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TerraForm Power

Nasdaq:TERP
Snowflake Description

Moderate growth potential and slightly overvalued.

The Snowflake is generated from 30 checks in 5 different areas, read more below.
TERP
Nasdaq
$3B
Market Cap
  1. Home
  2. US
  3. Utilities
Company description

TerraForm Power, Inc., together with its subsidiaries, owns and operates clean power generation assets. The last earnings update was 2 days ago. More info.


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TERP Share Price and Events
7 Day Returns
-6.7%
NasdaqGS:TERP
1.9%
US Renewable Energy
0.5%
US Market
1 Year Returns
39%
NasdaqGS:TERP
19.9%
US Renewable Energy
12.8%
US Market
TERP Shareholder Return
  7 Day 30 Day 90 Day 1 Year 3 Year 5 Year
TerraForm Power (TERP) -6.7% -8.2% -9.2% 39% 18.1% -51.9%
US Renewable Energy 1.9% 2.7% 12.1% 19.9% 51.9% -0.9%
US Market 0.5% 4.3% 8% 12.8% 38.7% 44.5%
1 Year Return vs Industry and Market
  • TERP outperformed the Renewable Energy industry which returned 19.9% over the past year.
  • TERP outperformed the Market in United States of America which returned 12.8% over the past year.
Price Volatility
TERP
Industry
5yr Volatility vs Market

TERP Value

 Is TerraForm Power undervalued based on future cash flows and its price relative to the stock market?

Value is all about what a company is worth versus what price it is available for. If you went into a grocery store and all the bananas were on sale at half price, they could be considered undervalued.
INTRINSIC VALUE BASED ON FUTURE CASH FLOWS
Here we compare the current share price of TerraForm Power to its discounted cash flow analysis.value.

The discounted cash flow value is simply looking at what the company is worth today, based on estimates of how much money it is expected to make in the future.
Raw Data

Below are the data sources, inputs and calculation used to determine the intrinsic value for TerraForm Power.

NasdaqGS:TERP Discounted Cash Flow Data Sources
Data Point Source Value
Valuation Model 2 Stage Free Cash Flow to Equity
Levered Free Cash Flow Average of 5 Analyst Estimates (S&P Global) See below
Discount Rate (Cost of Equity) See below 9.2%
Perpetual Growth Rate 10-Year US Government Bond Rate 2.7%

An important part of a discounted cash flow is the discount rate, below we explain how it has been calculated.

Calculation of Discount Rate/ Cost of Equity for NasdaqGS:TERP
Data Point Calculation/ Source Result
Risk-Free Rate 10-Year US Govt Bond Rate 2.7%
Equity Risk Premium S&P Global 6%
Renewable Energy Unlevered Beta Simply Wall St/ S&P Global 0.46
Re-levered Beta = Unlevered beta (1 + (1- tax rate) (Debt/Equity))
= 0.459 (1 + (1- 21%) (186.84%))
1.092
Levered Beta Levered Beta limited to 0.8 to 2.0
(practical range for a stable firm)
1.09
Discount Rate/ Cost of Equity = Cost of Equity = Risk Free Rate + (Levered Beta * Equity Risk Premium)
= 2.73% + (1.092 * 5.96%)
9.24%

Discounted Cash Flow Calculation for NasdaqGS:TERP using 2 Stage Free Cash Flow to Equity Model

The calculations below outline how an intrinsic value for TerraForm Power is arrived at by discounting future cash flows to their present value using the 2 stage method. We try to start with analysts estimates of free cash flow, however if these are not available we use the most recent financial results. In the 1st stage we continue to grow the free cash flow over a 10 year period, with the growth rate trending towards the perpetual growth rate used in the 2nd stage. The 2nd stage assumes the company grows at a stable rate into perpetuity.

Note: Free cash flow to equity valuations ignore the company's cash or debt.

NasdaqGS:TERP DCF 1st Stage: Next 10 year cash flow forecast
Levered FCF (USD, Millions) Source Present Value
Discounted (@ 9.24%)
2020 345.93 Analyst x3 316.67
2021 504.00 Analyst x2 422.34
2022 641.00 Analyst x1 491.71
2023 647.00 Analyst x1 454.34
2024 656.18 Est @ 1.42% 421.81
2025 668.08 Est @ 1.81% 393.13
2026 682.02 Est @ 2.09% 367.39
2027 697.58 Est @ 2.28% 343.98
2028 714.43 Est @ 2.42% 322.49
2029 732.36 Est @ 2.51% 302.63
Present value of next 10 years cash flows $3,836.00
NasdaqGS:TERP DCF 2nd Stage: Terminal Value
Calculation Result
Terminal Value = FCF2029 × (1 + g) ÷ (Discount Rate – g)
= $732.36 × (1 + 2.73%) ÷ (9.24% – 2.73%)
$11,556.79
Present Value of Terminal Value = Terminal Value ÷ (1 + r)10
= $11,556.79 ÷ (1 + 9.24%)10
$4,775.51
NasdaqGS:TERP Total Equity Value
Calculation Result
Total Equity Value = Present value of next 10 years cash flows + Terminal Value
= $3,836.00 + $4,775.51
$8,611.51
Equity Value per Share
(USD)
= Total value / Shares Outstanding
= $8,611.51 / 227.04
$37.93
NasdaqGS:TERP Discount to Share Price
Calculation Result
Value per share (USD) From above. $37.93
Current discount Discount to share price of $15.36
= -1 x ($15.36 - $37.93) / $37.93
59.5%

Learn more about our DCF calculations in Simply Wall St’s analysis model .

