash flow. Barely profitable because of high depreciation of assets and high debt/interest payments. They have been growing by issuing more debt and taking on more projects. Book value is slowly decreasing and there is no tangible net book value. I'm not sure what the end state is, but they will need to keep issuing shares to keep this up eventually, and keep growing. At a 3% yield, there is not much upside in my opinion. With a high valuation and low interest rates, the game can continue for a long time, especially with investor interest in the space.
 

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Valuation is very high. 16 times debt to cash flow. Barely profitable because of high depreciation of assets and high debt/interest payments. They have been growing by issuing more debt and taking on more projects. Book value is slowly decreasing and there is no tangible net book value. I'm not sure what the end state is, but they will need to keep issuing shares to keep this up eventually, and keep growing. At a 3% yield, there is not much upside in my opinion. With a high valuation and low interest rates, the game can continue for a long time, especially with investor interest in the space.
Upon first glance it reminds me of a renewable energy version of CPG. I remember looking at it 3 or 4 years ago. Not sure the reasons but I didn't even put in an order. I would say there are better stocks in this space.
 

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My criticism aside, they have a lot of assets that are seen to be attractive. And investors are interested in this space. With a high share price and low interest rates, they can likely keep issuing new shares and issuing new debt to take on new projects. But that is the only way they can grow. They can't self fund growth. This strategy works until share prices fall. Then it blows up to varying degrees. It has happened to utilities as well - see Altagas. Or pharmaceuticals - see Valeant. Or oil&gas as per CPG. I would rather avoid companies that can't self fund their own basic growth. There is real upside when that happens. It's why tech can do so well - revenue can grow without large new capital investments.
 
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