The renewable power market is geared up for big growth over the next decade. Facts&Factors recently projected that the global renewable energy market will post an annual CAGR of 8.3% during the forecast period of 2021-2026. Investors should zero-in on green energy stocks in the middle of this market correction. Today, I want to look at one top green energy stock that you can snatch up today.
Capital Power (TSX:CPX) is an Edmonton-based company that develops, acquires, owns and operates power generation facilities using a variety of energy services. Shares of this green energy stock have climbed 9.7% in 2021 at the time of this writing. However, the stock has plunged 6.8% month-over-month as of mid-afternoon trading on November 30.
In Q3 2021, Capital Power generated adjusted EBITDA of $286 million – up from $284 million in the prior year. Adjusted funds from operations in the year-to-date period came in at $456 million or $4.12 per share compared to $436 million or $4.14 per share in the first nine months of 2020. On the business side, Capital Power announced a 15-year renewable power purchase agreement with Dow Chemical Canada for a portion of its Whitla Wind 2 project.
Shares of this green energy stock last had a price-to-earnings ratio of 37, which puts Capital Power in favourable value territory compared to its industry peers. The stock possesses an RSI of 20, putting Capital Power well in technically oversold levels. It offers a quarterly dividend of $0.547 per share, which represents a strong 5.7% yield.
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