Current Discount
Amount off the current price TerraForm Power is available for.
Intrinsic value
>50%
Share price is $15.36 vs Future cash flow value of $37.93
Current Discount Checks
For TerraForm Power to be considered undervalued it must be available for at least 20% below the current price. Less than 40% is even better.
  • TerraForm Power's share price is below the future cash flow value, and at a moderate discount (> 20%).
  • TerraForm Power's share price is below the future cash flow value, and at a substantial discount (> 40%).
PRICE RELATIVE TO MARKET
We can also value a company based on what the stock market is willing to pay for it. This is similar to the price of fruit (e.g. Mangoes or Avocados) increasing when they are out of season, or how much your home is worth.

The amount the stock market is willing to pay for TerraForm Power's earnings, growth and assets is considered below, and whether this is a fair price.
Price based on past earnings
Are TerraForm Power's earnings available for a low price, and how does this compare to other companies in the same industry?
Raw Data
NasdaqGS:TERP PE (Price to Earnings) Ratio Data Sources
Data Point Source Value
Earnings Per Share * Company Filings (2019-09-30) in USD $-0.39
NasdaqGS:TERP Share Price ** NasdaqGS (2019-11-13) in USD $15.36
North America Renewable Energy Industry PE Ratio Median Figure of 12 Publicly-Listed Renewable Energy Companies 25.22x
United States of America Market PE Ratio Median Figure of 2,922 Publicly-Listed Companies 18.24x

* Trailing twelve months (TTM) annual GAAP earnings per share excluding extraordinary items.

** Primary Listing of TerraForm Power.

NasdaqGS:TERP PE (Price to Earnings) Ratio Calculation
Calculation Outcome
PE Ratio

= NasdaqGS:TERP Share Price ÷ EPS (both in USD)

= 15.36 ÷ -0.39

-38.93x

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • TerraForm Power is loss making, we can't compare its value to the North America Renewable Energy industry average.
  • TerraForm Power is loss making, we can't compare the value of its earnings to the United States of America market.
Price based on expected Growth
Does TerraForm Power's expected growth come at a high price?
Raw Data
NasdaqGS:TERP PEG (Price to Earnings to Growth) Ratio Data Sources
Data Point Source Value
PE Ratio See PE Ratio Section -38.93x
Net Income Annual Growth Rate See Future Growth Section.
Line of Best Fit* through Consensus Estimate Earnings of 5 Analysts
94.8%per year
North America Renewable Energy Industry PEG Ratio Median Figure of 10 Publicly-Listed Renewable Energy Companies 1.2x
United States of America Market PEG Ratio Median Figure of 2,023 Publicly-Listed Companies 1.46x

*Line of best fit is calculated by linear regression .

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Unable to calculate PEG ratio for TerraForm Power, we can't assess if its growth is good value.
Price based on value of assets
What value do investors place on TerraForm Power's assets?
Raw Data
NasdaqGS:TERP PB (Price to Book) Ratio Data Sources
Data Point Source Value
Book Value per Share Company Filings (2019-09-30) in USD $8.78
NasdaqGS:TERP Share Price * NasdaqGS (2019-11-13) in USD $15.36
United States of America Renewable Energy Industry PB Ratio Median Figure of 15 Publicly-Listed Renewable Energy Companies 1.52x
United States of America Market PB Ratio Median Figure of 5,070 Publicly-Listed Companies 1.73x
NasdaqGS:TERP PB (Price to Book) Ratio Calculation
Calculation Outcome
PB Ratio

= NasdaqGS:TERP Share Price ÷ Book Value per Share (both in USD)

= 15.36 ÷ 8.78

1.75x

* Primary Listing of TerraForm Power.

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • TerraForm Power is overvalued based on assets compared to the US Renewable Energy industry average.
X
Value checks
We assess TerraForm Power's value by looking at:
  1. Is the discounted cash flow value less than 20%, or 40% of the share price? (2 checks) ( Click here or on bar chart for details of DCF calculation. )
  2. Is the PE ratio less than the market average, and/ or less than the Renewable Energy industry average (and greater than 0)? (2 checks)
  3. Is the PEG ratio within a reasonable range (0 to 1)? (1 check)
  4. Is the PB ratio less than the Renewable Energy industry average (and greater than 0)? (1 check)
  5. TerraForm Power has a total score of 2/6, see the detailed checks below.

