Section1: Company Overview

Capital Power Corporation (TSX: CPX) is a North American power producer whose principal activities are developing, acquiring, and operating power plants. Through its subsidiary, Capital Power owns and operates a portfolio of natural gas, coal, wind, solar, and solid fuel energy generating facilities. These are located throughout Western and Central Canada and the U.S. Capital Power's natural gas and coal facilities, specifically its Genesee and Shepard sites, account for most of its electric capacity and cash flow production. The company generates the vast majority of its revenue from sales of electricity and natural gas. Its customers include a variety of industrial and commercial consumers, independent transmission system operators, and government-owned entities.

This Report covers the Key Recommendation Rationale, Valuation, Target Price, and Recommendation on the stock. 

1.1 Key Recommendation Rationale

Section 2:  Stock Recommendation Summary

2.1 Valuation Methodology

Valuation Methodology (Illustrative): EV to EBITDA based Relative Valuation approach:

2.2 Price Performance and Stock Recommendation

The stock has witnessed an upside of ~2.13% and ~5.41% over the 1 week and 3 months respectively. The stock is trading below the average of 52-week high price of CAD 68.73 and 52-week low price of CAD 37.35, providing an opportunity to exit, as the stock might make some correction.

2.3 One-Year Technical Price Chart

One-Year Technical Price Chart (as of May 15, 2025). Source: REFINITIV, Analysis: Kalkine Group

Note 1: Past performance is not a reliable indicator of future performance.

Note 2: The reference date for all price data, currency, technical indicators, support, and resistance levels as on May 15, 2025. The reference data in this report has been partly sourced from REFINITIV.

Note 3: Investment decisions should be made depending on an individual's appetite for upside potential, risks, holding duration, and any previous holdings. An 'Exit' from the stock can be considered if the Target Price mentioned as per the Valuation and or the technical levels provided has been achieved and is subject to the factors discussed above.

Note 4: Dividend Yield may vary as per the stock price movement. 

Note 5: Kalkine reports are prepared based on the stock prices captured either from REFINITIV or Trading View. Typically, REFINITIV or Trading View may reflect stock prices with a delay which could be a lag of 25-30 minutes. There can be no assurance that future results or events will be consistent with the information provided in the report. The information is subject to change without any prior notice.