Hi Cedrick,
Polaris Infrastructure is a decent renewable energy company. The company has been held back in recent years to to unrest in Nicaragua. Unrest has since calmed, and it had decent 2019. The company is also expanding operations beyond Nicaragua into Peru.
Now that it has two Peru operations in service, it is expected to increase cash flow per share by 8-10%. It pays a healthy dividend 6.47% that is well covered. The dividend accounts for only 66% of earnings and only 40% of free cash flow.
It has plenty of growth prospects in the queue and is expected to almost double production in the next 36-48 months. Trading at only 8.24 times forward earnings and a price to book ratio below one (0.66), the company provides excellent value.
It is worth pointing out that the company usually trades at a discount because of where it operates. However, in my opinion, the company is taking the right steps to diversify. It has dropped considerable from its pre-COVID-19 highs, and has yet to recover.
It is unclear to what extent (if any) operations have been impacted. It was one of the few companies to have yet to comment on COVID-19. On the bright side, it announced a quarterly dividend inline with previous. The company is expected to report earnings at the end of March.
It is one we have kept our eye on and one you my hear more about soon.
Mat