    Note: We use GAAP Earnings per Share in all our calculations including PE and PEG Ratio.

    Full details on the Value part of the Simply Wall St company analysis model.

TERP Future Performance

 How is TerraForm Power expected to perform in the next 1 to 3 years based on estimates from 5 analysts?

The future performance of a company is measured in the same way as past performance, by looking at estimated growth and how much profit it is expected to make.

Future estimates come from professional analysts. Just like forecasting the weather, they don’t always get it right!
Annual Growth Rate
94.8%
Expected annual growth in earnings.
Earnings growth vs Low Risk Savings
Is TerraForm Power expected to grow at an attractive rate?
  • TerraForm Power's earnings growth is expected to exceed the low risk savings rate of 2.7%.
Growth vs Market Checks
  • TerraForm Power's earnings growth is expected to exceed the United States of America market average.
  • TerraForm Power's revenue growth is positive but not above the United States of America market average.
Annual Growth Rates Comparison
Raw Data
NasdaqGS:TERP Future Growth Rates Data Sources
Data Point Source Value (per year)
NasdaqGS:TERP Future Earnings Growth Rate Line of Best Fit* through Consensus Estimate Earnings of 5 Analysts 94.8%
NasdaqGS:TERP Future Revenue Growth Rate Line of Best Fit* through Consensus Estimate Revenue of 5 Analysts 6.2%
United States of America Renewable Energy Industry Earnings Growth Rate Market Cap Weighted Average 23.1%
United States of America Renewable Energy Industry Revenue Growth Rate Market Cap Weighted Average 4.3%
United States of America Market Earnings Growth Rate Market Cap Weighted Average 14.3%
United States of America Market Revenue Growth Rate Market Cap Weighted Average 7.3%

*Line of best fit is calculated by linear regression .

Industry and Market average data is calculated daily.

Learn more about our growth rate calculations in Simply Wall St’s analysis model.

Analysts growth expectations
Raw Data
NasdaqGS:TERP Analysts Growth Expectations Data Sources
Data Point Source Value
Past Financials Company Filings (1 month ago) See Below
Future Estimates Average of up to 5 Analyst Estimates (S&P Global) See Below
All numbers in USD Millions and using Trailing twelve months (TTM) annual period rather than quarterly.
NasdaqGS:TERP Future Estimates Data
Date (Data in USD Millions) Revenue Cash Flow Net Income * Avg. No. Analysts
2023-12-31 526
2022-12-31 514
2021-12-31 1,097 456 44 3
2020-12-31 1,092 430 22 5
2019-12-31 982 326 21 3
2019-11-14
NasdaqGS:TERP Past Financials Data
Date (Data in USD Millions) Revenue Cash Flow Net Income *
2019-09-30 948 370 -83
2019-06-30 940 354 -61
2019-03-31 864 286 -79
2018-12-31 767 253 12
2018-09-30 689 126 -85
2018-06-30 596 87 -80
2018-03-31 587 84 -50
2017-12-31 610 67 -167
2017-09-30 610 139 -140
2017-06-30 635 163 -138
2017-03-31 652 192 -167
2016-12-31 655 192 -127

*GAAP earnings excluding extraordinary items.

Super high growth metrics
High Growth Checks
  • TerraForm Power's earnings are expected to grow significantly at over 20% yearly.
  • TerraForm Power's revenue is expected to grow by 6.2% yearly, however this is not considered high growth (20% yearly).
Past and Future Earnings per Share
The accuracy of the analysts who estimate the future performance data can be gauged below. We look back 3 years and see if they were any good at predicting what actually occurred. We also show the highest and lowest estimates looking forward to see if there is a wide range.
Raw Data
NasdaqGS:TERP Past and Future Earnings per Share
Data Point Source Value
Past Financials Company Filings (1 month ago) See Below
Future Estimates Average of up to 5 Analyst Estimates (S&P Global) See Below

All data from TerraForm Power Company Filings, last reported 1 month ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

NasdaqGS:TERP Future Estimates Data
Date (Data in USD Millions) EPS * EPS High Estimate EPS Low Estimate Avg. No. Analysts
2023-12-31
2022-12-31
2021-12-31 0.10 0.60 -0.40 2.00
2020-12-31 0.29 0.81 -0.48 5.00
2019-12-31 -0.49 -0.49 -0.50 3.00
2019-11-14
NasdaqGS:TERP Past Financials Data
Date (Data in USD Millions) EPS *
2019-09-30 -0.39
2019-06-30 -0.29
2019-03-31 -0.40
2018-12-31 0.07
2018-09-30 -0.52
2018-06-30 -0.59
2018-03-31 -0.42
2017-12-31 -1.61
2017-09-30 -1.51
2017-06-30 -1.50
2017-03-31 -1.82
2016-12-31 -1.40

*GAAP earnings excluding extraordinary items.

Performance in 3 years
In the same way as past performance we look at the future estimated return (profit) compared to the available funds. We do this looking forward 3 years.
  • Unable to establish if TerraForm Power will efficiently use shareholders’ funds in the future (Return on Equity greater than 20%) as it is not expected to be profitable.
X
Future performance checks
We assess TerraForm Power's future performance by looking at:
  1. Is the annual earnings growth rate expected to beat the low risk savings rate, plus a premium to keep pace with inflation?
  2. Is the annual earnings growth rate expected to beat the average growth rate in earnings of the United States of America market? (1 check)
  3. Is the annual revenue growth rate expected to beat the average growth rate in revenue of the United States of America market? (1 check)
  4. Is the annual earnings growth rate expected to be above 20%? (1 check)
  5. Is the annual revenue growth rate expected to be above 20%? (1 check)
  6. Is the Return on Equity in 3 years expected to be over 20%? (1 check)
Some of the above checks will fail if the company is expected to be loss making in the relevant year.
TerraForm Power has a total score of 3/6, see the detailed checks below.

Note 1: We use GAAP Net Income Excluding Exceptional Items for our Earnings in all our calculations.

Full details on the Future part of the Simply Wall St company analysis model.

TERP Past Performance

  How has TerraForm Power performed over the past 5 years?

The past performance of a company can be measured by how much growth it has experienced and how much profit it makes relative to the funds and assets it has available.
Past earnings growth
Below we compare TerraForm Power's growth in the last year to its industry (Renewable Energy).
Past Earnings growth analysis
We also check if the company has grown in the past 5 years, and whether it has maintained that growth in the year.
  • TerraForm Power does not make a profit and their year on year earnings growth rate was negative over the past 5 years.
  • Unable to compare TerraForm Power's 1-year earnings growth to the 5-year average as it is not currently profitable.
  • Unable to compare TerraForm Power's 1-year growth to the North America Renewable Energy industry average as it is not currently profitable.
Earnings and Revenue History
TerraForm Power's revenue and profit over the past 5 years is shown below, any years where they have experienced a loss will show up in red.
Raw Data

All data from TerraForm Power Company Filings, last reported 1 month ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

NasdaqGS:TERP Past Revenue, Cash Flow and Net Income Data
Date (Data in USD Millions) Revenue Net Income * G+A Expenses R&D Expenses
2019-09-30 947.60 -82.55 103.55
2019-06-30 939.83 -61.30 105.16
2019-03-31 864.36 -79.04 100.83
2018-12-31 766.57 12.38 100.26
2018-09-30 689.02 -84.79 95.94
2018-06-30 596.40 -79.82 95.53
2018-03-31 586.88 -50.09 116.18
2017-12-31 610.47 -166.88 126.57
2017-09-30 610.15 -140.47 135.83
2017-06-30 634.84 -138.03 141.43
2017-03-31 651.77 -167.32 120.19
2016-12-31 654.56 -127.47 104.66
2016-09-30 624.99 -105.31 102.01
2016-06-30 610.16 -79.96 94.71
2016-03-31 552.91 -52.25 93.80
2015-12-31 469.51 -79.89 101.14
2015-09-30 406.67 -43.74 88.08
2015-06-30 296.95 -46.93 74.28
2015-03-31 189.28 -53.73 54.41
2014-12-31 127.16 -25.62 40.13
2014-09-30 88.77 -4.22 14.34
2014-06-30 40.60 -0.13 7.31
2014-03-31 22.89 0.21 6.02
2013-12-31 18.72 0.00 5.45
2012-12-31 15.69 0.88 4.60

*GAAP earnings excluding extraordinary items.

Performance last year
We want to ensure a company is making the most of what it has available. This is done by comparing the return (profit) to a company's available funds, assets and capital.
  • It is difficult to establish if TerraForm Power has efficiently used shareholders’ funds last year (Return on Equity greater than 20%) as it is loss-making.
  • TerraForm Power used its assets less efficiently than the North America Renewable Energy industry average last year based on Return on Assets.
  • It is difficult to establish if TerraForm Power improved its use of capital last year versus 3 years ago (Return on Capital Employed) as it is currently loss-making.
X
Past performance checks
We assess TerraForm Power's performance over the past 5 years by checking for:
  1. Has earnings increased in past 5 years? (1 check)
  2. Has the earnings growth in the last year exceeded that of the Renewable Energy industry? (1 check)
  3. Is the recent earnings growth over the last year higher than the average annual growth over the past 5 years? (1 check)
  4. Is the Return on Equity (ROE) higher than 20%? (1 check)
  5. Is the Return on Assets (ROA) above industry average? (1 check)
  6. Has the Return on Capital Employed (ROCE) increased from 3 years ago? (1 check)
The above checks will fail if the company has reported a loss in the most recent earnings report. Some checks require at least 3 or 5 years worth of data.
TerraForm Power has a total score of 0/6, see the detailed checks below.

Note: We use GAAP Net Income excluding extraordinary items in all our calculations.

Full details on the Past part of the Simply Wall St company analysis model.

TERP Health

 How is TerraForm Power's financial health and their level of debt?

A company's financial position is much like your own financial position, it includes everything you own (assets) and owe (liabilities).

The boxes below represent the relative size of what makes up TerraForm Power's finances.

The net worth of a company is the difference between its assets and liabilities.
Net Worth
  • TerraForm Power's short term (1 year) commitments are greater than its holdings of cash and other short term assets.
  • TerraForm Power's long term commitments exceed its cash and other short term assets.
Balance sheet
This treemap shows a more detailed breakdown of TerraForm Power's finances. If any of them are yellow this indicates they may be out of proportion and red means they relate to one of the checks below.
Assets
Liabilities and shares
The 'shares' portion represents any funds contributed by the owners (shareholders) and any profits.
  • High level of physical assets or inventory.
  • Debt is not covered by short term assets, assets are 0.1x debt.
Historical Debt
Nearly all companies have debt. Debt in itself isn’t bad, however if the debt is too high, or the company can’t afford to pay the interest on its debts this may have impacts in the future.

The graphic below shows equity (available funds) and debt, we ideally want to see the red area (debt) decreasing.

If there is any debt we look at the companies capability to repay it, and whether the level has increased over the past 5 years.
Raw Data

All data from TerraForm Power Company Filings, last reported 1 month ago.

NasdaqGS:TERP Past Debt and Equity Data
Date (Data in USD Millions) Total Equity Total Debt Cash & Short Term Investments
2019-09-30 2,488.43 6,260.44 239.30
2019-06-30 2,601.51 5,601.56 204.15
2019-03-31 2,682.74 5,742.67 287.07
2018-12-31 2,768.42 5,684.78 248.52
2018-09-30 2,856.99 5,954.08 349.56
2018-06-30 2,973.25 6,053.47 339.21
2018-03-31 2,330.11 3,597.42 158.23
2017-12-31 2,422.37 3,604.00 128.09
2017-09-30 2,849.24 3,582.01 462.85
2017-06-30 2,865.12 3,859.09 691.85
2017-03-31 2,863.08 4,027.21 678.39
2016-12-31 2,898.37 3,962.46 566.48
2016-09-30 3,023.78 4,044.32 540.15
2016-06-30 3,035.63 4,074.61 562.45
2016-03-31 3,086.12 4,106.85 603.46
2015-12-31 3,115.98 4,582.83 626.60
2015-09-30 2,537.70 2,546.39 635.82
2015-06-30 2,530.45 2,266.91 390.63
2015-03-31 1,881.21 2,195.52 153.42
2014-12-31 1,540.26 1,702.97 468.55
2014-09-30 1,131.29 1,261.09 259.36
2014-06-30 303.80 1,029.16 16.02
2014-03-31 880.94 1,188.13 394.72
2013-12-31 15.45 408.11 1.04
2012-12-31 30.03 20.09 0.00
  • TerraForm Power's level of debt (250.9%) compared to net worth is high (greater than 40%).
  • The level of debt compared to net worth has increased over the past 5 years (111.7% vs 250.9% today).
CASH RUNWAY ANALYSIS

For companies that have on average been loss making in the past we assess whether they have at least 1 year of cash runway.

  • Whilst loss making TerraForm Power has sufficient cash runway for more than 3 years if it maintains the current positive free cash flow level.
  • Whilst loss making TerraForm Power has sufficient cash runway for more than 3 years, even with free cash flow being positive and shrinking by -39.9% per year.
X
Financial health checks
We assess TerraForm Power's financial health by checking for:
  1. Are short term assets greater than short term liabilities? (1 check)
  2. Are short term assets greater than long term liabilities? (1 check)
  3. Has the debt to equity ratio increased in the past 5 years? (1 check)
  4. Is the debt to equity ratio over 40%? (1 check)
  5. Is the debt covered by operating cash flow? (1 check)
  6. Are earnings greater than 5x the interest on debt (if company pays interest at all)? (1 check)
  7. TerraForm Power has a total score of 2/6, see the detailed checks below.
For companies that are loss making and have been so on average in the past we replace the last 2 checks with:
  1. Does cash and short term investments cover stable operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)
  2. Does cash and short term investments cover growing operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)


Full details on the Health part of the Simply Wall St company analysis model.

TERP Dividends

 What is TerraForm Power's current dividend yield, its reliability and sustainability?

Dividends are regular cash payments to you from the company, similar to a bank paying you interest on a savings account.
Annual Dividend Income
Dividend payments
5.24%
Current annual income from TerraForm Power dividends. Estimated to be 5.53% next year.
If you bought $2,000 of TerraForm Power shares you are expected to receive $105 in your first year as a dividend.
Dividend Amount
Here we look how much dividend is being paid, if any. Is it above what you can get in a savings account? It is up there with the best dividend paying companies?
  • TerraForm Power's pays a higher dividend yield than the bottom 25% of dividend payers in United States of America (1.43%).
  • TerraForm Power's dividend is above the markets top 25% of dividend payers in United States of America (3.67%).
Annualized Historical and Future Dividends
It is important to see if the dividend for a company is stable, and not wildly increasing/decreasing each year. This graph shows you the historical rate to count toward your assessment of the stock.

We also check to see if the dividend has increased in the past 10 years.
Raw Data
NasdaqGS:TERP Annualized Past and Future Dividends
Data Point Source Value
Past Annualized Dividend Yield S&P Global Market Data See Below
Past Dividends per Share Company Filings/ Annualized Dividend Payments See Below
Future Dividends per Share Estimates Average of up to 5 Analyst Estimates (S&P Global) See Below
United States of America Renewable Energy Industry Average Dividend Yield Market Cap Weighted Average of 7 Stocks 3.2%
United States of America Market Average Dividend Yield Market Cap Weighted Average of 1948 Stocks 2.4%
United States of America Minimum Threshold Dividend Yield 10th Percentile 0.8%
United States of America Bottom 25% Dividend Yield 25th Percentile 1.4%
United States of America Top 25% Dividend Yield 75th Percentile 3.7%

Industry and Market average data is calculated daily.

Note all dividend per share amounts are annualized and not quarterly or other period.

NasdaqGS:TERP Future Dividends Estimate Data
Date (Data in $) Dividend per Share (annual) Avg. No. Analysts
2023-12-31
2022-12-31
2021-12-31 0.90 4.00
2020-12-31 0.86 6.00
2019-12-31 0.81 6.00
2019-11-14
NasdaqGS:TERP Past Annualized Dividends Data
Date (Data in $) Dividend per share (annual) Avg. Yield (%)
2019-08-09 0.806 4.752
2019-05-10 0.806 5.626
2019-03-15 0.806 5.904
2018-11-08 0.760 6.516
2018-08-14 0.760 6.719
2018-02-07 0.760 6.845
2017-09-29 0.000 0.000
2017-08-29 0.000 0.000
2017-07-21 0.000 0.000
2017-02-24 0.000 0.000
2017-02-07 0.000 0.000
2016-12-06 0.000 0.000
2016-12-05 0.000 0.000
2015-11-09 1.400 13.296
2015-08-06 1.340 6.714
2015-05-15 1.300 3.582
2014-12-22 1.080 3.120
2014-11-05 0.903 3.076

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • TerraForm Power has been paying a dividend for less than 10 years and during this time payments have been volatile (annual drop of over 20%).
  • TerraForm Power has only been paying a dividend for 5 years, and since then dividends per share have fallen.
Current Payout to shareholders
What portion of TerraForm Power's earnings are paid to the shareholders as a dividend.
  • The company is paying a dividend however it is incurring a loss.
Future Payout to shareholders
  • The company is expected to pay a dividend in 3 years whilst incurring a loss, therefore the dividend is not expected to be well covered.
X
Income/ dividend checks
We assess TerraForm Power's dividend by checking for:
  1. Firstly is the company paying a notable dividend (greater than 0.8%) - if not then the rest of the checks are ignored.
  2. Is current dividend yield above the bottom 25% of dividend payers? (1 check)
  3. Is current dividend yield above the top 25% of dividend payers? (1 check)
  4. Have they paid a dividend for 10 years, and during this period has the dividend been volatile (drop of more than 25%)? (1 check)
  5. If they have paid a dividend for 10 years has it increased in this time? (1 check)
  6. How sustainable is the dividend, can TerraForm Power afford to pay it from its earnings today and in 3 years (Payout ratio less than 90%)? (2 checks)
  7. TerraForm Power has a total score of 2/6, see the detailed checks below.


Full details on the Dividends part of the Simply Wall St company analysis model.

TERP Management

 What is the CEO of TerraForm Power's salary, the management and board of directors tenure and is there insider trading?

Management is one of the most important areas of a company. We look at unreasonable CEO compensation, how long the team and board of directors have been around for and insider trading.
CEO
John Stinebaugh
COMPENSATION $0
AGE 52
TENURE AS CEO 2.1 years
CEO Bio

Mr. John Marcus Stinebaugh, CFA serves as a Managing Partner of Infrastructure at Brookfield Asset Management Inc. He has been the Chief Executive Officer of TerraForm Power, Inc. since October 16, 2017. Mr. Stinebaugh serves as Managing Partner and Senior Vice President of Brookfield Asset Management. He is responsible for business development for Brookfield’s energy infrastructure business, focusing on acquisitions of energy infrastructure assets in North America and other jurisdictions. He is a Managing Partner of Infrastructure at Brookfield Infrastructure Partners L.P., since 2018. Mr. Stinebaugh served as the Chief Operating Officer at Brookfield Property Group LLC. He is a professional at Credit Suisse First Boston Inc. He served as the Chief Operating Officer of Brookfield Property Partners Limited at Brookfield Property Partners L.P. since May 2015 until August 15, 2016. He served as the Chief Financial Officer at Brookfield Property Group LLC since July 1, 2013. He served as the Chief Financial Officer at Brookfield Property Partners L.P. from 2013 to May 2015. He served as the Chief Financial Officer of Brookfield Infrastructure Manager Inc. Mr. Stinebaugh served as the Chief Financial Officer of Brookfield Infrastructure Partners Limited, a Managing General Partner of Brookfield Infrastructure Partners L.P. until September 27, 2013 and its Senior Vice President. He was with Credit Suisse Securities (U.S.A.) LLC. He worked in the energy group with responsibility for mergers and acquisitions and leveraged financings. He Co-Lead the $2.5 billion acquisition of Transelec. During his tenure at Brookfield Asset Management and Credit Suisse, he worked on announced acquisitions and divestitures of energy infrastructure companies in excess of $15 billion. He served as a Director of Sociedad Concesionaria Vespucio Norte Express S.A. He received his Chartered Financial Analyst designation in 1995. Mr. Stinebaugh graduated with a degree in Economics from Harvard University.

CEO Compensation
  • Insufficient data for John to compare compensation growth.
  • Insufficient data for John to establish whether their remuneration is reasonable compared to companies of similar size in United States of America.
Management Team Tenure

Average tenure and age of the TerraForm Power management team in years:

1.7
Average Tenure
46.5
Average Age
  • The average tenure for the TerraForm Power management team is less than 2 years, this suggests a new team.
Management Team

Valerie Hannah

TITLE
Chief Operating Officer
COMPENSATION
$656K
AGE
52
TENURE
2.1 yrs

John Stinebaugh

TITLE
Chief Executive Officer
AGE
52
TENURE
2.1 yrs

Michael Tebbutt

TITLE
CFO & Chief Accounting Officer
AGE
41
TENURE
1 yrs

Sherif El-Azzazi

TITLE
Head of Investor Relations

William Fyfe

TITLE
General Counsel & Secretary
AGE
37
TENURE
1.3 yrs
Board of Directors Tenure

Average tenure and age of the TerraForm Power board of directors in years:

2.1
Average Tenure
52
Average Age
  • The average tenure for the TerraForm Power board of directors is less than 3 years, this suggests a new board.
Board of Directors

Brian Lawson

TITLE
Chairman of the Board
AGE
60
TENURE
2.1 yrs

Christian Fong

TITLE
Independent Director
COMPENSATION
$170K
AGE
42
TENURE
2.8 yrs

Mac McFarland

TITLE
Independent Director
COMPENSATION
$56K
AGE
50
TENURE
2.1 yrs

Harry Goldgut

TITLE
Director
AGE
63
TENURE
2.1 yrs

Richard Legault

TITLE
Director
AGE
60
TENURE
2.1 yrs

Sachin Shah

TITLE
Director
AGE
42
TENURE
2.1 yrs

Carolyn Burke

TITLE
Independent Director
COMPENSATION
$113K
AGE
52
TENURE
1.5 yrs
Who owns this company?
Recent Insider Trading
  • No 3 month open market individual insider trading information.
Recent Insider Transactions
Announced Type Name Entity Role Start End Shares Max Price ($) Value ($)
10. Oct 19 Buy Brookfield Asset Management Inc. Company 08. Oct 19 08. Oct 19 2,981,514 $16.77 $49,999,990
17. May 19 Buy Christian Fong Individual 15. May 19 15. May 19 2,000 $13.43 $26,870
X
Management checks
We assess TerraForm Power's management by checking for:
  1. Is the CEO's compensation unreasonable compared to market cap? (1 check)
  2. Has the CEO's compensation increased more than 20% whilst the EPS is down more then 20%? (1 check)
  3. Is the average tenure of the management team less than 2 years? (1 check)
  4. Is the average tenure of the board of directors team less than 3 years? (1 check)
  5. TerraForm Power has a total score of 0/6, this is not included on the snowflake, see the detailed checks below.


Note: We use the top 6 management executives and board members in our calculations.

Note 2: Insider trading include any internal stakeholders and these transactions .

Full details on the Management part of the Simply Wall St company analysis model.

TERP News

Simply Wall St News

When Will TerraForm Power Inc (NASDAQ:TERP) Breakeven?

TerraForm Power, Inc., together with its subsidiaries, owns and operates clean power generation assets. … Many investors are wondering the rate at which TERP will turn a profit, with the big question being “when will the company breakeven?” … I’ve put together a brief outline of industry analyst expectations for TERP, its year of breakeven and its implied growth rate

Simply Wall St -

2 Days Left To Cash In On TerraForm Power Inc (NASDAQ:TERP) Dividend, Should Investors Buy?

Important news for shareholders and potential investors in TerraForm Power Inc (NASDAQ:TERP): The dividend payment of $0.19 per share will be distributed into shareholder on 15 June 2018, and the stock will begin trading ex-dividend at an earlier date, 31 May 2018. … Check out our latest analysis for TerraForm Power Here's how I find good dividend stocks Whenever I am looking at a potential dividend stock investment, I always check these five metrics: Is its annual yield among the top 25% of dividend-paying companies? … Given that this is purely a dividend analysis, I urge potential investors to try and get a good understanding of the underlying business and its fundamentals before deciding on an investment.

Simply Wall St -

What You Must Know About TerraForm Power Inc's (NASDAQ:TERP) Financial Strength

How does TERP’s operating cash flow stack up against its debt? … Additionally, TERP has produced $191.8M in operating cash flow in the last twelve months, resulting in an operating cash to total debt ratio of 4.84%, indicating that TERP’s current level of operating cash is not high enough to cover debt. … With a high level of debt on its balance sheet, TERP could still be in a financially strong position if its cash flow also stacked up.

Simply Wall St -

Is There Now An Opportunity In TerraForm Power Inc (NASDAQ:TERP)?

Great news for investors – TerraForm Power is still trading at a fairly cheap price. … This is because TerraForm Power’s beta (a measure of share price volatility) is high, meaning its price movements will be exaggerated relative to the rest of the market. … Although value investors would argue that it’s the intrinsic value relative to the price that matter the most, a more compelling investment thesis would be high growth potential at a cheap price.

Simply Wall St -

Should TerraForm Power Inc's (NASDAQ:TERP) Earnings Decline In Recent Times Worry You?

Measuring TerraForm Power Inc's (NASDAQ:TERP) track record of past performance is a useful exercise for investors. … This means that any recent headwind the industry is facing, it’s hitting TerraForm Power harder than its peers.What does this mean? … TerraForm Power's track record can be a valuable insight into its earnings performance, but it certainly doesn't tell the whole story.

Simply Wall St -

An Intrinsic Value Calculation For TerraForm Power Inc (TERP) Shows It's 37.75% Undervalued

5-year cash flow forecast 2017 2018 2019 2020 2021 Levered FCF (USD, Millions) $379.00 $382.00 $271.00 $317.07 $367.80 Source Analyst x1 Analyst x1 Analyst x1 Extrapolated @ (17%, capped from 52.15%) Extrapolated @ (16%, capped from 52.15%) Present Value Discounted @ 10.9% $341.76 $310.63 $198.72 $209.65 $219.31 Present Value of 5-year Cash Flow (PVCF)= $1,280 The second stage is also known as Terminal Value, this is the business's cash flow after the first stage. … Terminal Value (TV) = FCF2021 × (1 + g) ÷ (r – g) = $368 × (1 + 2.5%) ÷ (10.9% – 2.5%) = $4,473 Present Value of Terminal Value (PVTV) = TV / (1 + r)5 = $4,473 / ( 1 + 10.9%)5 = $2,667 The total value is the sum of cash flows for the next five years and the discounted terminal value, which results in the Total Equity Value, which in this case is $3,947. … NasdaqGS:TERP Intrinsic Value Nov 14th 17 Important assumptions I'd like to point out that the most important inputs to a discounted cash flow are the discount rate and of course the actual cash flows.

Simply Wall St -

TERP Company Info

Description

TerraForm Power, Inc., together with its subsidiaries, owns and operates clean power generation assets. The company operates through three segments: Solar, Wind, and Regulated Solar and Wind. As of December 31, 2018, its portfolio consisted of solar and wind projects located in the United States, Canada, Spain, Chile, Portugal, the United Kingdom, and Uruguay with a combined nameplate capacity of 3,738 megawatts. The company was formerly known as SunEdison Yieldco, Inc. and changed its name to TerraForm Power, Inc. in May 2014. TerraForm Power, Inc. was founded in 2014 and is headquartered in New York, New York.

Details
Name: TerraForm Power, Inc.
TERP
Exchange: NasdaqGS
Founded: 2014
$3,487,396,945
227,044,072
Website: http://www.terraformpower.com
Address: TerraForm Power, Inc.
200 Liberty Street,
14th Floor,
New York,
New York, 10281,
United States
Listings
Exchange Symbol Ticker Symbol Security Exchange Country Currency Listed on
NasdaqGS TERP Class A Common Stock Nasdaq Global Select US USD 18. Jul 2014
DB 2T41 Class A Common Stock Deutsche Boerse AG DE EUR 18. Jul 2014
Number of employees
Current staff
Staff numbers
177
TerraForm Power employees.
Industry
Renewable Electricity
Utilities
Company Analysis and Financial Data Status
Area Date (UTC time)
Company Analysis updated: 2019/11/14 00:35
End of day share price update: 2019/11/13 00:00
Last estimates confirmation: 2019/11/13
Last earnings filing: 2019/11/12
Last earnings reported: 2019/09/30
Last annual earnings reported: 2018/12/31


All dates and times in UTC. All financial data provided by Standard & Poor’s Capital IQ.

Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.